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Friday 3 February 2023
Benoit, Mississippi Man Sentenced to 10 Years in Prison for Robbing a U.S. Postal EmployeeRead the Press Release
OXFORD, Miss. – A Benoit, Mississippi man was sentenced today to 10 years in prison for robbing a U.S. Postal Employee in September 2021.
Court documents indicate that in September 2021, Joshua Williams, 40, robbed a U.S. Postal Employee of mail, her cellphone, money, and car keys. He was caught shortly thereafter hiding near Benoit.
Williams appeared for sentencing on these offenses in federal court in Oxford on Thursday, February 2, 2023. U.S. District Judge Michael P. Mills sentenced Williams to a total of 120 months in prison to be followed by 3 years of supervised release. Williams was also ordered to pay $180 in restitution to the victim.
“The prosecution of individuals who choose to commit violent crimes always has been and always will be a priority for this office,” said U.S. Attorney Clay Joyner. “Hopefully this sentence will serve as a deterrent to those who would victimize others in misguided attempts for personal gain.”
“The protection of the United States Postal Service and its employees are two of the highest priorities of the Postal Inspection Service,” said Scott Fix, Inspector-in-Charge of the Houston Division. “The sentencing of Joshua Williams for the armed robbery of a Benoit, Mississippi Rural Carrier is an example of the commitment of Postal Inspectors to bring to justice those individuals that threaten the safety of our postal employees. We extend our appreciation to the Bolivar County Sheriff’s Office that assisted with this investigation.”
The Oxford U.S. Postal Inspection Office along with Bolivar County, Mississippi Sheriff’s Office investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul Roberts.
Baltimore Woman Sentenced to 48 Months in Prison for Shooting Her Husband in a D.C. HotelRead the Press Release
WASHINGTON – Shanteari Weems, 50, of Baltimore, MD, was sentenced today to 60 months in prison, execution of the sentence suspended for all but 48 months, for aggravated assault in the July 21, 2022, shooting of her husband at the Salamander, previously known Mandarin Oriental Hotel, in Washington, D.C.
Weems pleaded guilty on November 28, 2022, to one count of aggravated assault and one count of carrying a pistol without a license. The Honorable Michael O’Keefe accepted the defendant’s plea and sentenced her to 60 months of incarceration with the execution of the sentence to be suspended as to all but 48 months for the aggravated assault, and 24 months of incarceration with the execution of the sentence for the carrying a pistol without a license, to be suspended as to all 24 months. Following her release, the defendant will be placed on 24 months of supervised probation.
According to the government’s evidence, on July 21, 2022, Weems drove down to the District from Baltimore. She confronted her husband (the victim) at the hotel regarding allegations that the victim had been molesting children at the defendant’s daycare. The defendant shot the victim in the neck and the left leg, shattering the victim’s femur. After shooting the victim, Weems barricaded the hotel room by placing her back against the door, preventing officers from coming inside. After approximately 25 minutes, officers forced entry and apprehended the defendant.
A search warrant was obtained and executed in the hotel room. Inside, officers found Weems’s firearm in her purse and a note written by Weems evidencing her intent to shoot the victim.
In announcing the sentence, U.S. Attorney Matthew Graves and Metropolitan Police Department Chief Robert J. Contee, III, commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Garcia Clarke and Michelle Wicker, Assistant U.S. Attorneys Yasmin Emrani, Brian Yang, Shaniqua Butler, and Julian Ginos, and SODV interns Molly Patrick and Lexi Nitishin. Finally, they expressed appreciation for the work of Assistant U.S. Attorney LaVater Massie-Banks, who investigated, indicted, and prosecuted the case.
23 Arrested, Charged in East Texas Paycheck Protection Program-Related FraudRead the Press Release
SHERMAN, Texas – Nearly two dozen individuals have been named in a federal indictment charging them with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today
The indictment, returned by a federal grand jury on Jan. 17, 2023, charges the defendants with a money laundering conspiracy. The following 23 defendants appeared before a federal magistrate judge this week:
KENDRICK LAVELL COLLINS, 42, of Aubrey;
LETISHA ANN STOVER, 41, of Richardson;
SPENCER LEONARD LEIGH, 35, of Everman;
DANUIELLE FOWLER EDNEY, 51, of Plano;
DIAMOND PLASHETTE EDWARDS, 24, of Grand Prairie;
TABITHA LASHAWN DEBERRY, 34, of Dallas;
AMOS WILSON, 56, of Dallas;
ANDREW DEMARCUS PENNY, 45, of Dallas;
DEMETRICS DEVON BLACK, 31, of Dallas;
JARRICK OTISHEY BUCKHANAN, 43, of Dallas;
JERICA JAREESE MATTHEWS, 31, of Anna;
JOHN GANTT, 35, of Dallas;
LEMAR MASHAWN COHEN, a/k/a LEMAR MARSHAWN COHEN, 36, of Dallas;
CHIBUIKE SAMUEL IWUH, 30, of The Colony;
CYNTHIA MECHELLE WILSON, 55, of Dallas;
DONTRELL LAMON AMIE, 42, of North Richland Hills;
ERIC JASON VAUGHAN, 49, of Arlington;
JEREMIAH LEE GANTT, 28, of Dallas;
JOSHUA MATTHEW BAHAM, 27, of Anna;
LESLEY ODELL BROWN, 32, of Carrollton;
MICHAEL ANDRE STUDAWAY, 26, of Dallas;
TAMARA DAWN THOMAS, 41, of Dallas; and
TIMOTHY DWAYNE HOSTON, 44, of Carrollton.
According to the indictment, the defendants are alleged to have conspired to launder the proceeds of wire fraud in order to conceal the nature, location, source and ownership of the money gained by fraud. The indictment further alleges that the conspirators would open bank accounts, use assumed business names, and transfer, withdraw, and move the money and use it for their own purposes. The source of the laundered funds is alleged to include fraud based on business email compromise, romance scams, unemployment insurance fraud, and Payroll Protection Program (PPP) fraud, and is alleged to be more than $3.5 million.
If convicted, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation’s Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Thursday 2 February 2023
Youth Basketball Coach Arrested for Possession of Child PornographyRead the Press Release
HONOLULU – DWAYNE YUEN, a 49 year-old resident of Honolulu, was arrested today for possession of child pornography. Clare E. Connors, United States Attorney for the District of Hawaii, and Matthew Floyd, Acting Special Agent in Charge of the Honolulu Field Office of the Federal Bureau of Investigation (“FBI”), announced that the charge against YUEN was contained in a criminal complaint filed in federal court and unsealed upon his arrest. YUEN will make his first court appearance in the United States District Court on February 3, 2023, at 10:30 a.m. before United States Magistrate Judge Rom Trader.
The complaint and affidavit allege that YUEN was a youth basketball coach of mostly middle school and high school age girls in and around Oahu. In or around 2016, YUEN met the victim when she was a freshman in high school. YUEN was her basketball coach. While the victim was still a minor, in 2020, YUEN sent text message communications to her, including: sending sexually explicit photos of himself; asking her to perform sexual acts on him and vice versa; and asking her to send him sexually explicit images of herself. YUEN bought gifts for the victim and repeatedly offered to pay the victim additional sums of money if she would engage with him sexually (for example, if she would have “phone sex” with him). From a search warrant executed on YUEN’s Apple iCloud account, law enforcement also recovered sexually explicit images of the victim that she had sent to him upon his request or that he had recorded or captured from a live video chat without her knowledge.
“This complaint charges defendant with repeatedly taking sexual advantage of a minor who played on a team he coached,” said U.S. Attorney Connors. “The alleged conduct is a reprehensible violation of the trust both parents and the community place in adults responsible for their children’s athletic endeavors.”
"The alleged actions of Mr. Yuen are nothing short of disgraceful," said Acting Special Agent in Charge Floyd. "Our investigation shows he abused the power of his position as a trusted member of the community to exploit the most vulnerable - our keiki. Protecting our children and holding those who prey on them accountable is a top priority for the FBI. We will stop at nothing when investigating these heinous crimes."
The FBI is working to identify any individuals who may have been a victim of child sexual exploitation or who otherwise may have been affected by YUEN’s conduct. If you believe you or anyone else may have been affected, you may contact the FBI at:
Phone: (808) 673-2719
Website: www.fbi.gov/yueninvestigation
Email: [email protected]If indicted and convicted of the offenses in the complaint, the defendant would face up to 10 years’ imprisonment. The charges and information contained in the federal complaint are merely accusations, and the defendant is presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating the case, and the prosecution is being handled by Assistant U.S. Attorneys Rebecca Perlmutter and Christine Olson.
Worcester Postal Supervisor Sentenced for Mail TheftRead the Press Release
BOSTON – A supervisor for the U.S. Postal Service was sentenced today in federal court in Worcester for stealing packages containing cocaine on at least eight occasions.
Kevin Dombroski, 43, of Worcester, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison and three years of supervised release. In August 2022, Dombroski pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service.
Dombroski was employed as Postal Service Supervisor at the Worcester Main Post Office. On eight to 10 occasions, Dombroski stole packages that had been mailed from Puerto Rico to addresses in Worcester he believed would contain cocaine. Specifically, Dombroski removed said packages from the main processing area of the Post Office and took them into a private office where he would open the parcel and remove the narcotics before returning the package back to the floor for delivery. Dombroski then sold the contents to an acquaintance, who paid him $7,500 for each package.
United States Attorney Rachael S. Rollins; Matthew Modafferi, Special Agent in Charge of the Northeast Area Field Office of the U.S. Postal Service, Office of Inspector General; and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.
Woman who dealt drugs from her Lake Stevens restaurant sentenced to ten years in prisonRead the Press Release
Seattle – A 46-year-old Marysville, Washington woman, who co-owned a Lake Stevens, Washington restaurant used for drug trafficking, was sentenced today in U.S. District Court in Seattle to ten years in prison for distributing methamphetamine, heroin, and fentanyl, announced U.S. Attorney Nick Brown. Laura Rodriguez-Moreno has been in custody since she and five coconspirators were arrested on September 1, 2020. At today’s sentencing hearing, U.S. District Judge John C. Coughenour said, Rodriguez-Moreno had a leadership role in a large drug trafficking ring. “But more important than any other factor was that she involved her teen-age son in drug dealing, just days after he had been arrested” with a load of fentanyl pills, Judge Coughenour said.
“Ms. Rodriguez-Moreno was distributing pound quantities of methamphetamine and thousands of fentanyl pills. But what is most shocking is that she had her teen-age son engaging in drug distribution at her direction,” said U.S. Attorney Brown. “She and her husband put their restaurant and the security of their five children at risk when they became drug traffickers. Now those children are without their parents for significant time.”
“Ms. Rodriguez-Moreno is being held accountable not only for the distribution of large quantities of illegal and deadly narcotics, but also for utilizing her teenage son to further her drug distribution schemes,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “We will continue to work with our partners to protect our communities and save lives by removing these individuals.”
