Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 3 February 2023
Middleboro Financial Adviser Pleads Guilty to Investment Adviser FraudRead the Press Release
BOSTON – A Middleboro financial adviser pleaded guilty today in federal court in Boston for defrauding his elderly and otherwise vulnerable clients and stealing the victims’ retirement assets.
Paul R. McGonigle, 67, pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 22, 2023. McGonigle was initially charged in June 2021 and later charged in a superseding indictment in February 2022.
McGonigle served as a financial adviser for the victims, many of whom were elderly, one of whom had dementia, and another who suffered a traumatic brain injury. Beginning no later than February 2015, McGonigle caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses. To carry out his scheme, McGonigle posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
The charge of investment adviser fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of money laundering provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Massachusetts Insurance Fraud Bureau provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Methamphetamine Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Margaret Catherine Lynch (36, Bradenton) to 5 years and 10 months in federal prison for conspiracy to distribute 50 grams or more of methamphetamine. Lynch had pleaded guilty on October 13, 2022.
According to court documents, on October 27, 2020, Lynch and a co-conspirator sold 28 grams of methamphetamine to a confidential informant. On November 5, 2020, Lynch and her co-conspirator sold an additional 56 grams of methamphetamine to a confidential informant.
On July 22, 2021, law enforcement officers served a search warrant at Lynch’s residence. The officers seized more than 70 grams of methamphetamine and drug packaging materials during the search of the home.
This case was investigated by Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Hardee County Sheriff’s Office, and the DeSoto County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Mailbox Raider Is Sentenced to Prison for Bank FraudRead the Press Release
ASHEVILLE, N.C. – Phyllis Ann Garcia, 31, of Hudson, N.C., was sentenced yesterday to 54 months in prison for bank fraud and related charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Garcia was also ordered to serve three years of supervised release after she completes her prison term and to pay $18,418.16 in restitution.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and court hearings, between 2020 and 2021, Garcia and her co-conspirators stole checks, money orders, credit cards, and other financial and personal identifying information (PII) of victims in Caldwell and Catawba Counties and used it to defraud banks and other financial institutions. Garcia obtained the victims’ PII, debit cards, credit cards, checks or money orders from the homes of acquaintances or stole them from residential and business mailboxes, an activity Garcia and her co-conspirators referred to as “mailboxing.” Garcia and her co-conspirators forged the victims’ signatures or altered the names on the stolen checks and money orders, cashed them, and split the proceeds. Court records show that Garcia and the co-conspirators also used victims’ debit cards and credit cards to make purchases or used the victims’ stolen PII to obtain credit cards in their names. According to court records, at least 247 individuals were victims of Garcia’s mail theft scheme. Law enforcement also determined that Garcia and her co-conspirators were responsible for the theft of at least 495 pieces of mail from residential and business mailboxes.
On August 31, 2022, Garcia pleaded guilty to conspiracy to commit bank fraud, access device fraud, and bank fraud. She is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI, USPIS, the Catawba County Sheriff’s Office, the Caldwell County Sheriff’s Office and the Hickory Police Department for their investigation of the case.
The U.S. Attorney’s Office in Asheville prosecuted the case.
Leader of the Pagans Motorcycle Club Sentenced to 75 Years in Prison for Methamphetamine Distribution, Firearm Distribution and Money Laundering ConvictionsRead the Press Release
WILMINGTON, N.C. – Christopher Lamar Baker, 49, a Raleigh-based national leader of the Pagans Motorcycle Club – which is recognized by law enforcement as an Outlaw Motorcycle Gang - was sentenced today to 900 months in prison following a conviction by a jury in September for drug trafficking, firearm, and money laundering charges.
Baker was a “13” in the Pagans Motorcycle Club prior to his November 2021 arrest by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). This designation means that he was one of only thirteen national leaders in the United States. This case is part of an ongoing operation that has resulted in the indictment of 20 individuals, including Baker.
“The circumstances of this case highlight the coordinated action that we, as law enforcement, are taking to address organized crime and the growing epidemic of methamphetamine in our community,” said U.S. Attorney Michael Easley. “It should serve as a warning to gangs and other criminal enterprises perpetrating violence. We will prosecute you and seek sentences that fit the crimes.”
According to court documents and other information presented in court, Baker supplied over 268 kilograms of methamphetamine into the Raleigh area and surrounding states on the East Coast. Baker was convicted by a jury of 17 counts, including conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession of firearm in furtherance of drug trafficking crimes—including a machine gun—and conspiracy to commit money laundering.
“The Raleigh Police Department is proud to work alongside our federal partners to investigate and prosecute those who seek to destroy our community with violence and drugs,” said Raleigh Police Chief Estella Patterson. “Removing this very dangerous person from our streets was an extraordinary step in making our community and state safer. By disrupting illegitimate criminal enterprises that seek to traffic guns and drugs into our community, we send a message that we will not tolerate the harm these dangerous organizations cause. Making Raleigh the safest city in the nation remains the top priority of the Raleigh Police Department. We can only do so through collaboration with the community, local and state law enforcement, and our federal partners. We thank the United States Attorney’s Office Eastern District, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Raleigh/Wake City-County Bureau of Identification, and the United States Marshals Service for their strong partnership.”
“ATF has a long history with outlaw motorcycle gangs, recognizing that these groups are often tied closely with a number of criminal acts, including gun violence, firearms trafficking, and drug trafficking.” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “This was a strategic, collaborative effort focused on disrupting a dangerous and violent criminal network.”
Through the course of this investigation, it was determined that Baker was the leader of the Pagan Motorcycle Club (“PMC”) in North Carolina, a wholly illegitimate criminal enterprise. The PMC is recognized internationally by law enforcement as an Outlaw Motorcycle Gang ("OMG") criminal enterprise that has leaders across the United States of America and Puerto Rico. The PMC has a long history of drug trafficking, firearms trafficking, and violence in the areas where it operates.
Baker has been described as the leader of the North Carolina PMC. According to numerous law enforcement intelligence units, he is believed to have previously held the rank of President of the Raleigh chapter of the PMC prior to becoming a “13.” Baker was responsible for the acquisition and distribution of kilogram quantities of methamphetamine for the Drug Trafficking Organization (“DTO”) linked to the PMC. Baker’s DTO is responsible for the distribution of methamphetamine and firearms across multiple states, including North Carolina.
In his Pagan leadership position, Baker directed members of his organization in distributing and selling methamphetamine in Raleigh and surrounding areas. Baker’s sources of supply for methamphetamine and firearms lived in the Atlanta area, and he would have various members of the Pagans drive him from North Carolina to the Atlanta area to pick up methamphetamine and firearms for distribution in North Carolina and surrounding states.
Baker also routinely used and directed violence to promote his narcotics trafficking. Baker was frequently armed; examples of his violence include the directed torture of a Pagan pledge who allegedly stole from another member. In this case, the pledge’s fingers were cut off using a table saw. Baker also directed the murder of an individual who sold him fake drugs. Raleigh Police and ATF had to place that individual into protective custody.
The prosecution of Baker was a part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF) Diamond Ice. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This investigation spanned into the West Virginia, South Carolina, and Georgia areas where kilogram quantities of methamphetamine were distributed into Raleigh utilizing a complex network of Pagans in surrounding states who have also been indicted in this case. Twenty individuals, including Baker have been indicted. Seven defendants have been convicted and sentenced, and nine others are awaiting sentencing.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raleigh Police Department led the investigation with assistance from the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. Assistant U.S. Attorneys Kelly L. Sandling and Robert Dodson prosecuted the case.
Other agencies involved in the investigation include the N.C. Highway Patrol, the Virginia State Police (VSP), the Dekalb County Police Department (GA), the Barrow County Sheriff’s Office (GA), the Georgia State Patrol (GSP), the Gwinnett County Police Department (GA), the Cleveland County Sheriff’s Department (NC), the S.C. Highway Patrol, the Craven County Sheriff’s Office (NC), the Lexington County Sheriff’s Department (SC) and the Reidsville Police Department (NC).
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00434-M-1.
Leader of bulk fentanyl, heroin, cocaine, meth & marijuana distribution operation pleads guiltyRead the Press Release
COLUMBUS, Ohio – The lead of 11 defendants charged as part of a national narcotics distribution operation bringing drugs into Central Ohio from California pleaded guilty in federal court here today.
Isabel Odir Castellanos, of Los Angeles, and the other defendants were arrested in June 2022.
According to court documents, Castellanos transported narcotics from Los Angeles to Columbus via semi-truck. Castellanos is a business owner of a transportation company and a semi-truck driver who frequently travels across the United States.
Castellanos delivered the narcotics to a co-defendant’s residence in Columbus, which served as a stash house. Co-conspirators then allegedly delivered the drugs to mid-level retail distributors. Those mid-level retailers then allegedly sold the drugs in Central Ohio, Youngstown, Ohio, Springfield, Ohio and in West Virginia.
Castellanos would then collect the drug proceeds before returning to California.
This case involves what is believed to be the largest single fentanyl seizure in the Southern District of Ohio, involving millions of dollars’ worth of the drug.
As part of this investigation, law enforcement has seized more than 100 pounds of narcotics, including 115,000 fentanyl-laced pills that make up part of the 76 kilograms of total fentanyl, nearly half a million dollars in cash, 7 firearms and 4 vehicles.
Charges remain pending against 10 individuals from Columbus, Springfield and Youngstown, Ohio, and from West Virginia, and nine of those individuals have pleaded guilty to federal drug trafficking conspiracy crimes.
Many of the individual drug transactions charged involve tens of thousands of dollars. For example, one drug transaction detailed in an affidavit describes a co-defendant transporting 5,000 fentanyl pills to another co-defendant’s home in Columbus in exchange for $36,000.
Conspiring to distribute or possess with intent to distribute 400 grams or more of fentanyl is a federal crime punishable by at least 10 years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Mr. Parker and Mr. Greene commended the cooperative investigation including the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Ohio Narcotics Intelligence Center, Ohio State Highway Patrol and Springfield Police Department. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
# # #
Kingston Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas O’Bryan, age 41, of Kingston, New York, pled guilty yesterday to distribution and possession of child pornography. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
O’Bryan admitted that between March 19 and September 22, 2020, he traded child pornography on a social media application using the screenname “irishbstrdinc.” The defendant also admitted that on September 22, 2020, he possessed child pornography. The child pornography images and videos distributed and possessed by the defendant portrayed sadistic and masochistic conduct, and the sexual abuse and exploitation of toddlers.
The distribution of child pornography charge carries a mandatory minimum term of 5 years and a maximum term of 20 years in prison. The possession of child pornography charge carries a maximum term of 20 years. O’Bryan also faces a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, forfeiture to the United States of property used to commit his offenses, restitution to identified victims, and he will have register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Sentencing is scheduled for July 13, 2023, in Albany, before United States District Judge Glenn T. Suddaby.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police, and the Colonie and Rotterdam Police Departments. Assistant United States Attorney Rachel L. Williams is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Kerry Inc. Pleads Guilty and Agrees to Pay $19.228 Million in Connection with Insanitary Plant Conditions Linked to 2018 Salmonella Poisoning OutbreakRead the Press Release
Food and ingredient manufacturing company Kerry Inc. pleaded guilty today to a charge that it manufactured breakfast cereal under insanitary conditions at a facility in Gridley, Illinois, that was linked to a 2018 salmonellosis outbreak.
