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2 March 2023
Former Louisiana Resident Charged with Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRANDI WEBER, age 28, formerly of New Orleans, LA and now residing in California, was charged on March 1. 2023 in a one-count bill of information with making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) pursuant to Title 18, United States Code, Section 1001.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to the charging documents, WEBER made false statements to an approved lender on or about April 2, 2021, for the purpose of fraudulently obtaining a PPP loan, which she later received in the amount of approximately $10,302.00. WEBER stated in her PPP application that she was a self-employed esthetician impacted by the pandemic when, in truth, she had no such business in 2020.
WEBER faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for the false statements count. There is also a $100 mandatory special assessment fee due after conviction. U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’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.
U.S. Attorney Evans praised the work of the Amtrak Office of Inspector General – Criminal Investigations in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
brandi_weber_boi_redacted_sanitized.pdfFlorida Man Who Victimized Underage Girls Online Going to Prison for 29 Years for Producing Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Andrew Lynch a/k/a Gregory O’Neil, 33, of Crystal River, Florida, who was convicted of production of child pornography, was sentenced to serve 29 years in prison and 20 years supervised release by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Aaron J. Mango and Caitlin M. Higgins, who handled the case, stated that between April and May, 2018, Lynch a resident of the State of Florida, communicated with minor females located in the Western District of New York with the intent to have the victims produce child pornography for him. Specifically, Lynch communicated with five victims, ranging in age from 13 to 17 years old, via Facebook Messenger. As a result of Lynch’s threats and coercion, the victims sent Lynch numerous images and videos of themselves engaged in sexually explicit conduct, and also engaged in video chats with Lynch during which they engaged in sexually explicit conduct. During some of the communications, Lynch posted child pornographic images of the victims to Facebook in an effort to coerce them into sending more sexually explicit images and videos.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Citrus County, Florida, Sheriff’s Office, under the direction of Sheriff Mike Prendergast.
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Federal Public Official Sentenced for Accepting BribesRead the Press Release
NORFOLK, Va. – A former General Services Administration (GSA) Official was sentenced yesterday to 30 months in prison for accepting bribes in exchange for directing government procurement contracts to government contractors.
According to court documents, Charles W. Jones, 59, was employed as a Supervisory Construction Control Representative with the GSA in Richmond. He had responsibility for the management and oversight of construction and renovation projects at certain federal buildings throughout the Norfolk, Richmond, and Alexandria areas. Beginning in approximately December of 2015 and continuing through August 2019, Jones received bribes totaling $411,192 from Daniel Crowe, in exchange for awarding them federal construction projects to his companies. In October of 2019, Jones received a cash payment from Jennifer Strickland, the President of SDC Contracting LLC, in exchange for awarding a contract valued at approximately $1,369,501.
Crowe and Strickland have previously pleaded guilty and have been sentenced to related charges.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Carol Fortine Ochoa, Inspector General, General Services Administration (GSA); Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Christopher Dillard, Special Agent in Charge for the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS); and Michael Butler, Acting Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The General Services Administration (GSA) Office of Inspector General provided significant assistance in this case.
Assistant U.S. Attorney Matthew Heck prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-66.
Federal Jury Convicts Ardmore Man of Multiple Charges Associated with the Assault and Sexual Exploitation of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Geovanta Ty'Kearon Lee, age 21, of Ardmore, Oklahoma, was found guilty by a federal jury on charges of (1) Cyberstalking, (2) Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country, (3) Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, (4) Receipt of Material Involving the Sexual Exploitation of a Minor, and (5) Possession of Material Involving the Sexual Exploitation of a Minor in Indian Country. The jury trial began on Monday, February 27, 2023, and concluded on Wednesday, March 1, 2023.
During the trial, the United States presented evidence that on February 23, 2022, in Ardmore, Lee followed a vehicle driven by the victim. When the victim stopped, Lee exited his vehicle holding a firearm. Lee discharged the firearm when the victim began to drive away, striking the trunk on the driver’s side. The bullet was stopped by an amplifier in the trunk. Lee fled the scene after the shooting. In the month after the assault, Lee engaged in a course of conduct, using Facebook and phone calls, to intimidate and harass the victim. Phones recovered from the Defendant’s bedroom were searched as part of the investigation and contained evidence the Defendant received and possessed a video depicting sexual exploitation of a minor.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the Defendant is a member of a federally-recognized Indian tribe and the crimes occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation and within the Eastern District of Oklahoma.
The guilty verdicts were the result of investigations by the Ardmore Police Department, Chickasaw Lighthorse Police Department, and the Federal Bureau of Investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Lee was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Patrick Flanigan and Special Assistant United States Attorney Dwight Artis represented the United States.
Federal Judge Sentences Rockford Man to More Than Five Years in Prison for Illegally Possessing Firearm in RockfordRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to five years and four months in federal prison for illegally possessing a firearm in Rockford, to be followed by three years of supervised release.
U.S. District Judge Iain D. Johnston sentenced JAVIN MASON, 32, to more than five years in prison today. Mason pleaded guilty in November 2022 to a charge of illegal firearms possession. As a previously convicted felon, Mason was prohibited by federal law from possessing firearms. Mason admitted in a plea agreement to possessing firearms that he knew were stolen, and selling them to another individual.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Jessica Maveus.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Court Bars Three Florida Tax Return Preparer and a Business from Preparing Tax Returns and Orders Them to Disgorge Ill-Gotten GainsRead the Press Release
A federal court in Miami, Florida, has entered permanent injunctions against Rudy Aly, Rhonda Hudge, Cindy Odige, and TUPS Tax, LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business. Aly was enjoined after failing to respond to the United States’ complaint. Hudge, Odige, and TUPS Tax consented to their injunctions.
The court also ordered that Aly disgorge $406,071.43, representing the proceeds that he received for preparing false or fraudulent tax returns from 2018 to 2020. The court also ordered Hudge to disgorge $15,562.75, and Odige and TUPS Tax to disgorge $48,000 based on their settlement agreements with the United States.
In the complaint, the United States alleged that Aly and Hudge prepared tax returns that included fraudulent claims for the Earned Income Tax Credit (EITC), often based on fabricated business income or expenses or bogus household help income. The complaint also alleges that Aly and Hudge prepared tax returns that falsely claimed credits for residential solar energy improvements and education expenses. Odige signed and filed fraudulent returns prepared by Aly, the complaint alleges.
As part of their settlements, Hudge and Odige did not admit to the allegations in the complaint but agreed to injunctions and to pay disgorgement.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income). In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Evansville Man Sentenced to 25 Years in Federal Prison After Recording his Sexual Abuse of a Seven-Year-Old GirlRead the Press Release
EVANSVILLE- Shane C. Collins, 34, of Warrick County, Indiana was sentenced to 25 years in federal prison after pleading guilty to producing child sexual abuse material.
According to court documents, on March 7, 2021, Collins recorded a video of himself engaging in a sex act with a seven-year-old girl. Between March 17 and March 19, 2021, Collins took additional sexually explicit pictures of the child. Collins saved the recordings of his sexual abuse of the child using an internet cloud-based data storage application.
“Every child deserves to grow up safe, loved, and free from sexual abuse. Sexual predators like this defendant inflict lifelong trauma on vulnerable victims to satisfy their own criminal lusts,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Every day he is in federal prison is another day we can be certain he will not harm a child. I commend the work of the FBI and the Warrick County Sheriff’s Office for ensuring that the public and the victim are protected from any further abuses by this dangerous pedophile.”
“I want to commend both the efforts of the Warrick County Sheriff’s Office and the FBI to put this perpetrator behind bars. These criminal acts are not only horrendous in nature, but knowing this individual participated in taking advantage of a child in our community is very concerning,” said Sheriff Michael Wilder of the Warrick County Sheriff’s Office. “This sentence is an example of great teamwork among local and federal agencies.”
“No amount of time in federal prison seems adequate for those who sexually exploit children, but this sentence clearly demonstrates the commitment of the FBI and our law enforcement partners to identify these predators and ensure they can never victimize innocent children again,” said FBI Indianapolis Special Agent in Charge, Herbert J Stapleton.
The FBI investigated this case with valuable assistance provided by the Warrick County Sheriff’s Office. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Collins be supervised by the U.S. Probation Office for LIFE following his release from federal prison. Collins must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney, Todd Shellenbarger who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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Ericsson to Plead Guilty and Pay over $206M Following Breach of 2019 FCPA Deferred Prosecution AgreementRead the Press Release
Telefonaktiebolaget LM Ericsson (Ericsson), a multinational telecommunications company headquartered in Stockholm, Sweden, has agreed to plead guilty and pay a criminal penalty of more than $206 million after breaching a 2019 Deferred Prosecution Agreement (DPA).
Ericsson breached the DPA by violating the agreement’s cooperation and disclosure provisions. Based on the same underlying criminal conduct that gave rise to the DPA, Ericsson will plead guilty to engaging in a long-running scheme to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes, falsifying books and records, and failing to implement reasonable internal accounting controls in multiple countries around the world.
“When the department afforded Ericsson the opportunity to enter into a DPA to resolve an investigation into serious FCPA violations, the company agreed to comply with all provisions of that agreement,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Instead of honoring that commitment, Ericsson repeatedly failed to fully cooperate and failed to disclose evidence and allegations of misconduct in breach of the agreement. As a result of these broken promises, Ericsson must plead guilty to two criminal offenses and pay an additional fine. Companies should be on notice that we will closely scrutinize their compliance with all terms of corporate resolution agreements and that there will be serious consequences for those that fail to honor their commitments.”
According to court documents, beginning in 2000 and continuing until 2016, Ericsson used third-party agents and consultants to make bribe payments to government officials and to manage off-the-books slush funds in Djibouti, China, Vietnam, Indonesia, and Kuwait. These agents were often engaged through sham contracts and paid pursuant to false invoices, and the payments to them were improperly accounted for in Ericsson’s books and records. In 2019, Ericsson resolved this criminal conduct by entering a DPA with the department in connection with a two-count criminal information filed in the Southern District of New York. As part of the DPA, Ericsson paid a total criminal penalty of over $520 million and agreed to the imposition of an independent compliance monitor for three years. An Ericsson subsidiary, Ericsson Egypt Ltd, also pleaded guilty to a one-count criminal information charging conspiracy to violate the anti-bribery provisions of the FCPA.
Following the 2019 resolution, Ericsson breached the DPA by failing to truthfully disclose all factual information and evidence related to the Djibouti scheme, the China scheme, and other potential violations of the FCPA’s anti-bribery or accounting provisions. Ericsson also failed to promptly report and disclose evidence and allegations of conduct related to its business activities in Iraq that may constitute a violation of the FCPA. These disclosure failures prevented the United States from bringing charges against certain individuals and taking key investigative steps.
“Ericsson engaged in significant FCPA violations and made an agreement with the Department of Justice to clean up its act,” said U.S. Attorney Damian Williams for the Southern District of New York. “The company’s breach of its obligations under the DPA indicate that Ericsson did not learn its lesson, and it is now facing a steep price for its continued missteps. As Ericsson’s anticipated guilty plea makes abundantly clear, the Southern District of New York will hold to account companies that fail to live up to obligations to root out and voluntarily report their misconduct to the Department of Justice.”
“Today’s more than $200 million criminal penalty against Ericsson underscores the significant consequences that result when a DPA is breached,” said Chief James C. Lee of the IRS Criminal Investigation (IRS-CI). “Ericsson’s multiple cooperation and disclosure failures led to this breach, resulting in the company having to plead guilty and pay additional penalties.”
Under the terms of the plea agreement, which must be accepted by the court, Ericsson agreed to plead guilty to the original charges deferred by the 2019 DPA: one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the internal controls and books and records provisions of the FCPA. Ericsson will also be required to serve a term of probation through June 2024 and has agreed to a one-year extension of the independent compliance monitor. The plea agreement also requires Ericsson to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the DPA.
The IRS-CI investigated the case.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Abramowicz and Juliana Murray for the Southern District of New York are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Ericsson to Plead Guilty and Pay over $206 Million Following Breach of 2019 FCPA Deferred Prosecution AgreementRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General of the Justice Department’s Criminal Division, and James C. Lee, the Chief of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), announced that TELEFONAKTIEBOLAGET LM ERICSSON (“ERICSSON”), a multinational telecommunications company headquartered in Stockholm, Sweden, has agreed to plead guilty and pay a criminal penalty of more than $206 million after breaching a 2019 Deferred Prosecution Agreement (“DPA”).
ERICSSON breached the DPA by violating the agreement’s cooperation and disclosure provisions. Based on the same underlying criminal conduct that gave rise to the DPA, ERICSSON will plead guilty to engaging in a long-running scheme to violate the Foreign Corrupt Practices Act (“FCPA”) by paying bribes, falsifying books and records, and failing to implement reasonable internal accounting controls in multiple countries around the world.
