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Wednesday 18 January 2023
Former Bellevue, Washington resident pleads guilty to securities fraud for defrauding investors and marijuana businessesRead the Press Release
Seattle – A 42-year-old Las Vegas man, who previously lived in Bellevue, Washington, pleaded guilty today in U.S. District Court in Seattle to securities fraud, announced U.S. Attorney Nick Brown. Justin Costello admits in his plea agreement that he victimized marijuana business owners, private investors and investors who purchased stock in the public market. Under the terms of the plea agreement, both the prosecutors and the defense will recommend a ten-year prison sentence when Costello is sentenced on April 21, 2023. U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can impose any sentence allowed by statute.
While Costello pleaded guilty to one count of securities fraud, the plea agreement specifies that the court can take into account all of Costello criminal conduct as relevant conduct for sentencing purposes. Costello not only defrauded investors, he stole from three marijuana business who trusted him for banking services.
As part of his securities fraud scheme, Costello purchased two companies that were trading for pennies on the over-the-counter market and renamed them GRN Holding Corporation and Hempstract Inc. Costello recruited investors in these companies, allegedly making numerous false statements. Costello told potential private investors that he had an MBA from Harvard, that his personal wealth was significantly larger than it was, and that GRN Funds LLC, a private equity and hedge fund he owned, had over $1 billion in assets under management. None of that is true.
With these falsehoods, Costello convinced various investors across the country to invest in his companies. Costello also had press releases and securities filings made with multiple false representations. Between July 1, 2019, and May 18, 2021, over 7,500 investors purchased and sold GRN Holding Corp. securities while Costello was making, and causing to be made, material misrepresentations concerning GRN Holding Corp. Collectively, these investors lost approximately $25 million. Similarly, with Hempstract Inc., he made false statements and defrauded investors. Between November 2018 and June 2021, 29 private investors lost about $6 million.
Between October 2019, and January 2021, Costello hired an unindicted coconspirator to use Twitter in a pump and dump stock scheme. Costello would acquire the penny stock of a company and then instruct his prolific Twitter user to tweet falsehoods about the company that would drive up the stock price. The coconspirator would tweet about the stock as often as 90 times a day. In one instance Costello didn’t just use Twitter, he also instructed some of his “investors” to purchase stock in the company, driving the share price from a nickel to $2 per share. After driving the share price up, Costello sold the shares for a profit of more than $355,000. The prolific Twitter user was given a share of Costello’s profits from the pump and dump scheme. In all Costello made $625,092 in the pump and dump scheme.
Along with the securities fraud, in 2017 Costello owned and operated a company called Pacific Banking Corp that provided banking services to marijuana businesses in Washington, Colorado, California, Illinois, and Alaska. Costello sent false account statements to the marijuana businesses, so that they were lulled into thinking their money was secure. However, between 2019 and 2021, Costello diverted money from three marijuana business to benefit himself and his other companies. The three marijuana businesses lost about $3.7 million.
Costello was apprehended October 6, 2022, by law enforcement in Southern California. He had fake identification documents, cash and valuables indicating he hoped to flee to Mexico to avoid prosecution.
In the plea agreement Costello agrees to pay at least $35 million in restitution. He is also forfeiting assets that were seized at the time of his arrest including $60,000 in cash, gold bars, Mexican pesos, two designer watches, and gem encrusted jewelry.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Justin Arnold and Michael Dion.
Former Arkansas State Senator and Representative Sentenced for Role in Multimillion-Dollar Bribery ConspiracyRead the Press Release
LITTLE ROCK—Former Arkansas State Senator and State Representative Henry (Hank) Wilkins IV was sentenced today to 12 months and one day in prison for conspiring to accept over $95,000 in bribes in exchange for influencing Arkansas state legislation and transactions, including steering approximately $245,000 in Arkansas General Improvement funds to his co-conspirators, which included executives at a Missouri-based health care charity.
As part of the conspiracy, Wilkins also admitted to devising a scheme to conceal the bribe payments as donations to St. James United Methodist Church in Pine Bluff, where Wilkins also served as a pastor.
United States District Court Judge Brian S. Miller sentenced Wilkins today. In addition to the federal prison sentence, Judge Miller ordered Wilkins to serve three years of supervised release and repay $123,000 in restitution. Wilkins must report to prison by March 7, 2023.
Wilkins, 68, previously pleaded guilty on April 30, 2018, to a federal Information charging him with conspiracy to commit bribery concerning programs receiving federal funds, and conspiracy to devise a scheme and artifice to defraud and deprive the citizens of Arkansas of their right to honest services.