Pursuant to a plea agreement filed with a criminal information in federal court in Peoria, Illinois, Kerry pleaded guilty to a misdemeanor count of distributing adulterated cereal marketed as Kellogg’s Honey Smacks. The company also agreed to pay a criminal fine and forfeiture amount totaling $19.228 million. If the guilty plea is accepted by the court, the $19.228 million fine and forfeiture will constitute the largest-ever criminal penalty following a criminal conviction in a food safety case.
“Consumers depend on food manufacturers to take appropriate steps to ensure food safety,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department is committed to holding accountable those who fail to meet this obligation.”
“Today’s announcement should serve as a reminder that food manufacturers have a critical responsibility to produce and sell food that is safe for American consumers to eat,” said Assistant Commissioner Justin D. Green for the Food and Drug Administration’s (FDA) Office of Criminal Investigations. “We will continue to pursue and bring to justice those who put the public health at risk by allowing contaminated foods to enter the U.S. marketplace.”
The criminal information unsealed today alleges that Kerry manufactured Kellogg’s Honey Smacks cereal under insanitary conditions and distributed it in violation of the Food, Drug, and Cosmetic Act. According to the plea agreement, tests performed as part of Kerry’s environmental monitoring program found numerous instances of Salmonella in the environment at the Gridley facility. During the time period June 2016 to June 2018, routine environmental tests detected Salmonella in the plant approximately 81 times, including at least one positive Salmonella sample each month. According to the plea agreement, employees at the Gridley facility routinely failed to implement corrective and preventative actions (CAPAs) to address positive Salmonella tests.
In June 2018, the FDA and the Centers for Disease Control and Prevention (CDC) announced that an ongoing outbreak of salmonellosis cases in the United States could be traced to Kellogg’s Honey Smacks cereal produced at Kerry’s Gridley facility. In response, Kellogg’s voluntarily recalled all Honey Smacks manufactured at the plant since June 2017. The CDC eventually identified more than 130 cases of salmonellosis linked to the outbreak, with illness onset dates beginning in March 2018. The CDC did not identify any deaths related to the outbreak.
Salmonellosis can cause symptoms such as diarrhea, fever, and abdominal cramps that last several days in healthy adults. Absent prompt treatment, salmonellosis can cause severe dehydration and even death in infants, young children, the elderly, transplant recipients, pregnant women, and individuals with weakened immune systems.
In a related case, Ravi K. Chermala, Kerry’s Director of Quality Assurance until September 2018, previously pleaded guilty to three misdemeanor counts of causing the introduction of adulterated food into interstate commerce. Chermala oversaw the sanitation programs at various Kerry manufacturing plants, including the Gridley facility. In pleading guilty, Chermala admitted that between June 2016 and June 2018, he directed subordinates not to report certain information to Kellogg’s about conditions at the Gridley facility. In addition, Chermala admitted that he directed subordinates at the Gridley facility to alter the plant’s program for monitoring for the presence of pathogens in the plant, limiting the facility’s ability to accurately detect insanitary conditions. Chermala is scheduled to be sentenced on Feb. 16.
The court set a March 14 sentencing date for Kerry. Further information about the Kerry and Chermala cases will be posted to the Department’s Information for Victims in Large Cases website at https://www.justice.gov/largecases.
FDA’s Office of Criminal Investigations is investigating the matter.
Senior Trial Attorney James T. Nelson of the Civil Division's Consumer Protection Branch is prosecuting the case. Former Trial Attorney Cody Matthew Herche and Associate Chief Counsel Jason Hadges of FDA’s Office of Chief Counsel provided substantial assistance.
For more information about the enforcement efforts of the Consumer Protection Branch, visit the Branch’s website at http://www.justice.gov/civil/consumer-protection-branch
Justice Department Withdraws Outdated Enforcement Policy StatementsRead the Press Release
The Justice Department's Antitrust Division announced today the withdrawal of three outdated antitrust policy statements related to enforcement in healthcare markets: Department of Justice and FTC Antitrust Enforcement Policy Statements in the Health Care Area (Sept. 15, 1993); Statements of Antitrust Enforcement Policy in Health Care (Aug. 1, 1996); and Statement of Antitrust Enforcement Policy Regarding Accountable Care Organizations Participating in the Medicare Shared Savings Program (Oct. 20, 2011).
After careful review and consideration, the division has determined that the withdrawal of the three statements is the best course of action for promoting competition and transparency. Over the past three decades since this guidance was first released, the healthcare landscape has changed significantly. As a result, the statements are overly permissive on certain subjects, such as information sharing, and no longer serve their intended purposes of providing encompassing guidance to the public on relevant healthcare competition issues in today’s environment. Withdrawal therefore best serves the interest of transparency with respect to the Antitrust Division’s enforcement policy in healthcare markets. Recent enforcement actions and competition advocacy in healthcare provide guidance to the public, and a case-by-case enforcement approach will allow the Division to better evaluate mergers and conduct in healthcare markets that may harm competition.
“The healthcare industry has changed a lot since 1993, and the withdrawal of that era’s out of date guidance is long overdue,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “The Antitrust Division will continue to work to ensure that its enforcement efforts reflect modern market realities.”
Guidance documents are non-binding and do not create legal rights or obligations. Antitrust enforcement and competition advocacy in healthcare remain important parts of the division’s mission, and the division will continue to vigorously enforce the antitrust laws in the healthcare industry.
Jury Convicts Sex Offender of Attempting to Entice a MinorRead the Press Release
UTICA, NEW YORK – Charles Wager, age 55, of Castleton-on-Hudson, New York, was convicted yesterday of attempting to entice a minor into engaging in unlawful sexual activities, following a 4-day trial. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
The trial evidence established that in January and February 2021, Wager exchanged thousands of sexually explicit text messages with people he believed to be a 10-year-old girl and her mother. In these text messages, Wager, among other things, discussed performing different sexual acts with the 10-year-old and sent nude pictures of himself. Wager arranged to meet with the presumed mother and 10-year-old in person. On February 5, 2021, he travelled from Castleton-on-Hudson to Binghamton, New York, for the purpose of having sex with the presumed 10-year-old. The defendant was arrested shortly after his arrival.
In 2002, Wager pled guilty in Rensselaer County Court to rape in the third degree, after admitting to having sex with a then-15-year-old girl. He has been required to register as a sex offender ever since. Following his arrest in February 2021, Wager also admitted to sexually molesting two other minor victims several decades ago.
Sentencing is scheduled for June 8, 2023, before United States District Judge David N. Hurd in Utica, at which time the defendant faces a minimum term of imprisonment of 20 years, a maximum term of life, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. The defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The FBI Syracuse Mid-State Child Exploitation Task Force investigated this case. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and the Colonie Police Department. Assistant U.S. Attorneys Benjamin S. Clark and Thomas R. Sutcliffe prosecuted this case.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
Judge Finds Altoona Man Guilty of Distributing Child Sex Assault MaterialsRead the Press Release
JOHNSTOWN, Pa. – A former resident of Altoona, PA, has been found guilty of distribution of child pornography, U.S. Attorney Cindy K. Chung announced today.
Jamie Lee Richardson, 52, of Altoona, PA, was convicted by Senior United States District Judge Kim R. Gibson following a bench trial to Count One of an Information. According to information presented to the Court, from on or about October 30, 2014, Richardson did knowingly distribute a visual depiction of a minor engaged in sexually explicit conduct in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. All computer graphic files were shipped or transported in interstate or foreign commerce.
Richardson is scheduled to be sentenced on June 6, 2023.
The law provides for a minimum of 5 years in prison to a maximum of 20 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed on the defendant would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Richardson.
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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jasper County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A Buna man has been sentenced to 22 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Larry Wayne Free, 40, pleaded guilty on June 30, 2022, to possession with intent to distribute methamphetamine and was sentenced to 264 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 2, 2023.
According to information presented in court, in January 2021, law enforcement officials received information that Free was distributing methamphetamine from a residence in Nome, Texas. Free was located on Highway 90 and a traffic stop was initiated on the vehicle. A narcotics K9 unit alerted on the vehicle and a search revealed 1,948 grams of methamphetamine in the car. Free was indicted by a federal grand jury on April 6, 2022.
This case was investigated by the Drug Enforcement Administration, the Jefferson County Sheriff’s Office, the Beaumont Police Department and the Hardin County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Rachel Grove.
# # #
Jacksonville Contract Postal Carrier Sentenced for Theft of MailRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced former United States Postal Service contract mail carrier Randolph Varbelow (48, Jacksonville) to time served, approximately four months’ imprisonment. Varbelow was also ordered to serve a two-year term of supervised release and pay restitution to the victims. He had pleaded guilty to theft of mail matter on November 15, 2022.
According to court documents, Varbelow worked as a contract mail carrier from November 2021 through January 2022 and was assigned to deliver mail on a route in Duval and St. Johns Counties. In response to complaints about missing mail on his route, the U.S. Postal Service – Office of Inspector General conducted an investigation and linked multiple stolen Target gift cards to Varbelow through transaction records and surveillance video.
This case was investigated by U.S. Postal Service – Office of Inspector General. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto on Feb. 3 for an initial appearance on a criminal complaint was:
Ryan Creighton Doak, 48, of Washington, on charges of prohibited person in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute controlled substances. If convicted of the most serious crime, Doak faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Doak was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and Montana Highway Patrol investigated the case. PACER case reference 23-10.
Appearing in Missoula before U.S. District Judge Dana L. Christensen and pleading not guilty on Feb. 2 was:
Jamey Wayne Charon, Jr., 26, of Manhattan, on charges of possession with intent to distribute methamphetamine, distribution of meth and prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, Charon faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Charon was detained pending further proceedings. The Missouri River Drug Task Force investigated the case. PACER case reference 22-28.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 2 was:
Anthony Riley Smith, 28, of Missoula, on charges of sexual exploitation of a child, transportation of child pornography and distribution and receipt of child pornography. If convicted of the most serious crime, Smith faces a mandatory minimum 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release. Smith was detained pending further proceedings. The Missoula Police Department investigated the case. PACER case reference. 22-34.
Appearing in Missoula before U.S. District Judge Dana L. Christensen and pleading not guilty on Feb. 1 was:
Sheldon Anfernee Mykal Fisher, 29, of Ronan, on charges of possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Fisher faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Fisher was detained pending further proceedings. The Flathead Tribal Police, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 23-01.
Appearing in Missoula before U.S. District Judge Donald W. Molloy and pleading not guilty on Jan. 30 was:
Kenton Alan Shaull, 59, of Auburn, Washington, on charges of attempted coercion and enticement of a minor and travel with the intent to engage in illicit sexual activity. If convicted of the most serious crime, Shaull faces 10 years to life in prison, a $250,000 fine and a lifetime on supervised release. Shaull was detained pending further proceedings. The FBI Child Exploitation and Human Trafficking Task Force and Missoula County Sheriff’s Office investigated the case. PACER case reference. 23-04.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 1 was:
Terrance Travis Aimsback, 34, of Heart Butte, on charges of second degree murder. If convicted of the most serious crime, Aimsback faces life in prison, a $250,000 fine and five years of supervised release. Aimsback was detained pending further proceedings. The FBI investigated the case. PACER case reference. 23-07.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 3 was:
Alexandre Zdenek Davis, 26, of Billings, on charges of false statement during firearms transaction, felon in possession of a firearm, false statement in applying for a passport and aggravated identity theft. If convicted of the most serious crime, Davis faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release and a mandatory minimum two years consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft charge. Davis was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. PACER case reference. 22-106.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Individual Who Portrayed Himself as Experienced Stock Trader Sentenced to 30 Months' Imprisonment for Defrauding InvestorRead the Press Release
Gonzalo Ortiz was sentenced yesterday in federal court in Brooklyn by United States District Judge William F. Kuntz II, to 30 months in prison for defrauding an investor of nearly $600,000 by making false representations about Ortiz’s trading expertise and the profitability of various investments. The Court also ordered Ortiz to pay $224,500 in restitution to the victim and imposed two years of supervised release to follow his custodial sentence. In November 2021, Ortiz pleaded guilty to one count of investment advisor fraud.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance in this case.