U.S. Attorney Damian Williams said: “Ericsson engaged in significant FCPA violations and made an agreement with the Department of Justice to clean up its act. The company’s breach of its obligations under the DPA indicate that Ericsson did not learn its lesson, and it is now facing a steep price for its continued missteps. As Ericsson’s anticipated guilty plea makes abundantly clear, the Southern District of New York will hold to account companies that fail to live up to obligations to root out and voluntarily report their misconduct to the Department of Justice.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “When the Department afforded Ericsson the opportunity to enter into a DPA to resolve an investigation into serious FCPA violations, the company agreed to comply with all provisions of that agreement. Instead of honoring that commitment, Ericsson repeatedly failed to fully cooperate and failed to disclose evidence and allegations of misconduct in breach of the agreement. As a result of these broken promises, Ericsson must plead guilty to two criminal offenses and pay an additional fine. Companies should be on notice that we will closely scrutinize their compliance with all terms of corporate resolution agreements and that there will be serious consequences for those that fail to honor their commitments.”
IRS-CI Chief James C. Lee said: “Today’s more than $200 million criminal penalty against Ericsson underscores the significant consequences that result when a DPA is breached. Ericsson’s multiple cooperation and disclosure failures led to this breach, resulting in the company having to plead guilty and pay additional penalties.”
According to court documents:
Beginning in 2000 and continuing until 2016, ERICSSON used third-party agents and consultants to make bribe payments to government officials and to manage off-the-books slush funds in Djibouti, China, Vietnam, Indonesia, and Kuwait. These agents were often engaged through sham contracts and paid pursuant to false invoices, and the payments to the agents were improperly accounted for in ERICSSON’s books and records. In 2019, ERICSSON resolved this criminal conduct by entering a DPA with the Department in connection with a two-count criminal information filed in the Southern District of New York. As part of the DPA, ERICSSON paid a total criminal penalty of over $520 million and agreed to the imposition of an independent compliance monitor for three years. An ERICSSON subsidiary, Ericsson Egypt Ltd, also pled guilty to a one-count criminal information charging conspiracy to violate the anti-bribery provisions of the FCPA.
Following the 2019 resolution, ERICSSON breached the DPA by failing to truthfully disclose all factual information and evidence related to the Djibouti scheme, the China scheme, and other potential violations of the FCPA’s anti-bribery or accounting provisions. ERICSSON also failed to promptly report and disclose evidence and allegations of conduct related to its business activities in Iraq that may constitute a violation of the FCPA. These disclosure failures prevented the United States from bringing charges against certain individuals and taking key investigative steps.
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Under the terms of the plea agreement, which must be accepted by the court, ERICSSON agreed to plead guilty to the original charges deferred by the 2019 DPA: one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the internal controls and books and records provisions of the FCPA. ERICSSON will also be required to serve a term of probation through June 2024 and has agreed to a one-year extension of the independent compliance monitor. The plea agreement also requires ERICSSON to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the DPA.
Mr. Williams praised the efforts of the IRS-CI, which conducted the investigation in this case.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Justice Department’s Fraud Section. Assistant U.S. Attorneys David Abramowicz and Juliana Murray and Trial Attorney Michael Culhane Harper are in charge of the prosecution.
East Boston Man Indicted for Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man was indicted by a federal grand jury today for possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 23, was indicted on one count of possession of child pornography and one count of distribution of child pornography. Pineda was arrested and charged by criminal complaint in January 2023.
According to the charging documents, law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. It is alleged that on Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups. It is further alleged that an additional 54 videos of CSAM, involving children as young as six years old, were found on Pineda’s personal cell phone.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Meghan C. Cleary of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficking Organizer Sentenced to 20 Years in PrisonRead the Press Release
SAN DIEGO – Terrance Deandre Ellison was sentenced in federal court today to 20 years in prison for drug-trafficking crimes, including importation of methamphetamine and conspiring with others to import methamphetamine from Mexico into the United States.
During a week-long jury trial in May 2022, prosecutors proved that Ellison was a drug trafficker who recruited, organized, and operated a network of drug importers in connection with his methamphetamine distribution activities in San Diego County and elsewhere between March 2020 and May 2020. The jury found that Ellison used drug-addicted people to travel to Mexico and smuggle methamphetamine across the border as “body carriers” in exchange for cash payment or drugs after delivery of the methamphetamine to Ellison in the United States.
At Ellison’s behest, the “body carriers” concealed methamphetamine either inside their bodies or strapped to the outside. At trial, prosecutors proved that, on several occasions, Ellison went to Mexico, met with “body carriers” at a hotel or other location, purchased methamphetamine from drug suppliers in Mexico, packaged the methamphetamine for concealment, and directed the individuals how to conceal and cross the drugs into the United States. Once the “body carriers” crossed the border without getting caught, they would meet Ellison and travel to other locations to remove the drugs from their bodies. The “body carriers” then provided the drugs to Ellison.
After several of his “body carriers” were arrested, Ellison choseto import the drugs himself. In May 2020, Ellison concealed the drugs inside a natural void behind the glove compartment of his rental car and entered the United States at the Otay Mesa, California Port of Entry. However, he was caught at the border and officers found the methamphetamine packages concealed inside.
At trial, prosecutors presented incriminating evidence, including voluntary statements made by Ellison during an interview with investigators; text messages from his cellular phone; and border crossing records of Ellison with his “body carriers.” The jury deliberated and found Ellison guilty of four counts, including conspiracy to possess methamphetamine with the intent to distribute, possession of methamphetamine with the intent to distribute, conspiracy to import methamphetamine, and importation of methamphetamine.
At today’s sentencing hearing, U.S. District Judge William Q. Hayes found that Ellison had an aggravating role in the offenses because he was a leader and organizer, and the offenses were otherwise extensive. Judge Hayes also found that Ellison had obstructed justice when he testified at trial because Ellison gave false testimony on material matters with willful intent. In balancing the aggravating and mitigating factors, Judge Hayes concluded that a sentence of 20 years was sufficient but not greater than necessary. Judge Hayes also placed Ellison on a 10-year term of supervised release, which will commence after Ellison has served his prison sentence.
“This sentence sends a message to any drug trafficker operating drug importation and distribution networks in this district that you will receive a significant sentence for directing those who import dangerous narcotics,” said U.S. Attorney Randy S. Grossman.
Grossman thanked the prosecution team and Homeland Security Investigations for their excellent work on this case.
“HSI will direct its full range of investigative authorities towards those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding drug traffickers accountable for their actions.”
DEFENDANT Case Number 20cr1788-WQH
Terrance Deandre Ellison Age: 43 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Possess Methamphetamine with Intent to Distribute – Title 21, U.S.C., Sections 841(a)(1) and 846
Possession of Methamphetamine with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Conspiracy to Import Methamphetamine - Title 21, U.S.C., Sections 952, 960, and 963
Importation of Methamphetamine - Title 21, U.S.C., Sections 952 and 960
Maximum penalty as to each charge: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
Douglas Man Sentenced to 24 Months for Aiding and Abetting and Making False Statements in Connection with the Purchase of FirearmsRead the Press Release
TUCSON, Ariz. – Kevin Durazo, 23, of Douglas, Arizona, was sentenced last week by United States District Judge John C. Hinderaker to 24 months in prison, followed by 36 months of supervised release. Durazo pleaded guilty to one count of Aiding and Abetting Making False Statements in Connection with Acquisition of a Firearm and one count of Making False Statements in Connection with Acquisition of a Firearm.
On October 5, 2021, Kevin Durazo and co-defendant, Mario Edoardo Ramirez Chavez, 22, of Mexico, traveled to Tucson from Douglas, Arizona, for the purpose of purchasing firearms. Durazo provided money to the co-defendant to purchase a 7.62x51mm (.308 WIN) caliber rifle from a licensed firearms dealer for Durazo. The co-defendant purchased the rifle after filling out required paperwork indicating he was the actual buyer of the rifle, when in fact he was acquiring it at the request and direction of Durazo. Durazo then purchased a 9mm pistol from another licensed firearms dealer. Durazo filled out the required paperwork and stated that he was purchasing the firearm for himself, when in fact he was acquiring it for another individual. The two men were subsequently arrested by Homeland Security Investigations (HSI) at the Douglas Port of Entry in their attempt to smuggle the 9mm pistol into Mexico.
Chavez, Durazo’s co-defendant, pleaded guilty to Smuggling Goods from the United States and Making False Statements in Connection with the Purchase of Firearms. Chavez was sentenced by Judge Hinderaker on October 7, 2022, to 16 months in prison, followed by three years of supervised release.
HSI conducted the investigation in this case. Assistant United States Attorney Adam D. Rossi, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-02855-TUC-JCH
RELEASE NUMBER: 2023-026_Durazo# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Detroit Man Pleads Guilty to Three Violent CarjackingsRead the Press Release
DETROIT – A Detroit man pleaded guilty today to committing two attempted carjackings and one completed carjacking— including one where he fired an assault rifle at a teenaged victim.
United States Attorney Dawn N. Ison announced the plea today and was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to court records, Gregory Horsley, 20, of Detroit, Michigan, committed the carjackings on May 14, 2021, in Beverly Hills, Michigan. During each offense, Horsley targeted strangers who were inside their vehicles near the intersection of Thirteen Mile Road and Evergreen. In the first carjacking, Horsley approached the 16-year-old victim as he was seated in his car. Horsley pulled out a loaded assault rifle and pointed it at the driver. As the teenager drove off, Horsley fired his weapon, striking the vehicle.
Horsley next approached a vehicle driven by a woman. Horsley brandished his firearm and ordered her out of the car. The victim fled the driver’s seat and Horsley entered her car. But he could not drive away because the victim had the key fob in her pocket.
Horsley exited that vehicle and approached a third driver. Horsley pointed his firearm at the male driver and ordered him out of the car. The driver complied. Horsley then took the keys and drove off in the car. The carjacked vehicle was found a few days later. Horsley was identified by surveillance video and taken into custody at his home in Detroit.
Horsley faces a mandatory minimum sentence of 7 years in prison with a maximum possible sentence of life in prison on the charge of brandishing a firearm while committing a carjacking. For the carjacking charges, Horsley faces a maximum of fifteen years in prison.
“Carjacking is one of the most serious violations of public safety, making people feel vulnerable in their own cars and neighborhoods,” stated U.S. Attorney Ison. “We will seek significant federal penalties against those who prey on motorists in our communities.”,”
"Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This case was investigated by the FBI Oakland County Gang and Violent Crime Task Force and serves as an example of the collaboration between federal, state, and local law enforcement agencies, to bring violent criminals to justice. The FBI, along with the Beverly Hills Police, Southfield, and Detroit Police Departments, remains committed to rooting out those who victimize our neighborhoods with violence.”
Sentencing is set for July 13, 2023.
The case was investigated by the FBI Oakland County Gang and Violent Crime Task Force, the Beverly Hills Police Department, the Southfield Police Department, the Detroit Police Department, and handled by Assistant United States Attorneys Jeanine Brunson and Michael Taylor.
Departments of Justice, Commerce and Treasury Issue Joint Compliance Note on Russia-Related Sanctions Evasion and Export ControlsRead the Press Release
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS), the Department of the Treasury’s Office of Foreign Asset Control (OFAC), and the Department of Justice today issued a joint compliance note on the use of third-party intermediaries or transshipment points to evade Russian- and Belarussian-related sanctions and export controls. Today’s note marks the first collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. The three agencies will issue these advisories on an ongoing basis.
“Ever since Russia’s unprovoked invasion of Ukraine, the Department of Justice’s priority has been the robust enforcement of U.S. export and sanctions laws and cracking down on efforts to evade those laws,” said Assistant Attorney General for National Security Matthew G. Olsen. “Companies are our first line of defense, and today’s joint compliance note will inform the private sector about enforcement trends and convey the Department’s expectations as to national-security related corporate compliance. We are proud to partner with BIS and OFAC on this important effort.”
“Those who attempt to prop up Putin’s war machine by evading our export controls and sanctions will be held accountable,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “As this first-ever joint compliance note makes clear, it is incumbent upon industry to maintain effective, risk-based compliance programs. BIS, in coordination with our partners, including at OFAC and the Department of Justice, will continue to use all tools at our disposal to prevent bad actors from circumventing the comprehensive export controls put in place to deter Russian aggression.”
“Our economic tools are constraining Russia – so much so that the Kremlin has tasked their intelligence services with finding ways to get around international sanctions and export controls,” said OFAC Director Andrea M. Gacki. “The private sector is an essential partner in ensuring that we cut off Russia from accessing much-needed equipment to continue their unjust war against Ukraine. By issuing a joint alert, our enforcement agencies are illustrating the importance of a risk-based approach that protects the international financial system from abuse by Russia.”
The compliance note highlights one of the most common tactics used to evade Russia-related sanctions and export controls: the use of third-party intermediaries or transshipment points to circumvent restrictions, disguise the involvement of Specially Designated Nationals (SDNs) or parties on the Entity List in transactions, and obscure the true identities of end users. The note provides warning signs on what to look for if a company suspects that a customer is using a third-party intermediary to evade sanctions or export controls as well as recent examples of tactics allegedly used by defendants to evade detection while attempting to flout the controls. Further, the compliance note provides guidance to companies on how to maintain an effective, risk-based sanctions and export compliance program.