According to records filed in the case, Rodriguez-Moreno and her husband Jose Morales-Flores, 39, were part of a wide-ranging drug trafficking conspiracy. Members of the conspiracy distributed fentanyl, meth, and heroin in Seattle and North Puget Sound communities. In
her plea agreement, Rodriguez-Moreno admits distributing more than 16 kilos of methamphetamine and nearly a kilo of fentanyl pills. When law enforcement arrested Rodriguez-Moreno and her associates, they seized another 17 kilos of meth, nearly two kilos of heroin, thousands of fentanyl pills, three firearms, and more than $100,000 cash.
Law enforcement observed and listened as Rodriguez-Moreno directed her son to deliver ten pounds of methamphetamine to a customer parked at her restaurant, Fuente de Café, just days after her son had been arrested with a large amount of fentanyl pills. In the months that followed, she and her husband would take their son to drug meetings and have him deliver the drugs for them.
Prosecutors noted in their sentencing memo that Rodriguez-Moreno did not suffer from clouded judgement due to drug addiction. Her motivation was money. “Moreover, Rodriguez-Moreno knew what these drugs would do to other families, other kids. But she was blinded by greed and only focused on how distributing these drugs would help her and her family, not the pain and suffering her actions would cause others, or even her own children if caught,” Assistant United States Attorney C. Andrew Colasurdo wrote in his sentencing memo.
On October 19, 2021, Rodriguez-Moreno’s husband, Jose Morales-Flores, was sentenced to ten years in prison. However, instead of reporting to prison he cut off his GPS monitoring bracelet and became a fugitive. He is still being sought by law enforcement.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was conducted by the U.S. Drug Enforcement Administration (DEA), Snohomish Regional Drug Task Force, Seattle Police Department, FBI and the Skagit Interlocal Drug Enforcement Unit. The investigation was supported by the High Intensity Drug Trafficking Area (HIDTA).
The case was prosecuted by Assistant United States Attorneys C. Andrew Colasurdo and Stephen Hobbs.
Wisconsin Rapids Man Sentenced to 25 Years for Sexually Assaulting Children & Recording the AssaultsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Timothy P. McDowell, 40, of Wisconsin Rapids, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 25 years in prison for producing child pornography. This term of imprisonment will be followed by 30 years of supervised release. McDowell pleaded guilty to this offense on October 25, 2022.
Law enforcement began their investigation into McDowell in October 2021 after they received information that McDowell was posting what appeared to be self-produced child pornography onto Kik. They searched the defendant’s home the next day and on his phone, found images and videos of the defendant sexually assaulting two young children. The defendant admitted producing these images and sending them to others on Kik.
Judge Conley found a 25-year sentence was warranted due to the abhorrent nature of the defendant’s conduct and because the defendant created the potential for endless victimization for the children by sharing the images on the internet.
The charge against McDowell was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation and the Wood County Sheriff’s Office. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Wholesale Drug Trafficker and Distributor Agrees to Plead Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – The leader of a Brockton-based drug-trafficking organization (DTO) agreed to plead guilty yesterday to gun and drug offenses.
Kevin Cardoso, 26, of Brockton, pleaded guilty to one count of being a felon in possession of a firearm and ammunition; one count of possession with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine; and one count of conspiracy to distribute and possess with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine. The Court deferred acceptance of the proposed plea agreement until sentencing, which U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 1, 2023. Cardoso was initially arrested and charged by criminal complaint in December 2021. He was subsequently charged by an Information on Jan. 17, 2023.
According to court documents, Cardoso oversaw a DTO that distributed wholesale quantities of controlled substances, including cocaine, fentanyl and methamphetamine in and around the Brockton area. Multiple locations at which DTO members allegedly stored, prepared, or distributed narcotics were located during the investigation – some of which were identified based on the electronic location monitoring data from the ankle bracelet Cardoso’s was wearing at the time while on pretrial release for two pending state gun charges, as well as drug-trafficking related communications and images he was transmitting via his identified Snapchat account.
During an October 2021 search of a stash location Cardoso allegedly operated and managed in Dedham, at least 2,000 grams of cocaine, at least 3,000 grams of fentanyl, at least 5,000 grams of methamphetamine, drug packaging materials, blender parts, multiple respirators, press equipment (including a hydraulic press, press plates and various symbols, logos and emblems for drug-labeling purposes) and approximately $72,000 cash were recovered.
Additionally in October 2021, during a search of Cardoso’s apartment, a firearm and ammunition, at least 20 cellphones, over $26,000, an Audemars Piguet watch and a diamond pendant with the number “39” were recovered. A number of the seized phones contained drug-trafficking communications allegedly between Cardoso and others regarding the supply and/or distribution needs of the DTO’s members and its customer base. At the time of Cardoso’s arrest, law enforcement recovered over $6,000 from his person and vehicle, as well as three additional cellphones.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, and 500 grams and more of methamphetamine provides for a sentence of at least 10 years up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of conspiracy to distribute and possess with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, and 500 grams and more of methamphetamine provides for a sentence of at least 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. 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; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Boston Police Commissioner Michael Cox; Brockton Police Chief Brenda Perez; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Chief Paul O’Brien; Westport Police Chief Keith A. Pelletier; Dedham Police Chief Michael D'Entremont; Plymouth Police Chief Michael E. Botieri; Newton Police Chief John F Carmichael Jr.; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Thomas Hodgson; and Plymouth County Sheriff Joseph D. McDonald made the announcement today. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Yellowstone man sentenced to three years in prison for illegal possession of ammunitionRead the Press Release
MISSOULA — A West Yellowstone man who admitted to illegally possessing ammunition after having been convicted of possessing unregistered improvised bombs was sentenced today to three years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Charles Gibson Bailey, 36, pleaded guilty in October 2022 to felon in possession of ammunition.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in May 2020, Bailey was sentenced in U.S. District Court to 40 months in prison for conviction of possessing unregistered improvised bombs. In February 2022, the probation office filed a petition to revoke Bailey’s supervised release following two encounters between Bailey and a West Yellowstone Police officer. The court revoked Bailey’s supervised release and sentenced him to three months in custody. During that same time, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated Bailey and executed a search warrant on his residence and vehicle in April 2022. Agents seized 14 .40-caliber bullets from Bailey’s truck. The headstamps on the bullets were obliterated.
Assistant U.S. Attorneys Timothy J. Racicot and Ryan G. Weldon prosecuted the case, which was investigated by the ATF, the West Yellowstone Police Department, and the Federal Protective Service.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Walton County Resident Convicted of Possessing Child Sexual Abuse MaterialRead the Press Release
ATHENS, Ga. – A Walton County resident was convicted by a federal jury late yesterday afternoon of possession of child sexual abuse material (CSAM) resulting from a GBI-led undercover investigation of an online peer-to-peer sharing network.
Johnathan Remsen, 37, of Loganville, Georgia, was found guilty of possession of child pornography on Feb. 1 following a two-day trial that began on Jan. 31 before U.S. District C. Ashley Royal. Remsen faces a maximum of 20 years imprisonment to be followed by a maximum supervised release term of life and a $250,000 fine. In addition, Remsen will have to register as a sex offender for life upon release from prison. Sentencing should occur within the next 90 days. There is no parole in the federal system.
“After a lengthy investigation and subsequent trial, Johnathan Remsen is finally being held criminally accountable for willfully downloading hundreds of images and videos of the sexual abuse and exploitation of children, including extremely young children,” said U.S. Attorney Peter D. Leary. “Every time a person views child sexual abuse material, they become complicit in the appalling abuse of a child. Our office will push for the federal prosecution of these criminal voyeurs.”
“The victimization of a child doesn’t end when that child’s pornographic images are recorded. Every time an individual like Remsen possesses those images and views them for personal gratification, that child is victimized again and again,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect our most vulnerable assets, our children.”
“Federal prosecution sends a clear message that downloading and viewing child sexual abuse material is a serious crime. The GBI’s Child Exploitation and Computer Crimes Unit investigates numerous cases just like this one and will not slow down until these perpetrators are held accountable. We’ll continue to work with strong federal partners, like the United States Attorney’s Office, to seek justice for these vulnerable victims,” said GBI Director Mike Register.
According to court documents and evidence presented at trial, GBI conducted an undercover investigation on the peer-to-peer sharing network BitTorrent in July 2017. An undercover agent received 29 videos containing CSAM from an IP address traced back to a Walton County residence where Remsen resided. Law enforcement searched the residence in Jan. 2018, recovering a computer tower belonging to Remsen that contained 2,357 picture files and 196 video files of suspected CSAM. Remsen was interviewed by law enforcement and made statements indicating that he “accidentally” downloaded CSAM, and then later stated that it was not an accident. He further admitted that he looked at CSAM, but he never meant to download or keep it. The explicit photos and videos contained child sexual abuse material of children 12 years old and younger.
The case was investigated by the GBI and the FBI.
Assistant U.S. Attorney Alex Kalim and Criminal Chief Leah McEwen are prosecuting the case.
Volusia County Man Sentenced to More Than 5 Years in Federal Prison for Using His Missing Father’s Identity to Steal Social Security BenefitsRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Robert Butzlaff (57, Volusia County) to 5 years and 10 months in federal prison for fraudulent use of an unauthorized access device and aggravated identity theft. As part of his sentence, the court also ordered Butzlaff to pay restitution in the amount of $57,296, and entered an order of forfeiture in the amount of $57,296, the proceeds of the access device fraud. A federal jury had found Butzlaff guilty on September 21, 2022.
According to evidence presented at trial, Social Security beneficiary M.B. was reported missing in October 2014 and has never been located. M.B.’s disappearance was not reported to the Social Security Administration (SSA) and SSA continued to make benefit payments on his behalf. M.B.’s SSA benefits were being deposited into an account held jointly with his son, Butzlaff, at the time of his disappearance. Following M.B.’s disappearance, Butzlaff opened a new bank account using M.B.’s personally identifiable information and redirected M.B.’s SSA benefits to the new account. The new account was solely in M.B.’s name. Butzlaff obtained and used two debit cards issued in the name of M.B. to withdraw the funds that were being deposited by SSA into the new account. Butzlaff used the SSA funds intended for M.B. for his own personal expenses.
“This sentence of 70 months’ imprisonment holds Mr. Butlzaff accountable for intentionally misusing Social Security benefits, intended for his father, for his own personal gain. This is a federal crime, and we will continue to pursue perpetrators of Social Security fraud,” said Gail S. Ennis, Inspector General for the Social Security Administration Office of the Inspector General. “I want to thank the Ormond Beach Police Department, the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Suzanne Huyler for their efforts in investigating and prosecuting this case.”
This case was investigated by the Social Security Administration, Office of the Inspector General and the Ormond Beach Police Department. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler.