According to court documents, Wilkins admitted as part of his plea that from 2010 to 2014, while serving in the Arkansas General Assembly, he accepted a series of bribes from lobbyists and non-profit organizations that were transmitted both in the form of cash and checks funneled from lobbying firms to a discretionary fund held in St. James’ name where Wilkins had access to the deposited funds. In exchange for the cash and check bribes, Wilkins performed, and agreed to perform, official acts in his capacity as an Arkansas legislator including filing shell bills, sponsoring full bills, voting in favor of specific legislation, and steering approximately $245,000 in General Improvement funds to entities that funneled bribes to Wilkins through his church.
Several of Wilkins’s co-conspirators, including former Arkansas State Senator Jeremy Hutchinson and two executives at the Missouri-based health care charity, pleaded guilty and are awaiting sentencing.
The FBI investigated this case. Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti, and former Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas; and former Assistant U.S. Attorney Ben Wulff of the Western District of Arkansas prosecuted the case. This is a combined investigation with the Public Integrity Section of the Department of Justice, the Eastern District of Arkansas, Western District of Arkansas, and the Western District of Missouri.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Federal Jury Convicts DeShawn Whited of Multiple Hobbs Act Robberies, Carjacking, and Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. – On January 18, 2023, a federal jury convicted DeShawn Whited, 25, of Knoxville, Tennessee, of four counts of Hobbs Act Robbery, one count of Attempted Hobbs Act Robbery, one count of carjacking, four counts of brandishing a firearm in furtherance of a crime of violence, and one count of felon in possession of a firearm, following a four-day trial. The Honorable Katherine A. Crytzer, United States District Judge, presided over the trial. Whited faces a sentence of over 100 years in prison.
The armed robberies and the armed carjacking all occurred in Knoxville between January 12th, 2021, and January 20th, 2021. The evidence presented at trial included witness testimony, surveillance footage from multiple businesses across the Knoxville area, and physical, forensic and digital evidence, including items of clothing, firearms, cell phone information, and DNA.
“This prosecution is part of the Department of Justice’s comprehensive strategy to reduce violence and increase safety in our community by aggressively prosecuting criminals who engage in violent crime,” said United States Attorney Francis M. Hamilton III.
“The collaborative effort between the FBI and the Knoxville Police Department ensured this defendant was brought to justice and will no longer be able to threaten or harm the citizens and businesses in our community. We will continue to aggressively seek out those who prey upon innocent victims and hold them accountable,” said FBI Special Agent in Charge Joseph E. Carrico.
“Preventing violent crime and addressing it after it occurs will always be the top priority of the Knoxville Police Department. I am proud of the many members of our department who were involved in this investigation from the beginning and helped see it through to this conclusion. Their efforts and contributions ensured the removal of a violent individual from the streets of Knoxville,” said Chief Paul Noel, Knoxville Police Department.
Assistant U.S. Attorneys Alan S. Kirk and Brent N. Jones represented the United States at trial.
Law enforcement agencies participating in the joint investigation and prosecution of Whited include the Federal Bureau of Investigation (FBI) Safe Streets Task Force and the Knoxville Police Department’s Violent Crime Unit and Organized Crime Unit, as well as Knoxville Police Department Patrol Officers and Forensic Crime Scene Technicians.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Evansdale Nurse Sentenced to Federal Prison for Stealing Pain Medication from Elderly Nursing Home Resident in WaterlooRead the Press Release
An Evansdale nurse who stole pain medication from an elderly nursing home resident in Waterloo was sentenced on January 4, 2023, to federal prison. Kelsey Ann Baxter, age 33, received the prison term after a July 19, 2022 guilty plea to one count of acquiring a controlled substance by means of misrepresentation, fraud, deception, and subterfuge.
In a plea agreement, Baxter admitted she was working at a Waterloo nursing home as a licensed practical nurse in the State of Iowa. In April 2021, Baxter was caught stealing and consuming two morphine pills that were intended for an elderly resident of the nursing home. The nursing home investigated and discovered that Baxter had diverted 43 morphine pills to her own use over a two-week period in April 2021. The elderly resident of the nursing home, who suffered pain from physical ailments, indicated that she had not received pain medication even though Baxter had documented in the elderly resident’s handwritten and electronic medical records that the resident had received the pain medication. The nursing home terminated Baxter’s employment after she tested positive for opiates without having a prescription for them. The nursing home had previously suspected Baxter of drug diversion as she was noticeably slurring her speech and disoriented while on the job. Baxter admitted she falsified the elderly nursing home resident’s physical and electronic medical records and the nursing home’s narcotics logs.
While this case was pending, Baxter repeatedly violated the terms of her pretrial release. Ultimately, a federal judge ordered Baxter confined in her home while awaiting her sentencing hearing, because she repeatedly used controlled substances while on pretrial release. In July 2022, Baxter was convicted in state court of making a false report to law enforcement before she was charged in federal court.