Since Feb. 24, 2022, BIS has implemented a series of stringent export controls that restrict Russia’s access to the technologies and other items that it needs to sustain its illegal war in Ukraine. These controls target Russia’s defense, aerospace, and maritime sectors, and have been expanded to Russia’s oil refining, industrial, and commercial sectors, as well as to luxury goods used by Russian elites. BIS’s controls have also been applied to Belarus for its substantial enabling of Russia’s invasion. Additional information on BIS’s actions is available online at: bis.doc.gov/index.php/policy-guidance/country-guidance/russia-belarus.
OFAC will continue to use, its broad targeting authorities against non-U.S. persons that provide ammunition or other support to the Russian Federation’s military-industrial complex, as well as to private military companies or paramilitary groups participating in or otherwise supporting the Russian Federation’s unlawful and unjustified attack on Ukraine. OFAC will continue to target Russia’s efforts to resupply its weapons and sustain its war of aggression against Ukraine, including any foreign persons who assist the Russian Federation in those efforts. Additionally, OFAC will continue to impose civil monetary penalties against U.S. persons who violate OFAC sanctions to benefit Russia, and against non-U.S. persons who cause U.S. persons to violate the Russia sanctions programs.
The Justice Department’s enforcement of these new measures has been led by Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The full compliance note is available here.
Comptroller of a Non-Profit Corporation in Aguada, PR Sentenced to Two Years in Prison for Fraud SchemeRead the Press Release
SAN JUAN, Puerto Rico – Margarita Botti-Nieves was sentenced by United States District Court Senior Judge Francisco A. Besosa to serve 24 months in prison followed by a supervised release term of three years, announced United States Attorney W. Stephen Muldrow. On October 11, 2022, Botti-Nieves was indicted and pleaded guilty to misappropriation of funds, tax evasion, and obstruction of a tax investigation.
Defendant Margarita Botti-Nieves was an employee, accountant, and agent of Programa de Apoyo y Enlace Comunitario, Inc. (“PAEC”). PAEC was a non-profit corporation organized in Puerto Rico which received and administered benefits under various Federal programs involving grants, contracts, and Federal assistance. According to court documents, from in or about September 2016 and continuing until June 2019, the defendant did willfully evade the payment of a substantial portion of the employment taxes owed by PAEC to the United States of America, by committing the following affirmative acts among others:
a. Caused submission of false statements to the IRS;
b. Provided false information and fraudulent documentation to PAEC for purported payments to the IRS which were never made;
c. Caused the preparation of false tax documents that misreported PAEC employees’ tax witholdings;
d. Caused funds to be transferred from PAEC bank account to different accounts defendant controlled in order to divert funds to be used for personal expenses.
e. Caused the tax returns to be filed with the IRS in an attempt to evade and defeat the payment of employment taxes due and owing by PAEC to the United States.
“Convictions such as this send a loud and clear message that those who defy our nation’s tax laws will be investigated and prosecuted to the fullest extent of the law,” said U.S. Attorney Muldrow.
“The Treasury Inspector General for Tax Administration will continue to aggressively pursue those who attempt to defraud the Federal tax system and undermine the integrity of the Internal Revenue Service,” stated J. Russell George, Treasury Inspector General of Tax Administration. “We appreciate the efforts of our law enforcement partners and the United States Attorney’s Office to ensure this criminal activity is held to account.”
Assistant U.S. Attorney María L. Montañez prosecuted the case. The case was investigated by the Treasury Inspector General for Tax Administration; the Internal Revenue Service, Office of Criminal Investigations; United States Department of Health & Human Services Office of Inspector General; AmeriCorps-The Corporation for National and Community Service; Department of Justice Office of Inspector General.
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Columbia Man Sentenced to a Total of 10 Years in Federal Prison on Firearm and Drug ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Dakota F. Brown, 36, of Columbia, was sentenced to a total of 120 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute a quantity of heroin and fentanyl, a quantity of methamphetamine, and a quantity of amphetamine while on federal supervision.
Evidence presented to the court showed that on January 4, 2021, a Richland County Sheriff’s Department deputy conducted a traffic stop of Brown’s vehicle following a traffic violation. Brown, the driver, exited the vehicle and removed a fanny pack from across his chest, laying it in the driver’s seat before walking back to talk to the deputy. After deputies smelled marijuana, the vehicle was searched. The search revealed a loaded 9mm firearm, heroin, fentanyl, methamphetamine, and amphetamine within the fanny pack that Brown previously removed from his person. After waiving his Miranda rights, Brown admitted that the items were his and that he had bought the gun off the street in December.
A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) linked the firearm to shell casings recovered from December 2020 shooting in Richland County. Local authorities have arrested another individual for that shooting and have no evidence linking Brown to the incident. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Brown, who has been in custody since his January 2021 arrest, is prohibited from possessing firearms and ammunition based upon his prior felony state convictions, which include strong arm robbery, possession of crack cocaine, criminal domestic violence of a high and aggravated nature, and possession with intent to distribute marijuana. Additionally, at the time of this incident, Brown was on federal supervised release after serving a 108-month sentence from a 2011 federal conviction for being a felon in possession of a firearm.
United States District Court Judge Sherri A. Lydon sentenced Brown to 96 months in prison, to be served consecutive to the 24-month sentence he received for violating his terms of supervised release. After completing his 120-month sentence, Brown will be on supervised release for 6 years.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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Cincinnati man charged with sex trafficking missing teenRead the Press Release
CINCINNATI – A Cincinnati man was arrested and charged federally with sex trafficking and exploiting teenage girls from Indiana.
Payton Jamar Brown, 26, is charged with sex trafficking and sexually exploiting children.
According to the complaint, in October 2022, investigators received a report from the Safe Harbor/Human Trafficking Coordinator at the Hamilton County Juvenile Court regarding a potential victim.
The victim and another juvenile female had been missing from separate cities in Indiana. Both of the16-year-olds were recovered from Brown’s residence on Niagara Street in Cincinnati.
It is alleged that Brown met the first minor victim on an online dating app, 3Fun.
Brown allegedly posted photos of the teenager to a website from June to October 2022 to advertise for sexual encounters. According to an affidavit filed in support of a criminal complaint, the victim had sex with numerous men for money, which was then given to Brown.
Additionally, Brown filmed sexual encounters with the teenager which they then attempted to sell to other individuals.
Brown also allegedly picked up the second minor in Indianapolis and brought her to his residence in Cincinnati.
Brown appeared in federal court in Cincinnati yesterday and has been ordered to remain in custody pending trial.
Sex trafficking a minor carries a mandatory minimum sentence of 10 years and up to life in prison. Sexually exploiting children is punishable by a range of 15 to 30 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Colerain Township Police Chief Edwin C. Cordie III; and members of the Regional Electronics and Computer Investigations (RECI) task force announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Charlotte Business Owners Plead Guilty to Selling Fraudulently Obtained New iPhones OverseasRead the Press Release
CHARLOTTE, N.C. – Two Charlotte business owners, Hamzeh Jamal Alasfar, 31, and Tayseer Issam Alkhayyat, 35, both of Charlotte, pleaded guilty today in federal court before Judge Kenneth D. Bell to charges related to selling and shipping fraudulently obtained and stolen new Apple iPhones to an international buyer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to the factual basis filed in the case, as early as 2013 and continuing through at least 2019, Alasfar and Alkhayyat engaged in a scheme to purchase stolen and fraudulently obtained new Apple iPhones and other electronic devices, and sell and ship the devices to buyers located in other states and foreign countries, including the United Arab Emirates and Hong Kong.
Filed court documents show that Alasfar and Alkhayyat owned multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town), which were used in the scheme. Between January 2019 and January 2020, the defendants sold and shipped through Cellport more than 20,000 new iPhones for more than $20 million.
Alasfar and Alkhayyat each pleaded guilty to one count of interstate and foreign transportation of stolen property, which carries a maximum prison sentence of 10 years and a $250,000 fine per count. Alasfar and Alkhayyat remain on release pending their sentencing hearings, which will be scheduled in federal court in Charlotte.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys William T. Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
CEO of Atlanta engineering firm pleads guilty to failing to pay payroll taxesRead the Press Release
ATLANTA - Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes.
“Payroll taxes critically fund social insurance programs, including Social Security and Medicare,” said U.S. Attorney Ryan K. Buchanan. “Johnson refused to pay payroll taxes while withholding those funds from his employee’s paychecks for years.”
“Johnson’s failure to pay over employment tax withheld from his employees is unlawful and ultimately impacts his employees future Social Security benefits,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Johnson pleading guilty today is evidence of IRS Criminal Investigation and its partners working hard to hold employers accountable when they steal from their employees and other honest tax paying citizens.”
“The U.S. Department of Labor will use all resources available to hold fiduciaries who fail to work in the interest of plans and participants accountable,” said Mark Seidel, Acting Regional Director of EBSA’s Atlanta Regional Office in Atlanta, Georgia. “Getting retirees and workers their contributions in a timely manner is vital to their livelihood. We will remain steadfast in continued work with our federal and state partners to ensure fiduciaries follow the laws or face consequences, including when necessary, debarment from serving as a fiduciary or trustees of any retirement plan. Fiduciaries who need assistance on proper management of employee benefit plans may contact the Employee Benefits Security Administration for compliance assistance.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Charles Johnson, Sr., was the President and CEO of Williams-Russell and Johnson, Inc., an engineering firm headquartered in Atlanta. While running the firm, Johnson failed to pay significant amounts of withheld income and employment taxes to the Internal Revenue Service; pension (401(k)) payments to the firm’s retirement plan; and health insurance premiums to the health insurer. These funds were collected and withheld from employee paychecks for multiple years, stretching from at least 2015 to 2019.
As president and CEO of the firm, Johnson held a fiduciary responsibility to withhold the required income and employment taxes and pay that amount to the IRS. He was also a plan fiduciary for the retirement and health plans, required to pay the withheld amounts.
As a result, Charles Johnson, Sr., 82, of Atlanta, Georgia, was charged via a two-count Criminal Information alleging failure to account for and pay employment taxes and theft from an employee benefit plan. The Information charges that Johnson failed to pay $1.4 million in employment taxes and failed to pay more than $480,000 to the firm’s 401(k) plan and its health insurer for premium payments. He has pleaded guilty to the offense of failure to pay taxes and agreed to pay $1.4 million in restitution to the United States and an additional $210,000 to the employees who participated in the employee benefit plans.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the U.S. Department of Labor-Employee Benefits Security Administration.
Assistant U.S. Attorney Christopher J. Huber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Boston Woman Pleads Guilty to Role in Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud an insurance provider for physical therapy services that were not provided to patients.
Raya Bagardi, 38, pleaded guilty to one count of conspiracy to commit mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 11, 2023. Bagardi was indicted in February 2021 along with co-defendants Gyulnara Bayryshova, Anna Barenboym and Slava Pride.
Bagardi was a licensed physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. According to the charging documents, from October 2018 through June 2020, Bayryshova, Bagardi and their co-defendants conspired to cause an insurance company to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bayryshova, Bagardi and allegedly their co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. It is further alleged that BPT paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
Bagardi was one of three defendants to plead guilty in the case. Barenboym and Pride previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on May 10, 2023 and May 24, 2023, respectively.
The charge of conspiracy to commit mail fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Black-Market Medication Wholesaler, Pharmacy Owner, and Three Other Defendants Charged in $15 Million HIV Medication Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that BORIS AMINOV, CHRISTY CORVALAN, DAVID FERNANDEZ, DEZYRE BAEZ, and CRYSTAL MEDINA were charged with engaging in a years-long scheme to defraud Medicaid and other government insurance plans out of at least approximately $15 million and exploit at least hundreds of low-income individuals with HIV. The defendants were arrested this morning and are being presented today in Manhattan federal court before United States Magistrate Judge Gabriel W. Gorenstein. The case has been assigned to United States District Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said: “As alleged, the defendants orchestrated a scheme to get rich by lying to Medicaid and other government insurance programs and depriving vulnerable HIV patients of legitimate and safe medications. The defendants allegedly made millions of dollars through submitting fraudulent insurance claims, paying illegal kickbacks, and buying and selling black-market HIV medications. Today’s arrests send a crystal-clear message to those that seek to line their pockets by lying to federal agencies tasked with providing healthcare for low-income individuals and preying on vulnerable members of society – you will not get away with it.”
FBI Assistant Director Michael J. Driscoll said: “The indictment today alleges the defendants operated a scheme designed not only to defraud Medicaid and other government insurance plans, but also take advantage of vulnerable low-income patients with HIV. This type of criminal activity abuses taxpayer funded healthcare programs and puts those who need help at further risk. The FBI will always do whatever is necessary to ensure the integrity of healthcare programs like Medicaid and hold those willing to exploit these programs accountable.”