U.S. Attorney Talbert and California Attorney General Bonta Announce a Nearly $26 Million Settlement with Medical Provider in the Central ValleyRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert and California Attorney General Rob Bonta today announced a nearly $26 million settlement against Central California medical provider Clinica Sierra Vista (CSV) for underreporting its income in violation of the California False Claims Act and the federal False Claims Act. CSV, which serves customers in California’s Kern, Fresno, and Inyo Counties, initially and voluntarily reported its conduct to the U.S. Attorney’s Office for the Eastern District of California (USAO) and the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA). DMFEA and the USAO investigated the case and negotiated the settlement, working with the California Department of Health Care Services and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Of the total $25.98 million settlement amount, California will receive $15.59 million and the federal government will receive $10.39 million.
“It’s important for medical providers to report accurately so that taxpayers aren’t overcharged for services with their dollars,” said U.S. Attorney Talbert. “We encourage others to follow the example of Clinica Sierra Vista in self-reporting overcharges and remain committed to working cooperatively to eliminate fraud.”
“When companies take advantage of the Medi-Cal system, they harm patients across California who rely on the program for essential health care services,” said Attorney General Rob Bonta. “I commend the new management at Clinica Sierra Vista for coming forward, and for working with us and our partners to resolve their violations. This settlement will return the money where it belongs: to support California's Medi-Cal program and the communities it serves. I encourage all providers to conduct regular internal investigations and self-disclose potential violations.”
According to investigators, certain former executives at Clinica Sierra Vista knowingly submitted false information in the course of required regular financial reports made to California, thereby enabling CSV to receive excessive payments from the Medi-Cal program. The company’s new management discovered these violations after an internal investigation and voluntarily disclosed them to authorities.
Providers who believe they may have violated the federal or California False Claims Act should follow the HHS-OIG Provider Self Disclosure Protocol, which establishes a process for providers to voluntarily identify, disclose, and resolve instances of potential fraud involving federal health care programs, including Medicaid.
"Providers who defraud government health care funds, such as Medi-Cal, for illegitimate financial gain, prevent valuable taxpayer dollars from being used for their intended purpose,” said Special Agent in Charge Steven J. Ryan. “HHS-OIG’s Self Disclosure Protocol allows providers to come forward if they believe they have violated the False Claims Act, which helps us identify, investigate, and resolve cases of Medicare fraud.”
Assistant U.S. Attorney Colleen Kennedy handled the civil investigation for the United States.
DMFEA protects Californians by investigating and prosecuting those who defraud the Medi-Cal program as well as those who commit elder abuse. These settlements are made possible only through the coordination and collaboration of governmental agencies, as well as the critical help from whistleblowers who report incidences of abuse or Medi-Cal fraud at oag.ca.gov/dmfea/reporting.
Two Sacramento Men Indicted for Conspiring to Distribute Fentanyl and MethamphetamineRead the Press Release
SACRAMENTO, Calif. — On Jan. 26, 2023, a federal grand jury returned an eight-count indictment against Gilbert Ramirez, 25, and Michael Valentino Lovato, 33, both of Sacramento, charging them with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, distribution of fentanyl and methamphetamine, and possession with intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
The indictment was unsealed today following the arrest of both defendants.
According to court documents, from April through July 2022, Ramirez and Lovato worked with each other and others to distribute over 500 grams of methamphetamine and over 400 grams of fentanyl in Sacramento County. On at least five separate occasions, Ramirez and Lovato distributed fentanyl.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Sacramento Police Department; and the Yolo County District Attorney’s Office. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million fine for the conspiracy charge, plus additional penalties for the distribution and possession charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Two Men Sentenced to Federal Prison for Transporting CocaineRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced that two Tennessee men who were stopped for a traffic violation while driving through Louisiana and found to have cocaine in their vehicle have been sentenced. United States District Judge Terry A. Doughty sentenced the two men as follows:
Jalyn Thompson, 21, of Mt. Juliet, Tennessee, was sentenced to 70 months in prison, and Derek Tipps, 21, of Dickson, Tennessee, was sentenced to 120 months in prison. Both will be under supervised release for 5 years following their release from prison.
On October 20, 2021, a vehicle was stopped by Louisiana State Police troopers for a traffic violation outside of Monroe, Louisiana. Thompson was driving the vehicle and Tipps was a passenger. The story they provided to law enforcement officers raised suspicions and a K-9 dog was summoned to the scene to assist. Upon arrival, the drug dog alerted on the vehicle and Thompson and Tipps admitted to having drugs in the vehicle. A backpack was found in the trunk which contained 25 pounds of cocaine. Both men were arrested and subsequently indicted for possession with intent to distribute cocaine. Thompson and Tipps both pleaded guilty to the charge on May 3, 2022.
The case was investigated by the U.S. Drug Enforcement Administration Joint Task Force and the Louisiana State Police and prosecuted by Assistant U.S. Attorney Robert F. Moody.
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Two Men Convicted Following Federal Fraud Conspiracy Trial for $1 Million “Free Bankruptcy” Scheme to Strip Liens from 100 CarsRead the Press Release
INDIANAPOLIS- A federal jury has found Brian Fenner, 47, of Indianapolis and Dennis Birkley, 63, of Wisconsin, guilty on all charges following a six-day trial. The two men were each convicted of one count of conspiracy, fourteen counts of fraud, and three counts of money laundering.
“These defendants engaged in a brazen and long running fraud scheme, illegally enriching themselves at the expense of financially distressed individuals and their lenders,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “These fraudsters repeatedly lied and created false documents to exploit Indiana regulators and the bankruptcy process. Complex economic crimes are a federal prosecution priority, and these convictions demonstrate that those who choose to engage in these schemes will be held accountable.”
“Those who prey on consumers in financial distress, cause great harm to the lenders, and abuse the bankruptcy process to carry out their fraudulent activities across the nation strike at the very core of the integrity of the bankruptcy system and will not be tolerated,” stated Nancy J. Gargula, United States Trustee for Indiana and Southern and Central Illinois (Region 10). “We appreciate the commitment of U.S. Attorney Myers and our law enforcement partners to holding those who abuse the bankruptcy system accountable, as well as the efforts of the U.S. Attorney’s Office, FBI, and our law enforcement partners who helped bring these defendants to justice.”
According to court documents and evidence introduced at trial, between 2013 and 2016, Fenner promoted the “Sperro free bankruptcy program” nationwide to financially distressed people who owed more in car loans than their cars were worth. Through this purported “free bankruptcy program,” Fenner promised to pay the debtors’ bankruptcy attorneys’ fees if they turned over their vehicles to him. Numerous people from across the country signed on with the program and surrendered their vehicles to Fenner, including from as far away as California and Arizona. Fenner arranged for the debtors’ cars to be towed to his lots in Indianapolis for outlandish fees.
Indiana law required towing and storage companies to hold auctions to sell vehicles to satisfy unpaid debts and give the auto loan holders any proceeds of the sale exceeding the towing and storage fees. Fenner then pretended to “sell” the cars at “auctions” to cover the exorbitant towing and storage “fees.” These fraudulent auctions were part of a series of fraudulent documents and lies submitted to the Indiana Bureau of Motor Vehicles, which resulted in the “buyer” receiving a free-and-clear car title from the BMV. Birkley and his company, AMI Asset Management, were the successful bidders for all 100 vehicles obtained by Fenner from debtors. Birkley falsely claimed to have paid Fenner the exact amount Fenner claimed he was owed for towing and storage fees, leaving nothing to satisfy the lien of the lenders or return to the individuals. In fact, Birkley and Fenner were engaged in the scheme together, and Birkley did not pay Fenner anything for the cars to which Birkley fraudulently obtained title.
Instead, once Birkley received vehicles with titles clear of liens from banks or anyone else, he sold the vehicles, sometimes at a real public auction, and often received thousands of dollars in profit, which he split with Fenner. Birkley and Fenner illegally obtained over $1 million through their fraud. In the end, the scheme left the financially distressed individuals with no vehicles but still with the vehicle loan debt, which they were often unable to discharge in bankruptcy.
The charges resulted, in part, from a referral by the U.S. Trustee for Region 10 to the U.S. Attorney for the Southern District of Indiana. This case was investigated by the FBI and the Indiana State Police, with assistance from the Department of Justice’s U.S. Trustee Program, in collaboration with the Southern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Kate E. Olivier and Bradley P. Shepard, who prosecuted this case.
U.S. District Court Judge Richard L. Young presided over the trial and ordered that Fenner and Birkley be sentenced in early May of 2023. Both face up to 20 years in prison followed by 3 years of supervised release. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
See related prior release Here.
Tuscaloosa County Man Arrested in New York on Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – Yesterday, federal agents arrested a Tuscaloosa County man in New York on gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
A three-count indictment filed in U.S. District Court in January charges Darterrius Dewayne Washington, 23, of Woodstock, Alabama, with possession of a machine gun part, engaging in the business of dealing firearms without a license, and making a firearm in violation of the National Firearms Act.
According to the indictment, between August 2022 and October 2022, Washington engaged in the business of dealing firearms without a license. During that time, Washington made a Swift Link, an AR-style machinegun conversion device, and also made a “Glock switch”, a conversion device designed to illegally convert a semiautomatic Glock pistol into a fully automatic machine gun.
ATF investigated the case. Assistant U.S. Attorney Brittney L. Plyler is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Three Individuals Charged with Operating Multimillion-Dollar Elder Fraud SchemeRead the Press Release
A federal grand jury in Las Vegas returned an indictment yesterday charging three individuals with operating a mail fraud scheme that defrauded thousands of U.S. victims, many of whom were elderly and vulnerable.
According to court documents, Kimberly Stamps, 46, of Gilbert, Arizona; John Kyle Muller, 56, of Boulder, Colorado; and Barbara Trickle, 78, of Las Vegas, conspired to operate a fraudulent mass-mailing scheme that deceived thousands of consumers into paying fees for falsely promised prizes. The indictment alleges that, from 2012 to 2018, the defendants mailed millions of prize notices that led victims to believe they were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced form letters that were bulk-mailed to recipients whose names and addresses appeared on mailing lists purchased and rented by the defendants.
“The department is committed to investigating and prosecuting mass-market schemes that harm seniors and other vulnerable persons,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We devote substantial resources to these investigations and prosecutions, in furtherance of our commitment to protecting the financial security of all Americans.”
“Today’s indictment reflects the commitment of Postal Inspectors to protect older Americans from scams that prey on the vulnerable,” said Inspector in Charge Eric Shen of the United States Postal Inspection Service (USPIS) Criminal Investigations Group. “These individuals took advantage of the euphoria of winning a prize to bilk victims out of their money, when in fact they knew there was no prize waiting; all while violating a previous cease and desist order to stop their fraudulent behavior. Now they have been brought to justice for their crimes and will face their comeuppance for their illegal activity.”