Baxter was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Baxter was sentenced to one month imprisonment. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Baxter also agreed to forfeit her State of Iowa nursing license to the United States.
In 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.
Baxter was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2040.
Follow us on Twitter @USAO_NDIA.
El Departamento de Justicia llega a un acuerdo con una empresa de servicios de boletos de Broadway que resuelve unas acusaciones de discriminación relacionadas con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Nederlander Marketing, Inc., que opera como Broadway Direct (Broadway Direct), una empresa de servicios de boletos con sede en Nueva York. El acuerdo resuelve la determinación del Departamento que Broadway Direct vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a trabajadores no ciudadanos de los EE. UU. con base en su estatus de ciudadanía cuando publicó anuncios y contrató para un puesto en Nueva York.
«Los anuncios de trabajo que limitan ilegalmente los trabajos a ciudadanos de los EE. UU. crean barreras para los no ciudadanos de los EE. UU. que cuentan con permiso para trabajar en los Estados Unidos», manifestó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá garantizando que todos los trabajadores cuenten con una oportunidad justa para las oportunidades de trabajo y hará responsable a los empleadores por discriminar a los trabajadores por motivos de ciudadanía, estatus migratorio o nacionalidad de origen».
El Departamento inició su investigación en julio de 2022, al enterarse de que Broadway Direct puede haber publicado un anuncio de trabajo que limitaba la contratación para el puesto a postulantes ciudadanos de los EE. UU. únicamente. La investigación del Departamento determinó que Broadway Direct había publicado al menos un anuncio de trabajo con restricciones ilegales de estatus de ciudadanía. En virtud de la INA, los empleadores generalmente no pueden discriminar por motivos de ciudadanía, estatus migratorio o nacionalidad de origen en ninguna etapa del proceso de contratación.
Según los términos del acuerdo, Nederlander pagará una sanción civil a los Estados Unidos, capacitará al personal sobre la disposición antidiscriminatoria de la INA, revisará y actualizará sus políticas de empleo y se someterá a la supervisión del Departamento durante dos años.
La Sección de Derechos de Inmigrantes y Empleados (IER) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido, reclutamiento o recomendación por comisión; las prácticas documentales injustas; y las represalias y la intimidación.
Encuentre más información en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación durante la contratación y el reclutamiento. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este vídeo. Para más información sobre las protecciones contra la discriminación en virtud de las leyes de inmigración, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase en un seminario en línea gratuito; envié un correo electrónico a [email protected]; o visite los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
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East Boston Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man has been arrested for possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 23, was charged with one count of possession of child pornography and one count of distribution of child pornography. Following an initial appearance in federal court in Boston yesterday before U.S. District Court Magistrate Judge Judith G. Dein, Pineda was detained pending a hearing scheduled for Feb. 3, 2023.
According to the charging documents, law enforcement identified Pineda as member of several private communities and/or groups involved in the distribution of CSAM on an online chat platform. It is alleged that, on Dec. 12, 2022, Pineda distributed six videos depicting CSAM in three online chat groups. It is further alleged that an additional 54 videos depicting CSAM, depicting 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, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $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.
Dallas Sex Trafficker Sentenced to 25 YearsRead the Press Release
A Dallas trafficker was sentenced Wednesday to 25 years in federal prison for spending nearly two decades running a brutal sex trafficking ring, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Anthony Johnson, 45, pleaded guilty to conspiracy to commit sex trafficking through force, fraud, and coercion, and sex trafficking on May 10, narrowly avoiding his trial, which was scheduled to begin the same day. He was sentenced Wednesday by U.S. District Judge Ada Brown, who also ordered a lifetime of supervised release following the completion of his sentence.
“Human trafficking is happening under our noses – and the heartbreaking 911 call in this case illustrates just how brutal these situations can be for victims. We hope that during Mr. Johnson’s time behind bars, his victims can begin to heal from the pain – both mental and physical – he inflicted on them,” said U.S. Attorney Leigha Simonton. “Please, if you even suspect someone you know is being trafficked, reach out to the National Human Trafficking Hotline. Your call could save a life.”
“This defendant coerced, manipulated and brutalized numerous human trafficking victims, for financial gain and self-gratification,” said Lester R. Hayes Jr., Special Agent in Charge of HSI Dallas. “While a lengthy prison sentence can never erase the physical and psychological abuse his victims endured, it does remove the reason for their fear, allowing the healing process to begin. HSI will never relent in pursuing those who commit these inhumane crimes.”
In plea papers, Mr. Johnson, aka “Macc Bucc,” admitted he forced numerous women to engage in commercial sex acts and turn the proceeds over to him. He set “quotas,” compelled the women to work for hours on end, and brutally beat them with an extension cord when they came up short, “disrespected” him, or did not follow his rules. He also required the women to steal from commercial sex customers, instructing them to rifle through customers’ pockets for cash or jewelry and check their cars for valuables.