According to the allegations contained in the Indictment:[1]
From at least in or about July 2020 through at least in or about February 2023, AMINOV, CORVALAN, FERNANDEZ, BAEZ, and MEDINA operated a scheme that defrauded Medicaid and other government insurance plans out of at least approximately $15 million and exploited at least hundreds of low-income individuals with HIV, jeopardizing the health and safety of those vulnerable patients. AMINOV was a distributor of black-market HIV medications to two pharmacies located in the Bronx, New York (the “Pharmacies”), through which the scheme was perpetrated. CORVALAN owned and operated the Pharmacies. She purchased black-market medications from AMINOV that were then dispensed to patients, funded illegal kickbacks to be paid to patients, and additionally paid patients to sell back their HIV medications to the Pharmacies, thereby inducing patients to forego using the medications they were prescribed to treat their HIV infections. FERNANDEZ, BAEZ, and MEDINA were employees of the Pharmacies who participated in the day-to-day operation of the scheme, including by paying illegal kickbacks to patients to obtain their HIV medications from the Pharmacies and buying-back medications from the patients.
The scheme had two sets of victims: government insurance programs and the patients of the Pharmacies.
First, Medicaid and other government insurance programs were defrauded out of at least approximately $15 million of payments that they made to the Pharmacies to purchase prescription HIV medications for patients through legitimate channels. CORVALAN, FERNANDEZ, BAEZ, and MEDINA, however, instead purchased HIV medications from black-market sources, including AMINOV. Over the duration of the scheme, CORVALAN, FERNANDEZ, BAEZ, and MEDINA used the Pharmacies to pay more than $6 million to purchase black-market HIV medications from AMINOV, which were then distributed to patients.
Second, the scheme exploited low-income HIV patients of the Pharmacies and, in the process, put those vulnerable patients’ health and safety at risk by both paying patients kickbacks to fill their medications at the pharmacies, albeit with black-market drugs, and by encouraging patients to sell back their medications instead of taking them as they were prescribed to control their HIV infections.
The defendants spent the proceeds of the scheme to purchase luxury cars, including a 2021 Mercedes-Benz Maybach with an estimated fair market value of approximately $245,000, millions of dollars in waterfront real-estate, designer clothes, and jewelry.
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AMINOV, 47, of Brooklyn, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
CORVALAN, 41, of the Bronx, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the anti-kickback statute, which carries a maximum potential sentence of five years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
FERNANDEZ, 24, BAEZ, 22, and MEDINA, 27, all of the Bronx, New York, are charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the anti-kickback statute, which carries a maximum potential sentence of five years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
15 Arrested in Law Enforcement Operation Targeting Fraudulent Withdrawal of Benefits Designated for Low-Income FamiliesRead the Press Release
LOS ANGELES – “Operation Urban Justice,” a large-scale law enforcement operation this week, has resulted in the arrest of 15 individuals who allegedly used information from “skimmed” electronic benefit transfer (EBT) cards to make unauthorized withdrawals of funds that had been disbursed to low-income individuals, the Justice Department announced today.
More than 300 law enforcement officers early Wednesday morning began monitoring about 20 ATM locations across the Los Angeles area and identified individuals who were making multiple cash withdrawals with cards encoded with information that had been stolen from cards used by the California Department of Social Services to provide CalFresh and CalWORKs benefits to qualified recipients.
Authorities made arrests after determining that the suspects at the ATMs were not entitled to access funds that had been deposited into beneficiary’s accounts. At this time, federal prosecutors have filed five criminal complaints charging defendants with the use of unauthorized access devices (the cards used to make the cash withdrawals) or possession of 15 or more unauthorized access devices, and they are expected to file additional cases later today and tomorrow. The defendants arrested, many of them Romanian nationals, are expected to begin making initial appearances this afternoon in United States District Court.
The Los Angeles Police Department started the investigation into the fraudulent withdrawal of benefits in August 2022, and the United States Secret Service soon after joined “Operation Urban Justice” as a joint partner.
A number of law enforcement agencies are providing significant support, which included participating in Wednesday’s takedown, including U.S. Customs and Border Protection, Homeland Security Investigations, U.S. Immigration and Customs Enforcement, the Glendale Police Department, the Los Angeles County Sheriff’s Department, the California Department of Social Services, the United States Department of Agriculture’s Office of Inspector General, and the Romanian Brigade for Combatting Criminal Organizations (which is part of the Romanian National Police).
Documents filed in federal court outline how the California Department of Social Services has identified more than $38.9 million in funds stolen from victims’ EBT cards. This fraud has targeted CalWORKs and CalFresh (previously known as “food stamps”), both of which are intended to help low-income beneficiaries purchase food and provide for basic needs.
The investigation has revealed that the fraudulent withdrawal of these benefits is done with “cloned” cards, which are debit cards, gift cards or other devices with magnetic strips that have been encoded with information from legitimate EBT cards. Court documents allege that at least some of those involved in the fraudulent withdrawals obtained stolen EBT card information from “skimming” devices that were installed on ATM machines.
“By stealing public benefits using counterfeit EBT cards, the defendant in these cases plundered the accounts of some of our community’s poorest residents—people who need these benefits to survive,” said United States Attorney Martin Estrada. “These actions are part of a larger assault on the EBT system, one which has caused tens of millions of dollars in losses. Working with our law enforcement partners who have devoted untold resources to combating this issue, my Office will continue to do everything in our power to stop criminals from victimizing people in our community, especially those who are most vulnerable.”
“Today’s successful operation demonstrates how a sophisticated and extensive criminal scheme can be disrupted and dismantled by a team of law enforcement professionals who approach their investigation with an even greater degree of cooperation,” said James Huse, Special Agent in Charge with the Los Angeles Field Office of the United States Secret Service. “The results of this investigation are a testament to strong partnerships across the law enforcement community. Our efforts today serve to protect the Electronic Benefits Transfer system and ensure that public funds reach those who need them without delay or distress.”
“On March 1, 2023, the Los Angeles Police Department's Commercial Crimes Division partnered with the United States Secret Service and other federal law enforcement agencies to conduct a collaborative enforcement operation targeting the State of California’s Electronic Benefits Transfer (EBT) fraud issue with losses in the tens of millions of dollars,” said Los Angeles Police Chief Michel Moore. “The operation involved numerous Los Angeles Police Department personnel and resulted in the recovery of 429 cloned state issued EBT cards, $129,000 in US currency unlawfully drawn from ATM machines at several Southern California banking institutions, as well as resulting in the arrests of 11 Romanian national individuals for EBT access card fraud with losses totaling over $1000-a federal felony. All of the individual cases will be filed by the United States Department of Justice (USDOJ), United States Attorney’s Office (USAO) for federal prosecution.”
On February 2, as part of Operation Urban Justice, three additional defendants were arrested after they allegedly withdrew funds from ATM machines in Hollywood and Tarzana with cloned EBT cards. All three were subsequently named in federal indictments that charge them with bank fraud (which carries a statutory maximum penalty of 30 years in federal prison), aggravated identity theft, unlawful use of unauthorized access devices and possession of 15 or more unauthorized access devices.
Criminal complaints and indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Secret Service and the Los Angeles Police Department are investigating these matters.
Assistant United States Attorneys Nisha Chandran and Joshua O. Mausner of the General Crimes Section are prosecuting these cases. Substantial assistance was provided by the following Assistant United States Attorneys, all from the General Crimes Section: Laura A. Alexander, Jeremy K. Beecher, Haoxiaohan H. Cai, Declan T. Conroy, Alexander S. Gorin, David C. Lachman, Kelly L. Larocque, Jena A. MacCabe, Angela C. Makabali, Sonya A. Nevarez, Daniel H. Weiner, and David W. Williams.
1 March 2023
United States Attorney John R. Lausch, Jr., Announces ResignationRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois since 2017, today announced his resignation, which will become effective on March 11, 2023. First Assistant U.S. Attorney Morris “Sonny” Pasqual will assume the position of United States Attorney on an acting basis.
Mr. Lausch was sworn in as United States Attorney on November 22, 2017, following his appointment by President Donald J. Trump. Under Mr. Lausch’s leadership, the U.S. Attorney’s Office achieved significant convictions in the areas of violent crime, public corruption, national security, financial fraud, drug trafficking, and many other areas of importance. Mr. Lausch also oversaw substantial achievements in civil cases, including procuring millions of dollars in settlements and judgments against individuals and companies for civil rights violations, health care fraud, and environmental harms.
“It has been the privilege of a lifetime to lead the U.S. Attorney’s Office in Chicago,” said Mr. Lausch. “I want to thank all of my talented colleagues in the office, as well as our federal, state, and local law enforcement partners, for their hard work and dedicated public service during my tenure. It was my honor each and every day to help carry out the office’s mission to uphold the rule of law, keep our country safe, and protect our civil rights.”
“John Lausch has served the citizens of the Northern District of Illinois and the United States with magnificent distinction,” said Mr. Pasqual. “I want to thank John for his tremendous stewardship of the office, and I wish him well in his future endeavors.”
During Mr. Lausch’s tenure, the office focused on battling the stubborn violent crime problem in Chicago and throughout the Northern District, overseeing multiple racketeering prosecutions of members of organized criminal street gangs and gang factions, as well as the prosecutions of illegal gun offenders in Chicago and throughout northern Illinois. Among other strategies, the office launched a Gun Crimes Prosecution Team to disrupt the cycle of violence in the Chicago neighborhoods most in need, as well as a Gun Trafficking Strike Force to address the illegal transfer of firearms to felons and other prohibited persons. Mr. Lausch in 2020 oversaw federal law enforcement’s collaboration with state and local law enforcement partners to respond to civil unrest and rising rates of violent crime in the Chicago area.
Mr. Lausch led the U.S. Attorney’s Office’s response to the Covid-19 pandemic. The office remained open during the pandemic, and Mr. Lausch oversaw criminal charges against numerous individuals for allegedly using the crisis to commit fraud during a vulnerable time in our nation’s history. In addition, the office maintained its strong tradition of prosecuting individuals for public corruption offenses during Mr. Lausch’s tenure.
From 2018 to 2020, Mr. Lausch served on the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy, management, and operational issues impacting federal prosecutors’ offices across the country. Mr. Lausch also served on several AGAC subcommittees, including as Chair of the Violent and Organized Crime Subcommittee, and as a member of the White Collar Fraud, Controlled Substances, and Child Exploitation and Human Trafficking subcommittees. Mr. Lausch was also tasked by three Attorneys General to perform significant assignments related to sensitive matters of national importance.
Mr. Lausch earned his law degree in 1996 from Northwestern University School of Law, and his bachelor’s degree in 1992 from Harvard University. He previously served in the U.S. Attorney’s Office as an Assistant U.S. Attorney from 1999 to 2010.
Before taking over as First Assistant U.S. Attorney in 2022, Mr. Pasqual spent nearly 33 years in the office as an Assistant U.S. Attorney, including in several supervisory roles. Mr. Pasqual will assume the role of U.S. Attorney on an acting basis until a presidentially appointed candidate is confirmed by the U.S. Senate.
U.S. Attorney’s Office, ATF and Billings law enforcement address gun violence in the communityRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich, along with federal and local law enforcement officials, today addressed gun violence in the Billings community saying they are committed to keeping citizens safe by investigating and prosecuting the most dangerous offenders who carry and use firearms in drug trafficking or violent crimes, persons who illegally possess guns and those who possess stolen or illegal guns.
During a news conference at the U.S. Attorney’s Office, U.S. Attorney Jesse Laslovich; Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Kirk Howard, of Denver; Billings Police Chief Rich St. John; and Yellowstone County Attorney Scott Twito, acknowledged the homicides, non-fatal shootings and other gun violence that have been occurring throughout the Billings area and discussed law enforcement’s strategy for combatting gun crimes.
“There is no doubt that the gun violence racking the Billings community is a serious problem, often leading to tragic results. All citizens have a right to feel safe in their home and their community, which is why our office has made combatting gun crimes a top priority. Through the investigative hard work of our law enforcement partners and the dedication our assistant U.S. attorneys, our federal firearms convictions are on the rise. This coordinated response is critical to reducing violent crime and to getting dangerous offenders off the street,” U.S. Attorney Jesse Laslovich said.
"ATF is committed to combating violent crime and illegal firearms trafficking. Crime guns, whether they are stolen, straw-purchased, or obtained through other illegal means, are too often found at the scenes of violent crimes, in the hands of violent offenders,” said Acting Special Agent in Charge Kirk Howard. “Our priority is to identify trigger pullers and disband criminal organizations using ATF technology and resources, in partnership with local law enforcement and prosecuting offices."
“Violent crime has dominated the headlines of late causing our citizens to question whether Billings is a safe place to live,” Billings Police Chief Rich St. John said. “The crime concerns are real and gun violence is at the forefront. The increase in gun violence among our youth brings urgency to resolving the problem. Ideally, we would like to stop the violence from occurring in the first place and much work is going into that effort. At the same time, the BPD along with our partners have re-doubled our efforts in enforcement and prosecution. We have made progress, but that is no solace to the families and friends who have lost loved ones. So, we will continue to partner and aggressively investigate and prosecute anyone who commits or aids these senseless acts,” he said.
“Yellowstone County has seen far too much gun violence over the past several years. This gun violence does not seem to be slowing and is a challenge that we must overcome by working together,” Yellowstone County Attorney Scott Twito said. “The YCAO is proud to work with local and federal law enforcement partners developing best and new strategies to target Yellowstone County’s most dangerous gun offenders. I appreciate U.S. Attorney Laslovich and his efforts to put a federal focus on our community and prosecute these dangerous offenders. These are the offenders in our community who use illegally obtained firearms to enforce their meth or fentanyl drug distributions or hurt or intimidate others,” he said.
