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13 March 2023
Passenger accused of gun crime after attempted traffic stop led to shooting of Great Falls police officerRead the Press Release
GREAT FALLS — A woman passenger appeared in federal court today on a firearm charge after the driver allegedly shot and wounded a Great Falls Police Department officer during an attempted a traffic stop of their car on March 7, U.S. Attorney Jesse Laslovich said.
Nikki Marie Snell, 38, of Harlem, had an initial appearance on a criminal complaint accusing her of prohibited person in possession of a firearm. If convicted of the most serious crime, Snell faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Snell was detained pending further proceedings.
The government alleged in court documents that on March 7, Great Falls Police Department officers attempted to conduct a traffic stop of a car. The driver, a man, ran from the car with a large brown purse and is suspected of subsequently shooting an officer. Investigators identified Snell as the only passenger in the car and detained her. Officers also recovered the large brown purse that had been in the man’s possession. The court documents further alleged the purse belonged to Snell and that it contained a loaded 9mm, semi-automatic pistol, along with a syringe, an empty baggie with suspected methamphetamine and a digital scale. The government alleged that Snell is prohibited from possessing a firearm, ammunition, destructive device or any other dangerous weapon because of a prior federal felony conviction.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Montana Division of Criminal Investigation and Great Falls Police Department.
PACER case reference. 23-mj-32.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Owners of Freight Forwarding Company Plead Guilty to Exporting Stolen Outboard Engines to MexicoRead the Press Release
MIAMI – Two Miami residents, Carlos Orlando Ledesma, 57, and Nadia Esperanza Ledesma, 46, have pled guilty to conspiring to export nearly 600 stolen outboard engines to Mexico through a Miami-based freight forwarding company.
Previously, on February 22, co-defendants Roberto Marrero-Cisneros, 65, from Miami, and Osmani Valdivia Perez, 55, from Lehigh Acres, also pled guilty to the same conspiracy charge.
Nadia Ledesma is the President of Netcycle Trading Corp., a freight forwarding company in Miami, and Carlos Ledesma is the warehouse manager. According to court documents, from 2015 to 2018, Carlos and Nadia Ledesma received almost 600 stolen outboard engines for export to Mexico. Dozens of individuals delivered the stolen engines. The engines had visible damage from the thefts, and cables and lines had been cut rather than properly detached. The individuals delivered the stolen engines in non-commercial vehicles without bills of sale or any other documentation for the engines.
According to court documents, Marrero-Cisneros created false serial number stickers to place on the stolen outboard engines. Nadia and Carlos Ledesma, and their co-conspirators, created false bills of sale and submitted false export information to the United States.
Many of the stolen engines were directed to Tomas Vale Valdivia, a co-conspirator who was then in Mexico. Later, on January 28, 2020, Vale Valdivia was sentenced to 57 months for alien smuggling, in a separate case before U.S. District Judge Kathleen M. Williams.
Vale Valdivia is the nephew of defendant Osmani Valdivia Perez. Valdivia Perez made many cash payments to co-conspirators in this case, on behalf of Vale Valdivia. The cash payments included payments to Netcycle for the fees for exporting the stolen outboard engines, payments to Marrero-Cisneros for the false serial numbers, and payments to the individuals who stole the outboard engines.
U.S. District Judge Robert N. Scola, Jr. set the sentencing hearings for Marrero-Cisneros and Valdivia Perez for May 8, and the sentencing hearings for Carlos and Nadia Ledesma for May 23.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Zinnia P. James, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, announced the guilty pleas.
HSI Miami and CGIS investigated the case, with assistance from the U.S. Customs and Border Protection (CBP), and the Florida Department of Law Enforcement (FDLE). Assistant U.S. Attorney Ana Maria Martinez is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20269.
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Ongoing Jungle Life Mafia Street Gang Prosecution Results in Multiple Guilty Pleas and Sentencings for Nine Tangipahoa Parish ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR., a/k/a “Monsta,” a/k/a “Jamond,” age 40, ATRELL ANDERSON, a/k/a “Trey,” a/k/a “Trel,” a/k/a “Da Boi,” age 31, TERRELL HAYNES, a/k/a "Redman," age 44, MICHAEL ALEXANDER, JR., a/k/a "Mike Mike," age 22, BRANDON BAKER, age 37, LOUIS BELLS, JR., age 22, JERALD ALEXANDER, age 37, STAR ROBICHAUX, age 43, and JOSHUA PRINE, age 42, residents of Tangipahoa Parish, Louisiana, have now all pled guilty before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years which led to the seizure of drugs, drug proceeds, and guns. In total, DEA agents seized $590,602 in U.S. currency and 10 illegal guns.
On March 9, 2023, ALEXANDER, SR. pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
For the conspiracy charge, ALEXANDER, SR. faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For possession with intent to distribute heroin and fentanyl, he faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For possessing firearms in furtherance of a drug trafficking offense, ALEXANDER, SR. faces a mandatory minimum sentence of 5 years, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. If convicted of being a felon in possession of firearms, ALEXANDER, SR. faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the four (4) charges against him, ALEXANDER, SR. must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER, SR. is scheduled for June 13, 2023.
On October 6, 2022, ANDERSON pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 100 grams or more of heroin. He also pled guilty to distribution of methamphetamine and use of a communication facility in furtherance of a drug trafficking crime. On March 9, 2023, ANDERSON was sentenced to 188 months imprisonment, 5 years of supervised release, and a $600 mandatory special assessment fee.
On September 19, 2022, HAYNES pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon. For the conspiracy count, he faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For distribution, HAYNES faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For being a felon in possession of a firearm, HAYNES faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the three (3) charges against him , HAYNES must also pay a $100 mandatory special assessment fee. Sentencing for HAYNES is scheduled for April 18, 2023.
On October 19, 2022, ALEXANDER, JR. pled guilty to conspiring to distribute quantities of heroin and methamphetamine, possession with intent to distribute heroin and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and use of a communication facility in furtherance of drug trafficking. On February 14, 2023, ALEXANDER, JR. was sentenced to 7 years imprisonment, 5 years of supervised release, and a $500 mandatory special assessment fee.
On January 18, 2023, JERALD ALEXANDER pled guilty to conspiracy to distribute marijuana, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. For the marijuana offenses, he faces up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release. For possessing a firearm in furtherance of drug trafficking, ALEXANDER faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. For being a felon in possession of a firearm, he faces a maximum of ten years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. For each of the four (4) charges against him, ALEXANDER must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER is scheduled for April 18, 2023.
On August 2, 2022, BELLS pled guilty to being a felon in possession of a firearm. On October 25, 2022, BELLS was sentenced to 71 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On October 4, 2022, BAKER pled guilty to conspiracy to distribute quantities of heroin and methamphetamine. On February 28, 2023, he was sentenced to 27 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On September 14, 2022, ROBICHAUX pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. On October 18, 2022, PRINE pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. Both ROBICHAUX and PRINE face a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. Sentencing for ROBICHAUX is scheduled for April 25, 2023 and sentencing for PRINE is scheduled for June 13, 2023.
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.
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 federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Ongoing Jungle Life Mafia Street Gang Prosecution Results in Multiple Guilty Pleas and Sentencings for Nine Tangipahoa Parish ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR., a/k/a “Monsta,” a/k/a “Jamond,” age 40, ATRELL ANDERSON, a/k/a “Trey,” a/k/a “Trel,” a/k/a “Da Boi,” age 31, TERRELL HAYNES, a/k/a “Redman,” age 44, MICHAEL ALEXANDER, JR., a/k/a “Mike Mike,” age 22, BRANDON BAKER, age 37, LOUIS BELLS, JR., age 22, JERALD ALEXANDER, age 37, STAR ROBICHAUX, age 43, and JOSHUA PRINE, age 42, residents of Tangipahoa Parish, Louisiana, have now all pled guilty before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years which led to the seizure of drugs, drug proceeds, and guns. In total, DEA agents seized $590,602 in U.S. currency and 10 illegal guns.
On March 9, 2023, ALEXANDER, SR. pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
For the conspiracy charge, ALEXANDER, SR. faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For possession with intent to distribute heroin and fentanyl, he faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For possessing firearms in furtherance of a drug trafficking offense, ALEXANDER, SR. faces a mandatory minimum sentence of 5 years, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. If convicted of being a felon in possession of firearms, ALEXANDER, SR. faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the four (4) charges against him , ALEXANDER, SR. must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER, SR. is scheduled for June 13, 2023.
On October 6, 2022, ANDERSON pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 100 grams or more of heroin. He also pled guilty to distribution of methamphetamine and use of a communication facility in furtherance of a drug trafficking crime. On March 9, 2023, ANDERSON was sentenced to 188 months imprisonment, 5 years of supervised release, and a $600 mandatory special assessment fee.
On September 19, 2022, HAYNES pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon. For the conspiracy count, he faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For distribution, HAYNES faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For being a felon in possession of a firearm, HAYNES faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the three (3) charges against him , HAYNES must also pay a $100 mandatory special assessment fee. Sentencing for HAYNES is scheduled for April 18, 2023.
On October 19, 2022, ALEXANDER, JR. pled guilty to conspiring to distribute quantities of heroin and methamphetamine, possession with intent to distribute heroin and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and use of a communication facility in furtherance of drug trafficking. On February 14, 2023, ALEXANDER, JR. was sentenced to 7 years imprisonment, 5 years of supervised release, and a $500 mandatory special assessment fee.
On January 18, 2023, JERALD ALEXANDER pled guilty to conspiracy to distribute marijuana, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. For the marijuana offenses, he faces up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release. For possessing a firearm in furtherance of drug trafficking, ALEXANDER faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. For being a felon in possession of a firearm, he faces a maximum of ten years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. For each of the four (4) charges against him, ALEXANDER must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER is scheduled for April 18, 2023.
On August 2, 2022, BELLS pled guilty to being a felon in possession of a firearm. On October 25, 2022, BELLS was sentenced to 71 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On October 4, 2022, BAKER pled guilty to conspiracy to distribute quantities of heroin and methamphetamine. On February 28, 2023, he was sentenced to 27 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
On September 14, 2022, ROBICHAUX pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. On October 18, 2022, PRINE pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. Both ROBICHAUX and PRINE face a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. Sentencing for ROBICHAUX is scheduled for April 25, 2023 and sentencing for PRINE is scheduled for June 13, 2023.
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.
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 federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Omaha Man Sentenced to 60 Months for Distribution of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Eric D. Waller, 54, of Omaha, Nebraska, was sentenced on March 10, 2023, in federal court in Omaha for distribution of methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Waller to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On May 16, 2022, Waller sold methamphetamine to a cooperating witness working with law enforcement. Laboratory testing confirmed a net weight of 13.967 grams and purity of 94.3 percent.