The indictment alleges that Stamps and Muller selected and edited the prize-notice mailings, set the mailing schedules, and collected and processed victim payments. Trickle – aware of the deceptive nature of the mailings and that victims were in fact deceived – produced the physical mailings, introduced them to the U.S. Mail, and assisted with managing the data that Stamps and Muller used to target consumers for repeated victimization.
According to the indictment, Stamps, Muller, and Trickle continued to operate their fraudulent mass-mailing scheme in violation of a United States Postal Service cease-and-desist agreement and consent order reached in 2012. The agreement and order had permanently barred Stamps and anyone working with her from mailing fraudulent prize notices.
The indictment charges each of the three defendants with conspiracy to commit mail and wire fraud, along with multiple counts of mail fraud and wire fraud. The defendants are expected to make their initial appearances on Feb. 15 before a U.S. magistrate judge in the U.S. District Court for the District of Nevada. Each charge in this case carries a statutory maximum sentence of 20 years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The USPIS investigated the case.
Trial Attorneys Carolyn Rice and Charles Dunn of the Department of Justice Civil Division’s Consumer Protection Branch prosecuted this case, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Nevada visit their websites at www.justice.gov/usao-nv.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Charged in Connection with Deadly Fentanyl-Laced OverdoseRead the Press Release
AUSTIN, Texas – A federal grand jury in Austin recently returned an indictment charging a local man and two women with five counts related to fentanyl distribution resulting in death and serious bodily injury.
Court documents allege that David Lee Jr., 45, and Virginia Zepeda, 43, of Austin, along with Jackie Lynne Chester, 36, of Taylor, possessed and sold counterfeit oxycodone and other fake prescription pills containing traceable amounts of fentanyl, leading to the death of at least one person.
The defendants have each made their initial court appearances. Lee is charged with one count of conspiracy to distribute fentanyl, one count of distribution of fentanyl causing death and serious bodily injury, and three counts of possession with intent to distribute and distribution of fentanyl. If convicted, he faces a maximum penalty of 20 years in prison on the conspiracy charge, 20 years to life imprisonment on the distribution causing death charge and 40 years imprisonment on each of the three possession charges. Lee pleaded not guilty to all charges on Jan. 11, 2023.
Zepeda and Chester are each charged with one count of conspiracy to distribute fentanyl. If convicted, they each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration Houston Division made the announcement.
The DEA, Williamson County Sheriff’s Office and Guadalupe County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Mark Marshall is 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.
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Swea City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on February 1, 2023, in federal court in Sioux City.
Joey Post, 34, from Swea City, Iowa, was convicted of conspiracy to distribute methamphetamine. At the plea hearing, evidence showed that from February 2022 through May 2022, Post and others distributed 1.5 kilograms of methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Post remains in custody of the United States Marshal pending sentencing. Post faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Department of Narcotics Enforcement, Kossuth County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3029. Follow us on Twitter @USAO_NDIA.
Statement from Attorney General Merrick B. Garland Regarding United States v. RahimiRead the Press Release
The Justice Department tonight issued the following statement from Attorney General Merrick B. Garland following the decision of the U.S. Court of Appeals for the Fifth Circuit in United States v. Rahimi.
“Nearly 30 years ago, Congress determined that a person who is subject to a court order that restrains him or her from threatening an intimate partner or child cannot lawfully possess a firearm. Whether analyzed through the lens of Supreme Court precedent, or of the text, history, and tradition of the Second Amendment, that statute is constitutional. Accordingly, the Department will seek further review of the Fifth Circuit’s contrary decision.”
St. Louis Man Facing Charges Associated with Nonfatal Carjacking Charged with Second, Fatal CarjackingRead the Press Release
ST. LOUIS – A St. Louis, Missouri man already facing charges for one non-fatal carjacking in August was indicted on charges Wednesday that allege he committed a fatal carjacking in July.
The superseding indictment alleges that Loyse Dozier, 20, discharged a firearm during the fatal carjacking of a 2014 Mercedes sedan on July 10, 2022.
Court documents indicate that carjacking occurred at a market in the 300 block of Chambers Road in Riverview, in St. Louis County.
Dozier now faces charges of carjacking resulting in death, brandishing and discharging a firearm during a crime of violence, resulting in death, attempted carjacking resulting in serious bodily injury, possession with the intent to distribute fentanyl, possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm as a previously convicted felon.
A prior indictment and criminal complaint also allege that Dozier attempted to take a 2019 Kia Optima at gunpoint on August 1 from a woman who was sitting in her car in the parking lot of the Walgreens at 1400 North Grand Boulevard in St. Louis. A gunman approached the woman and demanded her keys, then shot her multiple times after she handed the keys over. The gunman fled when an off-duty Florissant Police officer working security inside the store ran outside.
Shell casings recovered at the Walgreens matched casings found at the market, the complaint says. A cell phone belonging to Dozer was found in the Kia and when he was arrested he was caught with a gun, the indictments and complaint allege. Dozier is a previously convicted felon and barred from possessing a firearm.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department, the St. Louis County Police Department and the FBI. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
South Texas Supplier in Interstate Narcotics Distribution Network Sentenced to 14 Years in PrisonRead the Press Release
AUSTIN, Texas – A Mexican national was sentenced in federal court in Austin last week to 14 years in prison for his role in a narcotics distribution network that spanned the U.S.
According to court documents, Victor Penaloza-Calderon, aka Cuñado, 37, of Michoacan, Mexico was the source of supply for hundreds of kilograms of methamphetamine that was routed to Austin for distribution in and around the city, as well as in states as far away as Wisconsin and North Carolina. An operation led by the Drug Enforcement Administration has resulted in the arrests and convictions of 29 conspiracy members and, in the process, has dismantled the distribution organization.
The leader of the distribution organization, Karl Beck, was sentenced to 20 years in prison. There have been 29 defendants sentenced from the Organized Crime Drug Enforcement Task Force’s (OCDETF) Operation Glass Joe. Two additional defendants have been indicted and await trial.
“Proving how critical our law enforcement partnerships are, this multi-agency operation has completely dismantled an organization responsible for distributing narcotics in communities across the nation,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “As of today, the defendants in this conspiracy have been sentenced to a total of 2,907 months in federal prison. That’s your justice system at work.”
“This Drug Trafficking Organization embedded itself in communities across the nation, including Texas, through distribution cells,” said Special Agent in Charge Daniel C. Comeaux of the DEA Houston Division. “The number of arrests and drug seizures in this case exemplifies DEA’s continued effort to bring those who attempt to profit from our communities to justice.”
“This federal prison sentence sends a clear message that the FBI and our law enforcement partners will continue to work diligently to hold criminals who are bringing methamphetamine and other dangerous drugs into our communities accountable for their actions,” said Special Agent in Charge Oliver E. Rich Jr of the FBI San Antonio Division.
This case was investigated by the DEA; FBI; Austin Police Department; Texas Department of Public Safety; Cedar Park Police Department; Pflugerville Police Department; Bastrop County Sheriff’s Office; and Travis County Sheriff’s Office.
Assistant U.S. Attorney Dan Guess prosecuted the case.
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Six Members of Drug Distribution Ring Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Six members of a poly-drug trafficking ring have been sentenced to prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
“The six defendants were members of a drug trafficking organization that distributed deadly drugs like fentanyl throughout Charlotte,” said U.S. Attorney King. “In keeping with our efforts to protect the community, we will continue to partner with our federal, state and local law enforcement partners to identify and prosecute trafficking networks that spread drugs and drug-induced violence in our community.”
“Drug trafficking often has a direct link to violent crime,” said ATF Special Agent in Charge Mims. “When we can stop a major trafficking network and disrupt the flow of drugs into our communities, we have a better chance of decreasing violent crime and keeping our streets safe.”
U.S. District Judge Kenneth D. Bell sentenced the six defendants as follows:
- Jakieran Harris, 27, of Charlotte, was sentenced to 108 months in prison, followed by three years of supervised release.
- Laricco Eugene Sherrill, Jr., 23, of Charlotte, was sentenced to 84 months in prison, followed by four years of supervised release.
- Marquez Maxwell, 27, of Charlotte, was sentenced to 54 months in prison, followed by three years of supervised release.
- Quentin Nathaniel Stowe, 28, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
- Brian Clinton, 24, of Charlotte, was sentenced to 42 months in prison, followed by three years of supervised release.
- Sadarian Armstrong, 41, of Charlotte, was sentenced to 24 months in prison, followed by three years of supervised release.
According to court documents and court proceedings, beginning as early as January 2020 through March 2022, the six men were members of a drug trafficking organization (DTO) that distributed narcotics in Mecklenburg County and surrounding areas. Court records show that the DTO used several residences in Charlotte, commonly referred to as “trap houses,” as bases of operation from which they sold the drugs. Over the course of the investigation, law enforcement seized from DTO members and the trap houses fentanyl, methamphetamine, cocaine, cocaine base, and marijuana, drug paraphernalia, digital scales, several firearms and ammunition, and over $63,650 in drug proceeds.
In making today’s announcement U.S. Attorney King credited the ATF and CMPD’s Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Sioux City Man Sentenced to Federal PrisonRead the Press Release
A Sioux City man who was selling methamphetamine around the Sioux City area was sentenced February 1, 2023, to more than 4 years in federal prison.
Matthew Antonovich, age 39, from Sioux City, Iowa, received the prison term after a June 21, 2022, guilty plea to felon in possession of a firearm and conspiracy to distribute methamphetamine.
In a plea agreement, Antonovich admitted to conspiring to sell methamphetamine around the Sioux City area. Antonovich is a convicted felon and was unlawfully in possession of a short-barreled shotgun.
Antonovich was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Antonovich was sentenced to 50 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Antonovich is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by Iowa Division of Narcotics Enforcement, Woodbury County Sherriff’s Department, Sioux City police Department, South Sioux City Police Department, Nebraska State Patrol, the United States Postal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4041.
Follow us on Twitter @USAO_NDIA.
Shoreline, Washington man pleads guilty to possessing ammunition as part of an arsenal he had at downtown Seattle hotelRead the Press Release
Seattle –A 45-year-old Shoreline, Washington man pleaded guilty today in U.S. District Court in Settle to unlawful possession of ammunition, announced U.S. Attorney Nick Brown. Rustam Yusupov faces up to ten years in prison when sentenced by U.S. District Judge John C. Coughenour on May 2, 2023.
According to records filed in the case, Seattle Police Officers were called to a downtown Seattle hotel room on March 10, 2022, with reports of a distraught man asking the hotel staff for assistance. When the officers went to the hotel room, they noted that furnishings had been over-tuned, with the mattress moved to block the door. Police found two firearms in the room – including a “ghost gun,” -- a firearm without a serial number.
Due to his agitated state, Yusupov was transported for medical attention. As officers were preparing to leave the hotel, a staff member working in the garage alerted them to weapons he had seen in Yusupov’s car. In the car were multiple firearms – including two additional “ghost guns.” In all, police recovered:
- FMK Firearms Model AR-1 Extreme 5.56 NATO caliber rifle.