Federal prosecutions for firearms crimes in Montana are increasing. In the past two years, the U.S. Attorney’s Office has obtained a record number of convictions on firearms offenses, with 153 convictions 2022 and 157 convictions in 2021. The third highest number of firearms convictions was in 2018, with 132 convictions.
The gun violence, officials said, is being driven mostly by drug trafficking activity involving methamphetamine and fentanyl and by armed robbers seeking to obtain money to buy drugs. The ATF has seized numerous firearms and illegal guns while investigating violent crimes. The agency identified several trends that are contributing to the gun violence in the Billings community:
- Firearms are usually stolen, often from vehicles, or are straw purchased, where a person illegally buys a gun for another person who is prohibited from possessing firearms.
- Almost all shootings are related to drugs.
- Most of the shooters have prior convictions and are on state or federal supervision or are known to the criminal justice system.
Law enforcement said they are working to reduce gun violence through coordinated, multi-agency investigations and prosecutions and through the federal initiative, Project Safe Neighborhoods, to ensure that persons who violate federal firearms laws are indicted in federal court and sentenced to federal prison, where there is no parole.
Under federal law, it is illegal to possess a firearm if a person falls into one of nine prohibited categories, including being a felon, an unlawful user of a controlled substance or an illegal alien. Federal statutes also make it illegal to purchase, or even attempt to illegally purchase, firearms if the buyer is a prohibited person or illegally buying a firearm on behalf of another. Lying on an ATF form used to lawfully purchase a firearm and possessing stolen or illegal guns also are federal crimes. In addition, drug dealers who carry firearms to further trafficking activity or persons who possess guns to commit violent crimes face mandatory minimum sentences.
Recent federal prosecutions in Montana include:
- Rodney Trimble, of Billings, was sentenced to 18 years in prison in February for possession with intent to distribute controlled substances and for prohibited person in possession of a firearm. Trimble, who had been recently released from a pre-release center, admitted to possessing meth, fentanyl pills and heroin found in his vehicle and told officers he also had been dealing the drugs from the pre-release center. Trimble further admitted to having two firearms he had obtained from “a couple of tweakers on the street” because someone had broken into his residence.
- Joel Zamora, of Billings, was sentenced to 15 years and eight months in prison in March 2022 for possession with intent to distribute meth. Law enforcement found in Zamora’s vehicle a loaded handgun under the driver’s seat, almost one pound of meth in a metal box and $3,500 cash.
- Anthony Ray Morgan, of Billings, was sentenced to nine years and nine months in prison in April 2022 for possession with intent to distribute meth. In two traffic stops, law enforcement found Morgan in possession of meth and firearms. In a search of his home, officers found a handgun that had a laser sight and loaded magazine, a rifle, U.S. currency concealed in a soft body armor carrier and approximately 3.75 pounds of meth.
Officials also encouraged the public to help law enforcement reduce gun violence by reporting stolen firearms so they can be returned to the owner if recovered, securing firearms in their homes, not leaving guns in vehicles and calling law enforcement when they see suspicious or criminal activity.
Removing violent criminals from the community is a key goal of the continuing work of Project Safe Neighborhoods (PSN) Yellowstone County. PSN is a U.S. Department of Justice initiative that brings together local, state, federal, and tribal agencies and stakeholders to address gun violence and other causes of violent crime in communities. PSN Yellowstone County has identified methamphetamine as the primary cause for violent crime in the community and is working diligently to arrest meth traffickers, armed robbers, and violent felons who possess firearms.
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U.S. Attorney, Vermont Attorney General, and Rutland Area NAACP to Co-Host Hate-Free Vermont Forum in St. AlbansRead the Press Release
Burlington, Vermont - The United States Attorney’s Office, the Vermont Attorney General’s Office, and the Rutland Area NAACP will be co-hosting a Hate-Free Vermont Forum in St. Albans on March 13, 2023, from 5:30pm to 7:30pm. This forum will be the third held in an ongoing series; last year, Hate-Free Vermont Forums took place in Rutland and Bennington.
“The Forum aims to bring policymakers, stakeholders, and community members together for productive and difficult conversations that will work to reduce animus, discord, and misunderstandings,” said co-facilitator Etan Nasreddin-Longo. “Many community members have told us they do not feel comfortable reporting bias incidents to the police or feel that is not an effective option. What additional options for reporting and addressing harm and conflict already exist in your community, and what new or improved options would you like to see?”
Participants are welcome to share what they want their government officials to know about their experiences, and to ask questions of their government officials about bias and discrimination.
When: Monday, March 13, 2023, 5:30pm-7:30pm
Where: The Forum will be hosted in person and remotely.
• Physical location: Bellows Free Academy - Cafeteria, 71 South Main Street, St. Albans, VT 05478
• Remote registration link: https://bit.ly/HateFreeFranklinCo
• In-person registration link (optional): https://forms.gle/ofP9yx5vpmN2dbqT7
Who: All are welcome.For physical attendance, masks are requested. Registration is required for remote attendance.
Two men sentenced for robberyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Daniel Montano and Eligius Montano were sentenced to 8 years in prison each. Daniel, 44, of Albuquerque, and Eligius, 25, or Bernalillo, pleaded guilty on Sept. 14, 2022, to interference with interstate commerce by robbery.
On Apr. 18, 2022, Daniel and Eligius, who are father and son, robbed a Metro PCS store in Belen. As the men entered the business, they yelled to “put your hands where we can see them.” When the clerks did not initially cooperate, Eligius put his hands inside of his hoodie as if he had a firearm. The Montanos then told the clerks to face the wall with their hands up before taking one to the back room of the business. The Montanos succeeded in taking nearly $8,000 in merchandise.
The Belen Police Department investigated this case with assistance from the FBI Albuquerque Field Office. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
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Two Western Washington artists plead guilty to illegally misrepresenting their work as “Indian Produced”Read the Press Release
Seattle – In two separate criminal cases, Western Washington artists pleaded guilty today to violations of the Indian Arts and Crafts Act (IACA) by representing themselves as Native American artists, when they have no tribal enrollment or heritage, announced U.S. Attorney Nick Brown. The men, 52-year-old Lewis Anthony Rath, of Maple Falls, Washington, and 67-year-old Jerry Chris Van Dyke aka Jerry Witten, of Seattle, both pleaded guilty today and will be sentenced on May 17, 2023.
“When non-Native artists falsely claim Indian heritage, they can take sales away from true Indian artists working to support themselves with skills and techniques handed down for generations,” said U.S. Attorney Nick Brown. “Stores and galleries need to partner with artists to ensure those artisans and craftsmen advertised as Indian Artists truly have tribal status.”
The investigation of Jerry Van Dyke began in February 2019, when the Indian Arts and Crafts Board received a complaint that Van Dyke was representing himself as a Nez Perce Indian Artist, when in fact, he is not an enrolled tribal member. Investigators from the U.S. Fish and Wildlife Service made undercover purchases at a gallery in the Pike Place Market area of Seattle that advertised pendants Van Dyke had made as Native American
art. Van Dyke used the name Witten for these sales. When interviewed by agents, Van Dyke admitted knowing about the Indian Arts and Crafts Act, and admitted he was not a tribal member. Through the gallery Van Dyke had sold more than $1,000 worth of carved pendants represented as Native American artwork based on Aleut masks. According to the plea agreement, Van Dyke had worked with the gallery for more than ten years, with the gallery owner providing him with woolly mammoth ivory, antlers, animal bones and fossilized walrus ivory to make the pendants that it sold.
Van Dyke pleaded guilty to Misrepresentation of Indian Produced Goods and Products. The crime is punishable by up to one year in prison.
The investigation of Anthony Rath began in May 2019, after a complaint to the Indian Arts and Crafts Board. The investigation revealed that Rath falsely represented himself to be a member of the San Carlos Apache Tribe. Undercover agents purchased a carved totem pole and necklace from the same Pike Place Market gallery for more than $1,334. Agents noticed the gallery had other carvings by Rath that were represented as Native produced. At another shop on the Seattle waterfront agents purchased
another carved totem pole and a mask, again represented to be Indian produced. The biography of the artist at both shops falsely claimed that Rath was Native American. Internet sites Rath used to sell his artwork also falsely claim he is an enrolled member of the San Carlos Apache Tribe.
When agents executed a search warrant on Rath’s Whatcom County home and studio, they found he also possessed feathers from protected birds: golden eagles and other migratory birds such as hawks, jays, owls and more. Rath is forfeiting all those feathers to the government.
Rath pleaded guilty to Misrepresentation of Indian Produced Goods and Products, Unlawful Possession of Golden Eagle Parts and Unlawful Possession of Migratory Bird Parts. Misrepresentation of Indian Produced Goods and Products and Unlawful Possession of Golden Eagle Parts are punishable by up to one year in prison, while Unlawful Possession of Migratory Bird Parts is punishable by up to six months in prison.
“The Indian Arts and Crafts Board (IACB) is very pleased that Jerry Chris Van Dyke and Anthony Rath have been brought to justice for their roles in selling fake Indian artwork in violation of the Indian Arts and Crafts Act,” said U.S Department of the Interior IACB Director Meridith Stanton. The IACB is responsible by statute for administering the Indian Arts and Crafts Act, an anti-counterfeiting statute adopted by Congress aimed at ridding the Indian arts and crafts market of fakes like those being sold by defendants Van Dyke and Rath. “Cases like these are critical to preserving the integrity and viability of authentic Native American art and craftwork in general, as well as preserving the rich cultural heritage of the Nez Perce Tribe and the San Carlos Apache Tribe and the economic livelihoods of their artists and craftspeople,” Director Stanton added. “The IACB applauds the diligent work of the U.S. Attorney’s Office-Western District of Washington and the U.S. Fish and Wildlife Service IACA Enforcement Unit in investigating and prosecuting these important cases.”
“Protecting Native American culture and traditions is a critical part of the Indian Arts and Crafts Act,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “The U.S. Fish and Wildlife Service's dedicated team of special agents work on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board to uphold the rule of law and ensure that those who choose to misrepresent the marketing of Indian arts and crafts products are brought to justice. Lewis Anthony Rath and Jerry Van Dyke took advantage of Native American artists and U.S. consumers for personal and financial gain and should be held accountable for their actions.”
Under the terms of the plea agreement Van Dyke and prosecutors will both recommend no prison term. However, the ultimate sentence is up to U.S. District Judge Tana Lin.
There is no agreed sentencing recommendation for Rath.
The cases are being investigated by the U.S. Fish and Wildlife Service. The cases are being prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.
Two Sentenced for Roles in Drug Trafficking Organization That Imported 37 Kilos of Cocaine into Rhode IslandRead the Press Release
PROVIDENCE – A leader of a long-running drug trafficking organization (DTO) that used the U.S. Postal Service to import 37 kilograms of cocaine into Rhode Island from Puerto Rico, along with a co-conspirator who provided addresses for mailing and retrieved many of the packages of cocaine, were sentenced to federal prison today, announced United States Attorney Zachary A. Cunha.
Arcadio Torres, 41, of North Smithfield, sentenced today to eight years in federal prison, previously admitted to a federal judge that, as a leader of the DTO, he worked with family members and co-conspirators to have kilogram quantity parcels of cocaine regularly shipped to addresses in Rhode Island; that he tracked many of the shipments and watched as they were delivered and retrieved by other members of the DTO; and that he coordinated with co-conspirators to store the cocaine for him.
Nelson Carvalho, 48, of Cranston, sentenced today to more than seven years in federal prison, previously admitted to the court that he provided members of the DTO with residential and business addresses in Rhode Island as destinations for U.S. Priority mail parcels, each containing approximately one kilogram of cocaine. Carvalho also discussed arrival dates and retrieval of the parcels with co-conspirators; retrieved the packages from locations throughout Rhode Island, including his work address; transported the cocaine to co-conspirators in Rhode Island; and performed other functions as needed to facilitate the operations of the DTO.
At least eleven of the parcels were shipped to Women and Infants Hospital, where Carvalho was employed as a mail courier, addressed to names provided to the DTO by the defendant. Carvalho retrieved the packages from the Hospital mail and provided them to other co-conspirators.
Torres, who pleaded guilty on June 30, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, was sentenced today by U.S. District Court Judge Mary S. McElroy to 96 months in federal prison to be followed by 4 years of federal supervised release.
Carvalho, who pleaded guilty on August 1, 2022, to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, was sentenced today by U.S. District Court Judge Mary S. McElroy to 90 months in federal prison to be followed by 4 years of federal supervised release.
Co-conspirators George Mojica, 42, and Angel Delgado, 25, of Central Falls, previously admitted to a federal judge that they participated in the conspiracy and performed various functions to assist the DTO. Mojica and Delgado were sentenced in May 2022 to serve seven years and five years in federal prison, respectively.