This case was investigated by the Omaha Police Department.
Oklahoma City Man Sentenced to Serve 188 Months in Federal Prison for Drug and Firearms OffensesRead the Press Release
OKLAHOMA CITY – Earlier this week, MARCUS KELLY SMITH, 38, of Oklahoma City, was sentenced to serve more than 15 years in federal prison for conspiracy to possess with intent to distribute fentanyl and possession of a firearm after a felony conviction, announced United States Attorney Robert J. Troester.
On July 5, 2022, a federal grand jury returned a two-count Indictment against Smith. Count 1 charged Smith with drug conspiracy and Count 2 charged him with felon in possession of a firearm. On August 2, 2022, a Superseding Information charged Smith with one count of drug conspiracy and one count of felon in possession of a firearm. On November 1, 2022, Smith pleaded guilty to both counts of the Superseding Information.
At a sentencing hearing on March 8, 2023, U.S. District Court Judge Joe Heaton sentenced Smith to serve 188 months in federal prison. In support of his sentence, Judge Heaton cited, among other things, the serious nature of the offense and Smith’s criminal history. Judge Heaton also ordered that upon release from prison, Smith must serve four years of supervised release. Smith has been in federal custody since his arrest on June 28, 2022.
Public records reflect that Smith had a lengthy criminal history. His criminal convictions include: Oklahoma County District Court cases CF-2012-5752 – aggravated assault and battery; CF-2012-297 – possession of a firearm after felony, possession with intent to distribute, and pointing a firearm; CF-2011-4239 – possession of controlled dangerous substance and assault and battery; CF-2011-4023 – possession of controlled dangerous substance; CF-2004-6983 – possession of a firearm after felony and possession of controlled dangerous substance; CF-2004-4415 – possession of a firearm after felony and pointing a firearm; CF-2004-1115 – possession of controlled dangerous substance with intent to distribute and acquiring drug proceeds; CF-2003-4500 – possession of controlled dangerous substance with intent to distribute; and Pottawattamie County District Court case CF-2000-67 – robbery with a dangerous weapon.
This case was the result of an investigation by the FBI Oklahoma City Field Office and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Prosecuted by Assistant U.S. Attorneys Wilson D. McGarry and D.H. Dilbeck, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
This case is also part of “Operation 922.” Operation 922 is the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal crimes connected to domestic violence.
For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to court filings for further information.
New Orleans Woman Charged for Theft of More Than $88,000 in Government FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ALINE JAMES, a/k/a “Aline Foster” (“JAMES”), age 50, of New Orleans, Louisiana, was indicted on March 10, 2023 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in or around September 2012, and continuing until in or around December 2020, JAMES collected approximately $88,298.00 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds to which she was not entitled.
If convicted, JAMES faces a maximum penalty of ten (10) years of imprisonment, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
New Hope Man Sentenced for His Role in Multi-Million-Dollar Kickback and Health Care Fraud CasesRead the Press Release
HUNTSVILLE, Ala. – A federal judge has sentenced another individual charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
Last Friday, Chief United States District Court Judge L. Scott Coogler sentenced John Hornbuckle, 53, of New Hope, to 80 months in prison. In November 2022, Hornbuckle pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. Between 2012 and 2018, Hornbuckle owned QBR. According to the plea agreement in Hornbuckle’s case, QBR billed insurers millions of dollars for electro-diagnostic testing that its technicians performed, regardless of whether there was a medical need for them. Hornbuckle caused QBR to pay medical providers a per-patient fee for the tests they ordered from QBR that were reimbursed by insurers, including Medicare and other government health care programs. The payments were disguised as hourly payments for the provider’s time and the time of the provider’s staff, but the provider was actually paid a fee per patient who received a test. Insurance programs paid more than nine million dollars for the medically unnecessary tests that QBR paid doctors to order.
Hornbuckle was also ordered to pay $9,192,005.20 in restitution, a fine of $250,000, and forfeiture of $176,449.19.
The case against Hornbuckle is related to several other cases that have resulted in convictions in the last year. Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, were sentenced last week. Brian Bowman, 41, of Gadsden, has pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. James Ewing Ray, 52, of Gadsden, has pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered. John Alan Robson, 40, of Trussville, was indicted last month on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to his indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors.
Brian Bowman and James Ray are awaiting sentencing.
The FBI and HHS-OIG investigated the cases. Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the cases.
Nebraska Woman Charged with Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Winnebago, Nebraska, woman for two counts of Assaulting, Resisting, and Impeding Federal Officers.
Trista Whitewater, age 33, was indicted in November of 2022. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 10, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 8, 2022, Whitewater, who was booked at the Bureau of Indian Affairs (BIA) Yankton Sioux Correctional Facility in Wagner, South Dakota, for several tribal charges, assaulted a Lead Correctional Officer and a Correctional Officer.
The charges are merely accusations and Whitewater is presumed innocent until and unless proven guilty.
The investigation is being conducted by the BIA. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Whitewater was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 16, 2023.
Middle School Students Take Field Trip to U.S. Attorney’s Office to Learn Importance of Choosing WiselyRead the Press Release
MIAMI – Students from BridgePrep Academy of North Miami Beach took a field trip to the U.S. Attorney’s Office for the Southern District of Florida to learn how to make better choices and participate in a courtroom mock trial.
The seventh graders gathered in the media room where Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith took them through presentations focused on the value of making smarter choices and having a plan for success.
“You should know every step you need to take to reach your goals,” said Smith. “Don’t be afraid to fail big. Think outside of the box and remember that a goal without a plan is just a wish.”
To drive home the point of making smarter choices Smith played prisoner testimonials which focused mostly on regret.
“I ruined my life,” said one prisoner. “I ruined it.”
Another testimonial showed a prisoner pleading for people to take his message seriously.
“I killed someone’s father,” he said. “This is my now moment but I took away that man’s now.”
The messages seemed to hit home with the students, especially when they were told where the Federal Detention Center was located.
“There are about 600 male inmates and 100 female inmates in the building next door,” said Smith. “You have a choice to be a good person or a bad person. Every day it starts all over again. Don’t let bad things determine your path in life.”
From there the students filled a federal judges empty courtroom where they played the roles of prosecutor, defense attorney, and bailiff, among others. Assistant U.S. Attorney Michael Gilfarb played the role of judge as students argued a case involving the wrongful death of a university student who died during flag football practice.
Both the prosecutors and defense team made great cases, but in the end the evidence was too strong. The defendant was found guilty of negligent homicide.
Students said they enjoyed seeing what it was like to be on trial while others said it was a life changing experience. Many said they’d like to do it again. That’s what Smith likes to hear as he loves interacting with young people, trying to put them on the right path.
“These activities can be fun—and many times are—but I’m always focused on trying to help these students be the best citizens they can be,” he said. “As a former Detroit Police Supervisor, I’ve seen how tempting it can be to get in with the wrong crowd. One mistake can alter a life for good. If I can help change one person’s outlook then it’s worth it.”
Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith talks to BridgePrep Academy of North Miami Beach students about the importance of making good decisions. Students also participated in a mock trial during this field trip.
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Michigan Nonprofit Organizations Agree to Pay $225,887 to Settle False Claims Act Allegations Relating to Improper Receipt of Paycheck Protection Program LoansRead the Press Release
Two Michigan nonprofit organizations, the Michigan Education Association (MEA) and the Michigan Education Special Services Association (MESSA), have agreed to settle allegations that the organizations violated the False Claims Act (FCA) by applying for and obtaining loans under the Paycheck Protection Program (PPP) for which they knew or should have known they were ineligible.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to certain small businesses and other entities struggling to pay employees and other business expenses. Under the rules applicable at the time of the loans covered by today’s settlement, certain nonprofit organizations were not eligible to receive a PPP loan.
In 2020, MEA, a 501(c)(5) nonprofit labor union organization, and MESSA, a 501(c)(9) voluntary employees’ beneficiary association, each applied for and obtained a PPP loan. The United States contended that these organizations knew or should have known they were ineligible to receive their PPP loans, and that they caused the Small Business Administration (SBA) to pay lender fees to the bank that processed the loans. In connection with the settlements announced today, MEA will pay $115,265 and MESSA will pay $110,622 to the United States resolve these allegations. MEA and MESSA repaid their loan proceeds in full in December 2020.
“The PPP was intended to provide critical economic relief to eligible small businesses and other entities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects the department’s commitment to ensuring the integrity of the PPP loan process.”
“Those who violate the False Claims Act by fraudulently receiving SBA pandemic program funds meant for eligible small businesses will be held accountable,” said Special Agent in Charge Sharon Johnson of SBA OIG’s Central Region. “Today’s settlements send a strong message that those responsible will be held accountable. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by the Mackinac Center for Public Policy and is captioned U.S. ex rel. Mackinac Center for Public Policy v. Michigan Education Association, et al., Dkt. No. 1:22-cv-00028-HYJ-PJG (W.D. Mich.). Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. The Mackinac Center for Public Policy’s share of the settlement has not been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.
This matter was handled by Trial Attorney Evan J. Ballan of the Civil Division and Assistant U.S. Attorney Andrew J. Hull of the Western District of Michigan.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Miami Art Dealer Sentenced to 51 Months in Prison for Smuggling IvoryRead the Press Release
MIAMI – A federal judge in Miami has sentenced Eduardo Ulises Martinez (“Martinez”), a local art dealer, to 51 months in prison for illegally smuggling sculptures containing ivory, and for obstructing justice.
Ivory is a form of wildlife that comes from various mammals, including elephants, walruses, hippopotamuses, warthogs, narwals, and whales. Ivory must be declared to the United States Fish and Wildlife Service (USFWS) and made available for inspection prior to its importation and exportation from the United States.
After a seven-day trial, a federal jury found Martinez guilty on 9 counts of smuggling items containing ivory in and out of the United States without declaring it or making the ivory available for inspection by the USFWS, and one count of obstruction of justice for soliciting false evidence, documents, and testimony from a witness during the ongoing investigation.
Martinez purchased numerous sculptures containing ivory from auction houses located in Spain, England, Canada, and Australia, later importing the sculptures into the United States for commercial purposes using various methods of concealment. On some occasions, Martinez dismantled the sculptures into their ivory, bronze, and marble components and later shipped the individual components in different boxes to evade detection from law enforcement. Martinez also shipped the components to various addresses that were not associated with his business or his home. On other occasions, Martinez used third parties located in Spain and England to collect or receive the sculptures from auctions houses in Europe, creating the appearance that the sculptures would stay within the European Union, and thereafter directed the third parties to ship the ivory-containing sculptures to the United States. On another occasion, Martinez concealed the entry of ivory into the United States by packing the ivory components in his luggage. In every instance, Martinez, or others at Martinez’s direction, would fraudulently and falsely declare the contents of the shipping paperwork as bronze and marble, porcelain, bronze, or other false descriptions of the contents to evade inspection and declaration requirements.