- Aero Precision Model X15 5.56 caliber pistol.
- Ruger Model 5.7 5.7x28mm caliber pistol.
- Ruger Model 18029 Precision 6.5mm Creedmoor/.308 Winchester Caliber rifle.
- Kel-Tec Model Sub 2000 9x19mm caliber rifle.
- A North American Arms Corp. Derringer .22 revolver.
- Two Polymer80 9mm caliber pistols with no serial number.
- A skeletonized AR-15 5.56 NATO caliber pistol with no serial number.
In the plea agreement Yusupov admits that he is the subject of a domestic violence protection order. He had been ordered by King County Superior Court to surrender all his weapons. In March 2020 and again in May 2021, Yusupov was ordered to surrender his firearms and had signed paperwork and informed law enforcement that he no longer possessed any firearms.
When officers searched Yusupov’s home, they recovered two inert grenades; a container for 120mm rocket projectiles; hundreds of rounds of assorted ammunition (both handgun and rifle caliber), including 600 rounds of Israel Military Industries 5.56mm caliber ammunition; multiple handgun and rifle magazines (some loaded); assorted pistol slides; a ballistic vest with rifle plates; a bolt-action rifle; and assorted firearms accessories and firearms parts.
In the plea agreement Yusupov agrees to forfeit multiple firearms and ammunition to the government.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Schenectady Man Indicted for Producing and Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Shaun Morant, age 27, of Schenectady, New York, was indicted Tuesday for producing and receiving 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.
The indictment alleges that in January 2022, Morant produced and received child pornography involving a 10-year old girl, and that between January 2020 and April 2022, Morant received child pornography involving a ten-year old boy. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
On the producing child pornography count, Morant faces at least 15 years and up to 30 years in prison, if convicted. On the receipt counts, Morant faces at least 5 years and up to 20 years in prison, if convicted. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The FBI is investigating the case. Assistant U.S. Attorney Rick Belliss is prosecuting the 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.
Spirit Airlines Passengers Charged with Smuggling Cocaine Concealed in Frozen ConchRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Edward Saldana, 36, and Bianca Torres, 34, both of St. Croix, appeared before United States Magistrate Emile A. Henderson, III, for their initial appearance hearing after being charged with possession with intent to distribute cocaine.
According to court documents, on January 23, 2023, Saldana and Torres were ticketed passengers on Spirit Airlines Flight #NK449 from St. Croix to Ft. Lauderdale, FL. During their primary inspection at the Henry Rohlsen Airport, both Saldana and Torres were in possession of carry-on cooler bags containing individually wrapped packages of frozen conch. Upon inspection of the packages, Customs and Border Patrol agents discovered four kilograms of a white powdery substance concealed inside the frozen conch. The powered substance later field tested positive for cocaine hydrochloride. If convicted, Saldana and Torres face a minimum of 5 years and maximum of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Customs Border Protection and Homeland Security Investigations are assigned to the investigation and Assistant United States Attorney Melissa P. Ortiz is prosecuting this case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Delia L. Smith reminds the public that a criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Roma woman fails to convince jury she was in the wrong place at the wrong timeRead the Press Release
McALLEN, Texas – A 62-year-old woman has been convicted of smuggling aliens within the United States for the third time, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for approximately 90 minutes before convicting Alma Patricia Soto-Barrera following a three-day trial.
On Aug. 18, 2022, authorities learned of a group of undocumented aliens that had crossed the Rio Grande River near Roma. They followed their foot signs and located three individuals as they entered Soto-Barrera’s vehicle. The back seat was dirty and had mud on the floorboards. There was also dried, muddy footprints in the trunk of the vehicle.
At trial, one of the aliens explained how he crossed the river with two others and a foot guide who provided him with a cell phone. The person on the phone was operating a drone and provided instructions based on what could be seen from above. The jury also heard the group was initially told to hide in a boat and instructed exactly when to run to the vehicle that was arriving.
The jury also heard that Soto-Barrera screamed for the undocumented aliens to get out of the vehicle once law enforcement arrived.
Soto-Barrera attempted to convince the jury she was not part of the smuggling operation and simply was in the wrong place at the wrong time. The jury ultimately did not believe her claims and found Soto-Barrera guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over the trial and set sentencing for April 27. At that time, Soto-Barrera faces up to 10 years in prison and a possible $250,000 fine.
Soto-Barrera has been and will remain in custody pending sentencing.
Border Patrol and members of its Bike Patrol Unit conducted the investigation. Assistant U.S. Attorneys Lee Fry and Alexa Parcell are prosecuting the case.
Rochester Man Pleads Guilty to Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.B U.S. Attorney Trini E. Ross announced today that Hugh Mahoney, 50, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to robbing the ESL Federal Credit Union on Merchants Road in Rochester. The charge carries a maximum possible penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Charles E. Moynihan, who is handling the prosecution, stated that on August 22, 2022, Mahoney entered the ESL Federal Credit Union, approached a teller, and displayed a demand note which stated, “You are being robbed. 100, 50, 20, no dye packs.” The teller handed approximately $3,260 in United States currency to Mahoney, who took the money and left the credit union. Officers responding to investigate the robbery stopped a vehicle in which Mahoney was riding and saw a hat and shirt which appeared to match the suspect’s reported description from the robbery. Mahoney admitted that he was given a ride to the credit union by the driver of the vehicle, but the driver did not know that Mahoney was going to rob the credit union.
The charges are a culmination of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox and the Rochester Police Department, under the direction of Chief David Smith.
Sentencing is scheduled for June 1, 2023, at 9:15 a.m. before Judge Siragusa.
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Rochester Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Fernando Santiago, 67, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute fentanyl and being a felon in possession of ammunition. The fentanyl charges carry a maximum penalty of 20 years, and a fine of $1,000,000 or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that on June 28, 2022, law enforcement, who were investigating Santiago’s drug trafficking activities, approached Santiago to perform a welfare check after seeing him fall from a stopped minivan he was driving. After seeing an unknown pill not contained in any prescription pill bottle in the driver’s door, officers detained Santiago and searched the vehicle. Officers found various quantities of suspected controlled substances, later confirmed to be cocaine, fentanyl and para-flourofentanyl. Officers then obtained a search warrant for a Norton Street residence where Santiago had been earlier that day. During the search, officers recovered 40 rounds of ammunition. Santiago was previously convicted of five separate felonies and is legally prohibited from possessing ammunition.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team (GRANET), and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for May 31, 2023, at 12:30 p.m. before Judge Wolford.
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RESCHEDULED - Media Advisory - Marion County Man to be Sentenced in Federal Court for Kidnapping, Carjacking, and Murder of 80-Year-Old VictimRead the Press Release
FLORENCE, SOUTH CAROLINA — The sentencing of Dominique Brand, 31, of Marion, for kidnapping resulting in death, carjacking resulting in death, and using or carrying a firearm during and in relation to a crime of violence in a manner constituting murder has been rescheduled.
WHEN: Wednesday, March 8, 2023, at 10:00 am
WHERE: McMillan Federal Building
Courtroom 1
401 West Evans Street
Florence, South Carolina
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Plaistow Man Pleads Guilty to Cocaine ChargesRead the Press Release
CONCORD – Corey Buckley, 42, formerly of Plaistow, New Hampshire, pleaded guilty in federal court to charges of possession with intent to distribute cocaine, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, law enforcement officers investigated leads into the defendant’s alleged drug trafficking and ultimately obtained a federal search warrant for his Plaistow residence. During the May 2022 search, investigators found approximately 1.1 kilograms of a substance that as later confirmed to be cocaine in the kitchen of the residence. Other indicia of drug trafficking, including a ledger, a scale, approximately $50,000 and two firearms was also located. Buckley has been detained since his arrest following the execution of the search.
Buckley is scheduled to be sentenced on May 18, 2023.
This matter was investigated by the Drug Enforcement Administration with assistance from the Massachusetts State Police and the Haverhill Police Department. The case is being prosecuted by Assistant United States Attorney Charles L. Rombeau, with assistance from Assistant United States Attorney Robert Rabuck on the forfeiture portion of the case.
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Pine Ridge Man Convicted of Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on January 25, 2023.
Charles Schrader, 56, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Charles Schrader was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in June of 2022. He pleaded guilty on September 23, 2022.
During his involvement in the conspiracy, Schrader obtained distributable quantities of methamphetamine from his sources and then would sell the methamphetamine, primarily on the Pine Ridge Reservation. He did so knowing that the methamphetamine he sold would be further distributed by others. During the sentencing, evidence was presented that at times Schrader possessed firearms in relation to his methamphetamine distribution.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, Oglala Sioux Tribe Department of Public Safety, and the Rapid City Police Department. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Schrader was immediately remanded to the custody of the U.S. Marshals Service.
Personal injury attorney convicted of obstructing justiceRead the Press Release
HOUSTON – A 56-year-old Houston resident has been found guilty on multiple counts related to a complicated tax fraud scheme, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Richard J. Plezia for conspiracy as well as two counts of making false statements and falsification of a record following a month-long trial and approximately eight hours of deliberation.
“We are a nation of laws, where lawyers swear to uphold those laws” said Hamdani. “When lawyers, like Plezia, corrupt their oath for their own gain, such actions can corrode the public’s confidence in our legal system. It is important to deter such conduct, and we are pleased with the jury’s verdict holding Plezia accountable for his crimes.”
“I can tell you that justice was served and the professionalism of our special agents from the start of the case to the testimony during the trial is a testament to the outstanding work IRS-Criminal Investigation (CI) does to bring conspiracies like this to finality,” said Special Agent-in-Charge Ramsey E. Covington of IRS-CI’s Houston Field Office. “We are here to serve our community by working with the United States Attorney’s Office to bring criminal activities, specifically those with tax and financial ties, to an end.”
The evidence detailed a complex tax fraud scheme in which Plezia funneled approximately $500,000 through his business account from attorney Jeffrey Stern. The money was given to case runner Marcus Esquivel, from whom Stern was illegally purchasing personal injury cases.
Separately, Plezia himself was illegally buying cases from Esquivel and another case runner. On his tax returns, Stern took illegal tax deductions for his payments to various runners including Esquivel. This caused approximately $4.3 million in tax loss to the IRS. Plezia filed false returns, incorrectly claiming the pass-through payments from Stern through Plezia to Esquivel as income and taking corresponding incorrect deductions for marketing and advertising.
In 2016, Plezia lied to authorities, claiming he had not paid Esquivel for case referrals. Two years later, he again lied. He claimed the approximately three years of pass-through payments were the result of Stern financing a large toxic tort case Plezia was handling. To back up his false story about the money flow, Plezia produced falsified documents in response to a federal grand jury subpoena. These included an alleged 2010 letter from Plezia to Stern proposing the financing arrangement and invoices allegedly from Esquivel that purported to bill Plezia for services on the tort case.