Between approximately April 2015 and May 2017, Ortiz falsely represented himself to an investor (the “Victim”) as a successful investment adviser who had made profits for other individuals by trading stocks on their behalf. Ortiz convinced the Victim to allow him to invest the Victim’s money, promising significant returns. Based on those misrepresentations, the Victim made successive investments with Ortiz over a period of years. During this time, Ortiz falsely told the Victim that the investments were profitable and sent the Victim a false account statement to support these claims. In reality, Ortiz made poor trading decisions that resulted in the loss of a portion of the Victim’s money, and also stole some of the Victim’s money for himself, siphoning off portions of the investments to pay for personal expenses, including clothing, food and car payments. Ortiz controlled nearly $600,000 of the Victim’s money, stole approximately $224,500 for himself, and lost a significant amount of the Victim’s money to unprofitable trades.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith and Andrew D. Grubin are in charge of the prosecution.
The Defendant:
Gonzalo Ortiz
Age: 49
Hackensack, New JerseyE.D.N.Y. Docket No. 19-CR-161 (WFK)
Illinois Man Sentenced to 27 Months in PrisonRead the Press Release
HAMMOND – Wendell Burts, 25 years old, of Crete, Illinois, was sentenced by United States District Court Chief Judge Jon E. DeGiulio after pleading guilty to one count of Conspiracy to Commit Bank Fraud, announced United States Attorney Clifford D. Johnson.
Burts was sentenced to 27 months in prison, 2 years of supervised release and ordered to pay $190,178 to the victim bank that incurred the loss
According to documents in the case, between October 2020 and June 2021, Burts participated in a scheme with another individual to steal funds from customer accounts at the bank where the other individual was employed. The bank employee provided Burts with customers’ personal identification information, including names, social security numbers, addresses, dates of birth, driver’s license numbers and recent account transaction details. Burts used this confidential information to make changes to the accounts online and electronically transfer funds. Records show that 11 bank accounts were impacted by the scheme. Burts and his co-conspirator attempted to steal over $480,000 and were successful in stealing $190,178. The bank employee was also charged in this case, has pleaded guilty and is awaiting sentencing.
This case was investigated by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Abizer Zanzi.
Human Smuggler Sentenced to 51 Months in Fatal Christmas Day CrashRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorneys Paul Benjamin (619) 546-7579 and Larry Casper (619) 546-6734SAN DIEGO – Human smuggler Kevin Antonio Quevedo-Moncada, whose attempt to escape Border Patrol agents resulted in a Christmas-Day crash that killed one unauthized immigrant and seriously injured two others, was sentenced in federal court today to more than four years in prison.
When imposing the sentence, U.S. District Judge Cathy Ann Bencivengo said: “Human trafficking is a very serious offense. This case underscores the situation at its worst.” Judge Bencivengo also noted that, despite multiple opportunities to stop before the fatal crash, the defendant’s failure to do so coupled with the “nature and circumstances make this much more aggravated.”
Quevedo-Moncado, 23, pleaded guilty in October 2022, admitting that on December 25, 2021, he picked up three undocumented migrants hiding around Otay Mountain Wilderness, a remote area in San Diego County about 12 miles east of the city of Otay Mesa and just north of the Mexican border. When Border Patrol agents attempted to stop his car, Quevedo-Moncada sped into a nearby campground where he drove erratically, nearly hitting several Border Patrol cars. He escaped the campground by ramming a Border Patrol car positioned at the exit.
Quevedo-Moncado then continued to flee down a winding, dark rural road that was slick from the rain and lost control of the car, launching it off the road and into a tree, killing one of his passengers. The two other passengers, who both survived, were hospitalized in critical condition. One of them suffered, among other injuries, a broken jaw, a collapsed lung, eight rib fractures, and injuries to his spleen and kidneys, and had to be placed into a medically-induced coma before he was stabilized. CHP accident reconstructions showed that Quevedo-Moncado’s car was travelling at speeds of up to 93 miles per hour around a curve with a speed limit of 35 when he crashed. Please see photos below of the crashed vehicle, which were included with the government’s sentencing materials.
Quevedo-Moncada, who was not seriously hurt in the crash, pushed himself out through the windshield of his car and continued his effort to flee from Border Patrol agents. When they caught him, he continued to struggle to avoid being handcuffed. After his arrest, Quevedo-Moncada admitted he was being paid $2,000 to smuggle his passengers to Anaheim. Quevedo-Moncada also admitted that, following the crash, he heard one of his passengers moaning in pain and believed that the passenger was bleeding, but did not stop to help him. Quevedo-Moncado claimed that he did not assist because he did not know the man and because Quevedo-Moncado was also in pain.
“This was an aggravated crime motivated by profit and committed with no regard for human life,” said U.S. Attorney Randy Grossman. “The passengers were treated as disposable cargo with predictably tragic results. We will continue to hold unscrupulous human smugglers responsible for the consequences of their greedy and deadly actions.”
Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“We are grateful for the hard work and tenacity that our Border Patrol agents and partners in the U.S. Attorney’s Office demonstrated in bringing this criminal to justice,” said San Diego Sector Chief Patrol Agent Aaron Heitke. “To prevent further tragedy, it is imperative that we continue holding smugglers and their transportation cells accountable for reckless and life-threatening behavior.”
The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border, from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Homeland Security Investigations, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
DEFENDANTS Case Number 22-CR-0038-CAB
Kevin Antonio Quevedo-Moncada Age: 23 Lake Forest, California
SUMMARY OF CHARGES
Transportation of Certain Aliens Resulting in Death – Title 8 U.S.C. Section 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iv)
Maximum Penalties – Life in prison or death; $250,000 fine
Transportation of Certain Aliens Resulting in Serious Bodily Injury – Title 8 U.S.C. Section 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iii)
Maximum Penalties – Twenty years in prison; $250,000 fine
INVESTIGATING AGENCIES
United States Border Patrol
Federal Bureau of InvestigationHudson Physician Sentenced to Prison and Ordered to Pay $2.1 Million in Restitution for Role in Prescription Drug Kickback ConspiracyRead the Press Release
AKRON – Deepak Raheja, 66, of Hudson, Ohio, was sentenced today to 30 months in prison by U.S. District Judge Sara Lioi after he pleaded guilty to his role in a pharmaceutical kickback conspiracy. In addition to the prison sentence, Raheja was ordered to surrender his medical license, pay $2,163,995 in restitution, and a $50,000 fine.
According to court documents, between February 2011 and July 2016, Raheja and co-defendants Frank Mazzucco, Gregory Hayslette, and Bhupinder Sawhny conspired together to increase the number of prescriptions that Raheja and Sawhny wrote for Nuedexta, a prescription drug, in exchange for the payment of monetary kickbacks and other items of value.
Court records say that Mazzucco and Hayslette were employed as pharmaceutical sales representatives by Avanir Pharmaceuticals in the region where Raheja and Sawhny practiced. Avanir Pharmaceuticals manufactured Nuedexta, a drug approved by the FDA solely to treat pseudobulbar (PBA). PBA is a condition characterized by involuntary, sudden, and frequent episodes of uncontrollable laughing and crying.
According to court records, Avanir promoted Nuedexta through a speaker’s bureau, in which Avanir representatives engaged doctors to speak about and promote Nuedexta to other medical professionals. Typical speaking engagements involved dinner at a high-end restaurant in which the doctor made a presentation with a slide deck provided by Avanir. An Avanir sales representative was responsible for inviting attendees and attending the presentation.
Court documents state that Raheja joined Avanir’s speaker’s bureau in February 2011 and gave approximately 211 speaking presentations at various restaurants and doctor’s offices between October 2011 and April 2016. For each of these purported presentations, court documents claim that Raheja received approximately $1,500.
During this timeframe, court documents say that Raheja received approximately $331,550 in total payments from Avanir and wrote approximately 10,088 Nuedexta prescriptions – the highest in the country.
As part of the conspiracy, Mazzucco and Hayslette incentivized physicians, including Raheja and Sawhny to write Nuedexta prescriptions through various means, such as arranging speaker’s bureau programs, which were mostly social events; honoraria payments; the falsification of sign-in sheets from speaking engagements to maximize payments and providing food and beverages to doctors and their office staff.
Court documents explain that Raheja and Sawhny took steps in return for these things of value, including writing more Nuedexta prescriptions; causing the submission of billings to Medicare and Medicaid for Nuedexta prescriptions for patients that did not have PBA; falsely diagnosing patients with PBA and recording fictitious symptoms in patient records to support a diagnosis of PBA.
Mazzucco and Hayslette are both scheduled to be sentenced in February 2023 for their roles in the scheme. Sawhny was sentenced to serve three years’ probation and pay $40,126.22 in restitution for his role in the scheme.
This case was investigated by the Cleveland FBI, the Office of Inspector General (OIG) for the United States Department of Health and Human Services (HHS), and the Ohio Attorney General’s Healthcare Fraud Section.
This case was prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
Hoover Criminal Gang Member Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A Hoover Criminal Gang member and Portland resident was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Anthony Devion Bagsby, 31, was sentenced to 24 months in federal prison and 3 years’ supervised release.
According to court documents, as part of an ongoing federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos online of Bagsby, a convicted felon, possessing firearms. Further investigation revealed that Bagsby frequented an apartment occupied by known Hoover Criminal Gang members on Halsey Street in northeast Portland.
On April 16, 2021, while executing a federal search warrant on the apartment, investigators arrested Bagsby and several other individuals. They found a loaded Springfield XD-40 handgun in a basket in the kitchen. Three of the rounds found in the handgun were colored blue. In the living room, investigators found several items connected to Bagsby, including prescription medication and mail. In the same area, they found an empty magazine; several dozen 9mm cartridges; four .40 caliber rounds including one blue round matching the bullets found in the loaded handgun, and a plastic bag of methamphetamine. Investigators later located text messages on Bagsby’s phone wherein he bragged about obtaining a “brand new XD 40.”
On July 20, 2021, a federal grand jury indicted Bagsby on two counts of illegally possessing a firearm as a convicted felon. On October 18, 2022, he pleaded guilty.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that MARIO RENE REYES-CARDONA, age 51, pleaded guilty on February 2, 2023 as charged to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to documents filed in court and signed by him, MARIO RENE REYES-CARDONA (“REYES-CARDONA”) admitted to reentering the United States after he was previously deported on December 18, 2013. REYES-CARDONA faces a maximum term of imprisonment of two years, a maximum fine of $250,000.00, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
Honduran National Charged with Transporting Illegal AliensRead the Press Release
TOLEDO – A federal grand jury has returned a three-count indictment charging Nestor Alfredo Figueroa-Murillo, 29, of Honduras, with three counts of transporting illegal aliens unlawfully in the United States.