Once the sculptures arrived in the United States, Martinez would fix any imperfections in them prior to offering them for sale at a significant mark up. In several instances, Martinez had new ivory parts carved for the illegally imported sculptures before offering them for resale.
Martinez sold sculptures containing ivory to buyers in other countries and facilitated the transportation of those sculptures, knowing that they were intended to be exported from the United States. Throughout the trial, the jury heard evidence via emails, messages, and audio files demonstrating that Martinez knew his actions were illegal, but he continued to engage in those actions for personal financial gain.
After Martinez was stopped at the Miami International Airport on September 8, 2021, and was caught with ivory in his luggage, Martinez removed illegally imported ivory sculptures from his showroom and obstructed law enforcement’s investigation by approaching a witness on various occasions, asking the witness to provide false evidence and testimony.
It was undisputed at trial that Martinez had never made a declaration of wildlife, including ivory, to the USFWS. In addition to the 51-month sentence, the federal district court ordered Martinez to pay a $20,000 fine, serve three years of supervised release following his prison term, and entered a criminal forfeiture order of various sculptures containing ivory.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Stephen Clark of the U.S. Fish & Wildlife Service (USFWS), Southeast Region, and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the sentence.
USFWS and HSI Miami investigated this case. Assistant United States Attorneys Marty Fulgueira Elfenbein and Lindsey Lazapoulos Friedman prosecuted the case. Assistant United States Attorney Joshua Paster is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20137.
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Methamphetamine Traffickers Sentenced to Federal PrisonRead the Press Release
Saipan, MP – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States District Court for the Northern Mariana Islands imposed the following sentences against defendants for Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Conspiracy to Maintain a Drug-Involved Premises, in violation of 21 U.S.C. §§ 846 and 856.
HUAISHU WANG (age 40) – convicted of Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and sentenced to 188 months imprisonment, three years supervised release, 100 hours community service, and a $100 mandatory assessment.
HONGJIE LI (age 48) – convicted of Conspiracy to Possess Methamphetamine with the intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and sentenced to 57 months imprisonment, three years supervised release, 50 hours community service, and a $100 mandatory assessment.
YONGBING NI – (age 54), convicted of Conspiracy to Maintain a Drug-Involved Premises, in violation of 21 U.S.C. §§ 846 and 856, and sentenced to 10 months imprisonment, three years supervised release, and a $100 mandatory assessment.
These defendants were also ordered to report to a U.S. Immigration Officer for deportation proceedings as a condition of supervised release.
On May 3, 2022, HONGJIE LI claimed a package mailed from Canada to a private mail facility in Saipan. The package contained 858 grams of methamphetamine. LI transported the package to a residence, where she lived with HUAISHI WANG and YONGBING NI. After the package was delivered to the residence, federal and local law enforcement agents executed a search warrant and discovered the three co-defendants were working together to distribute methamphetamine across the island.
Inside the residence, agents discovered 214 grams of methamphetamine packaged in 46 baggies, an additional 15 grams of methamphetamine, digital scales, three BB-guns similar in appearance to semiautomatic 9mm and .45 caliber handguns, an Airsoft rifle similar in appearance to a 5.56mm rifle, and $68,408 in United States currency. The street value of the drugs was at least $540,000.
U.S. Attorney Anderson stated, “Our office is committed to aggressively prosecuting drug offenses in the CNMI. Substantial penalties apply to many of these crimes. Considering the effects of methamphetamine on our communities, we must make every effort toward deterrence and accountability.”
“Synthetic drugs, such as methamphetamine, are easy to manufacture, highly addictive, and responsible for the growing number of deaths in our communities,” said DEA Honolulu District Office Assistant Special Agent in Charge Victor Vazquez. “Individuals who seek to profit on these dangerous drugs and distribute them will be targeted and held accountable.”
This investigation was led by the Drug Enforcement Administration Los Angeles Field Division, Guam Resident Office, Saipan Post of Duty. The case was prosecuted by Albert Flores, Jr., and Garth Backe, Assistant United States Attorneys in the District of the Northern Mariana Islands
McKeesport Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A former resident of McKeesport, Pennsylvania pleaded guilty in federal court to charges of violating federal narcotics and firearm laws, Acting United States Attorney Troy Rivetti announced today.
Raymar McKenzie pleaded guilty to two counts before United States District Judge J. Nicholas Ranjan. Specifically, McKenzie pled guilty to possession with intent to distribute fentanyl and crack, in addition to possession of a firearm in furtherance of that drug trafficking crime.
In connection with the guilty plea, the Court was advised that between August and September 2020, the Allegheny County Police Department (ACPD) conducted three controlled buy operations from defendant Raymar McKenzie. During each controlled buy, a third party called McKenzie from his known cellular phone number and purchased cocaine base. Following each controlled buy, McKenzie returned to a McKeesport residence in his black pickup truck. As a result, law enforcement applied for and obtained search warrants for the residence, McKenzie, and his vehicle.
On Sept. 18, 2020, law enforcement executed the search warrants. Law enforcement detained McKenzie during the search, and he was found in possession of $1,680.00. From an upstairs bedroom, officers located a cellular phone on a bed. Upon calling the number used to contact McKenzie during the controlled buy operations, the phone rang. A sweatshirt on the floor of that bedroom contained packaged cocaine base and a pair of keys that opened the black pickup truck operated by the defendant during the controlled buy operations. Next to the sweatshirt, officers observed a safe. While opening the safe, McKenzie notified officers that the safe contained fentanyl.
Following a waiver of his rights, McKenzie admitted that everything in the house was his and described the contents of the safe as including crack, fentanyl, and a black Ruger. In addition to the packaged drugs and firearm, the safe held a loaded .40 caliber extended magazine and $3,000.00.
Judge Ranjan scheduled sentencing for June 26, 2023, at 2:00 p.m. The law provides for a total sentence of life imprisonment, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded McKenzie to the custody of the US Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the McKeesport Police Department conducted the investigation that led to the prosecution of McKenzie.
Maryland U.S. Attorney’s Office, Justice Department’s Civil Rights Division and the Consumer Financial Protection Bureau File Statement of Interest in Case Alleging Unlawful Appraisal DiscriminationRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, along with the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al., a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal.
“The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney for the District of Maryland Erek L. Barron. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.”
“Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”
“Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.”
The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore, Maryland. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com, LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%.
The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPBaddress three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of § 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), nation origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.
U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorney Nathan Shulock of the Justice Department’s Civil Rights Division, who handled the Government’s Statement of Interest.
More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov/.
Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online. In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and information on civil rights laws and resources, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/civil-rights.
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Leader of Waycross-area drug trafficking conspiracy sentenced to decades in federal prisonRead the Press Release
WAYCROSS, GA: The leader of a south Georgia fentanyl- and heroin-trafficking operation linked to drug overdose deaths has been sentenced to more than 20 years in federal prison.
Eric Lashawn Hayes, a/k/a “Pee Wee,” 39, of Blackshear, Ga., was sentenced to 262 months in prison after previously pleading guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of Fentanyl with Intent to Distribute, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Hayes to serve eight years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“The investigation of Eric Hayes and his co-conspirators – including his three brothers – exposes the horrors of the growing fentanyl menace in the United States,” said U.S. Attorney Steinberg “An alarming number of overdoses and deaths drew attention to these drug dealers, and they are being held accountable for distributing poison throughout the Waycross area.”
Hayes was one of six defendants named in February 2021 in U.S.A. v. Hayes, et. al, an indictment targeting a drug distribution network in the greater Waycross area. The Pierce and Ware County Sheriff’s Offices initiated the investigation in July 2020 after multiple drug overdoses attributed to heroin and fentanyl, including three deaths. The Savannah Office of the U.S. Drug Enforcement Administration joined the investigation, which identified Hayes as a source of supply for the illegal drugs.
The investigation culminated in the indictments of the six defendants, all of whom have been sentenced after pleading guilty to felony charges. They include:
- Cyrlus LaShawn Hayes, a/k/a “Dubo,” 45, of Waycross, Ga., a brother of Eric Hayes, serving 120 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Fentanyl and Heroin;
- Davey Green, a/k/a “Little Dave,” 35, of Waycross, Ga., half-brother of Eric Hayes, sentenced to 58 months in prison after pleading guilty to Distribution of Fentanyl;
- Renalba Jamar Green, a/k/a “Reno,” 35, of Waycross, Ga., another half-brother, sentenced to 24 months in prison for using a cell phone to conduct illegal drug trafficking activity;
- Crystal Champagne, 34, of Waycross, Ga., serving 30 months in prison after pleading guilty to Distribution of Fentanyl; and,
- Preston Connor Luke, 27, of Blackshear, Ga., sentenced to three years’ probation for Distribution of Fentanyl.
“Fentanyl is 50 to 100 times more potent than morphine and 30 to 50 times more potent than heroin – the combination of these deadly substances has claimed many lives,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the efforts of federal, state and local law enforcement, these defendants can no longer distribute these dangerous and potentially deadly substances.”
The case was investigated by the Savannah Office of the U.S. Drug Enforcement Administration, the Ware County Sheriff’s Office, the Pierce County Sheriff’s Office, and the Blackshear Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorney Frank M. Pennington II.
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Kenai Woman Sentenced to 10 Years for Drug Trafficking and Firearms PossessionRead the Press Release
ANCHORAGE – Cristina Lynn Rifredi was sentenced on March 9, 2023, was sentenced to 10 years in prison for federal drug trafficking and firearms charges.
According to court documents, Cristina Lynn Rifredi, 42, of Kenai, Alaska, sold over 60 grams of methamphetamine, 1 gram of heroin, and a 12-gauge shotgun to another person between November 21, 2019, and December 8, 2020. When law enforcement executed a search warrant on Rifredi’s vehicle and residence, they found she possessed 27 firearms, a silencer, and additional quantities of methamphetamine and heroin. Rifredi was charged with drug trafficking and firearms crimes by a federal grand jury in November 2021 and pleaded guilty in December 2022.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Alaska State Troopers (AST), and the Kenai Police Department (KPD) investigated the case.
Assistant U.S. Attorney Seth Brickey prosecuted the case.
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Justice Department and Consumer Financial Protection Bureau File Statement of Interest in Appraisal Discrimination CaseRead the Press Release
The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al., a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal.
“Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”
“The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.”
“Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.”
The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%.
The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPB address three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of Section 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), national origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.
More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov.
Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online. In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online.