Both Stern and Esquivel previously pleaded guilty and provided testimony that the payments through Plezia had nothing to do with the tort case. The jury heard corroborating evidence from multiple attorneys and medical providers who were involved in the matter.
U.S. District Judge Lee H. Rosenthal presided over the trial and set sentencing for May 31. At that time, Plezia faces up to 20 years for the falsification of records and five years on each of the other convictions.
Plezia was permitted to remain on bond pending that hearing.
Stern and Esquivel, both of Houston, are also pending sentencing.
IRS-CI conducted the investigation. Assistant U.S. Attorneys Robert S. Johnson and Richard Bennett are prosecuting the case.
Pennsylvania Woman Pleads Guilty to Wire Fraud ConspiracyRead 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 Dawn Emanuel, 48, of Easton, Pennsylvania, pleaded guilty to conspiracy to commit wire before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Emanuel conspired with others to apply for and obtain Economic Injury Disaster Loans (EIDL) during the COVID pandemic, to which she and her co-conspirators were not entitled. Emanuel completed and filed EIDL applications that contained false representations in order to obtain loan proceeds for others who were not qualified to receive such loans. In return for her role in the conspiracy, Emanuel received a percentage of the loan proceeds, totaling approximately $127,348. The total loss amount to the government was approximately $900,000.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso, and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox.
Sentencing is scheduled for June 7, 2023, before Judge Skretny.
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Parkersburg Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Shawn David White, 41, of Parkersburg, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 8, 2018, law enforcement officers visited White’s residence while investigating a firearm theft and found a Winchester Model 12, 12-gauge shotgun, in White’s bedroom. White admitted to the officers that he possessed the shotgun.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. White is prohibited from possessing a firearm because of his convictions for grand larceny and driving while license suspended or revoked for DUI-third offense in Wood County Circuit Court on February 10, 2017.
White is scheduled to be sentenced on May, 9, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Joshua Hanks is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-150.
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One Leader of a Violent Sex Trafficking Gang Sentenced to Life and a Consecutive Ten Years Imprisonment, and a Gang Associate Sentenced to 37 years ImprisonmentRead the Press Release
PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero and announced that Karvarise Person, 33, of Reading, Pennsylvania, a member of the Gangster Disciples who “tied flags” with a gang called the “Sevens” in Reading and became one of its leaders, was sentenced to life imprisonment plus ten consecutive years’ imprisonment and ten years of supervised release. James Goode, 47, also of Reading, a drug supplier and associate the “Sevens” in Reading, was sentenced to 37 years’ imprisonment and 10 years of supervised release.
If either is ever released from prison, they will also be required to register pursuant to the Sexual Offender Registration and Notification Act.
Both Person and Goode were convicted along with Shaquile Newson, 29 and Alexander Malave, 31, by a jury on June 2, 2022, of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion, and of a minor; various violent crimes in aid of racketeering offenses including kidnapping and assaults with dangerous weapons; sex trafficking including of minors; and firearms offenses; all arising from their membership and association in a violent gang called “The Sevens,” which took control and operated out of a 50-room boarding house on South 4th Street in the City of Reading.
Person was a “general” in the Sevens gang, and trial evidence established that he was one of its most ruthless leaders. The Sevens operated primarily out of the boarding house. Person was one of 14 defendants charged with various offenses involving the violent acts of the gang, whose members represented other gangs such as the Gangster Disciples, Bloods, and Crips. One trial witness testified that when the Sevens gang took over the boarding house, it was “like Russia invading Ukraine.”
Person is the first of the gang members to be sentenced. In the course of his racketeering enterprise, he raped, robbed, caged, shot, violently beat, and caused others to do the same, under his command and leadership. Trial testimony described a shocking series of dehumanizing and violent acts. For example, victims were shot, assaulted with a baton, stabbed with a knife, and beaten with a hammer. A minor was forced to engage in a commercial sexual encounter while Person held a gun to her head; at other times, he also assaulted her with a baton and hammer and locked her naked in a dog kennel while he poked her with a knife through its bars.
Goode is the second member of the conspiracy to be sentenced. In the course of his racketeering enterprise, he distributed drugs, possessed multiple firearms, menaced a man and a woman with firearms, and raped a minor female and a woman at the boarding house. Trial testimony described Goode’s attempts to recruit women for commercial sexual encounters by raping and then paying them, and then withholding drugs from them, all in an attempt to groom and coerce the victims into sex trafficking. In addition, Goode held a close relationship with Sevens members by working alongside them to sell drugs, participating in meetings led by the Sevens leadership, and recruiting women for commercial sex at the boarding house.
“The demise of the Sevens gang was the result of the successful collaboration among local and federal authorities to dismantle a violent gang that terrorized the City of Reading,” said U.S. Attorney Romero. “We will continue to partner with our local counterparts to bring the resources necessary to dismantle violent gangs and restore peace and safety to the communities upon which they prey.”
“The Sevens gang inflicted depraved and unprecedented violence on its victims and on the communities of Reading. I hope today’s sentencing provides some solace and justice to those brutally victimized and exploited by the Sevens gang,” said HSI Philadelphia Special Agent in Charge William S. Walker. “It has been HSI Philadelphia’s privilege to partner with the Reading Police Department and the United States Attorney’s Office to rid the community of this predatory gang and to make our communities safer in the process.”
“The acts of this gang were despicable,” said John T. Adams, Berks County District Attorney. “Thanks to the collaborative efforts of local and federal law enforcement authorities, this gang and its leader will most likely never be released from prison, nor should they be. Hopefully this investigation and the penalties imposed will serve as a deterrent to rid our community of this type of criminal activity from occurring again. For those who continue to engage in this insidious behavior we will continue to investigate and prosecute them to the fullest extent of the law. I want to thank our federal partners for a job well done and we look forward to our continuing partnership to make our community a safe place to live.”
“The sentencing of Karvarise Person and James Goode was the result of a collaborative effort between the Reading Police Department and our partners in federal law enforcement,” said Reading Police Chief Torineilli. “The crimes committed by the Sevens gang, both directed and perpetrated by Karvarise Person, are some of the most violent, horrific, and inhumane acts we have ever witnessed in our community. While any sentence cannot undue the horrors the victims of this gang were forced to endure, they and our community can be assured that Person and his gang will no longer be able to terrorize our community.”
Sevens associates Shaquile Newson and Alexander Malave are scheduled for sentencing in Spring 2023.
The case was investigated by Homeland Security Investigations and the Reading Police Department and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.
Omaha Woman Convicted for Unlawful Firearm PossessionRead the Press Release
United States Attorney Steven Russell announced that Kristen M. Patterson, 40, of Omaha, Nebraska, was found guilty today, following a two-day jury trial in federal court for being a felon in possession of a firearm. United States District Judge Brian C. Buescher scheduled Patterson’s sentencing for May 3, 2023, at 10:00 a.m. Patterson faces up to ten years in prison on the firearm charge. There is no parole in the federal system.
On April 7, 2021, at around 2 a.m., Omaha Police officers saw a black GMC Sierra with an attached trailer at the Extra Space Storage facility. The GMC was not running and the lights were off. Officers completed a records check on the trailer and learned it had been reported stolen on February 27, 2021.
The driver did not respond to the commands on the PA system. Upon approach, Patterson, the driver, was taken into custody without incident. The trailer and GMC were towed and an inventory search conducted. During the inventory, officers located a Bersa Thunder 380 CC firearm in a storage pocket on the driver side center console.
Patterson was prohibited from possessing a firearm because of prior felony convictions for: unlawful possession with intent to deliver a controlled substance, theft by receiving stolen property, possession of a controlled substance, and possession of a firearm or money during a drug trafficking offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department.
Omaha Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Ryan Daniel Linehan, age 42, of Omaha, Nebraska, was sentenced on January 31, 2023, to 100 months in prison following his plea of guilty to being a felon in possession of a firearm. After he is released from prison, Linehan will serve three years of supervised release.
On February 5, 2021, law enforcement encountered Linehan at work, operating an excavator. When notified officers were there to arrest him on an outstanding warrant, Linehan barricaded himself in the excavator, in possession of a loaded Ruger handgun, which led to a nine-hour standoff. In Linehan’s truck, officers also located a loaded Hi-Point handgun.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, United States Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated 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. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
North Charleston Man Sentenced to 30 Years in Federal Prison for Production of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Jonathan Reece Scarborough, 36, of North Charleston, was sentenced to 30 years in federal prison after pleading guilty to production of child pornography.
Evidence presented to the Court showed that on September 25, 2019, the North Charleston Police Department was contacted regarding a 10-year-old prepubescent female victim who had reported being sexually abused by Jonathan Reece Scarborough.
During the investigation, law enforcement officers obtained and executed search warrants at Scarborough’s residence in North Charleston, his cell phone, and his laptop. Computer forensics examiners searched Scarborough’s cell phone and laptop and found images and a video of him sexually abusing the minor female victim. The examiners also found hundreds of child pornography images Scarborough obtained from the internet, including images of prepubescent and pubescent minors being sexually assaulted by adults.
United States District Judge Bruce Howe Hendricks sentenced Jonathan Reece Scarborough to 360 months in prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation (FBI) and the North Charleston Police Department. Assistant U.S. Attorney Dean H. Secor is prosecuting the case.
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North Carolina Man Sentenced for Making A False Statement to Federal RepresentativeRead the Press Release
CHARLESTON, W.Va. – Michael James Peters, 42, of Concord, North Carolina, was sentenced today to one year in prison, to be followed by three years of supervised release, for lying to the United States Department of Agriculture regarding the Nicholas County coal he pledged as collateral for a $9 million USDA-backed business loan. Peters must also pay $1,375,000 in restitution and a $25,000 fine.
According to court documents and statements made in court, Peters was part owner, president, and operator of Taylor Rose Energy (TRE). On July 24, 2014, TRE obtained a $9,065,165 loan from a Georgia bank to buy out investors’ interest in approximately 146,954 tons of cannel coal in Dixie, Nicholas County. In support of the loan, TRE represented that it intended to convert the coal into “smokeless” coal briquettes for consumer coal-burning home heating systems in Ireland. The USDA Rural Development Business and Industry loan program guaranteed 90 percent of the loan.
By January 2015, Peters owed more than $1.3 million to the owner and operator of another coal company, Aces High Coal Sales Inc. of London, Kentucky. From February 2015 to April 2015, Peters allowed Aces High to remove more than 80,000 tons of the collateralized coal from the Dixie site to settle this debt. Peters was unable to repay the USDA-backed loan, and did not inform the Georgia bank that coal pledged as the loan’s collateral was being taken to address the debt to Aces High.