According to court documents, on Jan. 24, 2023, Border Patrol Agents performing patrol duties near a Service Plaza on the Ohio Turnpike in Sandusky County, Ohio, pulled over a vehicle driven by Figueroa-Murillo and discovered that he was transporting six other people inside the vehicle who were illegally inside the United States without authorization. Court documents state that agents then began an investigation into the matter and determined that the six people found inside the vehicle had been illegally transported into the United States.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This investigation was conducted by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorneys Robert N. Melching and Frank Spryszak.
Hendersonville Man Extradited from Morocco to Face Bank Fraud & Tax ChargesRead the Press Release
NASHVILLE – A Hendersonville, Tennessee man appeared before a U.S. Magistrate Judge in Nashville earlier today, after being extradited from Morocco to face an array of charges including bank fraud, tax fraud, and money laundering, announced U.S. Attorney Henry C. Leventis.
Scotty Thomas Lumley, 55, arrived in the Middle District of Tennessee last night after being extradited from Morocco to face charges in the U.S. In November 2020, Lumley flew to Morocco after becoming aware of a federal investigation. A federal grand jury in Nashville indicted Lumley in February 2022.
Lumley previously pleaded guilty to federal wire fraud and money laundering charges in 2015 and as alleged in the current indictment, he began committing additional federal crimes later that same year by keeping taxes withheld from his employees’ paychecks, rather than paying those funds over to the IRS.
The indictment also alleges that in 2017, the IRS attempted to recover approximately $119,000.00 which Lumley personally owed the government. In an attempt to settle his tax liability for $10,000, Lumley filed an offer-in-compromise falsely stating that the only vehicle he owned was a GMC 3500 with a negative value. In truth, however, he owned a 2012 Ferrari 458 Spider with significant equity.
In 2017 and 2018, Lumley obtained a series of bank loans after providing lenders with falsified documents showing that his personal net worth was more than $30 million. Lumley did not disclose that he had an outstanding tax liability of more than $119,000 and tricked the lenders into providing more than $3 million in loans.
While in Morocco, Lumley allegedly used a fabricated purchase order to defraud a Utah company of more than $500,000. In December 2021 a grand jury in the District of Utah charged him with wire fraud for this conduct and those charges are currently pending.
If convicted, Lumley faces up to 30 years in prison and a fine of up to $1 million.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case for the Middle District of Tennessee. The extradition was handled by the Justice Department’s Office of International Affairs with the cooperation of the Moroccan government and assistance from the U.S. Embassy in Morocco.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Halibut Cove Woman Indicted on Federal ChargesRead the Press Release
ANCHORAGE – A federal grand jury in Alaska returned an indictment charging a Homer woman
with attempted interference with the navigation of a seaplane and negligent operations of a vessel.According to court documents, Marian Beck, 68, operated her vessel in a reckless manner as she
made several close passing maneuvers in front of a seaplane full of passengers while it was taxiing
out of the waterway. Beck is a licensed mariner and operates commercially in Halibut Cove and the
surrounding area.The defendant was arraigned on February 3, 2023, before Chief U.S. Magistrate Judge Matthew S.
Scoble. If convicted, she faces a maximum of 21 years in prison. A federal district court judge will
determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Coast Guard Investigative Service (CGIS) with the help of the Alaska State Troopers (AST) are
investigating the case.Assistant U.S. Attorney Jack Schmidt and Special Assistant U.S. Attorney Amanda Gavelek are
prosecuting the case.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.###
Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S.Read the Press Release
ATLANTA – Following a nine-day trial, Ahamefule Aso Odus has been convicted by a federal jury on 12 counts of money laundering stemming from his role in a massive money laundering operation. Odus fled after testifying during his trial and is currently a fugitive.
“Odus and his co-conspirators laundered millions of dollars stolen from companies and individuals throughout the United States and abroad,” said U.S. Attorney Ryan K. Buchanan. “Although Odus is on the run, he cannot and will not evade justice for his crimes. We will continue to devote our office’s time and resources to uncovering these kinds of complex schemes and holding accountable those individuals who perpetrate them.”
“As the only defendant in “Operation Five Fingers” who refused to take a plea and elected to go to trial, this swift jury conviction proves the massive amount of evidence that law enforcement had of Odus and his coconspirators crimes,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No matter how elaborate or complicated the fraud scheme, the FBI and our federal partners will continue to uncover and unravel them to protect American citizens and businesses.”
“Ahamefule Aso Odus Jr. facilitated the theft of retirement plan assets by knowingly receiving fraudulently obtained funds from an individual’s ERISA covered retirement account into his business bank account. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s, Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ahamefule Aso Odus and his co-conspirators acted as money launderers for unknown fraudsters who scammed unsuspecting individuals and companies out of millions of dollars. Members of the conspiracy, including Odus, created sham companies and registered them with the Georgia Secretary of State. Those companies did not maintain a physical place to conduct business, did not earn legitimate income, and did not pay wages to employees. Instead, the conspirators used these sham companies to open bank accounts and then funnel fraud money through the accounts.
Upon receipt of the fraud proceeds, Odus and his co-conspirators quickly converted the money to their own use, and to the use of their criminal associates, through wire transfers, over-the-counter cash withdrawals, and the purchase of cashier’s checks. This conduct involved monetary transactions of more than $10,000 that were designed to conceal and disguise the nature, location, source, ownership, and control of these fraudulent proceeds.
Odus is one of 41 people originally charged in four related fraud and money laundering cases, known collectively as “Operation Five Fingers.” Together, members of this criminal organization laundered more than $30 million in fraud proceeds from victims of computer-enabled scams, including business email compromise schemes, romance fraud schemes, and retirement account takeover schemes.
To date, 39 of the 41 “Operation Five Fingers” defendants have been convicted. Twenty-five of the defendants have been sentenced, with sentences ranging from six months to eight years of incarceration. Charges against one defendant were dismissed after he died while he was a fugitive, and one defendant is scheduled to enter a guilty plea on March 10, 2023.
On January 30, 2023, a jury convicted Odus on one count of conspiracy to commit money laundering and three counts of concealment money laundering. The jury also convicted him of eight counts of transactional money laundering. In a bifurcated proceeding after the verdict, the jury forfeited $73,896 that had been seized from Odus.
Sentencing for Ahamefule Aso Odus, 30, of Atlanta, Georgia, is scheduled for May 9, 2023, at 9:30 a.m. before U.S. District Judge William M. Ray II.
This case was investigated by the Department of Labor, Office of Inspector General, the Federal Bureau of Investigation, the United States Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice. The investigating agencies received considerable assistance from numerous federal, state, and local law enforcement authorities throughout the investigation.
Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Time Deported Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that SANTOS RAMOS-CASTILLO, a/k/a “Santos Ramos-Castillo”, age 36, plead guilty as charged on February 1, 2023 to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) .
According to documents filed in court and signed by him, SANTOS RAMOS-CASTILLO (“RAMOS-CASTILLO”) admitted to reentering the United States after he was previously deported on November 16, 2015. He also admitted to being deported four other times prior to his November, 2015 deportation . If convicted, RAMOS-CASTILLO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Four Newburg Area Men Sentenced for Federal Drug Trafficking and Firearms ChargesRead the Press Release
Louisville, KY – Four men, originally from Mississippi but most recently living here, have been sentenced for their roles in a drug trafficking ring occurring in apartments located in the Newburg area of Louisville. The men have also been sentenced for illegally possessing numerous firearms after having previously been convicted of felonies.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
On Wednesday, in the United States District Court for the Western District of Kentucky, Seiko Ross, 38, was sentenced to 14 years and 7 months in prison followed by five years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine; possessing with the intent to distribute cocaine, fentanyl, marijuana, and five grams or more of methamphetamine; and being in possession of three firearms after having previously been convicted of the following felonies. On March 20, 2019, in Jefferson Circuit Court, Kentucky, Seiko Ross was convicted of being a felon in possession of a firearm. On November 7, 2016, in Rankin Circuit Court, Mississippi, Seiko Ross was convicted of possession of cocaine. On March 19, 2012, in Hinds Circuit Court, Mississippi, Seiko Ross was convicted of being a felon in possession of a firearm.
Also on Wednesday, Robert Ross, 28, was sentenced to 11 years in prison followed by five years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine; possessing with the intent to distribute cocaine; and being in possession of seven firearms after having previously been convicted of the following felonies. In two separate cases on February 17, 2019, in Jefferson Circuit Court, Kentucky, Robert Ross was convicted of being a felon in possession of a firearm, receiving a stolen firearm, tampering with physical evidence, trafficking in a controlled substance, and tampering with physical evidence. On January 28, 2016, in Hinds Circuit Court, Mississippi, Robert Ross was convicted of conspiracy to commit a crime.
On January 26, 2023, in the United States District Court for the Western District of Kentucky, Cory Ross, 31, was sentenced to 9 years in prison followed by five years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine and possessing with the intent to distribute methamphetamine and cocaine.
On November 21, 2022, Andre Ross, 47, was sentenced to 4 years and 3 months in prison followed by three years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine and possessing four firearms after having previously been convicted of the following felonies. On March 23, 2009, in Pike Circuit Court, Mississippi, Andre Ross was convicted of conspiracy to commit a crime. On October 6, 2000, in Hinds Circuit Court, Mississippi, Andre Ross was convicted of possession of cocaine.
There is no parole in the federal system.
“I commend LMPD and the FBI for their excellent work in this case as well as each agency’s ongoing commitment to making our communities safer,” stated U.S. Attorney Bennett. “LMPD’s solid partnerships, with this office and with our local federal law enforcement agencies, are crucial to the continued success of our strategic enforcement efforts.”
“Due to the hard work and coordination between FBI Louisville and our law enforcement partners, members of this drug trafficking organization will spend a significant time behind bars and no longer be a threat to the safety of innocent families throughout the Louisville community,” said Special Agent in Charge Cohen. “The FBI remains committed to identifying and investigating the violent gangs that continue to plague our streets with drugs and guns.”
“LMPD would like to thank the US Attorney’s Office and the FBI for their collaboration in this investigation,” stated Chief Gwinn-Villaroel. “The successful prosecution of individuals who pose a danger to our community is illustrative of the strong partnership between LMPD and our federal law enforcement partners.”
This case was investigated by the Louisville Metro Police Department’s Criminal Interdiction Division and the Federal Bureau of Investigation.
Assistant United States Attorneys Erin McKinzie and Jo E. Lawless prosecuted the case.
###
Four Georgia men sentenced for international firearms trafficking schemeRead the Press Release
ATLANTA – Four men have been sentenced to federal prison for their roles in trafficking more than 160 firearms, some of which were smuggled out of the country and recovered from various crime scenes.
“Firearms trafficking is a serious crime that fuels violence,” said U.S. Attorney Ryan K. Buchanan. “By placing firearms in the hands of convicted felons and other prohibited persons, straw purchasers of firearms, like the defendants in this case, play a key role in propagating violence in our community. This case sends a clear message: straw purchases will lead to prosecution.”
“This investigation and sentence is another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners. Through this cooperative effort we were able to apprehend and successfully prosecute violent and dangerous individuals which posed a significant threat to the public,” said ATF Assistant Special Agent in Charge Beau Kolodka.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between May 2021 and continuing through early March 2022, Romeo Swofford directed other individuals, including co-defendants Emmanuel Barden and Cemonte Wade, to obtain upwards of 160 handguns from federally licensed firearms dealers within the Atlanta area. Barden and Wade deceived the licensed dealers by falsely representing that they were buying guns for themselves. In truth, Swofford was the actual purchaser who paid for and took possession of the guns once the transactions were completed.