Illinois Attorney Found Guilty of Embezzlement, Bankruptcy Fraud, and Tax FraudRead the Press Release
CHICAGO — A federal jury has found a former Illinois attorney and real estate developer guilty on two counts of embezzlement, six counts of bankruptcy fraud, and eight counts of tax fraud following a nearly four week-long trial in Chicago.
Evidence at trial revealed that ROBERT KOWALSKI, 61, of Chicago was a close associate of John Gembara, the former President of Washington Federal Bank for Savings (“WFBS”), a small bank in Chicago’s Bridgeport neighborhood which was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. Kowalski served a key role in the embezzlement scheme, specifically diverting from the bank more than $8 million, plus property which was rightly the collateral of the bank for other loans. The embezzled funds that Kowalski received from WFBS were concealed by entering them on the bank’s records as loan disbursements. However, WFBS never required Kowalski to repay these fraudulent loans. Along with his co-conspirators, Kowalski was involved in the falsification of bank records and the recording of false financial transactions to shift real estate interests into his own name for financial benefit. After the collapse of WFBS, the Federal Deposit Insurance Corporation attempted to collect on the money and properties that Kowalski obtained as part of the embezzlement scheme. To avoid losing the assets, Kowalski filed a fraudulent bankruptcy case, in which he attempted to concealed numerous assets. To substantiate the financial claims made within his bankruptcy filings, and avoid paying taxes, Kowalski filed false corporate returns in 2014 and 2015, and false personal returns in 2015, 2016, and 2017. Kowalski failed to file returns in 2013 and 2014.
Sentencing has been set for June 2, 2023 before U.S. District Court Judge Virginia M. Kendall. Kowalski could face a sentence of up to 82 years in federal prison.
The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, Special Agent in Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent in Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent in Charge of the of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Jeremy Daniel, Kristin Pinkston, and Brian Netols, along with Special Assistant U.S. Attorney Jeffrey Snell.
Houma Man Indicted for Mail Fraud and Making False Statements to Federal AgentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DONDRE MORGAN, (“MORGAN”), age 31, of Houma, LA, was indicted on March 10, 2023 on two (2) counts of Mail Fraud in violation of Title 18, United States Code, Section 1341 and one (1) count of Making False Statements to Federal Agents in violation of Title 18, United States Code, Section 1001(a)(2).
According to the indictment, MORGAN, Sharnae Every, MORGAN’S girlfriend, and others defrauded the SBA and other designated financial institutions of approximately $1,142,041.00 through the submission of approximately 110 fraudulent PPP loan applications. As part of the scheme to defraud , Every recruited friends and family members primarily via Facebook to send Every their personal and bank information in exchange for "free money." MORGAN also assisted in recruiting various friends and family members by speaking with them in person or texting them, telling them to contact Every.
Every charged the individuals she recruited anywhere from $45.00 to $120.00 to prepare and submit the fraudulent PPP application. Every primarily used Cash App. to receive the initial payments. Every then charged $3,500.00 once the loans were funded and received these funds into her Current account, her Cash App account, or into MORGAN’s Current account.
On September 9, 2022, Every was indicted by a federal grand jury for Conspiracy to Commit Mail Fraud and Mail Fraud. On March 2, 2023, Every pled guilty to Conspiracy to Commit Mail Fraud and is scheduled to be sentenced on June 8, 2023 by U.S. District Judge Carl J. Barbier.
If convicted, MORGAN faces a maximum penalty of twenty (20) years per count for Counts 1 and 2 and five (5) years for Count 3, followed by a term of supervised release for up to three (3) years, a fine up to $250,000.00 per count, or twice the gross gain to the defendant, or twice the gross loss to any victim, and a $100.00 mandatory special assessment fee per count.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. The Department of Veterans Affairs, Office of the Inspector General, is an active member of the PRAC Fraud Task Force.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The United States Attorney’s Office would also like to acknowledge the assistance of the Department of Veteran Affairs, Office of the Inspector General; United States Department of Labor, Office of the Inspector General; United States Department of Homeland Security, Homeland Security Investigations; and the United States Secret Service’s Cyber Fraud Task Force, consisting of the Jefferson Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Thibodeaux Police Department, and the Louisiana Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant United States Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant United States Attorney Edward Rivera, COVID-19 Fraud Coordinator; and Assistant United States Attorney Mary Katherine Kaufman of the Civil Division.
Home Health Provider and Two Executives Agree to Pay $1 Million to Resolve Kickback and Pandemic-Relief Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – A Fairfax-based home health care company and two executives agreed to pay $1 million to resolve claims arising from an alleged kickback scheme designed to obtain referrals for home health and hospice patients.
The United States alleged that from 2012 to 2021, Pro Healthcare Servicing, LLC (Pro Health), its Chief Executive Officer, Erwin Cheng, and its Chief Administrator, Gloria Jiang, both of Ashburn, paid kickbacks to employees at various assisted living facilities and skilled nursing facilities throughout northern Virginia to induce those facilities to refer patients to Pro Health for home health and hospice services. Pro Health then billed Medicare for services rendered to those patients.
The United States further alleged that while Pro Health was engaged in the kickback scheme, the company fraudulently obtained pandemic-relief loans through the Small Business Administration’s Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program by falsely certifying that the company was not engaged in any illegal activity when applying for the loans.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General.
The matter was prosecuted by Assistant U.S. Attorney William Hochul and former Assistant U.S. Attorney Ilene Albala.
The civil claims are allegations only; there has been no admission of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Hammond Woman Charged for Theft of More Than $44,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MELISSA KING (“KING”), age 53, of Hammond, Louisiana, was indicted on March 10, 2023 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in or around December 2016, and continuing until in or around March 2020, KING collected approximately $44,696.00 in Social Security Administration funds to which she was not entitled.
If convicted, KING faces a maximum penalty of ten (10) years of imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
Georgia Couple Sentenced for Paycheck Protection Program FraudRead the Press Release
United States Attorney Steven Russell announced that Jeremy D. Sanders, 32, and Lakeda R. Sanders, 27, husband and wife, both of Newnan, Georgia, were sentenced on March 10, 2023, in federal court in Omaha, Nebraska, by Chief United States District Judge Robert F. Rossiter, Jr. Jeremy Sanders was sentenced to four years of probation, including three months of home confinement, and was ordered to pay restitution of $21,304.88. Lakeda Sanders was sentenced to four years of probation, including six months of home confinement, and was ordered to pay restitution of $27,793.79. Both pled guilty in December 2022 to Conspiracy to Commit Wire Fraud.
During 2020 and 2021, both Jeremy Sanders and Lakeda Sanders submitted or caused to be submitted applications for Paycheck Protection Program (“PPP”) loans. The PPP loan program was created by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
Both Jeremy and Lakeda Sanders worked with others to prepare and submit loan applications that misrepresented payroll for their purported businesses and sole proprietorship. The businesses in fact had no employees, and the PPP applications were supported by false tax documents. Jeremy Sanders and an Omaha-based co-conspirator submitted fraudulent applications for loans totaling approximately $41,290, and he obtained $20,690. Lakeda Sanders and a co-conspirator submitted fraudulent applications for loans totaling approximately $220,000, and she obtained $24,166.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Former Raleigh Police Officer Pleads Guilty to Drug Trafficking and Firearms Charges, Barred from Law Enforcement CertificationRead the Press Release
WILMINGTON, N.C. – Keven Rodriguez, a former Raleigh Police Department officer, pled guilty today to three drug trafficking and firearms charges for distributing cocaine while working on duty in his position as a Field Operations Division Officer. He also pled guilty to possession of contraband while in prison after a search of his jail cell found smoking paraphernalia. As a condition of his plea, Rodriguez has agreed to permanently surrender his law enforcement certification and will be permanently barred from any law enforcement certification in the State of North Carolina from either the Criminal Justice Commission or the Sheriffs’ Commission. Rodriguez faces at least ten years in prison when sentenced later this year.
“Keven Rodriguez violated his sworn oath to protect and serve,” said U.S. Attorney Michael Easley. “He will never again wear the badge and never again tarnish the honorable profession of policing to which countless brave men and women have committed their lives. I commend the Raleigh Police Department for taking quick action when they first learned of the allegations against this rogue officer. That enabled us to move quickly to get a criminal off the streets and behind bars where he belongs.”
“Mr. Rodriguez’s actions betrayed public trust, dishonored the oath he swore to uphold, and discredited his character,” said Raleigh Police Chief Estella D. Patterson. “I am pleased to see that justice was served and appropriately administered in this case. I am extremely grateful for the strong relationships with our local, state, and federal partners. Together, we will continue to remove individuals, such as Mr. Rodriquez, from our community and the law enforcement profession.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division commented, “This officer violated his oath to protect and serve. His actions do not reflect the honest and hardworking men and women of law enforcement.”
According to court documents and other information presented in court, Rodriguez was on duty and employed as a patrol officer with the Raleigh Police Department when he sold cocaine to a confidential informant on January 24, 2022. Rodriguez sold 56 grams of cocaine while in uniform with his duty issued firearm. Rodriguez then sold cocaine to the confidential informant on two other occasions, February 2, 2022 and February 8, 2022 while still employed with the Raleigh Police Department. Rodriguez was arrested on February 23, 2022.
While awaiting trial on the drug and gun charge, Rodriguez was being held at the Sampson County Jail when his jail cell was searched and corrections officers located smoking paraphernalia in his jail cell.
Today, Rodriguez pled guilty to conspiracy to distribute and possess with intent to distribute five hundred (500) grams or more of cocaine, distribution of a quantity of cocaine, use of a firearm in furtherance of a drug trafficking offense and possession of contraband while in prison.
The prosecution of Rodriguez was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after arraignment today by Chief United States District Judge Richard E. Myers II. The Drug Enforcement Administration and the Raleigh Police Department led the investigation. Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00049-M
Former Nurse Sentenced for Stealing Opioids from Kansas HospitalRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced to 18 months in prison and his nursing license forfeited after stealing controlled substances from his employer.
According to court documents, in March 2021, Alec Ramirez, 32, of Overland Park removed vials of fentanyl and hydromorphone from an automated dispensing cabinet at Menorah Medical Center in Overland Park and replaced the substances with an alternate liquid before returning the vials to the cabinet.
In December 2022, Ramirez pleaded guilty to one count of tampering with a consumer product and one count of possession of fentanyl by deception and subterfuge.
The Drug Enforcement Administration and the Food and Drug Administration – Office of Criminal Investigations investigated the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug prosecuted the case.