The cases were prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Two Men Facing Federal Indictment in Maryland for an Arson Conspiracy Targeting Convenience StoresRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Stephen Kennedy, age 33, of Temple Hills, Maryland, and Donnell Kelly, age 33, of Washington, D.C., for conspiracy to commit arson, arson affecting interstate commerce, commercial robbery, and use of a destructive device in furtherance of a crime of violence, in connection with a series of convenience store robberies. Kennedy and Kelly are also charged with being felons in possession of a firearm and an explosive device, respectively, and Kennedy is charged with carrying an explosive during the commission of a felony. The indictment was returned on February 22, 2023, and was unsealed today upon the arrests of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; St Mary’s County Sheriff Steven A. Hall; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Tiffany D. Green of the Prince George’s County Fire/EMS Department.
According to the 10-count indictment, from at least January 2021 to January 2022, the defendants conspired to commit arsons at 7-Eleven convenience stores so that they could obtain cash contained in ATMs in the stores. Specifically, the indictment alleges that Kennedy and Kelly traveled to 7-Eleven locations while they were open for business and deployed explosive devices to set fire to the buildings, and on at least one occasion, demanded the contents of the cash register. The defendants allegedly burned the stores to force their closure and shut off power to the security cameras, which would enable them to return to the unguarded locations to burglarize the ATMs unhindered. The indictment alleges that this resulted in losses to the ATM company of at least $249,000. To conceal the evidence of their crimes, Kennedy and Kelly allegedly burned vehicles used in the arson attacks and/or burglaries and/or made false police reports regarding stolen license plates.
If convicted, Kennedy and Kelly each face a mandatory minimum sentence of five years and a maximum sentence of 20 years in federal prison for the arson conspiracy and each of four counts of arson affecting interstate commerce; a maximum of 20 years in prison for an armed commercial robbery; a mandatory minimum sentence of 30 years and up to life in federal prison for using a destructive device in furtherance of a crime of violence; and a maximum of 10 years in federal prison for being felons in possession of an explosive device and firearm. Finally, Kennedy faces a mandatory sentence of 10 years, consecutive to any other sentence imposed, for carrying an explosive during the commission of another federal felony. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. The defendants each had an initial appearance today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Ajmel A. Quereshi. Kelly and Kennedy agreed to remain detained pending detention hearings scheduled for Friday, March 3, 2023, at 1:00 p.m. and at 3:30 p.m., respectively.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.
United States Attorney Erek L. Barron commended the ATF, the Office of the Maryland State Fire Marshal, the St. Mary’s County Sheriff’s Office, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF Washington Field Division, the U.S. Marshals Service, and the Alexandria, Virginia Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Joshua Rosenthal, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Twice Convicted Drug Trafficker Detained in Third Drug Trafficking InvestigationRead the Press Release
PROVIDENCE – A United Parcel Service employee twice convicted and incarcerated for trafficking kilos of heroin, and, who allegedly used his position at UPS to attempt to locate a package shipped from Columbia that contained multiple kilograms of cocaine, has been ordered detained in federal custody on drug trafficking charges, announced United States Attorney Zachary A. Cunha.
In November 2022, Custom and Border Protection intercepted a package sent from Colombia and it was discovered that it contained cocaine packed inside of two ball bearings. When the package failed to be delivered to one of several addresses associated with Levys Tovar, 43, of Central Falls and Pawtucket, Tovar allegedly inquired of a customer service supervisor where he worked as to the location of the package. Tovar allegedly claimed that he was attempting to locate the package “for his neighbor.”
Information obtained by Homeland Security Investigations determined that the intended delivery address was the home Tovar shared with his girlfriend and that the “neighbor” Tovar described did not exist.
Tovar, charged by way of a criminal complaint with conspiracy to distribute and possess with the intent to distribute over 500 grams of cocaine and unlawful use of a communication facility (including the mails) to facilitate the distribution of a controlled substance, was ordered detained following his arrest on Monday.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Tovar was convicted in federal court in 2004 of possession with intent to distribute one kilogram of heroin, and again in 2011on a charge of attempt to possess with intent to distribute one kilogram or more of heroin. Tovar is currently on supervised release for the 2011conviction, and is scheduled to return to court on March 7, 2023, for an initial appearance as an alleged violator of supervised release.
The case is being prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by Homeland Security Investigations’ Northeast Corridor Border Enforcement Team; Custom and Border Protection; and the Central Falls, Pawtucket, Providence, and Warwick Police Departments.
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Texas Oil and Gas Company Pays over $240,000 to Settle Trespass Allegations Arising from the Unauthorized Drilling, Extraction, and Sale of Federal MineralsRead the Press Release
OKLAHOMA CITY – EOG Resources, Inc. ("EOG"), a Texas based oil and gas company, paid $243,604 to settle claims related to its alleged unauthorized drilling, extraction and sale of federal minerals, announced United States Attorney Robert J. Troester.
EOG is headquartered in Houston, Texas, and owns the Spitfire 0817 1H Well ("Spitfire"). Spitfire is located on non-federal land in McClain County, Oklahoma. The United States owns a twenty-five percent interest in the mineral rights below the surface of the Spitfire. On or about January 7, 2019, EOG commenced drilling the Spitfire well and, on or about March 1, 2019, began to extract and sell federal minerals. The United States alleges EOG drilled the well and extracted and sold the federal minerals without approval from the United States. The United States further alleges that EOG is liable for trespass and conversion damages and was unjustly enriched by the unauthorized sale of the federal minerals. To resolve the claims, EOG paid the United States $243,604.
In reaching this settlement, EOG did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Department of the Interior, Office of Inspector General. Assistant U.S. Attorneys Rebecca A. Frazier and Ronald R. Gallegos prosecuted the case.
Tewksbury Woman Pleads Guilty to Embezzlement, Unemployment Fraud and Tax CrimesRead the Press Release
BOSTON – A Tewksbury woman pleaded guilty today in federal court in Boston to embezzling more than $1.8 million from her employer, collecting unemployment assistance while employed fulltime and related tax charges.
Joanne Dinoto a/k/a Joanne Mara, 48, pleaded guilty to one count of bank fraud, three counts of wire fraud, one count of aggravated identity theft and one count of filing a false tax return. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 29, 2023. Dinoto was indicted by a federal grand jury in November 2021 and subsequently charged in a superseding indictment in March 2022.
Between April 2008 and April 2020, Dinoto stole more than $1.8 million from her employer, a flooring company based in Acton, by falsely inflating her compensation, using her employer’s corporate credit card for personal expenses, and forging at least two checks to herself drawn on her employer’s checking account. To hide her scheme, Dinoto modified her employer’s accounting records. Dinoto later collected unemployment benefits from the Massachusetts Department of Unemployment Assistance under her true Social Security number, despite the fact that she was then working full time for a different employer, a lighting company based in Wilmington, under a fake Social Security number. Between 2015 and 2020, Dinoto did not report the more than $1 million that she embezzled from the Acton company or received from the Wilmington company on her federal income tax returns.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Acton Police Department and the Middlesex District Attorney’s Office also provided valuable assistance. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Teres Tinnin Sentenced to 15 Years in Federal Prison for Stalking ConvictionsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Teres Tinnin, age 39, was sentenced today to a total of 15 years in prison, 5 years for conspiracy to stalk and 10 years for stalking. U.S. District Judge Joshua D. Wolson pronounced the sentence.
According to court documents, Tinnin worked with at least five co-conspirators—Ryan Bacon, Donte Sykes, Dion Oliver, Maurice Cooper, and Michael Pritchett—to search for a man, listed in the Indictment as M.S., in an attempt to kill him. After M.S. and an associate robbed Tinnin and Pritchett on May 10, 2017, Tinnin and others discussed increasing the amount of money they would pay to have M.S. found and killed.
On June 6, 2017, in furtherance of their continuing pursuit of M.S., Tinnin’s co-conspirators kidnapped M.S.’s girlfriend, Keyonna Perkins, and used her to find M.S. Perkins was held at gunpoint and forced into the trunk of her car. A short while later, Tinnin alerted his co-conspirators that he had just seen M.S. walking alongside Route 896 and directed them to his location.
After locating M.S. along Route 896, Tinnin’s co-conspirators fired multiple shots at M.S., but failed to hit him. Following the shooting, Perkins was forced into the trunk of a second car and driven by two of Tinnin’s co-conspirators to Elkton, Maryland where she was murdered.
Following the first failed shooting, Tinnin’s co-conspirators continued their pursuit of M.S. They located M.S. at Probation & Parole Offices in New Castle, and followed him into Wilmington, waiting until M.S. got out of a car around the area of 6th and Spruce Streets, where one of Tinnin’s co-conspirators again opened fire on M.S. The gunfire missed M.S., but one of the bullets ripped through a passing SUV and struck a six-year-old boy in the head, causing the child severe and permanent injuries.
Tinnin remained in close contact with his co-conspirators via FaceTime while their violent crime spree unfolded.
Commenting on the case, U.S. Attorney Weiss stated, “The defendant and his confederates agreed on a plan to hunt down and kill a perceived enemy with complete disregard for the lives of innocent people who stood in their way. The defendant may not have pulled a trigger on June 6, 2017, but he bears no less responsibility for the violence he helped set into action. My office and our law enforcement partners will vigorously pursue all those who bear responsibility for violent crime.”
“The FBI remains focused on protecting our neighborhoods and communities from violence,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “While no sentence will undo his crimes, we thank our partners for their coordination in ensuring that Mr. Tinnin is behind bars where he belongs.”
This case was investigated by FBI's Delaware Violent Crime and Safe Streets Taskforce, with assistance from the Wilmington Police Department, New Castle County Police Department, Delaware State Police, and the Elkton Police Department. Assistant U.S. Attorneys Jesse S. Wenger and Eli H. Klein prosecuted the case along with former Assistant U.S. Attorney Christopher L. de Barrena-Sarobe.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:18-cr-75.
St. Louis County Realty Company Employee Admits $487,000 FraudRead the Press Release
ST. LOUIS – An employee of a St. Louis County realty company on Tuesday admitted embezzling $487,000 from her employer.
Crystal Hendrix, 49, of Festus, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to three counts of wire fraud. Hendrix admitted to hatching a scheme to defraud her former employer, a real estate company.
Hendrix handled payroll as part of her duties and had access to the company bank accounts. From about Jan. 8, 2018 to Dec. 9, 2020, Hendrix sent over 140 payments from the company bank account to her own bank account, totaling approximately $483,037. Hendrix used the money at restaurants and to buy a vehicle, her plea agreement says.
As part of her guilty plea, Hendrix agreed to forfeit money and property equal to the amount of her fraud. At her sentencing, set for June 1, she will be ordered to repay the money.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
San Jose, Illinois Man Sentenced to 60 Months in Prison for Distribution and Receipt of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A San Jose, Illinois man, Joshua Skelton, 42, of the 100 block of Furlane Drive in San Jose, Illinois has been sentenced to 60 months imprisonment followed by ten years of supervised release for distribution and receipt of child pornography.
Skelton was arrested and indicted in November of 2021 and pleaded guilty in September of 2022. He has remained in the custody of the United States Marshal since his arrest.
At the sentencing hearing, the government presented evidence that between January of 2021 and November of 2021 the defendant engaged in the receipt, distribution, and trading of child pornography of prepubescent children. According to the defendant’s own statements, he had traded between 100 and 200 images using online chatting applications.
During the hearing, Senior U.S. District Judge Sue E. Myerscough found that the defendant’s conduct included distributing and receiving over six hundred images or videos of child pornography, and that at least one of the images included sexually explicit conduct involving a toddler or portrayed sadistic or masochistic conduct.
The statutory penalties for distribution of child pornography are not less than five years but not more than 20 years in prison, up to life of supervised release, and a $250,000 fine. The statutory penalties for receipt of child pornography are not less than five years but not more than 20 years in prison, up to life of supervised release, and a $250,000 fine.
The Federal Bureau of Investigation, Springfield Field Office investigated the case, with assistance from the Illinois State Police and the Logan County Sheriff’s Office. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
San Antonio Woman Sentenced to 8 years in Prison for Trafficking MethRead the Press Release
SAN ANTONIO – A San Antonio woman was sentenced Tuesday in federal court in San Antonio to 100 months in prison for possession with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, Karen Lastiri, 32, consented to a vehicle search during a 2021 traffic stop. During the search, Bexar County Sheriff’s Office deputies found 52.38 kilograms of methamphetamine hydrochloride. Lastiri, traveling from Houston to San Antonio with two children in the vehicle, was arrested by agents with the Drug Enforcement Administration. She was later released on a $50,000 unsecured bond.
“Lastiri worked as a driver for a Drug Trafficking Organization and put her children’s lives at risk by bringing them on this job,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I appreciate the cooperation between BCSO and the DEA, leading to this successful prosecution and the disruption of drug trafficking operations.”
"Drug Trafficking Organizations will stop at nothing. This case demonstrates the length these organizations go to disguise illicit drug activities by putting children in harm's way," said Special Agent in Charge Daniel C. Comeaux of the DEA Houston Division. "Lastiri was transporting a significant amount of methamphetamine hydrochloride from Houston to San Antonio with two children in the vehicle. DEA will continue to relentlessly pursue anyone using our communities to traffic drugs while attempting to harm the innocent along the way."
The DEA investigated the case.