Swofford sought to acquire guns so he could profit from reselling them to convicted criminals and other people who would use, possess, or export them unlawfully. To facilitate these illegal gun sales, Swofford used hand tools to obliterate the serial numbers on dozens of the firearms. But nearly 20 of the guns Swofford sold were recovered from crime scenes in Canada where law enforcement authorities successfully restored the serial numbers Swofford attempted to remove.
On March 9, 2022, federal agents watched Swofford accompany Wade to two different Cobb County gun stores. Wade purchased three Glock semiautomatic pistols before relinquishing them to Swofford. Afterwards, Swofford and Wade met co-defendant Medford Layatte Daniels, Jr. outside a deli in the Edgewood neighborhood of Atlanta. Swofford then moved guns, drugs, and a scale into Daniels’s van. Both Swofford and Daniels were armed with loaded pistols. Daniels was on probation for unrelated gun and drug crimes at the time.
U.S. District Judge Jean-Paul “J.P.” Boulee sentenced the defendants as follows:
- Romeo Swofford, a/k/a “Lil Richie,” 21, of Lithonia, Georgia, was sentenced to 10 years, one month in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer and aiding and abetting false statements to a federally licensed firearms dealer.
- Medford Layatte Daniels, Jr., a/k/a “NFNC Freak,” 26, of Conley, Georgia, was sentenced to nine years, three months in prison to be followed by five years of supervised release after pleading guilty to receipt of a firearm by a person under indictment and carrying a firearm during and in relation to a drug trafficking crime.
- Emmanuel Marquis Barden, 23, of Decatur, Georgia, was sentenced to four years, nine months in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer.
- Cemonte Deshon Wade, 23, of Ellenwood, Georgia, was sentenced to three years, one month in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Theodore S. Hertzberg and Annalise K. Peters 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Media Producer Convicted of Extortion and Obstruction of JusticeRead the Press Release
WASHINGTON – A federal jury convicted a Puerto Rican man today of extortion and obstruction of justice related to his involvement in a scheme to obtain money in exchange for preventing the release of chat messages involving senior officials in the Government of Puerto Rico.
According to court documents and evidence presented at trial, Sixto Jorge Díaz Colón, 54, of San Juan, attempted to extort a public official in the Government of Puerto Rico in June 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram chat messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI in July 2019, Díaz Colón deleted messages containing information about his involvement in the scheme before surrendering his cellular telephone to the authorities.
Díaz Colón was convicted in the District of Puerto Rico of one count of attempted extortion, one count of interstate extortion, and one count of obstruction of justice. He is scheduled to be sentenced on May 5 and faces a maximum penalty of 20 years in prison on the top 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 W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Former PIN Trial Attorney James Pearce and Trial Attorney Byron Jones of the Criminal Division’s Computer Crime and Intellectual Property Section also provided assistance.
###
23-139
Former Media Producer Convicted of Extortion and Obstruction of JusticeRead the Press Release
A federal jury convicted a Puerto Rican man today of extortion and obstruction of justice related to his involvement in a scheme to obtain money in exchange for preventing the release of chat messages involving senior officials in the Government of Puerto Rico.
According to court documents and evidence presented at trial, Sixto Jorge Díaz Colón, 54, of San Juan, attempted to extort a public official in the Government of Puerto Rico in June 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram chat messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI in July 2019, Díaz Colón deleted messages containing information about his involvement in the scheme before surrendering his cellular telephone to the authorities.
Díaz Colón was convicted in the District of Puerto Rico of one count of attempted extortion, one count of interstate extortion, and one count of obstruction of justice. He is scheduled to be sentenced on May 5 and faces a maximum penalty of 20 years in prison on the top 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 W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Former PIN Trial Attorney James Pearce and Trial Attorney Byron Jones of the Criminal Division’s Computer Crime and Intellectual Property Section also provided assistance.
Former Bank Teller Sentenced for Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on February 1, 2023 United States District Judge Sarah S. Vance sentenced KAREN FARRELL TIGLER, age 40, of Marrero, Louisiana, to twenty-seven (27) months imprisonment followed by two (2) years of supervised release for violating Title 18, United States Code, Section 1344 (Bank Fraud), and Making and Subscribing False Tax Returns in violation of Title 26, United States Code, Section 7206(1).
According to documents filed in federal court, from January 1, 2013, to November 14, 2016, TIGLER was employed as a multi-service banker with the Hancock Whitney Bank. TIGLER worked at the Whitney branch, also known as the “Morgan State Branch,” located in New Orleans, LA. Client A was in her mid-80s in 2015 and 2016 and was a banking customer of Whitney.
From February 9, 2015, to October 28, 2016, TIGLER used her position with the bank to embezzle approximately $349,556 from Client A’s account by using 100 counter checks to debit funds from Client A’s account. TIGLER used her position with the bank to access personal information from other legitimate banking transactions to create the fraudulent counter checks. TIGLER forged the signatures of Client A and various others on the counter checks in an effort to conceal her embezzlement scheme. TIGLER accessed or utilized legitimate checks drawn on Client A’s account in order to prepare fraudulent counter checks. TIGLER cashed 21 counter checks totaling $73,924 that were supposedly for “roofing,” “market/garden work,” “light fixtures/cleaning,” “extras plumbing,” “misc. work,” “renovations,” and “maintenance.” TIGLER cashed the other 79 counter checks totaling approximately $275,632 payable to another individual that were supposedly for “house,” “maintenance,” and for “happy birthday.”
In addition, TIGLER failed to report $134,429 on her 2015 tax return and $215,127 on her 2016 return. TIGLER reported W-2 income from the bank of $21,290 for the tax year 2015 and $19,256 for 2016. TIGLER spread the deposits of cash of embezzled funds into her various accounts. TIGLER also failed to report gambling winnings of $32,180 on her 2015 tax return. When confronted by a relative of Client A, TIGLER falsely implicated another individual in an effort to conceal her embezzlement of funds from Client A’s account.
United States District Judge Sarah S. Vance sentenced TIGLER to twenty-seven (27) months imprisonment, followed by two (2) years supervised release. TIGLER must also pay a $200.00 mandatory special assessment fee, restitution in the amount of $80,502.00 to the Internal Revenue Service, and $349,555.72 to Hancock Whitney Bank.
“Karen Tigler used her position at the bank to embezzle from an unsuspecting senior citizen customer,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Tigler’s sentence today sends a message that those who break the public’s trust by engaging in criminal activities will be prosecuted.”
“Karen Tigler’s duplicitous actions constitute Elder Fraud. Her fraudulent schemes unfairly targeted an elderly consumer, causing far reaching consequences and excessive losses. With the continued cooperation of our law enforcement partners, the U.S. Attorney’s Office, EDLA will hold the perpetrators of elder fraud schemes accountable for their crimes. Our office cautions seniors and their caregivers to be vigilant for potential fraud and, if victimized, to contact law enforcement,” said U.S. Attorney Duane A. Evans.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the Hancock Whitney Bank with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit, and Assistant U.S. Attorney Maria Carboni.
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am - 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST.
* * *
Former Arkansas State Senator Sentenced for Bribery and Tax FraudRead the Press Release
WASHINGTON – A former Arkansas State Senator was sentenced today to 46 months in prison in the Eastern District of Arkansas for accepting multiple bribes and tax fraud in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.
Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery.
According to court documents, from 2010 through 2017, Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use and then filed false federal income tax returns from 2011 to 2014 to conceal his conduct. In addition, Hutchinson was hired as outside counsel by Dr. Benjamin Burris, an orthodontist who owned and operated orthodontic clinics throughout the state of Arkansas. In exchange for payments and legal work, Hutchinson pushed legislation beneficial to Burris. Hutchinson was provided legal work to conceal the corrupt nature of his arrangement. Hutchinson stole over $10,000 in state campaign funds for his own personal use and also falsified his 2011 tax returns, including failing to report $20,000-per-month-payments he received from one law firm and other sources of income he knowingly and intentionally concealed from his taxes.
Hutchinson is still pending sentencing in the Western District of Missouri for his role in a separate multimillion-dollar public corruption scheme that involved embezzlement, bribes, and illegal campaign contributions for elected public officials. According to court documents, Hutchinson accepted bribes in the form of monthly legal retainers and other things of value from employees and executives of Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based health care charity. In exchange for the bribes, Hutchinson provided favorable legislative and official action for the charity.
In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the charity admitted the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:
- Former Chief Operating Officer, Bontiea Bernedette Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
- Former Chief Financial Officer, Tommy “Tom” Ray Goss, husband of Bontiea Goss and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles A. Dayoub of the FBI Kansas City Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
The FBI, IRS-CI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the FDIC investigated the cases.
Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorneys Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.
###
CRM
23-138
Do not reply to this message. If you have questions, please use the contacts in the message or call the Office of Public Affairs at 202-514-2007.
Former Arkansas State Senator Sentenced for Bribery and Tax FraudRead the Press Release
A former Arkansas State Senator was sentenced today to 46 months in prison in the Eastern District of Arkansas for accepting multiple bribes and tax fraud in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.
Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery.
According to court documents, from 2010 through 2017, Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use and then filed false federal income tax returns from 2011 to 2014 to conceal his conduct. In addition, Hutchinson was hired as outside counsel by Dr. Benjamin Burris, an orthodontist who owned and operated orthodontic clinics throughout the state of Arkansas. In exchange for payments and legal work, Hutchinson pushed legislation beneficial to Burris. Hutchinson was provided legal work to conceal the corrupt nature of his arrangement. Hutchinson stole over $10,000 in state campaign funds for his own personal use and also falsified his 2011 tax returns, including failing to report $20,000-per-month-payments he received from one law firm and other sources of income he knowingly and intentionally concealed from his taxes.
Hutchinson is still pending sentencing in the Western District of Missouri for his role in a separate multimillion-dollar public corruption scheme that involved embezzlement, bribes, and illegal campaign contributions for elected public officials. According to court documents, Hutchinson accepted bribes in the form of monthly legal retainers and other things of value from employees and executives of Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based health care charity. In exchange for the bribes, Hutchinson provided favorable legislative and official action for the charity.
In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the charity admitted the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:
- Former Chief Operating Officer, Bontiea Bernedette Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
- Former Chief Financial Officer, Tommy “Tom” Ray Goss, husband of Bontiea Goss and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles A. Dayoub of the FBI Kansas City Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
The FBI, IRS-CI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the FDIC investigated the cases.
Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorneys Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.
Federal Jury Convicts Palm Beach Resident of Defrauding Cystic Fibrosis NonprofitRead the Press Release
MIAMI – Following a trial in West Palm Beach federal court, a jury found Elizabeth Genna Suarez, formerly known as “Elizabeth Mirson Suit,” 34, guilty of wire fraud.
According to evidence presented by federal prosecutors, from August 2018 to November 2019, Suarez executed a scheme to defraud Piper’s Angels Foundation, Inc., a nonprofit organization dedicated to supporting individuals with cystic fibrosis and their families. During that time, Suarez was married to the foundation’s executive director and used her access to the foundation money to divert it to herself. For example, Suarez used her copy of the foundation’s corporate credit card in July 2019 to make an $8,000 deposit on a cosmetic surgical procedure, pay $1,680 for a cosmetic laser procedure, and spend $800 on a necklace.