One woman, identified in court documents as “Adult Victim 7,” endured his abuse for several years. The night he recruited AV7, Mr. Johnson directed his second-in-command, Demetrice Deckard, to take her to Harry Hines and teach her how to solicit commercial sex customers. She engaged in commercial sex with her first customer just a few days later. Throughout her time in his trafficking organization, AV7 was forced to travel cross-country to engage in commercial sex and was routinely beaten when she tried to leave the organization.
In a pretrial filing, prosecutors indicated they were prepared to introduce into evidence a 911 call placed by a different victim’s mother after her daughter called her in tears from a passerby’s phone.
“She said, ‘mamma, I wanna come home, they won’t let me come home,’ she said, ‘they got everything I got,’” the woman told the dispatcher. “‘Mamma, he got me by gunpoint, he’s got these girls following me, he beat me up real bad.’”
In another pretrial filing, prosecutors indicated that they were also prepared to introduce evidence that Mr. Johnson obtained a contraband cell phone while in jail awaiting trial and used the phone to continue running his organization. According to prosecutors, text messages obtained from the cell phone showed that Mr. Johnson continued to instruct women where to work, which hotels to use, how to steal from customers, and when they could finish work for the night. Mr. Johnson also directed women to send him videos of themselves having sex with commercial sex customers. In plea papers, Mr. Johnson admitted that he also ran his trafficking organization from behind bars from 2014 to 2019, following a conviction for aggravated assault with a deadly weapon.
Ms. Deckard pleaded guilty in April to conspiracy to engage in trafficking through force, fraud, and coercion and is set to be sentenced in April. Another co-defendant, Ashley Neice, pled guilty to conspiracy to obstruct an official proceeding and admitted to conspiring with Mr. Johnson to contact a victim in the criminal case in order to tell her not to cooperate with law enforcement.
Homeland Security Investigations’ Dallas Field Division conducted the investigation with the assistance of the Dallas Police Department, Miami Police Department, and the Miami Office of Attorney General. Assistant U.S. Attorneys Renee Hunter and Melanie Smith (fmr.) prosecuted the case with the help of appellate liaison Brian McKay.
If you believe you or someone you know is a victim of human trafficking, call local law enforcement or the 24/7 confidential National Human Trafficking Hotline at 1-888-373-7888.
Cumberland County, Tennessee Agrees to End Discrimination Based on Opioid Use DisorderRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree with the U.S. District Court for the Middle District of Tennessee, to resolve allegations that Cumberland County, Tennessee violated Title I of the Americans with Disabilities Act (ADA), which prohibits employers from discriminating based on disability. Among other things, it requires them to make reasonable accommodations to qualified employees with disabilities.
The lawsuit alleges that the County Sheriff’s Department discriminated against a correctional officer on the basis of his disability, opioid use disorder (OUD), by failing to make reasonable accommodations to permit his continued employment while taking prescribed medication for OUD. The Sheriff’s Department also constructively discharged him by forcing him to resign. The lawsuit also alleges that the Sheriff’s Department violated the ADA by preventing employees who are taking legally prescribed medications from having them present in their system while at work. This is the Justice Department’s first ADA settlement resolving claims of employment discrimination based on opioid use disorder.
“Employees with opioid use disorder or other disabilities should not face termination for taking lawfully prescribed medications needed to treat their disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to ensuring equal employment opportunities for people with opioid use disorder and other disabilities.”
Under the terms of the consent decree, which must be approved by the Court, the County will implement policies and procedures regarding non-discrimination in employment, and train personnel on the requirements of Title I of the ADA. The County will also pay a total of $160,000 to the former correctional officer.
This matter is based on a referral from the Nashville Area Office of the U.S. Equal Employment Opportunity Commission, which conducted the initial investigation.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the Civil Rights Division’s Disability Rights Section, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Crawford County Couple Sentenced to Prison for Committing Identity Theft, Bank FraudRead the Press Release
BENTON, Ill. – An Oblong man and a Robinson woman were sentenced to prison in a U.S. District Court this week after admitting to breaking into vehicles, stealing checks and IDs and committing identity theft in order to fraudulently obtain thousands of dollars from banks.
Zachary Patrick, 31, and Briana Blair, 31, each pled guilty to one count of conspiracy to commit financial institution fraud and one count of aggravated identity theft. Patrick received a 60-month sentence with an additional five years of supervised release, and Blair received a 25-month sentence with an additional three years of supervised release.
“Committing identity theft threatens the financial security of victims,” said U.S. Attorney Rachelle Aud Crowe. “This couple disregarded the lives they were hurting, and I commend our law enforcement partners and investigators for bringing justice to the affected families.”