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Former Niskayuna Surgeon to Pay $42,000 for Defrauding MedicareRead the Press Release
ALBANY, NEW YORK – Steven A. St. Lucia has agreed to pay $42,000 to the United States to resolve allegations that he caused Union Foot Solutions, LLC, d/b/a Union Orthotics and Pedorthics (Union Foot Solutions), to submit false claims for payment to Medicare in violation of the False Claims Act, announced United States Attorney Carla B. Freedman. St. Lucia has pled guilty to state health care fraud charges and is scheduled for sentencing on March 17, 2023.
As part of the Settlement Agreement, St. Lucia admitted to the following:
In early 2000, the New York State Board of Professional Medical Conduct revoked St. Lucia’s medical license based on findings that he had committed conduct demonstrating moral unfitness and gross incompetence. Later that year, the Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG) excluded St. Lucia from participating in all Federal health care programs, including Medicare. The effect of an exclusion is that no Federal health care program may make payment for items or services furnished by an excluded person, or at the medical direction or on the prescription of an excluded person.
St. Lucia subsequently opened Schenectady-based Union Foot Solutions, a medical supply company, and applied to the Centers for Medicare and Medicaid Services (CMS) for Union Foot Solutions to participate in Medicare. That enrollment application falsely represented both that St. Lucia had never had a revocation or suspension of a license to provide health care and that he had never faced suspension or exclusion from Federal health care programs. CMS denied the application, explaining that St. Lucia was “excluded from the Medicare program” and, therefore, Union Foot Solutions “cannot receive Medicare payment.” St. Lucia later transferred his ownership interest in Union Foot Solutions to a third party, and Union Foot Solutions’ new owner reapplied for and obtained authorization to participate in Medicare. St. Lucia continued to work for Union Foot Solutions and rendered orthotic and prosthetic care to patients.
The United States alleges that, from December 1, 2016 through February 28, 2018, St. Lucia caused Union Foot Solutions to present false claims for payment to Medicare for services that he furnished to and ordered for Medicare beneficiaries. The United States further alleges that, to conceal his involvement in the treatment of Medicare beneficiaries and to circumvent the effect of his exclusion, St. Lucia caused Union Foot Solutions to bill services that he furnished to and items that he ordered for Medicare beneficiaries in the name of another pedorthist.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, HHS-OIG, and the New York State Offices of the Inspector General. The United States was represented by Assistant United States Attorney Adam J. Katz.
Former Iowa State Patrol Trooper Sentenced for Civil Rights ViolationRead the Press Release
CEDAR RAPIDS, IA – A former Iowa State Patrol trooper was sentenced on March 7, 2023, to two years of probation for deprivation of rights under color of law.
According to court documents, on September 25, 2017, Robert James Smith, 58, was on patrol and observed an individual traveling on a motorcycle on Interstate 80 at a speed above the posted speed limit. Smith attempted to catch up to the motorcycle. The motorcyclist exited Interstate 80 in Cedar County, stopped the motorcycle and dismounted. In his marked squad car, Smith exited behind the motorcycle, engaged the overhead lights and siren on his patrol vehicle, parked near and quickly approached the victim with his pistol drawn and pointed at the victim. As the victim was standing next to the motorcycle with hands in the air, Smith delivered an open palm strike to the victim’s chin area. The force of the strike caused the victim to fall back over the motorcycle, after which Smith knelt on and handcuffed the victim, then stood the victim up. In a report about the incident, Smith wrote that he reached with his hand intending to take hold of the victim’s shoulder but instead inadvertently came into contact with the front side of his helmet. In his plea agreement, Smith admitted that his open hand palm strike was intentional, done with a bad purpose or improper motive to disregard the law, and was an unreasonable use of force.
Smith plead guilty in September 2022. Smith was also ordered to pay a fine of $7500.00.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case.
Final defendant sentenced in prosecution of middle Georgia methamphetamine-trafficking conspiracyRead the Press Release
DUBLIN, GA: The final defendant from a Laurens County methamphetamine trafficking ring has been sentenced to prison, wrapping up an operation that dismantled a major middle Georgia drug conspiracy and took more than 75 illegally possessed firearms off the streets.
Robert Anthony Justice, 40, of Chester, Ga., was sentenced to 21 months in prison after previously pleading guilty to using a cell phone to conduct illegal drug trafficking activity, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. With Justice’s plea, 25 of 30 indicted defendants in Operation Monroe Doctrine have been sentenced after pleading guilty to felony charges related to the conspiracy, and four defendants entered Pre-Trial Diversion. One defendant passed away during the pendency of the case.
“Whether it’s in big cities or small towns, methamphetamine and other dangerous drugs fuel an addiction crisis that generates crime and misery,” said U.S. Attorney Steinberg. “Operation Monroe Doctrine demonstrates the success of law enforcement agencies working together to protect these communities.”
The July 2021 indictment of 30 defendants in USA v. Monroe et. al, dubbed Operation Monroe Doctrine, was the culmination of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation that identified a methamphetamine trafficking conspiracy throughout Laurens and Telfair counties and beyond, operating from at least January 2020 through January 2021.
As described in court documents and testimony, the defendants coordinated to import and distribute illegal drugs throughout the greater Dublin and Laurens County community. Key sentences in the operation include:
- David Alex Monroe, 34, of Dexter, Ga., the leader of the conspiracy, is serving 84 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine. As part of his plea agreement, Monroe forfeited a machine gun, an illegal short-barrel rifle, and two silencers, and abandoned his interest in 54 additional firearms.
- Jorge Hernandez-Pena, 48, of Atlanta, Ga., the conspiracy’s source of supply, is serving 240 months in prison, followed by deportation, after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
- Fredi Ramirez-Garcia, 44, of Decatur, Ga., another of the conspiracy’s drug distributors, is serving 120 months in prison, followed by deportation, after pleading guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
- David Kates, 48, a Jamaican citizen, is serving 108 months in prison, followed by deportation, after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
- Christopher Forbes, 33, of Dublin, Ga., is serving 97 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine. As part of his plea agreement, Forbes forfeited his interest in 21 firearms and two silencers.
- Carl Davis, 50, of Jacksonville, Fla., is serving 88 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
“Prior to the people of Laurens County electing me as sheriff, I promised I would work hard to eliminate the dangerous drug dealers from our community,” said Laurens County Sheriff Larry Dean. “I have and will continue to do so. My deputies will continue to work with other agencies on the local, state and federal level to ensure strong, swift convictions to the ones who choose to peddle dope here. My hat goes off to everyone who had a role in this case, from my staff all the way to the DEA and the U.S. Attorney's Office. I thank you all.”
“The insidious drug methamphetamine destroys families and communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners are committed to protect and serve those communities. This investigation was a success because of the collective effort between DEA, and its local, state and federal law enforcement counterparts.”
“There is no initiative more critical to ATF than increasing the safety of our communities. Cases which result in the arrests and prosecution of criminals are fundamental to continuing this initiative while simultaneously shows criminals that ATF and its law enforcement partners will not falter in this mission.” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “We will pursue criminals such as these wherever they may operate, and they will be prosecuted to the fullest extent of the law.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach.
The case was investigated by the Laurens County Sheriff’s Office and the Ocmulgee Drug Task Force, the U.S. Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted for the United States by Assistant U.S. Attorneys John P. Harper III, Frank M. Pennington II, and Southern District of Georgia OCDETF Coordinator Marcela C. Mateo.
District Man Found Guilty of Charges for Shooting Four People in Northeast Washington D.C.Read the Press Release
WASHINGTON - Travis Littlejohn, 38, of Washington, D.C., was found guilty by a jury of the July 5, 2019, shooting of three men and a woman in Northeast Washington, D.C., announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department. The verdict was returned late in the day on March 10, 2023. The Honorable Maribeth Raffinan scheduled sentencing for June 2, 2023.
Littlejohn was found guilty following a two-week trial in the Superior Court of the District of Columbia, of all charges in the 28-count indictment, including four counts of assault with intent to kill while armed, one count of aggravated assault while armed, and three counts of assault with significant bodily injury, along with related firearms offenses.
According to the government’s evidence, on the night of July 5, 2019, after getting into a verbal and physical altercation with a group of people gathered in the 3800 block of Minnesota Avenue NE, Washington, D.C., Littlejohn drove to an apartment two blocks away. Littlejohn drove back to the block minutes later, and after exchanging words with the group again, fired at least seven rounds at them from a semiautomatic firearm from a short distance away. Littlejohn shot four people before two members of the group returned gunfire. Three of the victims suffered significant injuries, but one victim was more seriously injured.
This case was investigated by Metropolitan Police Department Detective Kurt Hansen with assistance of Sixth District Officer Keith Cyphers. The case was prosecuted and tried by Assistant U.S. Attorneys Michael Toogun and Samuel White, and indicted by Assistant U.S. Attorney Michael McCarthy of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Paralegal Specialists Renee Prather, Debra McPherson & Crystal Waddy, SA Nelson Rhone of the Criminal Investigation Unit, and Litigation Technology Specialist Leif Hickling.
Detroit Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Damon Shawn Bailes Jr., also known as “Paper,” 31, of Detroit, Michigan, pleaded guilty today to possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, on May 3, 2022, law enforcement officers arrested Bailes in the area of 19th Street and Rural Road in Huntington on a warrant for a parole violation. Officers found 76 grams of fentanyl, $365 and a loaded SIG Sauer SP2022 handgun on Bailes’ person. Bailes admitted that he possessed the fentanyl and intended to sell it.
Bailes is scheduled to be sentenced on June 21, 2023, and faces a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans 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. 3:22-cr-114.
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Denver Man Sentenced to 17 Years in Prison for Violent Armed RobberiesRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces the Dionte Jelks, age 22, of Denver, was sentenced to 17 years in federal prison for armed robbery and brandishing a firearm during a crime of violence.
According to the plea agreement, from January 11, 2021, through February 11, 2021, the defendant participated with his co-defendants in takeover style robberies of pharmacies in Denver and Aurora. The defendant's role for each robbery was to jump pharmacy counters and aid in the robbery of pharmacists at gunpoint. The defendant would yell at pharmacy employees to get them to give him the drugs. In one robbery, he forced the employees to lie face down on the ground and in others he followed the employees around the pharmacy, demanding controlled substances. During the January 25, 2021, robbery, the defendant threatened to shoot an employee. After the robberies on January 15, 2021, and January 25, 2021, the defendant used social media to sell the controlled substances taken from the pharmacy during the robbery. He sent a Facebook friend a picture of Oxycodone and Alprazolam pills, followed by a video, as proof that the stolen pills were not fake. The defendants only stopped their armed robberies when they were disrupted by law enforcement on February 11, 2021.
Judge R. Brooke Jackson sentenced the defendant on March 9, 2023.
“The defendant’s aggressive and violent actions will forever impact the victims of these robberies. No one should fear that they will be shot and killed simply because they showed up for work,” said United States Attorney Cole Finegan. “This sentence should send a clear message that this type of behavior will not be tolerated.”