Suarez was convicted on three counts of wire fraud and acquitted on one. Suarez is scheduled to be sentenced April 6, at 2:00 p.m. in West Palm Beach before the Honorable Donald M. Middlebrooks.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida, and Maged Behnam, Acting Special Agent in Charge, FBI Miami, announced the conviction.
FBI Miami investigated this case. Assistant U.S. Attorney Alexandra Chase prosecuted it. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 22-cr-80185.
###
Federal Jury Convicts Baton Rouge Man of Conspiracy to Distribute and Possess with Intent to Distribute Heroin, Marijuana, and MethamphetamineRead the Press Release
United States Attorney Ronald C. Gathe, Jr., announced the conviction of Xavier Johnson, age 38, of Baton Rouge, Louisiana. Johnson was indicted by a federal grand jury on July 22, 2019 and charged with conspiracy to distribute and possess with intent to distribute heroin, marijuana, methamphetamine, and felon in possession of a firearm and ammunition.
After a three-day trial before Chief Judge Shelly D. Dick, beginning January 30, 2023, the jury unanimously convicted Johnson of conspiracy to knowingly and intentionally distribute and possess with intent to distribute heroin, marijuana, and methamphetamine. As the evidence at trial demonstrated, Johnson conspired with inmates at the Louisiana State Penitentiary at Angola, and others, to obtain heroin, marijuana, and methamphetamine from sources of supply in California, and to possess and distribute the drugs to inmates in Angola and to other non-incarcerated individuals within Baton Rouge, Louisiana, and elsewhere. Evidence brought to light at trial by federal and state law enforcement officials, and information obtained through forensic data analysis, corroborated testimony from witnesses that Johnson was involved in supervising at least three couriers of controlled substances, personally distributing controlled substances, and attempting to smuggle controlled substances to inmates at Angola.
As a result of his convictions, Johnson now faces a maximum sentence in federal prison of 20 years imprisonment, as well as significant fines, forfeiture, and a minimum 3-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service, and with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Louisiana Department of Corrections, to include staff at Angola, the 20th Judicial District Attorney’s Office, and the St. Francisville Police Department. The case was prosecuted by Assistant United States Attorneys Paul L. Pugliese and April Leon Johnson.
Federal Grand Jury Indicts Two New Orleans Residents for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL WILLIAMS, age 28, and NOLAN LONG, age 31, residents of New Orleans, Louisiana, were each indicted on February 2, 2023, for being a felon in possession of a firearm.
If convicted, WILLIAMS and LONG each face a maximum sentence of 15 years in prison, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney David Berman is in charge of the prosecution.
Everett, Washington man sentenced to prison for theft of police rifle during downtown protestRead the Press Release
Seattle – A 26-year-old Everett resident was sentenced today in U.S. District Court in Seattle to 16 months in prison for possession of a stolen firearm in connection with the theft of a high-powered rifle, taken during a downtown Seattle altercation on May 30, 2020, announced U.S. Attorney Nick Brown. Jacob D. Little quickly sold the stolen gun online via social media – an action that put the community at risk. “You didn’t care (who you sold it to) as long as you got paid. You sold it to someone with mental health issues,” Judge Richard A. Jones said at the sentencing. Judge Jones said the court needs to protect the community from similar actions.
According to records filed in the case, the theft of the firearm was captured by both Seattle Police surveillance photos and images posted online. Little is seen with the large bag used to store the Colt M4 rifle with a suppressor. The gun was taken from a Seattle Police vehicle parked outside the downtown Nordstrom store. The vehicles were heavily damaged and ultimately burned.
In the course of the investigation, law enforcement obtained electronic messages sent by Little after the theft in which he appeared to be negotiating the sale of the firearm. Little stated in the messages that he had removed the sling and suppressor and the “red dot” (a type of optical sight) from the rifle. All those accessories were present on the rifle when stolen from the Seattle Police vehicle.
Speaking at sentencing today, Assistant United States Attorney Kate Crisham told the court that Little “was one of a handful of people who hijacked the peaceful protest and made it dangerous.” Little then sold the rifle to an acquaintance who he knew had mental health issues. The gun buyer buried the gun on his grandparents’ property in Snohomish County. The buyer went and dug up the rifle after threatening his girlfriend. Police were able to seize the weapon before it was used in a crime.
After the theft and sale of the police gun, but before Little was identified in this case, Little was allegedly involved in the August 30, 2020 shooting in Renton. In that case, it is alleged that Little fired multiple shots when fights broke out at a gathering of over 200 car enthusiasts in the parking lot of the Uwajimaya grocery store. Little was observed firing a gun into the air and into a crowd of people. In January 2021, Little was charged with second degree murder and assault. He will be transferred to state custody to face those charges in King County Superior Court.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Snohomish County Violent Offender Task Force, the United States Marshals Service, and the Marysville Police Department. The case was prosecuted by Assistant United States Attorney Kate Crisham.
Enumclaw, Washington man sentenced for criminal scheme to steal flood control tax dollarsRead the Press Release
Seattle – The former long-time Commissioner of an East King County drainage district was sentenced today in U.S. District Court in Seattle to 30 months in prison and three years of supervised release for multiple federal felonies connected to a scheme to steal tax dollars intended for flood control, announced U.S. Attorney Nick Brown. Allan Thomas, 70, was convicted of conspiracy; four counts each of wire fraud and mail fraud, and one count of aggravated identity theft. At sentencing U.S. District Judge Richard A. Jones noted that Thomas involved his own son in the fraud scheme when he was barely out of high school. “You were a public officer in a position of trust… People trusted you not to enrich yourself,” Judge Jones said. “These funds were ill-gotten gains, they were not earned…. It was a breach of trust.”
“Mr. Thomas and his wife treated taxpayer money as if it was their own,” said U.S. Attorney Nick Brown. “And they repeatedly lied, claiming tax dollars for ditch maintenance work that was never performed. They not only cheated taxpayers out of money, they also increased the risk of damage from flooding due to an overgrown drainage ditch network.”
According to records in the case and testimony at trial, Allan B. Thomas served as Commissioner for Drainage District 5 and 5A in King County for more than 35 years. As a Commissioner, Thomas estimated the costs of drainage maintenance for the district so that the county auditor could set and assess the appropriate taxes. The Commissioners then authorized payment to service providers who had supposedly done maintenance work on the drainage system.
Thomas’ wife, Joann, was sentenced to three years in prison last month for her role in the scheme. As early as 2012, Joann Thomas set up a joint bank account with Allan Thomas’ son from a previous marriage. The account was a business account for a company called A C Services. Over the next six years, Allan Thomas had $413,323 of local tax dollars paid to A C Services claiming it was for drainage ditch maintenance. However, Thomas’ son testified that other than two small jobs performed before 2012, he did not perform any drainage ditch work. At trial, a current drainage district Commissioner testified that he saw no work done on the ditches during that time period, and that when he took on the Commissioner job, it was clear that little maintenance work was done on the ditch network for many years.
Financial records admitted at trial show that over those six years (2012-2017), shortly after the tax dollars were deposited into A C Services’ account, the money was quickly transferred to other accounts belonging to the Thomases or was used to pay their expenses for such things as hay, mortgage payments, or property taxes. More than $68,000 was withdrawn as cash.
In 2018, after the couple became aware of an investigation into their conduct, they began funneling the tax dollars through another company: City Biz. The couple submitted warrants for City Biz to be paid for drainage maintenance work and within days of the funds arriving in City Biz bank accounts, nearly all the money was transferred directly to Allan Thomas or the Thomases’ dairy farm. The Thomases’ friend who agreed to help with the City Biz fraud, now also has a federal felony conviction for repeatedly lying to the FBI.
Allan and Joann Thomas worked together on the scheme. Both were involved in submitting false documents by mail and wire (the mail fraud and wire fraud counts). Joann Thomas forged the signatures of Allan Thomas’ son and a second drainage Commissioner on various records and checks. Allan Thomas was convicted of participating in the forgeries related to the second drainage Commissioner. The forgeries constitute Aggravated Identity Theft. This count carries a mandatory two-year sentence that must run consecutive to any sentence imposed on the other counts of conviction.
In all, the couple defrauded taxpayers of $468,165. Judge Jones has scheduled a hearing to set the amount of restitution in early April 2023.
“Today, Allan Thomas is being held accountable for his lengthy public corruption scheme, which took the majority of the district’s budget for years for his own gain,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “Not only did he betray the public’s trust, but he also stole property tax dollars from taxpayers and involved others in the fraud.”
“Mr. Thomas did not do his job in maintaining critical drainage ditches, but he and his wife still fraudulently paid themselves using taxpayer dollars as if he did,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “And when the couple realized they were being investigated, the Thomases attempted to cover up their fraud. They were quite literally digging themselves deeper into a ditch of lies.”
IRS Criminal Investigation (IRS:CI) and the FBI led the investigation with assistance from the Enumclaw Police Department. The Enumclaw City Attorney initiated the review of the district finances. The Washington State Auditor’s Office also conducted an audit of the district in 2019. The King County Prosecuting Attorney’s Office, in consultation with the U.S. Attorney’s Office, determined the case was appropriate for federal prosecution.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Andrew Friedman.
East Lyme Agrees to Increase Town Hall Accessibility to Comply with Americans with Disabilities ActRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Town of East Lyme to resolve allegations that the East Lyme Town Hall was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with physical disabilities alleging that multiple aspects of East Lyme’s Town Hall facility were inaccessible to individuals with mobility disabilities. East Lyme is in the process of making significant improvements, as required by the settlement agreement, including improving the accessibility of the Town Hall parking lot, main entrance, multi-level access routes to connect the main upper floor to the basement, visitor and employee interaction counters, public restrooms and drinking fountains.
Under federal law, public entities are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Avery commended the leadership of the Town of East Lyme for having worked cooperatively and collaboratively with the U.S. Attorney’s Office to expeditiously address the ADA issues without litigation.
“Among the most important protections provided by the Americans with Disabilities Act are those ensuring individuals with disabilities have access to public services, especially key local government facilities such as Town Hall,” said U.S. Attorney Avery. “Our Office is committed to enforcing the ADA, which requires public entities, including municipalities, to provide access to individuals with disabilities. We greatly appreciate the willingness of the Town of East Lyme and the commitment of its First Selectman to greatly increase the accessibility and usability of East Lyme’s Town Hall.”
Any member of the public who wishes to file a complaint alleging that a public entity or place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney William M. Brown, Jr., in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Drug Dealer Sentenced to 27 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
PEORIA, Ill. – Gabriel Antonio Montano-Rodriguez, 41, was sentenced last month to 324 months’ imprisonment, to be followed by five years of supervised release, for conspiracy to distribute and possession with intent to distribute at least 50 grams of ice methamphetamine.
At the January 13, 2023, sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that Montano-Rodriguez, who was living in the United States illegally and operated mainly out of Arizona, obtained methamphetamine from Mexico and trafficked both methamphetamine and heroin from the southwest border to the Central District of Illinois. Montano-Rodriguez personally transported ice methamphetamine from Arizona to the Peoria area, where he then used a network of local drug dealers to sell the meth and heroin. On one trip alone, Montano-Rodriguez brought fifteen pounds of ice methamphetamine to sell.