Assistant U.S. Attorney Sarah Spears prosecuted the case.
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Repeat Sex Offender Convicted of Second Federal Child Pornography OffenseRead the Press Release
DETROIT – A federal jury today convicted the former resident of a Detroit residential reentry center of receiving child pornography, United States Attorney Dawn N. Ison announced today.
Joining Ison in the announcement was James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation. The trial, which began on Wednesday, February 22, 2023, was conducted before United States District Judge Terrence G. Berg.
According to the evidence presented at trial, in June 2009, United States District Judge Robert H. Cleland sentenced Matthew Mercer-Kinser, now 36, to serve 151 months in custody for transporting child pornography. In July 2019, the Bureau of Prisons designated Mercer-Kinser to serve the final months of this sentence in a Detroit residential reentry center (RRC). While at the RRC, Mercer-Kinser sent numerous sexually explicit text messages to a minor relative. A concerned adult learned of these communications and reported Mercer-Kinser to the FBI. Execution of a search warrant for Mercer-Kinser’s smartphone revealed several images of child pornography and numerous disturbing communications demonstrating Mercer-Kinser’s continued, prolific sexual interest in children. When Mercer-Kinser testified in his own defense during trial, he admitted his sexual fetish for children.
Mercer-Kinser faces a mandatory minimum sentence of 15 years in prison. A sentencing date has been set for June 29, 2023, at 9 am.
“Protecting children from dangerous predators is a top priority for our office,” U.S. Attorney Ison said. “The actions of a concerned adult were crucial in bringing the crime in this case to the attention of law enforcement, and parents and other relatives need to be vigilant in watching out for signs of abuse or the exploitation of our kids.”
“This defendant’s repeat sexual offenses make him an extreme danger to our youth. Today’s guilty verdict is a step closer to ensuring Mercer-Kinser no longer has access to children in any way,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The combined efforts of the member agencies in the FBI’s Southeast Michigan Trafficking and Exploitation Task Force continue to form a formidable barrier between predators and our children.”
The case was investigated by special agents of the FBI. The case is being prosecuted by Assistant United States Attorneys Erin Shaw and Maggie Smith.
Real Estate Investor Pleads Guilty to $3 Million Wire and Bankruptcy Fraud SchemeRead the Press Release
DETROIT- A real estate investor pleaded guilty yesterday to stealing over $3 million in a wire and bankruptcy fraud scheme, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Sean Tissue, also known as “Sean Ryan,” age 37, of Social Circle, Georgia, and formerly of Rochester, Michigan, pleaded guilty to Wire Fraud and Bankruptcy Fraud before United States District Judge Mark A. Goldsmith. Tissue was the owner of numerous companies, including The Centureon Companies LLC, Greystone Home Builders LLC, Sycamore Homes LLC, Lenovo Homes LLC, NROL Holdings LLC, Phillip Ryan LLC, Boardwalk Heights B2R LLC, NROL Property and Investment LLC.
According to the information provided to the Court at the guilty plea hearing, Tissue engaged in a real estate investment fraud scheme from 2015 through 2021. During that period, Tissue made, or caused others to make, false and fraudulent representations to induce potential investors from Israel, India, South Africa, and other countries to invest in real estate in Michigan, Texas, and other locations. Tissue, either directly or through agents, provided false and fraudulent material information to investors to induce them to invest and send him money through interstate or international wire transactions. To further the scheme, Tissue caused various false documents to be provided to investors, including fake deeds, fake wiring instructions, fake bank statements, fake leases, and fake inspection reports. Tissue also provided a fake name to investors (“Sean Ryan”). Tissue operated the scheme in the Eastern District of Michigan, and fraudulently obtained over $3 million.
In November 2017 through May 9, 2019, Tissue also engaged in bankruptcy fraud scheme by fraudulently withholding recorded information pertaining to his assets and financial affairs from the Bankruptcy Trustee after filing for Chapter 7 bankruptcy. Tissue was initially arrested on a complaint charging him with wire fraud and has been in custody ever since.
Tissue faces statutory maximum penalties of 20 years in prison for wire fraud and 5 years in prison for bankruptcy fraud. Judge Goldsmith will ultimately determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Sean Tissue orchestrated an elaborate scheme to defraud individual investors. He tried to avoid repaying those investors by declaring bankruptcy, and his lies and deceits continued in the bankruptcy proceeding,” said U.S. Attorney Ison. “This guilty plea is an important step towards holding Mr. Tissue accountable for his actions and reflects my office’s commitment to prosecuting financial crime and protecting the integrity of the bankruptcy system.”
“This defendant defrauded his real estate clients and then attempted to escape the consequences by declaring bankruptcy. His actions not only harmed individual clients, but also impacted potential investments in the City of Detroit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI will continue to work with the U.S. Attorney’s Office and Bankruptcy Trustee to ensure the public’s continued trust in the bankruptcy process and to hold accountable those who would use our bankruptcy courts as a means of committing fraud.”
The investigation of this case was conducted by the Federal Bureau of Investigation. Both the United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge and thank the United States Trustee’s Office for its assistance. The case is being prosecuted by Assistant United States Attorney Craig A. Weier and Special Assistant United States Attorney Richard Roble.
Omaha Man Sentenced to 7 Years for Felon in Possession of AmmunitionRead the Press Release
United States Attorney Steven Russell announced that Austin Galvan, 41, of Omaha, Nebraska, was sentenced today in federal court in Omaha for felon in possession of ammunition. United States District Judge Brian C. Buescher sentenced Galvan to 84 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a three-year term of supervised release.
On November 7, 2021, Ralston police responded to a call for a domestic assault. Galvan was eventually arrested and transported to the Douglas County Jail along with two bags he had in his possession. Inside one of the bags, corrections staff found the lower receiver to an AR-15 style rifle, a gun magazine, and two rounds of .22 caliber ammunition. Galvan is a convicted felon prohibited from possessing ammunition under federal law.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ralston Police Department. For more information about Project Guardian, please see www.justice.gov/archives/ag/about-project-guardian.
Omaha Man Sentenced for Possessing with Intent to Distribute FentanylRead the Press Release
United States Attorney Steven Russell announced that Derrick Lloyd, 29, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession with intent to distribute 10 grams or more of fentanyl analogue. United States District Judge Brian C. Buescher sentenced Lloyd to 84 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 4-year term of supervised release.
On July 20, 2021, Omaha Police conducted a traffic stop for going through a red light at 42nd Street and Fontenelle Boulevard. Officers made contact with the driver, who was Lloyd, who indicated he had personal use marijuana in the vehicle. Officers searched the vehicle, and underneath the center console armrest, located a plastic bag with 821 fentanyl pills.
This case was investigated by the Omaha Police Department.
Okaloosa County Man Sentenced to 5 Years in Federal Prison for Firearm OffenseRead the Press Release
PENSACOLA, FLORIDA – Sean Lee Coy, 28, of Okaloosa County, Florida, was sentenced to five years in federal prison after pleading guilty to possession of a firearm by a convicted felon. The sentence was announced by Jason R. Coody, Unites States Attorney for the Northern District of Florida.
“Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said U.S. Attorney Coody. “This sentencing is another example that working jointly with our partners is making our communities safer.”
On January 3, 2022, Okaloosa County Sheriff’s Office deputies stopped Coy for driving with an expired tag. After observing a glass smoking pipe in the vehicle and smelling marijuana, the deputies searched Coy and the vehicle, finding several small baggies of methamphetamine, marijuana, and a Ruger LCP .380 caliber pistol loaded with 13 rounds in an extended magazine. Coy attempted to flee the scene but was quickly apprehended. In 2016, Coy was convicted by the state of Florida of Aggravated Battery with a Deadly Weapon, stemming from a shooting in which he and two other individuals fired into a car with multiple passengers at close range, injuring four people. Coy was sentenced to 5 years for that crime and released in September of 2020.
“Successes like this, connected to the Project Safe Neighborhoods program, are a perfect example of how a dedicated strategy to combat violence will pay-off both short-term and long-term.” “We are committed to being a steadfast partner in this mission, which benefits our area’s quality of life on multiple levels,” said Okaloosa County Sheriff Eric Aden.
This case resulted from a joint investigation by the Okaloosa County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Walter Narramore prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Man Pleads Guilty to Violating the Freedom of Access to Clinic Entrances (FACE) ActRead the Press Release
Jay Smith, 32, of Freeport, New York, pleaded guilty today to a criminal information charging him with a felony violation of the Freedom of Access to Clinic Entrances (FACE) Act in connection with the Oct. 22, 2020, invasion of a reproductive health care clinic in Washington, D.C.
Smith was indicted with nine others (Lauren Handy, Jonathan Darnel, Paulette Harlow, Jean Marshall, John Hinshaw, Heather Idoni, William Goodman, Herb Geraghty and Joan Bell), all of whom were charged with conspiracy against rights and FACE Act offenses in creating a blockade at a reproductive health care clinic to prevent it from providing, and patients from receiving, reproductive health services. Smith pleaded guilty to a charge that he used force and physical obstruction to intentionally injure, intimidate, and interfere with a nurse and other employees of the reproductive health clinic because of the services being offered. The charge further alleges that Smith’s conduct resulted in bodily injury to the clinic nurse.
A felony violation of the FACE Act carries a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Court Judge Colleen Kollar-Kotelly scheduled a sentencing hearing for Aug. 7.
The FBI Washington Field Office investigated the case. The FBI Pittsburgh Field Office provided valuable assistance.
The Civil Rights Division's Criminal Section and U.S. Attorney’s Office for the District of Columbia’s Fraud, Public Corruption and Civil Rights Section are prosecuting the case. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston and Detroit provided valuable assistance.
New York Man Pleads Guilty to Violating the Freedom of Access to Clinic Entrances (FACE) ActRead the Press Release
WASHINGTON – Jay Smith 32, of Freeport, New York, pleaded guilty today to a felony charge of violating the Freedom of Access to Clinic Entrances (FACE) Act in connection with the October 22, 2020 invasion of a reproductive health care clinic in Washington, D.C. U.S. District Court Judge Colleen Kollar-Kotelly scheduled a sentencing hearing for August 7, 2023.
Smith was indicted with nine others (Lauren Handy, Jonathan Darnel, Paulette Harlow, Jean Marshall, John Hinshaw, Heather Idoni, William Goodman, Herb Geraghty and Joan Bell), all of whom were charged with conspiracy against rights and FACE Act offenses in creating a blockade at a reproductive health care clinic to prevent it from providing, and patients from receiving, reproductive health services. Smith pleaded guilty to a charge that he used force and physical obstruction to intentionally injure, intimidate, and interfere with a nurse and other employees of the reproductive health clinic because of the services being offered. The charge further alleges that Smith’s conduct resulted in bodily injury to the clinic nurse.
Violation of the FACE Act carries a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Justice Department’s Civil Rights Division and the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, Detroit and Pittsburgh provided valuable assistance.
New Jersey Woman Sentenced for Conspiring to Steal Government PropertyRead the Press Release
ALBANY, NEW YORK – Pamela Febo, age 38, of Keansburg, New Jersey, was sentenced today to three years of probation for fraudulently applying for unemployment benefits on behalf of a state prisoner.
United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon made the announcement.
Febo agreed with her boyfriend, Irvis Jorge, to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information, at a time when Jorge was an inmate in NYSDOCCS custody. Febo submitted the application in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months. Each weekly certification Febo submitted indicated that Jorge was “able and available to start work immediately” even though she knew Jorge remained incarcerated and could not work. NYSDOL paid the defendants $27,348 based on the repeated false certifications.
Senior United States District Judge Gary L. Sharpe also ordered restitution in the amount of $27,348 and forfeiture in the amount of $12,444. In December, Judge Sharpe sentenced Jorge to 364 days in jail, to run consecutively to the state term of imprisonment he was serving at the time of this offense.
The FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.
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.
Navajo man charged with aggravated sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Pedro Lee Benally made an initial appearance in federal court facing two charges of aggravated sexual abuse in Indian Country. Benally, 29, of Montezuma Creek, Utah, and an enrolled member of the Navajo Nation, will remain in custody pending a detention and preliminary hearing held on March 2, 2023.
A federal grand jury indicted Benally on February 23. According to the indictment and other court records, Benally allegedly engaged in a sexual act with a child, identified as Jane Doe. The alleged assault occurred in San Juan County, New Mexico, on the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Benally may face up to life in in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.
Raymundo Gutierrez-Lagunas, age 35, a citizen of Mexico illegally present in the United States and residing in Linn County, Iowa, received the prison term after a January 12, 2023 guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Gutierrez-Lagunas admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Gutierrez-Lagunas was previously deported in November 2013. On December 3, 2022, immigration officials learned Gutierrez-Lagunas had illegally returned to the United States and found Gutierrez-Lagunas at the Linn County Jail following his arrest on state charges.
Gutierrez-Lagunas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gutierrez-Lagunas was sentenced to 80 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez-Lagunas is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-98.