Peters told the Georgia bank that 90 percent of the coal was “missing” from the Dixie site. On May 8, 2015, representatives from the bank and the USDA visited the Dixie site to investigate the removal of the collateralized coal. Peters falsely told USDA and bank representatives that Aces High had removed the coal from the site without his permission. At the plea hearing, Peters admitted that he lied to the USDA representative during this site visit in order to redirect the focus of the investigation away from his own conduct.
Peters pleaded guilty to making a false statement to a representative of the United States Department of Agriculture. United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Agriculture-Office of Inspector General (USDA OIG).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-159.
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Nine Arrested for Illegally Distributing 1.5 Million Opioid PillsRead the Press Release
Nine Texas individuals were arrested this week in Houston on criminal charges related to their alleged involvement in the unlawful distribution of 1.5 million opioid pills and other controlled substances.
According to court documents, Kent Lyons, 52, of Houston; Roquel Turner, 47, of Manvel; and Traunce Alfred, 43, of Baytown, are charged with illegally distributing controlled substances, including oxycodone and hydrocodone. From August 2017 until late 2022, Lyons and Turner allegedly operated pill-mill pharmacies as fronts to obtain opioids in their highest-strength and immediate-release pill form. They then allegedly sold the drugs on the black market – without the involvement of patients, prescriptions, or doctors – to drug traffickers like Alfred. Lyons and Turner allegedly concealed the drug proceeds using numerous bank accounts and real estate transactions. Lyons also allegedly used some of the proceeds to purchase luxury items, including a Rolls Royce, a Ford F-250, and a Mercedes Maybach.
According to court documents, starting around December 2020, Dwain Ross, 52, and Delores Mackey-Ross, 43, both of Pearland, along with licensed pharmacist Ann Nguyen, 30, of Stafford, allegedly used pharmacies to illegally distribute and dispense nearly half a million pills of oxycodone and hydrocodone. Dwain Ross and Mackey-Ross, along with David Ross, 53, of Houston; Kevin Peterson, 56, of Pearland; and Eleanor Marsh, 56, of Fulshear, also allegedly illegally ordered the opioid potentiators alprazolam, carisoprodol, promethazine with codeine – which are reported to enhance the high from opioids – from a pharmaceutical wholesaler and a pharmaceutical sales representative then allegedly illegally distributed the opioid potentiators in bulk. Dwain Ross and Mackey-Ross allegedly used numerous bank accounts and real estate transactions to conceal their ill-gotten gains. Dwain Ross also allegedly used some of the drug proceeds to purchase a Lamborghini.
The pharmacies alleged in the indictments to have been controlled by the defendants’ drug trafficking organizations are K Med Pharmacy, Nex Gen Pharmacy, TX United Pharmacy, Power Center Pharmacy #2, DR Pharmacy, and Nu Care Pharmacy. Several other pharmacies, including P&A Pharmacy and Pearland Holistic Pharmacy, voluntarily surrendered their DEA Registration numbers, which a pharmacy needs to legally purchase pharmaceutical opioids and other controlled substances.
Lyons, Turner, Alfred, Dwain Ross, Mackey-Ross, and Nguyen are each charged with illegal distribution of Schedule II opioids. Dwain Ross, Mackey-Ross, David Ross, Peterson, and Marsh are each charged with the illegal distribution of Schedule IV drugs. Lyons, Turner, Dwain Ross, and Mackey-Ross are also charged with money laundering crimes. If convicted, Lyons, Turner, Alfred, Dwain Ross, Mackey-Ross, and Nguyen face up to 20 years on the top counts. David Ross and Peterson each face up to five years. Marsh faces up to 10 years if convicted. Court documents allege that over 15 bank accounts, four real properties, and several luxury vehicles – including a Rolls Royce, a Bentley, and a Lamborghini – were involved in, or acquired with proceeds from, the scheme, and are subject to forfeiture if the defendants are convicted. 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, DEA Administrator Anne Milgram, Special Agent in Charge James H. Smith III of the FBI Houston Field Office, Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Acting Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General (USPS-OIG), and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service (USPIS) Houston Division made the announcement.
The DEA, FBI, MFCU, USPS-OIG, and USPIS are investigating the cases.
Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section is prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Faces up to 10 Years Following Guilty Plea for Illegal Possession of a FirearmRead the Press Release
BANGOR, Maine: A New York man pleaded guilty today in U.S. District Court in Bangor to being a felon in possession of a firearm.
According to court records, Camby Wilson, 22, knowingly possessed a firearm during a March 2022 traffic stop in Augusta. The firearm was loaded with four rounds of ammunition. A 2019 conviction in New York precludes Wilson from possessing a firearm.
Wilson faces up to 10 years in prison and a $250,000 fine. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Augusta Police Department investigated the case.
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New Orleans Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – WAYNE HANDY, age 29, a resident of New Orleans, Louisiana, pleaded guilty today before United States District Judge Carl J. Barbier to violations of the Federal Gun Control Act and the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, HANDY made a series of sales of heroin/fentanyl to an FBI confidential source. Those controlled purchases, along with other evidence, led to a federal complaint charging HANDY, as well as a search of residences and vehicles associated with HANDY in the spring of 2021. During the searches, agents located about $120,000 in cash, two guns, and approximately a kilogram of fentanyl. HANDY pleaded guilty to possession with intent to distribute 400 grams or more of a substance containing a detectable amount of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A) and to possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
Judge Barbier set sentencing for May 25, 2023. On the drug count, HANDY faces a mandatory minimum sentence of 10 years imprisonment up to life, up to a $10,000,000 fine, and at least five years of supervised release. On the gun count, HANDY faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. For both counts, HANDY will have to pay a mandatory special assessment fee of $100.
The case was investigated by the Federal Bureau of Investigations. It is being prosecuted by Assistant United States Attorney David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
New Orleans Man Pleads Guilty to Federal Drug OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that SOLOMON BURKE, age 36, a resident of New Orleans, Louisiana, pled guilty on February 1, 2023 before U.S. District Court Judge Jane Triche Milazzo to a violation of the Federal Controlled Substances Act.
Specifically, SOLOMON BURKE pled guilty to count one of a superseding bill of information, charging him with possession with the intent to distribute a mixture or substance containing a detectable amount of heroin and marijuana, in violation of Title 21 U.S.C. §§ 841(a)(1), (b)(1)(C), (b)(1)(D), and 18 U.S.C. § 2.
As to count one, BURKE faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000.00, and at least three years supervised release, as to the heroin, and a maximum sentence of 5 years imprisonment, a fine up to $250,000.00, and at least two years supervised release, as to the marijuana. BURKE also faces a $100 mandatory special assessment fee. BURKE’S sentencing is scheduled for April 25, 2023.
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 Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Unit Chief Elizabeth Privitera of the Violent Crime/Gang Unit and Assistant Unit States Attorney Maurice E. Landrieu Jr. of the Narcotics Unit.
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New Orleans Man Pleads Guilty to Being a Felon in Possession of a GunRead the Press Release
NEW ORLEANS, LOUISIANA – MORRIS SUMMERS, age 31, a resident of New Orleans, pleaded guilty on January 31, 2023 before United States District Judge Susie Morgan to a one count indictment charging him with being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, SUMMERS was previously convicted in another federal case before Judge Morgan for conspiring to distribute crack and conspiring to possess firearms in furtherance of drug trafficking. On June 26, 2022, SUMMERS possessed a Springfield Armory Model Hellcat, nine-millimeter caliber semi-automatic pistol.
Judge Morgan set sentencing for April 27, 2023. SUMMERS faces up to 15 years imprisonment, a fine of up to $250,000 up to three years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the New Orleans Police Department, the Louisiana State Police, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney David Haller.
New Jersey Man and Company Operating Nursing Homes and Assisted Living Facilities in Wisconsin Charged with Health Care FraudRead the Press Release
A federal grand jury in the Western District of Wisconsin returned an indictment yesterday charging Kevin Breslin, 56, of Hoboken, New Jersey, and KBWB Operations, LLC, doing business as Atrium Health and Senior Living (Atrium) in Park Ridge, New Jersey, with a scheme to defraud Medicare and Medicaid in connection with the delivery of or payment for health care benefits, items, or services.
The indictment alleges that the scheme operated from January 2015 to September 2018. The indictment charges the defendants with health care fraud, six counts of wire fraud, three counts of mail fraud, conspiracy to commit tax fraud, and conspiracy to commit money laundering.
According to the indictment, Breslin was the Chief Executive Officer of Atrium, which operated 24 skilled nursing facilities and nine assisted living facilities in Wisconsin and Michigan. These facilities included:
- Atrium Post Acute Care of Appleton, Wisconsin;
- Atrium Post Acute Care of Black River Falls, Wisconsin;
- Atrium Post Acute Care of Bloomer, Wisconsin;
- Atrium Post Acute Care of Chetek, Wisconsin;
- Atrium Post Acute Care of Chilton, Wisconsin;
- Atrium Post Acute Care of Ellsworth, Wisconsin;
- Atrium Post Acute Care of Kewaunee, Wisconsin;
- Atrium Post Acute Care of Lancaster, Wisconsin;
- Atrium Post Acute Care of Little Chute, Wisconsin;
- Atrium Post Acute Care of Marshfield, Wisconsin;
- Atrium Post Acute Care of Menominee, Michigan;
- Atrium Post Acute Care of Mineral Point, Wisconsin;
- Atrium Post Acute Care of Neenah, Wisconsin;
- Atrium Post Acute Care of New Holstein, Wisconsin;
- Atrium Post Acute Care of Oconto Falls, Wisconsin;
- Atrium Post Acute Care of Plymouth, Wisconsin;
- Atrium Post Acute Care of Shawano, Wisconsin, at Birch Hill,
- Atrium Post Acute Care of Shawano, Wisconsin, at Evergreen,
- Atrium Post Acute Care of Shawano, Wisconsin, at Maple Lane,
- Atrium Post Acute Care of Stevens Point, Wisconsin;
- Atrium Post Acute Care of Two Rivers, Wisconsin;
- Atrium Post Acute Care of Weston, Wisconsin;
- Atrium Post Acute Care of Williams Bay, Wisconsin; and
- Atrium Post Acute Care of Wisconsin Rapids, Wisconsin.
The indictment alleges that from January 2015 through September 2018, Atrium billed Medicare for over $189,000,000 and received over $49,000,000 and that they billed Medicaid for over $218,000,000 and received over $93,000,000. The indictment alleges that when the defendants obtained money from Medicare and Medicaid, they certified that they would follow all required quality of care standards, but they did not do so, and that they would operate their facilities with adequate staffing, supplies, and services, but they did not do so.