“FBI Springfield extends our appreciation to the Oblong Police Department and the Clay County Sheriff’s Office for their excellent work which laid the foundation for significant charges in this case,” said Springfield Field Office Acting Special Agent in Charge Shannon Fontenot. “These sentences provide some justice for victims whose lives were turned upside down by criminals who stole personal information and used it for their own gain with no regard for the consequences of their actions.”
According to court documents, the couple stole checks and personal identifying information from multiple victims often by breaking into vehicles. The pair then used the victims’ information to write and deposit fraudulent checks, forge signatures and withdraw thousands of dollars as they traveled around eastern Illinois and western Indiana. In addition, they opened a bank account using one victim’s stolen information.
The pair was apprehended in a hotel parking lot in Brazil, Indiana, while breaking into a vehicle. Initially, the pair identified themselves to law enforcement using two of the identities they had previously stolen, but eventually admitted to their true identities. Law enforcement officers recovered several stolen IDs, credit cards and documents with financial information from victims.
The sentencing judge noted the severity of committing identity theft and highlighted the devastating impact and ongoing consequences for victims.
The FBI-Springfield led the investigation with assistance from the Clay County Sheriff’s Office and the Oblong Police Department. Assistant U.S. Attorney Peter Reed prosecuted the case.
Convicted Felon Sentenced for Possession of Pistols, Ammunition, and Machine Gun Conversion DeviceRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 92 months in prison for his illegal possession of firearms, including a machine gun conversion device, and ammunition as a convicted felon.
According to court documents, on July 14, 2021, Marquis Bonhomme, 23, was arrested by the Richmond Police Department (RPD) during a traffic stop, in which officers discovered that Bonhomme had outstanding arrest warrants. Prior to leaving the arrest scene, RPD officers observed a firearm magazine in plain view inside of Bonhomme’s vehicle and obtained a state search warrant.
A search of Bonhomme’s vehicle revealed a loaded Glock, Model 26, 9mm semi-automatic pistol; a Glock “switch” conversion device, which renders a pistol fully automatic when inserted to the rear of the firearm; a loaded Century Arms International, VSKA, 7.62 caliber, semi-automatic pistol, with a 35 round magazine; a 50 round drum magazine; and assorted 7.62 caliber and 9mm caliber ammunition. Federal agents later applied for and obtained a federal search warrant for Bonhomme’s Instagram accounts, which revealed numerous photographs of Bonhomme possessing other firearms, photographs and discussions related to Glock “switch” conversion devices, and his active involvement in illegal marijuana trafficking
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Christopher Amon, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Division; and Richmond Police Department Acting Chief of Police Richard Edwards, made the announcement after sentencing by U.S. District Judge Hannah M. Lauck.
Assistant U.S. Attorney Erik S. Siebert 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. 3:22-cr-62.
Construction Company Owner Sentenced for Fraud in Securing Millions of Dollars in Contracts Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
The owner of several companies in the construction industry was sentenced to 27 months in prison and ordered to pay a $1.75 million fine for his role in a long-running scheme to defraud the United States.
Following a six-day trial in the U.S. District Court for the Western District of Texas in June 2022, a jury convicted Michael Angelo Padron of conspiracy to defraud the United States and wire fraud for his role in obtaining valuable government contracts under programs administered by the Small Business Administration (SBA). The evidence showed that Padron conspired with others to install a service-disabled veteran as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Padron, along with his business partners, exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control in order to secure over $240 million in government contracts that were set aside for SDVOSBs and other small businesses in order to benefit their larger, nonqualifying businesses.
“The sentence reflects the seriousness of the offense and the long-running nature of the scheme,” said Acting Deputy Assistant Attorney General for Criminal Enforcement Marvin Price of the Justice Department’s Antitrust Division. “The Antitrust Division and its Procurement Collusion Strike Force remain committed to holding executives accountable when they choose to defraud federal procurement programs.”
“Conspiring to fraudulently use SBA program funds intended for service-disabled veteran’s is reprehensible,” said Special Agent in Charge Sharon Johnson of the Small Business Administration Office of Inspector General (SBA-OIG), Central Region. “This sentence demonstrates that those that defraud the nations vital economic programs will be held accountable. I want to thank the Antitrust Division and our law enforcement partners for their dedication and pursuit of justice.”
“Today's sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in our pursuit of those who choose to defraud the government," said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office. “We have a very robust group of highly-trained special agents and analysts who are masters at combating and uncovering fraud, deception, and other criminal acts associated with government contracting and purchasing.”
“A level playing field is vital to the procurement process,” said Special Agent in Charge Jamie Willemin of the General Services Administration Office of Inspector General (GSA-OIG) Southwest and Rocky Mountain Division. “Today’s sentencing signifies GSA OIG’s commitment to aggressively investigate fraudulent business practices that cheat legitimate small businesses and the taxpayer.”