"ATF and local law enforcement successfully disrupted this violent string of armed robberies,” said Acting ATF Special Agent in Charge Kirk Howard. “We are hopeful this 17-year sentence in federal prison will serve as a deterrent to those who might choose to bring violence to our communities.”
“The Denver Police Department thanks our partners for their roles in holding Mr. Jelks and other violent criminals accountable for their dangerous crimes,” said Denver Police Chief Ron Thomas. “We hope this arrest, conviction, and sentencing demonstrate to our community that gun violence and drug crimes are not tolerated.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division investigated this case, with assistance from the Denver Police Department and the Aurora Police Department. Assistant United States Attorney Celeste Rangel handled the prosecution.
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.
CASE NUMBER: 21-cr-00140
Dennis Duffy Sentenced to Prison for Pandemic FraudRead the Press Release
Burlington, Vermont - The District of Vermont announced that Dennis Duffy II, 40, of South Burlington, was sentenced today in United States District Court in Burlington to 12 months and one day of imprisonment following his guilty plea to loan fraud and money laundering. U.S. District Judge William K. Sessions III also ordered that Duffy serve two years of supervised release following completion of his prison term, pay restitution in the amount of $191,000 and forfeit a Ford truck that he purchased with fraud proceeds. The court ordered that Duffy surrender to the Federal Bureau of Prisons on May 16, 2023 to begin serving his sentence.
On July 8, 2021, a federal grand jury returned a three-count indictment that charged Duffy with fraud and money laundering. The first fraud charge accused Duffy of making false statements and providing forged documents to North Country Federal Credit Union in the summer of 2020 in connection with Duffy’s application for a $416,000 Paycheck Protection Plan (PPP) loan for his commercial cleaning business, Night Owl Cleaning, Inc. The Coronavirus Aid, Relief, and Economic Security (CARES) Act contained many provisions that were intended to address the medical, economic, and social impacts of the COVID-19 pandemic, including the PPP loan program established by Congress in the spring of 2020. The PPP loan program was an economic stimulus program intended to help small businesses keep employees on payroll during the pandemic. It provided billions of dollars in low-interest, unsecured loans that were to be administered through and guaranteed by the U.S. Small Business Administration. Applicants had to certify that the loan proceeds would be used to maintain payroll and pay other business-related expenses. If applicants were able to demonstrate that proceeds were used to keep workers employed, some or all of a loan could be forgiven. Applicants had to provide the lending financial institution with certain documentation demonstrating their entitlement to and qualifications for a PPP loan.According to the indictment, in late June 2020, Duffy applied for and received a $416,000 loan for Night Owl Cleaning from North Country Federal Credit Union. As part of the application process, Duffy gave NCFCU tax records, rent invoices and utility bills that purported to be for Night Owl. For example, Duffy gave the credit union what purported to be a federal corporate tax return for 2019 that indicated Night Owl had gross revenues that year that exceeded $7.3 million and had taxable income of about $382,000. In fact, the actual returns Duffy filed with the IRS that year reported gross revenues of $79,000 and taxable income of only $15,700. According to the indictment, other Night Owl financial information that Duffy submitted to North Country in support of the loan application was similarly fraudulent.
In early July 2020, NCFCU funded the PPP loan by depositing the $416,000 into a Night Owl Cleaning account. Instead of using those funds for Night Owl payroll, however, Duffy used more than $390,000 to buy a house in Milton. In connection with the PPP loan fraud, Duffy pled guilty to credit union fraud and money laundering.
The indictment accused Duffy of committing an unrelated fraud against American Express in 2017. In April 2017, Duffy applied for and obtained an American Express credit card for Night Owl Cleaning. Between May and August 2017, Duffy used the AMEX card to make three fraudulent purchases, totaling $125,000, from a business purportedly named Vermont Aerial. In fact, the transactions were fraudulent transfers of AMEX funds to another company Duffy owned named Pet Stop. Immediately after the AMEX funds were deposited into the Pet Stop account, Duffy retransferred the money to a Night Owl Cleaning account, then used those monies for his own benefit. Among other things, Duffy purchased a truck with proceeds of the AMEX fraud. Although the charge of wire fraud was dismissed as part of Duffy’s plea agreement, Duffy agreed to forfeit the truck, to pay full restitution to American Express, and that the fraud against AMEX would be included in the loss calculation under the Federal Sentencing Guidelines.
Duffy’s case was the first pandemic-related fraud prosecution to be filed in Vermont federal court. This case was investigated by the Burlington office of the Federal Bureau of Investigation.
Duffy is represented by Mark Kaplan, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.Davenport Man Sentenced to More than 19 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
DAVENPORT, IA – A Davenport man was sentenced on March 8, 2023, to 235 months in federal prison for conspiracy to distribute methamphetamine.
According to court documents and evidence presented at sentencing, David Terrell Parrow, 47, sold a pound of methamphetamine on two separate occasions to a confidential informant. In January 2022, the Davenport Police Department then executed a search warrant on Parrow’s residence and recovered marijuana and cocaine base. Following his prison term, Parrow will serve five years of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department 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.
California Men Admit Conspiring to Distribute Fentanyl and MethamphetamineRead the Press Release
NEWARK, N.J. – Two California men admitted conspiring to distribute and possess with intent to distribute fentanyl and methamphetamine in New Jersey and elsewhere, U.S. Attorney Philip R. Sellinger announced today.
Erik Eduardo Velazquez Bautista, 25, of San Diego, California, pleaded guilty by videoconference today before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine. Jesus Alejandro Rodriguez Velasquez, 27, also of San Diego, California, pleaded guilty on March 2, 2023, to the same offense before Judge Martinotti by videoconference.
According to documents filed in this case and statements made in court:
On Dec. 2, 2021, Velazquez Bautista and Rodriguez Velasquez were driving across the country to deliver narcotics to a purchaser in New York when they were stopped by law enforcement. Law enforcement seized approximately 20 kilograms of methamphetamine and approximately five kilograms of fentanyl.
Velazquez Bautista and Rodriguez Velasquez each face a maximum punishment of 20 years in prison and a maximum fine of up to $1 million. Sentencing for Rodriguez Velasquez is scheduled for July 11, 2023; sentencing for Velazquez Bautista is scheduled for July 18, 2923.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
rodriguez.information.pdf bautista.information.pdfBridgeport Man Charged with Illegal Gun TraffickingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, announced that DAQUAN LAMONT WRIGHT, 26, of Bridgeport, was arrested today on a federal criminal complaint charging him with illegal gun possession and trafficking offenses.
Following his arrest, Wright appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.
As alleged in court documents and statements made in court, an investigation determined that Wright was illegally selling firearms without a license. Wright was previously convicted in state court of theft of a firearm, and possession with intent to sell narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
It is alleged that, in January and February 2023, investigators made three controlled purchases of handguns from Wright. One of the handguns had been reported stolen in North Carolina. During the investigation, Wright indicated that he possessed, and had access to, other firearms and firearm parts. A search of Wright’s Bridgeport residence today revealed a Glock Model 43 handgun, ammunition, and various gun parts.
The complaint charges Wright with unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 10 years, and with dealing in firearms without a license, an offense that carries a maximum term of imprisonment of five years.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police, and the Bridgeport, Fairfield and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
Associate Attorney General Vanita Gupta Issues Statement on the FBI’s Supplemental 2021 Hate Crime StatisticsRead the Press Release
The Justice Department issued following statement from Associate Attorney General Vanita Gupta on the FBI’s announcement of the 2021 hate crime statistics supplement:
“Preventing, investigating and prosecuting hate crimes are top priorities for the Justice Department, and reporting is key to each of those priorities. The FBI’s supplemental report demonstrates our unwavering commitment to work with our state and local partners to increase reporting and provide a more complete picture of hate crimes nationwide. We will not stop here: We are continuing to work with state and local law enforcement agencies across the country to increase the reporting of hate crime statistics to the FBI. Hate crimes and the devastation they cause communities have no place in this country. The Justice Department is committed to every tool and resource at our disposal to combat bias-motivated violence in all its forms.”
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Additional information on hate crime statistics collection:
The FBI’s 2021 Hate Crime Statistics Supplemental Report released in December 2022, was the first year using annual hate crimes statistics reported entirely through the National Incident-Based Reporting System (NIBRS). Compared to the previous crime data collection system, NIBRS collects significantly more detailed data for each individual criminal incident. Since 2016, the Justice Department has worked with law enforcement agencies to assist in their transition to reporting crime data through NIBRS, including allocating over $120 million in grants to support agencies’ transition.
As a result of the shift to NIBRS-only data collection, law enforcement agency participation in submitting all crime statistics, including hate crimes, fell significantly from 2020 to 2021. Several of the nation’s largest law enforcement agencies, as well as some states, did not make the transition to NIBRS in time to submit data prior to the reporting deadline, and were not included in the 2021 Hate Crime Statistics.
In order to increase agency participation for the 2021 data year, the FBI’s Uniform Crime Reporting Program accepted hate crime data submissions from the summary reporting data collection system and additional NIBRS hate crime reports from 3,025 agencies that covered a combined population of 87,239,467 to help compile this supplemental report. As a result, 14,859 agencies covering 91.1% of the population are represented in this report compared to the 11,834 agencies representing 64.8% represented in the December 2022 report. Nationally, reported hate crime incidents increased 11.6% from 2020 to 2021.
Steps taken by the Justice Department since January 2021 in response to a rise in hate crimes and hate incidents include:
- Aggressively investigating and prosecuting hate crimes – the department has charged more than 70 defendants in over 60 different cases and secured more than 60 convictions of defendants;
- Designating a Deputy Associate Attorney General as the department’s first-ever Anti-Hate Crimes Resources Coordinator;
- Designating the chief of the Criminal Section of the Civil Rights Division to serve in role of facilitating the expedited review of hate crimes;
- Designating an inaugural Language Access Coordinator to improve knowledge, use and expansion of the department’s language resources;
- Announcing that by September 2023 all 94 U.S. Attorneys’ Offices will host a United Against Hate program to help improve the reporting of hate crimes by teaching community members how to identify, report and help prevent hate crimes and to provide an opportunity for trust building between law enforcement and communities;
- Elevating civil rights violations and hate crimes enforcement for prioritization among the FBI’s 56 field offices;
- Designating at least one Assistant U.S. Attorney as a Civil Rights Coordinator in every U.S. Attorney’s Office (USAO);
- Facilitating FBI-hosted regional conferences across the country with state and local law enforcement agencies regarding federal civil rights and hate crimes laws; to encourage reporting; strengthen relationships between law enforcement and local civil rights organizations; and build trust within the diverse communities they serve;
- Launching an FBI-led National Anti-Hate Crimes Campaign involving all 56 FBI field offices to encourage reporting. The campaign includes outdoor advertising, billboards and radio streaming in addition to social media;
- Revitalizing the Community Relations Service (CRS) by, among other things, facilitating nearly a dozen Protecting Places of Worship forums to provide interfaith communities with resources and information on securing their places of worship, help faith leaders build relationships with law enforcement;
- Adding information to the department’s website on reporting hate crimes in 24 languages, including 18 of the most frequently spoken AAPI languages in the United States;
- Awarding over $32 million in grant funding, including through the Matthew Shepard and James Byrd Jr. Hate Crimes Program, which supports state, local and Tribal law enforcement and prosecution, victim assistance and public awareness; the Community Based Approaches to Prevent and Address Hate Crimes initiative, which promotes community awareness, preparedness and responsiveness; the Jabara-Heyer NO HATE Act State-Run Hate Crime Reporting Hotlines Program; and the Community IMPACT program, which supports community organizations in their efforts to serve and support victims of hate crimes; and
- With the Department of Education, issuing facts sheets addressing harassment and discrimination in school, including harassment based on COVID-19 related issues, harassment of LGBTQI+ students and discrimination based on national origin and immigration status.