Medical Equipment Company Pays $7 Million to Resolve False Claims Act AllegationsRead the Press Release
LEXINGTON, Ky.— United Seating and Mobility, LLC, d/b/a Numotion (Numotion) has paid $7 million to resolve civil allegations that it made false statements in connection with claims for reimbursement it submitted to Kentucky Medicaid, two of Kentucky Medicaid’s Managed Care Organization contractors (MCOs), MO HealthNet (Missouri Medicaid), and D.C. Medicaid.
Numotion is a national supplier of durable medical equipment (DME), such as hospital beds, manual wheelchairs, power wheelchairs and accessories, and gait trainers. The investigation involved DME that was “manually priced” by Medicaid payors in Kentucky, Missouri, and D.C. Those Medicaid programs reimbursed manually priced DME based on the cost Numotion actually paid the manufacturer for the equipment. Specifically, in Kentucky, reimbursement is based on “a manufacturer’s actual charges” billed to Numotion, or the “invoice price;” in Missouri, reimbursement is based on the “actual invoice of cost;” and in D.C., reimbursement is based on “original documentation reflecting all discounts.”
In the Settlement Agreement, the United States alleged that Numotion did not disclose all discounts Numotion received from, or the cost Numotion actually paid to, DME manufacturers when submitting claims for manually priced DME to Kentucky Medicaid, two Kentucky Medicaid MCOs (Aetna Better Health of Kentucky and WellCare of Kentucky), MO HealthNet, and D.C. Medicaid. Numotion’s failure to disclose all discounts, or the actual cost paid, resulted in these Medicaid programs paying Numotion higher reimbursements than it was entitled to receive. The United States contended that the conduct violated the False Claims Act, 31 U.S.C. § 3729(a)(1)(B), a federal law that prohibits knowingly making or using a false statement material to a false claim for reimbursement.
As part of the settlement, Numotion also entered into a 5-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Numotion implement a centralized risk assessment program, as part of its compliance program, and hire an Independent Review Organization to complete annual reviews of some of its Medicare and Medicaid claims.
“By hiding or failing to disclose discounts, to receive higher reimbursement from Medicaid programs across the country, Numotion prioritized its financial incentives, to the detriment of these Medicaid programs,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Whenever the valuable resources of government health care programs are improperly dissipated to those who are not entitled, it diminishes the ability of these programs to meet the needs of their beneficiaries. We remain committed to doing our part to protect these programs from fraud, waste, and abuse and to preserve the taxpayer money that supports them.”
“When health care companies do not follow federal health care billing requirements, the integrity of those safety net programs can be undermined,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, the dedicated work of OIG’s investigators and attorneys has again resulted in the recovery of taxpayer dollars and better protection against improper billing in the future.”
The settlement resolves a lawsuit originally brought by L. Richard Parkey, a former Numotion employee, under the qui tam, or whistleblower, provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Parkey will receive approximately $1.05 million of the settlement amount.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorney Jennifer A. Williams handled the matter for the United States.
The case is United States ex rel. L. Richard Parkey v. United Seating and Mobility, LLC d/b/a Numotion, Case No. 3:17-cv-53-GFVT. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Massachusetts Man Sentenced for Illegal Wildlife Trafficking, Fined $10,000Read the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for illegally transporting wild snowshoe hares from Maine to Massachusetts.
U.S. District Judge Nancy Torresen sentenced Jon Rioux, 36, of Attleboro, Massachusetts to one year of probation and imposed a fine of $10,000. Judge Torresen also ordered Rioux to pay $1,843 in restitution to the Maine Department of Inland Fisheries and Wildlife.
According to court records, in January 2021, an investigator received information that Rioux was soliciting Maine residents to live trap snowshoe hares. On four occasions Rioux illegally purchased snowshoe hares in Maine and then transported them to Massachusetts to use for beagle training and field trials. On March 16, 2022, Rioux was arrested by Maine Game Wardens and U.S. Fish and Wildlife Service Special Agents at the Kennebunk service plaza on the Maine Turnpike after his fifth purchase.
“Illegally trafficking wildlife across state lines not only exploits public resources it threatens wild populations by creating the potential for disease transmission,” said Edward Grace, Assistant Director for the U.S. Fish and Wildlife Service Office of Law Enforcement. “We’re grateful for our close collaboration with state partners in Maine to help us enforce laws that protect wildlife resources on behalf of the American public."
The Maine Warden Service and U.S. Fish and Wildlife Service investigated the case with assistance from the Massachusetts Environmental Police.
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Edited 03/02/23 for clarity
Maplewood Man Sentenced to 30 Months in Prison for Illegal Possession of an Unregistered Pipe BombRead the Press Release
MINNEAPOLIS – A Maplewood man has been sentenced to 30 months in federal prison followed by three years supervised release for illegal possession of a pipe bomb, announced U.S. Attorney Andrew M. Luger.
According to the plea agreement and other court documents, on April 28, 2022, law enforcement executed a search warrant at the Maplewood residence of Dylan Raymond Orr, 27, after discovering photos of two pipe bombs sent from Orr’s phone to a third-party. The images showed small BBs affixed to the exterior casing of the pipe bombs. During the execution of the search warrant, law enforcement discovered two six-inch pipes —one with BBs affixed, four end caps, and explosive powder, components which could be readily converted to a destructive device. Orr did not have a registration to possess these devices from the National Firearms Registration and Transfer Record as required by law.
Orr pleaded guilty on November 9, 2022, to one count of possession of an unregistered destructive device. Orr was sentenced today in U.S. District Court before Judge Nancy E. Brasel.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savage Police Department.
Assistant U.S. Attorney LeeAnn K. Bell prosecuted the case.
Man Who Robbed and Murdered Stamford Jeweler Sentenced to 40 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT RALLO, 59, of New York, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 480 months of imprisonment, followed by five years of supervised release, for offenses stemming from the robbery of Marco Jewelers in Stamford in March 2020, during which Rallo shot and killed the owner of the store.
“This sentence will protect society from a dangerous individual who brutally killed a much loved and respected man and small business owner,” said U.S. Attorney Avery. “I thank the FBI and the Stamford, Greenwich, Yonkers, New York and New Rochelle Police Departments for thoroughly investigating this crime and helping to bring these defendants to justice.”
“The system of justice in which the FBI and all of our law enforcement partners work within everyday has just spoken,” said FBI Special Agent in Charge Robert Fuller. “The joint efforts of the investigators and prosecutors has been recognized and justice has been served.”
“We are very pleased to see these three career criminals held accountable for this senseless murder, and we want to commend the tireless, cutting edge police work that led to this outcome, said Assistant Chief Richard Conklin of the Stamford Police Department. “While nothing we do can restore what the Vuono family has lost, we hope that this conviction and sentence can offer some solace. We are grateful for the expertise of our officers, as well as the collaboration with the FBI and our other law enforcement partners, that contributed to bringing this painful case to a positive conclusion.”
According to court documents and statements made in court, on March 28, 2020, at approximately 2:48 p.m., Stamford Police Officers responded to Marco Jewelers, located at 16 Sixth Street in Stamford. When officers arrived, they found evidence of a robbery and encountered the storeowner, Mark Vuono, lying on the ground in front of an open safe. Emergency medical personnel arrived and pronounced Vuono deceased.
Investigators collected and analyzed surveillance video from Marco Jewelers, surrounding businesses and Stamford city cameras. Video obtained from Marco Jewelers revealed that, on March 28, Paul Prosano drove Robert Rallo and Thomas Liberatore in a black Jaguar to Marco Jewelers. Rallo and Liberatore then entered the store. Rallo, armed with a handgun, engaged in a physical altercation with Vuono, while Liberatore stole items from the display cases. Vuono, who also possessed a firearm, and Rallo struggled next to a large open safe. During the more than three-minute struggle, Rallo reached into the safe and pulled out a third firearm, a .357 Magnum revolver. Rallo subsequently shot and killed Vuono with the .357 revolver.
Following the robbery, law enforcement located the black Jaguar in Staten Island and maintained surveillance on the vehicle. On March 31, at approximately 5:30 p.m., a black BMW X3, driven by Prosano, pulled up beside the black Jaguar. Rallo exited the rear door of the BMW and entered the driver’s door of a black Jaguar. The two vehicles then left the area and rapidly accelerated. The Jaguar crashed on Tompkins Street. Rallo attempted to flee on foot, but was quickly apprehended. The BMW crashed into a tree and parked car at the intersection of Daniel Low Terrace and Corson Avenue. Prosano also attempted to flee and was apprehended.
A search of the BMW revealed 63 rings, eight bracelets, two tie pins, an earring and a cufflink, and a search of Prosano’s residence revealed 23 pairs of earrings and three rings. These items were stolen from Marco Jewelers on March 28.
Liberatore was arrested on April 1.
Rallo’s criminal history, which includes two prior murder convictions, spans approximately 40 years. He met Liberatore and Prosano while incarcerated within the New York State Department of Corrections, and had been released from prison in March 2019.
Rallo has been detained since his arrest. On April 5, 2022, he pleaded guilty to one count of interference with commerce by robbery (Hobbs Act robbery), one count of interstate transportation of stolen property, and one count of using a firearm to cause a death during a robbery.
On December 19, 2022, a jury found Liberatore and Prosano guilty of Hobbs Act robbery and interstate transportation of stolen property. Liberatore was also found guilty of aiding and abetting the use of a firearm to cause a death during a robbery. They are detained while awaiting sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, Stamford Police Department and Greenwich Police Department, with the assistance of the New York Police Department, Yonkers (N.Y.) Police Department and New Rochelle (N.Y.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Rahul Kale and Margaret Donovan.
“This sentence will protect society from a dangerous individual who brutally killed a much loved and respected man and small business owner,” said U.S. Attorney Avery. “I thank the FBI and the Stamford, Greenwich, Yonkers, New York and New Rochelle Police Departments for thoroughly investigating this crime and helping to bring these defendants to justice.”
“The system of justice in which the FBI and all of our law enforcement partners work within everyday has just spoken,” said FBI Special Agent in Charge Robert Fuller. “The joint efforts of the investigators and prosecutors has been recognized and justice has been served.”
“We are very pleased to see these three career criminals held accountable for this senseless murder, and we want to commend the tireless, cutting edge police work that led to this outcome, said Assistant Chief Richard Conklin of the Stamford Police Department. “While nothing we do can restore what the Vuono family has lost, we hope that this conviction and sentence can offer some solace. We are grateful for the expertise of our officers, as well as the collaboration with the FBI and our other law enforcement partners, that contributed to bringing this painful case to a positive conclusion.”
According to court documents and statements made in court, on March 28, 2020, at approximately 2:48 p.m., Stamford Police Officers responded to Marco Jewelers, located at 16 Sixth Street in Stamford. When officers arrived, they found evidence of a robbery and encountered the storeowner, Mark Vuono, lying on the ground in front of an open safe. Emergency medical personnel arrived and pronounced Vuono deceased.
Investigators collected and analyzed surveillance video from Marco Jewelers, surrounding businesses and Stamford city cameras. Video obtained from Marco Jewelers revealed that, on March 28, Paul Prosano drove Robert Rallo and Thomas Liberatore in a black Jaguar to Marco Jewelers. Rallo and Liberatore then entered the store. Rallo, armed with a handgun, engaged in a physical altercation with Vuono, while Liberatore stole items from the display cases. Vuono, who also possessed a firearm, and Rallo struggled next to a large open safe. During the more than three-minute struggle, Rallo reached into the safe and pulled out a third firearm, a .357 Magnum revolver. Rallo subsequently shot and killed Vuono with the .357 revolver.
Following the robbery, law enforcement located the black Jaguar in Staten Island and maintained surveillance on the vehicle. On March 31, at approximately 5:30 p.m., a black BMW X3, driven by Prosano, pulled up beside the black Jaguar. Rallo exited the rear door of the BMW and entered the driver’s door of a black Jaguar. The two vehicles then left the area and rapidly accelerated. The Jaguar crashed on Tompkins Street. Rallo attempted to flee on foot, but was quickly apprehended. The BMW crashed into a tree and parked car at the intersection of Daniel Low Terrace and Corson Avenue. Prosano also attempted to flee and was apprehended.
A search of the BMW revealed 63 rings, eight bracelets, two tie pins, an earring and a cufflink, and a search of Prosano’s residence revealed 23 pairs of earrings and three rings. These items were stolen from Marco Jewelers on March 28.
Liberatore was arrested on April 1.
Rallo’s criminal history, which includes two prior murder convictions, spans approximately 40 years. He met Liberatore and Prosano while incarcerated within the New York State Department of Corrections, and had been released from prison in March 2019.
Rallo has been detained since his arrest. On April 5, 2022, he pleaded guilty to one count of interference with commerce by robbery (Hobbs Act robbery), one count of interstate transportation of stolen property, and one count of using a firearm to cause a death during a robbery.
On December 19, 2022, a jury found Liberatore and Prosano guilty of Hobbs Act robbery and interstate transportation of stolen property. Liberatore was also found guilty of aiding and abetting the use of a firearm to cause a death during a robbery. They are detained while awaiting sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, Stamford Police Department and Greenwich Police Department, with the assistance of the New York Police Department, Yonkers (N.Y.) Police Department and New Rochelle (N.Y.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Rahul Kale and Margaret Donovan.