“The VA-OIG is committed to identifying and stopping those individuals who misappropriate an opportunity meant solely for our nation’s veterans with disabilities,” said Acting Special Agent in Charge Patrick Roche of the Department of Veterans Affairs Office of Inspector General’s (VA-OIG) South Central Field Office. “The VA-OIG thanks the Department of Justice and our law enforcement partners for their joint efforts to achieve justice in this case.”
The Antitrust Division’s Washington Criminal II Section prosecuted the case, which was investigated by SBA-OIG, U.S. Army CID Major Procurement Fraud Unit, VA-OIG, DCIS, and GSA-OIG. The U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency also assisted with the investigation.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
Church Point Man Sentenced for Trafficking NarcoticsRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that a drug trafficker from Church Point, Louisiana, has been sentenced in federal court. United States District Judge David C. Joseph sentenced Ricky James Shepheard, 43, to 120 months in prison, followed by 3 years of supervised release, for possession with intent to distribute methamphetamine.
According to evidence presented to the court, law enforcement agents with the U.S. Drug Enforcement Administration (DEA) executed a search warrant on Shepheard’s residence in Church Point on June 3, 2021. During their search, agents seized methamphetamine, heroin, and a large quantity of cash, as well as six firearms.
Shepheard pleaded guilty to a charge of possession with intent to distribute methamphetamine on September 27, 2022 and admitted that he possessed 805 grams of a mixture of substance containing a detectable amount of methamphetamine, as well as 230 grams of marijuana, 205 grams of synthetic marijuana, 10 grams of suspected heroin, and 7 Gabapentin pills. Shepheard also possessed 145 grams of an unknown white powdery substance and 130 grams of an unknown brown substance.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney John W. Nickel.
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Chinese Citizen Charged with Interstate Transportation of Stolen PropertyRead the Press Release
ALBANY, NEW YORK – Wu Feng Zhang, age 53, a Chinese citizen residing in the Town of Colonie, New York, has been charged by criminal complaint for transporting stolen property across state lines.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
The criminal complaint alleges that between June and December 2022, Zhang stole merchandise from home improvement stores in states including Pennsylvania, South Carolina, North Carolina, Georgia, Florida, and New York, and transported those stolen items to his residence in Colonie. On January 11, 2023, HSI searched his residence in Colonie and found more than $100,000 in merchandise stolen from home improvement and other stores. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Zhang appeared on January 12, 2023, in Albany, before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending trial.
HSI, with assistance from the Colonie Police Department, the Albany County Sheriff’s Office, and the Saratoga County Sheriff’s Office, is investigating the case. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
CPA Pleads Guilty to Conspiring to Promote Fraudulent Tax Shelter SchemeRead the Press Release
A Florida CPA pleaded guilty in the District of New Jersey today to conspiring to sell fraudulent tax deductions disguised as charitable deductions to high-income clients.
According to the Information and other court documents and statements made in court, Ralph B. Anderson of Naples, Florida, promoted and sold fraudulent syndicated conservation easement tax shelters that allowed high-income clients to buy tax deductions to illegally shelter their income from taxes. These illegal tax shelters facilitated high-income taxpayers in claiming inflated charitable contribution tax deductions in connection with the donation of a conservation easement over land. Between 2013 and 2019, while working as a CPA, Anderson, along with others, promoted and helped sell such fraudulent syndicated conservation easement tax shelters. To carry out the scheme, the conspirators obtained falsely inflated appraisals in order to achieve the desired amount of tax deductions. Anderson was paid more than $300,000 in commissions for his promotion and sale of the tax shelters. He also was given “free units” he could use to take false deductions for charitable contributions on his own tax returns. As a part of his guilty plea, Anderson admitted his conduct resulted in a loss of nearly $3.5 million.
Anderson is scheduled to be sentenced on June 7, 2023, and faces a maximum penalty of five years in prison for conspiring to defraud the United States. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Christopher Magnani and Richard Rolwing of the Tax Division are prosecuting the case.
Burrillville Man Admits to Illegally Possessing More Than 200 Firearms, Making False Statements on ATF Firearm Purchase FormsRead the Press Release
PROVIDENCE – A Burrillville man admitted today to a federal judge that he was an unlawful user of controlled substances, including cocaine, when he purchased and possessed more than 200 firearms, and that he made false statements when purchasing the firearms, claiming on the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) forms that he was not an unlawful drug user, announced United States Attorney Zachary A. Cunha.
During a routine review of multiple sales reports of firearms in the fall of 2018, ATF learned that Ronald Andruchuk, 38, purchased 169 firearms between July 2021 and November 2021. Agents began to investigate further to ensure that the purchaser was not involved in illegal firearms-trafficking activities. During that review, agents learned that Andruchuk had previous contact with Cranston Police Department, during which he admitted being a medical marijuana user; during later contact with the Cranston Police when he was arrested on controlled substance offenses, Andruchuk admitted to having a substance abuse problem.