More information about the department’s response to hate crimes is available here.
12 March 2023
New Orleans Man Sentenced for Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – SEAN BRIGGS, a resident of New Orleans, was sentenced on February 28, 2023 by U.S. District Court Judge Wendy B. Vitter to fifty-one (51) months of incarceration after pleading guilty as charged to a one-count indictment, announced United States Attorney Duane A. Evans. Judge Vitter ordered that BRIGGS be placed on supervised release for three (3) years following his release from imprisonment. BRIGGS was also ordered to pay a $100 mandatory special assessment fee.
Count 1 charged BRIGGS with possession with the intent to distribute controlled substances, including fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D).
According to court records, on May 4, 2022, Federal Bureau of Investigation (FBI) agents were conducting surveillance near the intersection of Reverend John Raphael and Josephine Streets, in New Orleans, LA. Agents observed BRIGGS engaging in suspected hand-to-hand drug transactions. A New Orleans Police Department (NOPD) Real Time Crime Camera (RTCC) was also operational in the area and surveilled BRIGGS. The RTCC camera captured BRIGGS holding a bag of narcotics and dealing fentanyl to a passenger of a vehicle.
BRIGGS had previously plead guilty to possessing a firearm in furtherance of a drug trafficking crime at the same intersection in 2018 and received an eighty (80) month federal sentence. BRIGGS was dealing drugs in 2022 only months after his release while under supervision by Federal Probation and Parole Agents.
As agents began driving towards BRIGGS, he noticed them and walked away briskly. Agents saw BRIGGS tuck a bag with a white substance under his arm and run. As agents approached BRIGGS, they saw him throw a baseball sized bag of drugs from his person.
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.
U.S. Attorney Evans praised the work of Federal Bureau of Investigation and the New Orleans Police Department in this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit .
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – DARLIN AMINADAK BANEGAS-CRUZ, a/k/a “Darlis Mindak Banegas-Cruz,” age 28, was indicted on March 10, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, DARLIN AMINADAK BANEGAS-CRUZ, (“BANEGAS-CRUZ”) reentered the United States after being previously deported on October 30, 2019. If convicted, BANEGAS-CRUZ faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee. He faces a sentencing enhancement of 10 years because of a prior felony conviction.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
10 March 2023
Wise County Pair Sentenced for Distributing Fentanyl PillsRead the Press Release
ABINGDON, Va. – A pair of Southwest Virginia men, who distributed pressed pills containing fentanyl purchased from various social media platforms, were sentenced yesterday in U.S. District Court in Abingdon.
Paul Mason Perkins, 21, of Big Stone Gap, Virginia, was sentenced yesterday to 42 months. Austin Jeremiah Lane, 23, of Norton, Virginia, was sentenced to 36 months.
Perkins and Lane pleaded guilty in June 2022 to one count each of conspiring to distribute and possess with the intent to distribute 40 grams or more of fentanyl. A third defendant, Cheyenne Cassie Carico, also pled guilty to the same charge last year and will be sentenced in April.
According to court documents, between February 2021 and February 2022, Perkins purchased thousands of pressed pills containing fentanyl online through a source located in California. Perkins ordered 1,000 pills at a time from the California source on the social media platforms Snapchat and Instagram, making purchases every few weeks. He had the pills mailed to his residence in Big Stone Gap. Perkins then distributed the pills to other individuals in Wise County, including multiple sales to co-conspirators Lane and Carico.
United States Attorney Christopher R. Kavanaugh, Michael Weddel, Acting Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division made the announcement.
The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
West Tennessee Man Sentenced to 35 Years for Trafficking MethamphetamineRead the Press Release
Jackson, TN – Preston Antwan McNeal, 36, of Jackson, Tennessee, was found guilty on four counts of a seven-count indictment and sentenced to 35 years for trafficking methamphetamine. United States Attorney Kevin G. Ritz announced the sentence today.
According to U.S. Attorney Ritz and information presented in court, from 2016 to 2019, McNeal formed, and was the leader, of a large methamphetamine trafficking operation in West Tennessee. In 2017, as the Lexington Police Department conducted a traffic stop on McNeal’s vehicle, he threw a bag containing 44 grams of methamphetamine, 16 grams of cocaine, and one gram of crack cocaine into a nearby yard. A total of $1,281 in cash, a drug ledger, and a digital scale were found in the car.
In 2019, the Chester County Sheriff’s Department arrested McNeal at a traffic stop. The deputy searched the vehicle and found a baggie under the driver’s seat containing 14.3 grams of methamphetamine, plus $3,000 in cash in the front passenger floorboard. A total of 57.34 grams of methamphetamine was recovered. The passenger of the car testified at trial that McNeal gave her four baggies of methamphetamine to hide on her person. One of McNeal’s co-conspirators also testified that from late 2017 until February 2019, McNeal provided the witness with over 5 kilograms of methamphetamine for redistribution.
United States District Judge S. Thomas Anderson sentenced McNeal to 420 months’ imprisonment, to be followed by 10 years of supervised release. There is no parole in the federal system.
This case was investigated by the Lexington Police Department, the Henderson County Sheriff’s Department, and the Drug Enforcement Administration (DEA).
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Adam Davis and Josh Morrow, who prosecuted this case for the government, as well as the law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates
Waterville Man Faces up to 20 Years, $250K Fine for Possessing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Waterville man pleaded guilty in U.S. District Court in Bangor today to possessing child sexual abuse material.
According to court records, Terrence Talbot, 56, used a government computer to search for and obtain child sexual abuse material. He stored downloaded still and video files on removable digital media devices.
Talbot faces up to 20 years in prison, a $250,000 fine and up to a lifetime 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 U.S. Department of the Interior, Office of the Inspector General investigated this case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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Waterloo Man Sentenced for Possessing a Firearm as a Drug UserRead the Press Release
A man who possessed a firearm as an illegal user of a controlled substance was sentenced today to almost five years in federal prison.
Adaris Hawkins, age 23, from Waterloo, Iowa, received the prison term after an August 29, 2022 guilty plea to one count of possession of a firearm by a drug user.
In a plea agreement, admitted that, on December 6, 2021, he knowingly possessed a firearm, a Glock G19 pistol, as a drug user. Specifically, police went to Hawkins’ residence in Waterloo to execute a search warrant. Police officers located Hawkins outside the residence in possession of the Glock pistol. The firearm was equipped with an extended magazine and 33 rounds of ammunition. Police obtained a sample of Hawkins’ urine which subsequently tested positive for marijuana. Inside the home, police located marijuana and drug paraphernalia belonging to Hawkins. Prior to the search, police officers located various social media posts depicting Hawkins using marijuana. In addition, between July 2021 and April 2022, Hawkins purchased at least ten firearms. On the ATF paperwork he completed when purchasing the firearms, Hawkins falsely claimed that he was purchasing the guns for himself and that he was not a drug user. Several of the guns Hawkins purchased were on behalf of other persons who could not lawfully obtain firearms.
Hawkins was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hawkins was sentenced to 57 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hawkins 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 Attorneys Lisa C. Williams and Daniel C. Tvedt and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2020.
Follow us on Twitter @USAO_NDIA.
U.S. Attorney’s Office Reaches ADA Settlement with SingleSpeed Brewing Co.Read the Press Release
SingleSpeed Brewing Co., an Iowa corporation that owns and operates a facility at 325 Commercial Street in Waterloo, Iowa (the “Facility”), has agreed to settle a dispute with the United States regarding an allegation that it violated the Americans with Disabilities Act (“ADA”).
The settlement agreement resolves allegations that the Facility was noncompliant with the ADA’s accessibility requirements for public accommodations. As part of the settlement agreement, SingleSpeed has agreed to provide additional accessible seating to its seating spaces, standing spaces, and other dining surfaces. In addition, SingleSpeed has agreed to a number of additional alterations to its dining areas, entrances, and restrooms to come into compliance with ADA accessibility standards.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants and bars, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or raises an issue of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Timothy T. Duax noted that SingleSpeed cooperated throughout this investigation. “The steps agreed to by SingleSpeed will give individuals with disabilities the same opportunity to enjoy what SingleSpeed has to offer, as required by the ADA. We hope others will continue to take their ADA obligations seriously as our office remains committed to ensuring that individuals with disabilities have full and equal access to places of public accommodation in the Northern District of Iowa.”
This matter was handled by Assistant U.S. Attorney Matthew Gillespie.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in the Northern District of Iowa is not accessible to persons with disabilities may file a complaint online at www.ada.gov or directly with the U.S. Attorney’s Office at https://www.justice.gov/usao-ndia/civil-rights-environmental-justice.
Follow us on Twitter @USAO_NDIA.
Two Men Plead Guilty in Wide-Ranging Drug ConspiracyRead the Press Release
BOSTON – Two men pleaded guilty today in federal court in Worcester to their roles in a wide-ranging fentanyl, heroin, crack, and cocaine trafficking conspiracy.
Ivan Torres, 32, of Fitchburg, and Abel Rodriguez Rivera, 35, of Ponce, Puerto Rico, pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (commonly known as crack cocaine), and 500 grams or more of cocaine. U.S. Senior District Court Judge Timothy S. Hillman scheduled sentencings for Sept. 7, 2023. Torres and Rivera were indicted on July 22, 2020, along with 15 other defendants.
According to court documents, following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications to and from telephones used by members of the drug trafficking organization and its suppliers revealed that Torres and Rivera were both cocaine dealers.