The indictment alleges that as part of the scheme to defraud, Breslin and Atrium diverted funds from the Wisconsin facilities through guaranteed payments to Atrium owners, guaranteed monthly return-on-investment payments to investors that were financing the construction of skilled nursing facilities in New Jersey, and construction costs for the New Jersey facilities. The indictment further alleges that the diversion of funds caused inadequate care of residents, including a shortage of clean diapers, inadequate wound care supplies, inadequate cleaning supplies, and a lack of durable medical equipment and respiratory supplies. In addition, the diversion of funds caused non-payment to vendors, which caused numerous services to be cut off, including physical therapy for residents, fire alarm monitoring services, phone and internet services preventing staff from obtaining prescription orders and accessing electronic medical records systems, and necessary repairs and maintenance of the physical plant facilities.
In addition, the indictment alleges that Breslin and Atrium withheld insurance premiums from employees’ paychecks but failed to pay those monies over to the third-party administrator for use in paying health claims, causing payment of employees’ health claims to be stopped. The indictment further alleges that the defendants withheld 401(k) retirement savings account contributions from employees’ paychecks but failed to pay those monies over to the third-party pension administrator.
The indictment also alleges that Breslin and Atrium evaded payment to the Wisconsin Department of Revenue and the Internal Revenue Service of state and federal income taxes and employment taxes withheld from employees’ paychecks.
If convicted, Breslin and Atrium face penalties of five years in federal prison on the conspiracy to commit tax fraud charge, and 20 years on each health care fraud, wire fraud, mail fraud, and conspiracy to commit money laundering charge. The conspiracy to commit tax fraud charge and each of the health care, wire and mail fraud charges carry a $250,000 fine; the money laundering charge carries a $500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division and U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin made the announcement.
The U.S. Department of Health and Human Services, Office of Inspector General; IRS Criminal Investigation; the U.S. Department of Labor, Employee Benefits Security Administration; the Wisconsin Department of Justice, Medicare Fraud Control and Elder Abuse Unit; and the FBI investigated this case.
Assistant U.S. Attorney Daniel Graber for the Western District of Wisconsin and Trial Attorney Karla-Dee Clark of the Consumer Protection Branch of the Justice Department’s Civil Division 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.
New Jersey Man & Company Operating Nursing Homes and Assisted Living Facilities in Wisconsin Charged with Health Care FraudRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin returned an indictment yesterday charging Kevin Breslin, 56, Hoboken, New Jersey, and KBWB Operations, LLC, doing business as Atrium Health and Senior Living (Atrium), in Park Ridge, New Jersey, with a scheme to defraud Medicare and Medicaid in connection with the delivery of or payment for health care benefits, items, or services.
The indictment alleges that the scheme operated from January 2015 to September 2018. The indictment charges the defendants with health care fraud, six counts of wire fraud, three counts of mail fraud, conspiracy to commit tax fraud, and conspiracy to commit money laundering.
According to the indictment, Breslin was the Chief Executive Officer of Atrium, which operated 24 skilled nursing facilities and nine assisted living facilities in Wisconsin and Michigan. These facilities included:
1. Atrium Post Acute Care of Appleton, Wisconsin;
2. Atrium Post Acute Care of Black River Falls, Wisconsin;
3. Atrium Post Acute Care of Bloomer, Wisconsin;
4. Atrium Post Acute Care of Chetek, Wisconsin;
5. Atrium Post Acute Care of Chilton, Wisconsin;
6. Atrium Post Acute Care of Ellsworth; Wisconsin;
7. Atrium Post Acute Care of Kewaunee, Wisconsin;
8. Atrium Post Acute Care of Lancaster, Wisconsin;
9. Atrium Post Acute Care of Little Chute, Wisconsin;
10. Atrium Post Acute Care of Marshfield, Wisconsin;
11. Atrium Post Acute Care of Menominee, Michigan;
12. Atrium Post Acute Care of Mineral Point, Wisconsin;
13. Atrium Post Acute Care of Neenah, Wisconsin;
14. Atrium Post Acute Care of New Holstein, Wisconsin;
15. Atrium Post Acute Care of Oconto Falls, Wisconsin;
16. Atrium Post Acute Care of Plymouth, Wisconsin;
17. Atrium Post Acute Care of Shawano, Wisconsin, at Birch Hill,
18. Atrium Post Acute Care of Shawano, Wisconsin, at Evergreen,
19. Atrium Post Acute Care of Shawano, Wisconsin, at Maple Lane,
20. Atrium Post Acute Care of Stevens Point, Wisconsin;
21. Atrium Post Acute Care of Two Rivers, Wisconsin;
22. Atrium Post Acute Care of Weston, Wisconsin;
23. Atrium Post Acute Care of Williams Bay, Wisconsin; and
24. Atrium Post Acute Care of Wisconsin Rapids, Wisconsin.
The indictment alleges that from January 2015 through September 2018, Atrium billed Medicare for over $189,000,000 and received over $49,000,000 and that they billed Medicaid for over $218,000,000 and received over $93,000,000. The indictment alleges that when the defendants obtained money from Medicare and Medicaid, they certified that they would follow all required quality of care standards, but they did not do so, and that they would operate their facilities with adequate staffing, supplies, and services, but they did not do so.
The indictment alleges that as part of the scheme to defraud, Breslin and Atrium diverted funds from the Wisconsin facilities through guaranteed payments to Atrium owners, guaranteed monthly return-on-investment payments to investors that were financing the construction of skilled nursing facilities in New Jersey, and construction costs for the New Jersey facilities. The indictment further alleges that the diversion of funds caused inadequate care of residents, including a shortage of clean diapers, inadequate wound care supplies, inadequate cleaning supplies, and a lack of durable medical equipment and respiratory supplies. In addition, the diversion of funds caused non-payment to vendors, which caused numerous services to be cut off, including physical therapy for residents, fire alarm monitoring services, phone and internet services preventing staff from obtaining prescription orders and accessing electronic medical records systems, and necessary repairs and maintenance of the physical plant facilities.
In addition, the indictment alleges that Breslin and Atrium withheld insurance premiums from employees’ paychecks but failed to pay those monies over to the third-party administrator for use in paying health claims, causing payment of employees’ health claims to be stopped. The indictment further alleges that the defendants withheld 401(k) retirement savings account contributions from employees’ paychecks but failed to pay those monies over to the third-party pension administrator.
The indictment also alleges that Breslin and Atrium evaded payment to the Wisconsin Department of Revenue and the Internal Revenue Service of state and federal income taxes and employment taxes withheld from employees’ paychecks.
If convicted, Breslin and Atrium face penalties of five years in federal prison on the conspiracy to commit tax fraud charge, and 20 years on each health care fraud, wire fraud, mail fraud, and conspiracy to commit money laundering charge. The conspiracy to commit tax fraud charge and each of the health care, wire and mail fraud charges carry a $250,000 fine; the money laundering charge carries a $500,000 fine.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division and U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin made the announcement.
The charges against Breslin and Atrium are the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General; IRS Criminal Investigation; the U.S. Department of Labor, Employee Benefits Security Administration; the Wisconsin Department of Justice, Medicare Fraud Control and Elder Abuse Unit; and the Federal Bureau of Investigation. Assistant U.S. Attorney Daniel Graber and Trial Attorney Karla-Dee Clark of the Consumer Protection Branch of the Justice Department’s Civil Division are handling the prosecution.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Municipal Employee Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
A Metropolitan Transportation Authority (MTA) employee pleaded guilty on Jan. 30 to conspiring with other individuals to engage in wire fraud in connection with MTA excess vehicle auctions.
According to a plea agreement, in the U.S. District Court for the Southern District of New York in New York City, MTA employee Timour Abramov engaged in a conspiracy with other individuals to thwart the competitive bidding process on numerous excess vehicle auctions conducted by the MTA to ensure that a company controlled by him and a co-conspirator submitted the winning bid and would be awarded the contract. As part of the conspiracy, an MTA sales specialist and co-conspirator provided Abramov confidential pricing information in violation of MTA rules.
“New Yorkers rely on the MTA and this criminal scheme boils down to stealing from the public,” said Assistant Attorney General Jonathan Kanter of the Department of Justice’s Antitrust Division. “We will continue to detect and punish those that abuse the public trust.”
“Abusing access to confidential MTA information to interfere with a fair and competitive process undermines the public trust in that process and unfairly reflects on tens of thousands of honest, hardworking MTA employees," said Acting MTA Inspector General Elizabeth Keating. “Our office is grateful for the diligence and commitment from our law enforcement partners at the Department of Justice, who work to ensure that individuals attempting to defraud the MTA are held fully responsible for their actions.”
“The public loses faith in governmental systems when members of an agency don't adhere to policies and procedures created to promote transparency and fairness,” said Special Agent-in-Charge James E. Dennehy of the FBI Newark Division. “This investigation demonstrates our commitment to holding accountable those who abuse their positions for their own financial gain.”
Abramov pleaded guilty to one count of wire fraud conspiracy that carries a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victim of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine the defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s New York Office, the Office of the MTA Inspector General, and the FBI Newark's Atlantic City Resident Agency investigated this case.
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Moreno Valley Woman Sentenced to 4½ Years in Federal Prison for Conspiracy that Stole over $1.1 Million in Unemployment BenefitsRead the Press Release
LOS ANGELES – A Riverside County woman was sentenced today to 54 months in federal prison for her role as an organizer and leader of an extensive conspiracy that defrauded California’s unemployment insurance benefit program out of more than $1.1 million.
Catrina Gipson, 47, of Moreno Valley, was sentenced by United States District Judge John A. Kronstadt, who also ordered her to pay $1,106,282 in restitution.
Gipson pleaded guilty in June 2022 to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Beginning as early as February 2013 and continuing to at least July 2016, Gipson’s co-conspirators used fake businesses registered with the California Employment Development Department (EDD), the administrator of the federal unemployment insurance benefit program for the state, to defraud EDD. The names of the fictitious companies included Super Cleaning Service and Angel Clothing Store, according to court documents.
Sometimes, Gipson’s co-conspirators filed claims for unemployment insurance in their own names, claiming unemployment from fake businesses created by co-conspirators, the indictment alleges. Other times, co-conspirators filed unemployment insurance claims using the names of other people, including prison inmates.
After EDD funded debit cards pursuant to false unemployment claims, Gipson and her co-conspirators withdrew funds from the cards, some of which were in the name of other claimants. In total, the conspirators fraudulently obtained over $1,1 million in unemployment insurance benefits.
For example, in May 2016, Gipson withdrew $880 from a Bank of America branch in Moreno Valley, using a debit that EDD funded pursuant to a false unemployment claim made in the name of someone who purportedly had been laid off earlier that year, but in reality, had been a prison inmate since 2000.
Gipson is the lead defendant in this case. Vernisha Jolivet, 30, of Indianapolis, pleaded guilty in February 2022 to one count of conspiracy to commit wire fraud and was sentenced to six months in federal prison. Six other defendants are scheduled to go on trial in this matter on May 2.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Department of Labor Office of Inspector General and California EDD Investigation Division investigated this matter with assistance from the United States Postal Inspection Service and the United States Marshals Service.
Assistant United States Attorney Skyler F. Cho of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.