Further investigation determined that in December 2021 two firearms, as well as drugs, and other items were located in the drop ceiling of a bathroom inside a Millbury, MA, retail store shortly after Andruchuk vacated the restroom. Both firearms were traced to Andruchuk as the purchaser, who did not have a license to carry a firearm in Massachusetts.
ATF also reviewed ATF Firearm Transaction Records that Andruchuk filled out on November 17, 2021 and December 11, 2021 when attempting to purchase firearms at two different gun stores in Rhode Island and discovered that he had falsely claimed that he was not “an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance."
On February 24, 2022, Burrillville Police were called to Andruchuk’s home to investigate reports of shots fired; this was the ninth such complaint the Department had received. As police arrived, numerous gunshots could be heard – with some passing overhead of responding officers. Andruchuk was found to be wearing a bulletproof vest and was carrying four firearms and methamphetamine. Burrillville Police arrested him on a state arrest warrant for Firing in a Compact area at that time. At the same time, ATF agents executed a federal search warrant at Andruchuk’s home and seized more than 200 unsecured firearms from the residence, in addition to various controlled substances.
Andruchuk today pleaded guilty to two charges of making a false statement of material fact during a firearm purchase and possession of a firearm by an unlawful user of a controlled substance. He is scheduled to be sentenced on April 17, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to a plea agreement filed with the court, Andruchuk will forfeit all of the 219 firearms seized by ATF and Burrillville Police which included an AR-style privately-made firearm and a drilled lower receiver with functioning trigger assembly, in addition to assorted firearm magazines and accessories and approximately 25,390 (1,555.8lbs) rounds of assorted boxed and loose ammunition of various calibers. The forfeited firearms and ammunition will be destroyed.
The case is being prosecuted by Assistant United Sates Attorney Ronald R. Gendron.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Burrillville Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Bronx Man Convicted in Connection with June 2022 Shooting of Man in ElevatorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of STEPHEN SIMMONS, a/k/a “S-Dot,” for possessing ammunition that he used to shoot a man in the leg on June 16, 2022. The jury convicted SIMMONS following trial before U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “Stephen Simmons possessed ammunition in furtherance of a violent shooting in the elevator of a residential apartment building. Residents of the Bronx should rest easier tonight knowing that this dangerous recidivist is off the streets.”
According to the allegations contained in the Indictment and the evidence presented during the trial:
On June 16, 2022, SIMMONS chased a man into the elevator of a large apartment building in the Bronx. SIMMONS stood just feet away and fired his gun into the elevator while three individuals stood trapped inside. SIMMONS’s shot hit the victim in the leg, and the victim was thereafter transported to the hospital for emergency medical attention. SIMMONS fled the scene and was subsequently arrested on July 22, 2022.
At the time of the June 16, 2022, shooting, SIMMONS had been previously convicted of a felony.
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SIMMONS, 37, of the Bronx, New York, was convicted of one count of being a felon in possession of ammunition, which carries a maximum penalty of 10 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. SIMMONS is scheduled to be sentenced by Judge Caproni on May 9, 2023.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, and Task Force Officers assigned to the United States Attorney’s Office.
The case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jamie Bagliebter, Courtney Heavey, and Lindsey Keenan, with the assistance of Paralegal Specialist Isabel Loftus, are in charge of the prosecution.
Bristol Man Facing Federal Charges After Threatening Incident at Federal CourthouseRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Anthony Lombardo, 44 of Bristol, PA has been charged by criminal complaint and warrant with attempting to murder and forcibly assault, intimidate, and interfere with, a federal law enforcement officer. Lombardo remains hospitalized and in federal custody.
This case is being investigated by the FBI’s Philadelphia Division and the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Justin Ashenfelter.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bridgeport Man Sentenced to More Than 3 Years in Federal Prison for Gun OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LAMAIN HEARD, 33, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for a federal firearm offense.
According to court documents and statements made in court, June 15, 2021, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department investigating gang-related violence and the potential for a retaliation shooting attempted to stop a car in Bridgeport. The law enforcement vehicles had activated their lights and sirens, and officers exiting the vehicles wore vests bearing the letters “FBI” and “POLICE.” Instead of stopping, the car drove at the federal law enforcement officers and their vehicles, crashing into three different law enforcement officers’ vehicles and into a civilian motorist. One officer fired into the car as it headed toward the officer, causing the car to veer into another law enforcement vehicle and, ultimately, to crash into a pole. Heard, who was a passenger in the car, dropped a semiautomatic pistol in the car and then attempted to flee the scene before he was apprehended. Subsequent forensic analysis of the firearm revealed that it contained Heard’s DNA.