Over the course of the investigation, over 1.8 kilograms of a heroin/fentanyl mixture, over 3.6 kilograms of cocaine, over 50 grams of crack cocaine, a stolen, loaded handgun, drug manufacturing equipment and over $376,000 in U.S. currency were seized.
Torres and Rivera are the 16th and 17th defendants to be convicted in this case – either by guilty plea or jury conviction following trial.United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police, made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted 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 indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Indicted on Gun Charges Appear in Federal CourtRead the Press Release
BIRMIGHAM, Ala. -- Yesterday, two individuals were arrested by FBI agents and appeared in federal court, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Charles Edward Kilgore, 31, of Heflin, and Thomas Austin Griffith, 24, of Anniston, were arraigned before U.S. Magistrate Judge Nicholas A. Danella on charges of being a felon in possession of a firearm. Kilgore and Griffith are being held in the custody of the U.S. Marshal until their detention hearings which are set for March 14.
According to the indictments, Kilgore illegally possessed a Glock .40 caliber pistol on January 6, 2023, in Cleburne County. Griffith illegally possessed a Glock .40 caliber pistol on December 9, 2022, in Calhoun County.
The maximum penalty for being a felon in possession of a firearm is 15 years in prison.
The FBI North Alabama Violent Crime Task Force investigated the case, along with the Calhoun County Sheriff’s Office and the Oxford Police Department. Assistant U.S. Attorney Michael A. Royster is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Twelve Years in Federal Prison for California Man Who Tried to Take Five Pounds of Ice Methamphetamine on a Plane to IowaRead the Press Release
A man who was arrested in Los Angeles while trying to transport five pounds of methamphetamine to Iowa was sentenced today to twelve years in federal prison.
Kiyonte Levell Sowell, age 22, from Los Angeles, California, received the prison term after a September 14, 2022 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence at prior hearings and court records reflect that in late 2021, the Cedar Rapids Drug Enforcement Agency (DEA) conducted a wiretap investigation into a drug organization being primarily run by David Belton (a/k/a “Blood”). In February 2022, intercepted communications indicated that a shipment of 60 pounds of ice methamphetamine was going to be coming to Cedar Rapids, Iowa, from California. Investigators tracked a courier driving a rental truck from Los Angeles to Nebraska, where the truck was stopped. During a search of the cargo area of the truck, officers found a plastic tote containing 60 pounds of ice methamphetamine.
Following the seizure of the 60 pounds of ice methamphetamine, Belton continued to purchase additional methamphetamine from his source in California. On February 27, 2022, Belton was intercepted speaking with Sowell, who is a relative of Belton’s. Belton told Sowell that he was booking Sowell a flight, instructed Sowell to “pack you a big ass suitcase, you already know you ain’t going to stay for that many days” and then said, “You already know what the rest is so we gonna, I’m gonna book you out a ticket in the morning.” The next day, Sowell went to Los Angeles International Airport, taking a large roller bag with him through airport security as carry‑on luggage. Airport security conducted an X‑ray of the roller bag and observed multiple bags of an unknown substance underneath the clothes inside the bag. During a secondary search of the bag, security found five vacuum‑sealed bags containing ice methamphetamine. Sowell admitted that the bag was his but said his brother had packed it. When asked if he was aware of the contents of the bag he shrugged and said, “It looks like cocaine or meth, I don’t know.” He then said he was going to Iowa, “but all I know is that I’m missing my flight and I’m going to jail.” Airport security eventually searched the bag, found that it contained approximately five pounds of ice methamphetamine, and arrested Sowell. Later testing determined the substance in Sowell’s bag was approximately 2,208 grams of 99% pure methamphetamine.
The following ten co‑defendants charged in the same indictment had previously pled guilty or been found guilty in federal court and are pending sentencing:
David Poitier Belton
Derek Michael Mims
Phillip Lanell Rogers
Robert Lee Michael Bates
Anton Tarrice Whitney, Jr.
Christopher Eric Curley
Calub Joseph Storlie
Elmer Mims
Timothy Michael Webber
Jesus Vera
“Methamphetamine is a highly dangerous drug that continues to threaten the safety of our communities,” said United States Attorney Timothy T. Duax. “We remain committed to working with the DEA and all of our law enforcement partners to protect the public from dangerous drug dealers and hold accountable those who bring methamphetamine into our communities.”
Sowell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sowell was sentenced to 144 months’ imprisonment. He must also serve a five‑year term of supervised release after the prison term. There is no parole in the federal system.
Sowell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. Also assisting in the investigation were the Transportation Security Administration and Los Angeles International Airport Police, and DEA LAX Group 3 in Los Angeles. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22‑CR‑39‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Tulsa Man Convicted of Carjacking Resulting in DeathRead the Press Release
A defendant who took part in multiple carjackings that resulted in the murder of a Tulsa man in 2016 pleaded guilty in federal court, announced U.S. Attorney Clint Johnson.
Emmitt Graywolf Sam, 24, pleaded guilty to carjacking resulting in death.
In his plea agreement, Sam admitted that in the early morning hours of June 25, 2016, he and another individual carried firearms and committed several carjackings and robberies. Afterward, the two men drove a stolen black Ford Focus to the 8500 block of East 26th St. in Tulsa. Sam admitted that the men then attempted to carjack victim Jonathan Stephens who was standing next to his Chrysler Pacifica. He further stated that during the attempted carjacking, Stephens was shot and killed by the other individual. The two men then fled the scene in the stolen black Ford Focus and committed several more armed robberies and carjackings.
Sam will be sentenced at a later date.
The FBI and Tulsa and Broken Arrow Police Departments conducted the investigation. Assistant U.S. Attorney John E. Brasher is prosecuting the case.
Tribe Member Sentenced to Prison for Shooting at Police OfficerRead the Press Release
RENO – A Winnemucca Indian Colony tribe member was sentenced yesterday by U.S. District Judge Larry R. Hicks to 78 months in prison followed by three years of supervised release for shooting at a law enforcement officer and pointing his firearm at a second officer.
Martin Williams (39) pleaded guilty in November 2022 to two counts of assault with a dangerous weapon within Indian Country.
According to court documents and admissions made in court by Williams, on April 2, 2020, he fired a shot at a law enforcement officer while on the Winnemucca Indian Colony reservation and pointed his firearm at a second officer.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI, Humboldt County Sheriff’s Office, Winnemucca Police Department, and the Elko Police Department investigated the case. Assistant United States Attorneys Penelope Brady and Andrew Keenan prosecuted the case.
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Tracy Thibodeau Pleads Not Guilty to Credit Union FraudRead the Press Release
Burlington, Vermont - The United States Attorney’s Office stated that Tracy Thibodeau, 46, of Windsor, Vermont, pleaded not guilty today in United States District Court in Burlington to a charge of credit union fraud. United States Magistrate Judge Kevin J. Doyle released Thibodeau on conditions pending trial, which has not been scheduled.
According to court records, on February 22, 2023, a federal grand jury in Rutland returned a one-count indictment charging Thibodeau, who at the time was known as Tracy Hill, with defrauding her former employer, the Vermont VA Federal Credit Union. The VVAFCU is a small credit union that has one office in White River Junction. Thibodeau began working at the credit union in 2015 and was promoted to branch manager in around 2016. The credit union offered VVAFCU VISA credit cards to members and employees.
The indictment charges that in April 2019, Thibodeau misused her authority at the bank to open a personal VVVAFCU credit card account without proper authorization from her superiors. Later in 2019, it is alleged, Thibodeau again misused her access to the credit union’s credit card processing software to grant herself, without authorization, privileged statuses on her card account. Those privileges eliminated maximum account limits; excused her from paying late fees and penalties on overdue balances; and also eliminated monthly minimum payments. Between April 2019 and February 2021, Thibodeau used her credit card to make purchases in excess of $140,000. During that period, Thibodeau made only small monthly payments toward her large account balance. The indictment further alleges that Thibodeau concealed her procurement and misuse of the credit card by manipulating internal credit card journal reports to hide from her superiors the existence of a large balance in her account. The credit union discovered the fraud in April 2022 and promptly fired Thibodeau. At that time, the outstanding balance on her account was more than $137,000. That loss has been absorbed by the credit union and its insurer.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that Thibodeau is presumed innocent unless and until she is proven guilty.
If convicted, Thibodeau faces a maximum penalty of 30 years in prison and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.This case was investigated by the United States Secret Service and the Hartford, Vermont Police Department.
Thibodeau is represented by Robert Katims, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Three Bowling Green Residents Sentenced for Methamphetamine Trafficking ConspiracyRead the Press Release
Bowling Green, KY – This week, the third and final member of a Bowling Green federal drug trafficking conspiracy was sentenced to 10 years in federal prison.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Office, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement.
On March 7, 2023, in the United States District Court for the Western District of Kentucky, Bowling Green Division, Glenn Budd, 41, was sentenced to 10 years in prison followed by 5 years of supervised release for conspiring to possess with the intent to distribute 500 grams or more of a methamphetamine mixture.
On February 1, 2023, Rickshard Collins, 31, was sentenced to 10 years in prison followed by 5 years of supervised release for conspiring to possess with the intent to distribute 1,286.6 grams of methamphetamine.
On January 17, 2023, Paige Russell, 22, was sentenced to time served followed by 4 years of supervised release for conspiring to possess with the intent to distribute 500 grams or more of a methamphetamine mixture.
“Illegal drug trafficking and the addiction which accompanies it often causes death, decimates lives, families, and even entire communities,” said U.S. Attorney Bennett. “We will continue, in partnership with the ATF and Kentucky’s AHIDTA drug task forces, to identify, arrest, and prosecute those responsible for trading their poison in our communities.”
“So many families have endured pain and suffering due to the drug epidemic here and across the country,” said ATF Acting Special Agent in Charge Maynard. “ATF is committed to working with our law enforcement partners to pursue those who exploit the vulnerabilities that addiction creates and threaten the safety of our communities. I commend ATF’s Bowling Green Field Office, the Bowling Green/Warren County AHIDTA Drug Task Force and the prosecution team for their hard work in bringing these offenders to justice.”
“Drugs are killing our citizens daily in the Commonwealth,” said AHIDTA Director Loving. “Complex investigations and prosecutions like this help make our community a safer place to live by removing these traffickers from the streets. The Bowling Green/Warren County Drug Task consists of state, local and federal partners working together as a team which is the key to successful investigations. Working with our local U.S. Attorney’s Bowling Green Branch Office brings these major drug traffickers to justice.”
There is no parole in the federal system.
The ATF Bowling Green Field Office and the Bowling Green/Warren County AHIDTA Drug Task Force investigated the case.
The case was prosecuted by Assistant United States Attorney Mark J. Yurchisin II of the United States Attorney’s Bowling Green Branch Office.
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