Using the most conservative estimates, Judge Shadid found that Montano-Rodriguez was accountable for trafficking over 23 pounds of ice methamphetamine and approximately 6 pounds of heroin to the Central District of Illinois during the course of his ten-month long conspiracy.
Also at the hearing, Judge Shadid found that Montano-Rodriguez led a “life of crime” prior to this offense, including convictions for a federal marijuana conspiracy, illegal reentry, and transportation of undocumented immigrants. Judge Shadid also noted that Montano-Rodriguez had been living in the United States illegally and had been deported at least four prior occasions and voluntarily removed on other occasions, each time unlawfully returning to the United States and continuing to commit crimes. Shadid noted that a significant sentence was necessary since all prior deportation efforts had not effectively removed Montano-Rodriguez “from the streets of the United States” or otherwise deterred his criminal conduct.
Three of the Peoria-area drug dealers that distributed for Montano-Rodriguez have been prosecuted federally and are currently in the Bureau of Prisons. One additional local drug dealer faced state prosecution and was sentenced to Illinois Department of Corrections.
“The Pekin Police Department’s partnership with the DEA unleashes a host of resources that allows our team of experienced, dedicated, sharp-shooting detectives to work on cases like these,” said Pekin Police Department Chief John Dossey. “Montano-Rodriguez could have landed anywhere in the United States to deal drugs—and to the immense credit of the case agent who tirelessly pursued him—this sentence makes clear that Montano-Rodriguez should have chosen elsewhere. Our Department’s focus and decades-long legacy to keep communities safe by disrupting drug dealers at the top of the food chain will continue.”
“The DEA, alongside our state and local partners, have an unwavering commitment to protect Americans by tenaciously pursuing those who are responsible for the trafficking and distribution of methamphetamine in our community,” said Todd Smith, Assistant Special Agent in Charge of Drug Enforcement Administration - Springfield.
Montano-Rodriguez was indicted in September 2021 and arrested in November 2021 in Texas, where he was serving a federal prison sentence for marijuana conspiracy. He was removed to the Central District of Illinois in December 2021 and pleaded guilty in June 2022. Montano-Rodriguez has been in the custody of the United States Marshals Service since his arrest.
The statutory penalties for conspiracy to distribute and possession with intent to distribute are a minimum of 10 years to life imprisonment, followed by up to five years of supervised release, and up to a $10 million fine. One prior conviction increases the sentence from 15 years to life, and two prior convictions increase the sentence from 25 years to life.
The U.S. Department of Justice Drug Enforcement Administration (DEA) and Pekin Police Department investigated this case, with valuable assistance provided by the United States Department of Homeland Security (DHS) and Canton Police Department. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department’s Operation Kingsnake. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Corinth Man Sentenced 14 years for Gun TraffickingRead the Press Release
OXFORD, Miss. – A Corinth man was sentenced on Thursday to 14 years in prison for burglarizing a gun store, possessing stolen firearms, and transporting those firearms.
According to court documents, Galvin Dwayne Davis, 39, was involved in the August 1, 2019 burglary of TNT Pawn in Booneville, Mississippi. Davis and his co-defendants stole 49 firearms and transported those guns to Chicago. The group sold those guns on the street in Chicago. A number of those guns have been involved in shootings in Chicago and recovered by Chicago Police.
Davis was also ordered to pay restitution to TNT Pawn over $42,000 for the value of the stolen firearms and damage to the property.
“The crimes committed by this defendant had a far-reaching effect and the guns illegally transferred were used to victimize others,” remarked U.S. Attorney Clay Joyner. “The U.S. Attorney’s Office for the Northern District of Mississippi will continue to prioritize the prosecution of violent crimes and gun crimes and we hope that the 14-year sentence imposed in this case will serve as a deterrent to others who might consider engaging in illegal firearms sales and trafficking.”
“In our effort to disrupt violent gun crime in our community, ATF will continue to focus efforts on prohibited individuals, like this repeat offender, who steal firearms and unlawfully possess firearms,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “The sentence imposed today sends a message to individuals who are prohibited from possessing firearms that we will continue to work to keep our neighborhoods safe as the top priority for ATF.”
Davis’s co-defendant, Marquis McCray, is set to be sentenced for his role on February 16.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Oxford Resident Agency, Booneville Police Department, Corinth Police Department, and the Chicago Police Department. Assistant U.S. Attorney Parker S. King 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.
Commerce Township Resident Charged in COVID-19 Loan Fraud SchemeRead the Press Release
DETROIT - A Commerce Township resident was charged with wire fraud in a criminal complaint for his alleged role in a scheme to obtain $963,000 from pandemic loan programs for fictitious businesses, announced United States Attorney Dawn N. Ison.
Joining in the announcement was Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations, Detroit Field Division.
Charged is Ryan Carruthers, 42, of Commerce Township, Michigan. According to the complaint, beginning in approximately April 2020 and continuing through April 2021, Carruthers applied for 14 loans in the names of various businesses from lenders participating in the Paycheck Protection Program (PPP). The PPP was a program overseen by the Small Business Administration (SBA) in which participating lenders provided loans to help businesses keep their workforces employed during the Covid-19 crisis. The SBA would forgive the loans if all employees were kept on the payroll for eight weeks, and the money from the loans was used for payroll, rent, mortgage interest, or utilities. PPP loans were funded by participating banks or lending institutions. Carruthers is also alleged to have applied for a 15th loan pursuant to the Economic Injury Disaster Loan program, a program in which the SBA provided direct loans to businesses adversely affected by the pandemic.
The complaint also alleges Carruthers’s businesses were fictitious, and the applications he submitted for these pandemic relief loans fraudulent. Carruthers claimed that his various businesses, with names like “Cobra Kai Karate” and “Pure Juice Bar & Café,” had between three and fifteen employees. The complaint states that there is no evidence that any of these businesses had actual employees. Many of the businesses were not even incorporated until after March 2020, which would have rendered them ineligible for PPP loans.
The complaint further alleges that Carruthers applied for approximately $963,000 across 15 loans under these programs. Thirteen of the loans were actually funded, resulting in disbursements of approximately $851,000 on those loans. Carruthers is alleged to have used loan proceeds to pay off the balance of the mortgage on his home (approximately $251,000) and to have purchased a Sea-Doo personal watercraft, among other things.
United States Attorney Ison stated, “Mr. Carruthers is charged with lying repeatedly to obtain loan funds intended to help businesses keep their doors open during the Covid-19 pandemic. My office is committed to prosecuting anyone who exploited our national crisis to enrich themselves, and today’s charges are a reflection of that commitment.”
“Our communities suffered during the pandemic, yet some sought to line their own pockets at the expense of the American taxpayer,” said Angie M. Salazar, HSI Detroit Special Agent in Charge. “Our agents will continue to investigate PPP fraud and help hold these offenders accountable to the American people.”
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Carruthers faces up to twenty years in prison on the wire fraud charge.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted by Homeland Security Investigations.
Columbia Man Affiliated with Street Gang Sentenced to 15 Years in Federal Prison for Firearms and Drug OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Marek Cortez Brewer, Jr., 24, of Columbia, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and to possession of a firearm in connection with drug trafficking.
Evidence presented in Court shows that between February 2020 and February 2022, Brewer was in illegal possession of at least 5 firearms on 5 separate occasions, 3 of which were stolen firearms and several of which were used in other felony crimes such as attempted murders, shootings, armed robbery, drug trafficking, and flight from the police.
First, on February 22, 2020, Brewer was arrested in Columbia with a 9mm pistol and drug trafficking tools – a digital scale, five plastic bags with marijuana inside, numerous empty plastic bags, and a plastic bag with pills.
Second, on November 14, 2020, Brewer was arrested again in Columbia with a stolen and loaded.40 caliber pistol and marijuana after Richland County deputies responded to an area following a report of 6 shots fired.
Third, on January 11, 2021, Brewer was arrested in Fairfield County after taking S.C. Highway Patrol on a car chase that reached 125 miles per hour and crossed into two counties. The vehicle Brewer was driving was stolen out of Cayce, and when Brewer fled on foot, he dropped a stolen and loaded 9mm pistol. From jail, Brewer made a recorded call that he got into a “high speed” with a firearm and that he was going to have to go “back up the road,” but that he was “not even mad.” An ATF forensic investigation determined the firearm recovered from this incident was used in a shooting on Assembly Street in Columbia on December 8, 2020, about one month before it was recovered from Brewer.
Fourth, on May 18, 2021, Brewer was arrested in Columbia for his alleged involvement in the armed robbery of a firearm from a victim. In that robbery, three armed males approached the victim and told him to empty his pockets and hand over the “thing.” A firearm was in the victim’s pocket. The victim handed over the firearm and fled, and as he did, shots were fired. When Brewer was arrested on this date, he was found with the .40 caliber pistol stolen from that victim.
Fifth, on February 26, 2022, Brewer was arrested again in Columbia for his alleged involvement in the shooting of two victims – one in the back and one above the left eye – from a vehicle travelling on River Drive in Columbia. Brewer again took the police on a chase that exceeded 100 miles per hour before he was arrested with suspected narcotics, a digital scale, $900 in U.S. currency, and a 9mm pistol.
Evidence presented in Court also indicated that Brewer is affiliated with a documented street gang.
Senior United States District Judge Terry L. Wooten sentenced Brewer to 15 years in federal prison, to be followed by 3 years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) as well as the Columbia Police Department, Richland County Sheriff’s Department, South Carolina Highway Patrol, and South Carolina Law Enforcement Division (SLED), who conducted firearm and shell casing forensic examinations. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
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.
As for the forensic examination of the firearm and shell casings, this case relied on ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
###
Civil complaint filed seeking over $800K from business email compromise schemeRead the Press Release
HOUSTON - A civil complaint has been filed seeking the forfeiture of $834,157.50 seized from a bank account being used to defraud a U.S. business, announced U.S. Attorney Alamdar S. Hamdani.
A business email compromise scheme (BEC) is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control.
The complaint was filed Jan. 24. According to allegations, in or about July 2022, authorities seized $834,157.50 held in a Houston bank account. The fraudsters allegedly controlled the account even though it appeared to be that of a legitimate company. Unidentified conspirators gained access to the victim company’s computer networks, including their email servers and accounts, through phishing attacks or the use of malware, according to the complaint.
From there, the hackers allegedly identified employees responsible for financial obligations and their contacts with other companies. The complaint further alleges perpetrators created a spoofed email address, posed as a vendor to which the company owed money and tricked them into wiring funds to an account the fraudsters controlled.
Authorizes then executed a warrant and seized the funds
The Secret Service conducted the investigation. Assistant U.S. Attorney Rick Blaylock is handling the matter.
Business Email Compromise scheme can be prevented. Here are some tips:
• Independently obtain mortgage payoff statements and confirm with verified and trusted sources.
• Independently verify the authenticity of information included in correspondence and statements.
• Enable Multi-Factor Authentication (MFA) on all email accounts.
• Routinely change passwords.
• Routinely monitor email account access, check for unauthorized email rules and forwarding settings.
• Restrict wire transfers to known and previously verified accounts.
• Pay using checks when the information cannot be independently verified.
• Have a clear and detailed Incident Response Plan.
A civil complaint is merely an allegation.
The government must establish that assets are subject to forfeiture.Cerritos Man Who Admitted to Causing Fatal Fentanyl Overdose Sentenced to 22½ Years in Federal Prison for Drug TraffickingRead the Press Release
LOS ANGELES – A Cerritos drug trafficker was sentenced today to 270 months in federal prison today for narcotics and firearms offenses, including providing fentanyl to a victim who later ingested the powerful synthetic opioid and died from it.
Shaun Alan Rosa, 45, was sentenced by United States District Judge Philip S. Gutierrez.
Rosa pleaded guilty in July 2022 to one count of conspiracy to distribute controlled substances and to maintain a drug-involved premises, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of distribution of fentanyl. He has been in federal custody since September 2019.
According to court documents, from April 2015 to March 2018, Rosa directed a conspirator to rent and maintain an apartment in San Pedro for the purpose of storing and distributing narcotics and firearms. Other conspirators, including the victim, provided illegal drugs such as cocaine, Ecstasy, and fentanyl to Rosa for further distribution.
Rosa then directed a co-conspirator to pick up narcotics from other members of the conspiracy, transport the drugs to the San Pedro apartment and later distribute the drugs to other conspirators and to pick up money from these conspirators as payment for the drugs.
Rosa admitted in his plea agreement that, in June 2017 in Long Beach, he knowingly gave pills containing fentanyl to a co-conspirator, identified in court documents at “M.E.” The victim later ingested the pills, which led to his fatal overdose.
“Despite knowing about the tragic death of M.E. from a fentanyl overdose, defendant continued to distribute controlled substances, including the exceedingly dangerous drug of fentanyl,” prosecutors wrote in a sentencing memorandum.
In March 2018, at the San Pedro apartment, Rosa possessed approximately 233.4 grams (0.5 pounds) of fentanyl, 3.97 kilograms (8.76 pounds) of Ecstasy, two firearms, 49 rounds of ammunition, and drug paraphernalia, including digital scales and a pill press.
The FBI and the Los Angeles Police Department investigated this matter. The Long Beach Police Department provided assistance.
Assistant United States Attorneys Jenna W. Long of the Terrorism and Export Crimes Section and Jena A. MacCabe of the General Crimes Section prosecuted this case.
Cardiac Monitoring Company Settles Fraudulent Billing AllegationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Beyond Reps, Inc. d/b/a IronRod Health and Cardiac Monitoring Services (“IronRod”) has agreed to pay $673,200.92 to resolve allegations arising under the False Claims Act that they submitted false claims to federal health care programs relating to remote cardiac monitoring services.
Assistant U.S. Attorney David M. Coriell, who handled the case, stated that IronRod is a healthcare solutions company with headquarters in Phoenix, Arizona. IronRod provides remote cardiac monitoring services, among other services. The Government alleges that between January 1, 2018 and April 30, 2021, IronRod utilized technicians who lacked required credentials to conduct remote cardiac monitoring readings. The government also alleges that between June 1, 2018 and August 20, 2018, IronRod misrepresented that it performed services in New York State in order to obtain higher reimbursements from Medicare for remote cardiac monitoring services.
“Providers that seek payment from federal health programs are required to follow laws meant to protect beneficiaries, as well as to protect the integrity of those programs,” said U.S. Attorney Ross. “Our office is committed to pursuing cases against any provider that cuts corners or seeks to obtain payments for which they are not entitled.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Coleen DeGroat. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. DeGroat v. Beyond Reps, Inc. et al., 20-cv-1262 (W.D.N.Y.). Ms. DeGroat will receive a share of the settlement.
The resolution of this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of New York and the U.S. Department of Health and Human Services Office of Inspector General.
California Man Who Made Lavish Purchases with CARES Act Funds Sentenced to 41 Months in PrisonRead the Press Release
CONCORD – Pierre Rogers, 44, of Irvine, California, was sentenced to 41 months in federal prison for conspiracy to commit wire fraud and bank fraud, United States Attorney Jane E. Young, William A. Kalb, Special Agent in Charge, Treasury Inspector General for Tax Administration, Northeast Field Division, and Timothy R. Benitez, Resident Agent in Charge, U.S. Secret Service, announced today.
According to court documents and statements made in court, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses and individuals adversely affected by the COVID pandemic. The CARES Act created the Paycheck Protection Program (PPP), which offered low-interest loans to employers. Private lenders could participate in the PPP program. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were to be used for payroll and other business expenses such as rent and mortgage.
Rogers and his co-defendant, Joshua Leavitt, applied for dozens of PPP and EIDL loans for several companies they owned, including Puro Trader (doing business as Yahyn) and Sunju. The applications inflated the companies’ revenues and number of employees, and provided false supporting documents, including tax filings purportedly filed with the IRS. In total, the defendant participated in 22 fraudulent loan applications and modification requests totaling over $4.8 million. Rogers obtained $803,756 in CARES Act funds.
The defendant also misused a significant portion of the CARES Act funds. For example, he spent $107,780 to purchase a 2011 Rolls Royce Ghost and approximately another $56,000 to purchase a Porsche. He also spent CARES Act funds on clothing and jewelry from luxury retailers such as Bottega Veneta, Cartier, and Bulgari; on resort stays; and on high-end meals such as sushi and steak.
“The CARES Act was passed during a particularly vulnerable moment in our history to help everyday Americans who were struggling to put food on the table. The defendant took advantage of the COVID crisis by spending fraudulently obtained taxpayer-backed funds on luxury items, while those who were truly entitled to the funds struggled to keep their businesses open and their employees paid.” said U.S. Attorney Young. “Working together with our law enforcement partners, we will vigilantly work to prosecute those who defraud pandemic relief programs.”
“The U.S. Secret Service is committed to investigating those individuals that took advantage of COVID-19 relief programs to ensure they are held accountable for the fraudulent activity,” stated Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service. “This outcome is a direct result of the coordination between federal partners at TIGTA, USPIS and the U.S. Attorney’s Office.”
Leavitt previously pled guilty and is scheduled to be sentenced on March 6, 2023.
The case was investigated by the Treasury Inspector General for Tax Administration and Secret Service, with assistance from the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Alexander S. Chen.
###
Buffalo Woman Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Maria D’Amato, 28, of Buffalo, NY, was charged by criminal complaint with production of child pornography. The charge carries a maximum penalty of 30 years, and a fine of $250,000.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that according to the complaint, in June 2022, the Town of Tonawanda Police Department received a complaint that D’Amato had sexually assaulted a 14-year-old girl (Minor Victim). During the subsequent investigation, law enforcement searched a cell phone that belonged to the Minor Victim’s sister. The sister had located images and videos of the alleged assault, as well as text conversations between D’Amato and the Minor Victim, took screenshots, and then sent them to her own phone.
The complaint is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Acting Special Agent-in-Charge Darren Cox, and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Brookline Doctors Indicted on Additional Tax ChargesRead the Press Release
BOSTON – Two Brookline physicians were charged in a superseding indictment today with tax evasion and a conspiracy to defraud the Internal Revenue Service.
Dr. Pankaj Merchia, 49, of Brookline and Boca Raton, Fla., and Dr. Shona Pendse, 50, of Brookline, were indicted on two counts of tax evasion each and one count of a conspiracy to defraud the IRS. Merchia was previously indicted on one count of health care fraud and three counts of money laundering in December 2022.
According to the charging documents, Merchia and Pendse conspired to use a sham $30 million transaction as a basis to take fraudulent tax deductions and then made false statements about the transaction to criminal investigators and in civil depositions. Specifically, Pendse allegedly provided her employer with a W-4 that claimed her to be tax exempt, thus ensuring her employer would vastly underwithhold federal income tax. It is further alleged that Merchia earned substantial income from third party business entities in 2017 and 2019, and Pendse earned substantial income from her employer in 2019 and 2020, but each willfully avoided paying taxes on that income.According to court documents, Merchia allegedly perpetrated two distinct health care fraud schemes. Specifically, Merchia allegedly billed former patients’ insurance companies for monthly rentals of Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPap) machines years after the former patients had discontinued their use of the machines and/or returned the machines to Merchia’s office. It is further alleged that Merchia used the proceeds of this fraud to purchase an expensive home in Brookline.
Additionally, Merchia allegedly billed the insurance company of a family member over $400,000 for a monthly rental of a CPAP machine, despite knowing that the insurance carrier would not pay for treatment rendered by a family member. It is alleged that Merchia used the proceeds of this fraud to fund a wire transfer of $250,000 and to purchase at least $140,000 in securities.
The charges of money laundering and health care fraud provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of tax evasion and conspiracy to defraud the IRS provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins; Joleen Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Lauren A. Graber of Rollins’ Health Care Fraud Unit and Evan D. Panich of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Box Elder Man Sentenced for Illegal Possession of a FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes, sitting in federal district court in Rapid City, has sentenced a Box Elder, South Dakota, man convicted of Possession of an Unregistered Firearm. The sentencing took place on February 1, 2023.
Toby Acevedo, 52, was sentenced to 22 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Acevedo was indicted for Possession of a Firearm by a Prohibited Person and Possession of an Unregistered Firearm by a federal grand jury in March 2021. He pleaded guilty on October 14, 2022.
In July 2020, in Rapid City, Acevedo knowingly possessed an illegal shortened rifle, namely a Mossberg International, model 702 Plinkster, .22 Long Rifle caliber, semi-automatic rifle, having a barrel less than 16 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record as required.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Acevedo was immediately remanded to the custody of the U.S. Marshals Service.
Bogalusa Man Indicted for Violation of the Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA –TYLAR REDDITT, age 21, a resident of Bogalusa, Louisiana, was charged February 2, 2023, in a two-count indictment by a federal grand jury with violations of the Federal Gun Control and Federal Controlled Substances Acts, announced U.S. Attorney Duane A. Evans.
According to the indictment, REDDITT participated in a conspiracy to distribute a quantity of heroin in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846. REDDITT is also charged with conspiracy to use and possess firearms in furtherance of his drug trafficking activities in violation of Title 18, United States Code, Section 924(o). On the drug count, REDDITT faces a maximum term of twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years supervised release. For the firearms charge, REDDITT faces a maximum term of twenty (20) years imprisonment, a fine of up to $250,000.00, and up to three (3) years supervised release. Each count also requires that REDDITT pays a $100 mandatory special assessment fee at sentencing.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Washington Parish Sheriff’s Office, and the Bogalusa Police Department. The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit for the United States Attorney’s Office.
Boca Raton Woman Indicted and Arrested for Violating a U.S. Coast Guard Captain of the Port OrderRead the Press Release
MIAMI – Colleen Marie Kilnapp, 56, of Boca Raton, Fla., has made her first appearance in federal court to face charges that she violated a Captain of the Port Order issued by U.S. Coast Guard (USCG) Captain of the Port, Miami.
A South Florida federal grand jury indicted Kilnapp on January 26, 2023, charging her with three counts of Violating a Captain of the Port Order. If convicted, she faces up to six years in prison.
According to indictment allegations, on February 10, 2020, Kilnapp was issued an order of the USCG Captain of the Port, Miami, restricting her vessel the COLLEEN MARIE from operating commercially as the vessel did not have a USCG Certificate of Inspection. USCG boarding teams subsequently found the COLLEEN MARIE operating as an illegal passenger vessel on three different occasions after Kilnapp was issued the order.
United States Attorney for the Southern District of Florida Markenzy Lapointe and Special Agent in Charge Zinnia James, USCG Investigative Service (CGIS) Southeast Region, made the announcement.
CGIS investigated this case with assistance from USCG Sector Miami. Assistant U.S. Attorney Marc Anton is prosecuting it.
An indictment contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 23-CR-60025.