Heard has previously been convicted of a felony offense and he attended a Project Safe Neighborhoods presentation at which he was informed that a felon caught with a firearm could be prosecuted in federal court.
Heard has been detained since his federal arrest on January 21, 2022. On June 2, 2022, he pleaded guilty to unlawful possession of a firearm and ammunition by a felon.
The driver of the car has been with assaulting, resisting, or impeding federal officers, and is awaiting trial. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale. the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Boston Man Arrested for Engaging in Murder-for-Hire Targeting His Wife and Her BoyfriendRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged in connection with allegedly attempting to hire a contract killer – who was actually an undercover federal agent – to murder his wife and the wife’s boyfriend.
Mohammed Chowdhury, 46, was charged by criminal complaint with one count of murder-for-hire. Following an initial appearance in federal court in Boston yesterday, Chowdhury was detained pending a detention hearing scheduled for Jan. 20, 2023.
According to the charging documents, in November 2022, an individual notified federal law enforcement that Chowdhury was soliciting assistance in having his wife murdered. The individual said that Chowdhury had allegedly paid someone to conduct the murder for hire, but that they took the money and did not follow through with Chowdhury’s request. It is alleged that Chowdhury subsequently told the individual that he needed the murder done as soon as possible and that he would get the money to do so, even robbing a store if necessary to obtain the funds. The individual provided Chowdhury’s phone number to law enforcement, who thereafter used an undercover agent posing as a contract killer to communicate with Chowdhury about his alleged murder for hire plot.
It is alleged that on numerous occasions in December 2022 and January 2023, Chowdhury met with undercover agents posing as the contract killer and their associates, to seek help with killing his wife and her new boyfriend whom she left him for. It is alleged that during these meetings and communications, Chowdhury explained that his wife wouldn’t let him see his children and that he wanted the undercover agents to rob and beat his wife and her boyfriend so that he would not be a suspect. Chowdhury allegedly asked the agents, “So how we gonna disappear his, uh, body?” and stated, “No evidence. No evidence. No evidence from like, you know, that, uh, I did something, you know?” Chowdhury allegedly provided the undercover agents with photographs of his wife and her new boyfriend, where they lived, where they worked and their work schedules. It is alleged that Chowdhury ultimately agreed to pay $4,000 per murder, with a deposit of $500.
Chowdhury met with the undercover agents yesterday morning, allegedly provided the $500 deposit and confirmed that he wanted the murders committed. Chowdhury was then taken into federal custody.
In October 2019, Chowdhury was charged in Boston Municipal Court with violating an Abuse Prevention Order prohibiting him from abusing, contacting, or coming within a certain distance of his wife. Chowdhury pleaded to sufficient facts and received a continuance without a finding.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Boston Police Department provided valuable assistance with the investigation. Assistant U.S. Attorneys Luke A. Goldworm and John T. Dawley of Rollins’ Criminal Division are prosecuting the case.
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.
Blytheville Man Sentenced to Eight Years in Federal Prison After Stealing Identities and CreditRead the Press Release
LITTLE ROCK—A Blytheville man’s pattern of identity theft and fraudulent credit applications will result in him spending more than eight years in federal prison. Palmer Stubblefield, 41, was sentenced today to 102 months in prison for stealing identifying information and using it to apply for more than $148,500 in fraudulently obtained credit. United States District Judge Lee P. Rudofsky handed down the sentence.
Since 2019, law enforcement had been investigating Stubblefield for multiple fraudulent credit cards, lines of credit, and bank accounts that used the personal information of more than 139 victims. Many of the fraudulent credit cards were through Military Star (Milstar), which is owned and operated by the Army and Air Force Exchange Service. In 2020, investigators interviewed a victim who was able to identify Stubblefield as the person responsible for his identity theft. The investigation revealed approximately $148,500 in losses to the various victims.
In July 2021, Stubblefield was indicted by a federal grand jury with 13 counts, including three counts of falsely representing a social security number, three counts of aggravated identity theft, four counts bank fraud, two counts of theft or receipt of stolen mail, and one count of access device fraud. In September 2022, Stubblefield pleaded guilty to access device fraud in exchange for dismissal of the remaining counts.
In addition to the prison sentence, Judge Rudofsky sentenced Stubblefield to three years of supervised release and ordered him to pay $147,500 in restitution. There is no parole in the federal prison system.
The case was investigated by the Defense Criminal Investigative Service, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Air Force Office of Special Investigations, U.S. Department of Labor Office of Inspector General, Little Rock Police Department, and Craighead County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Edward Walker.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Belgrade man sentenced to five years in prison for attempted transfer of obscene material to minorRead the Press Release
MISSOULA — A Belgrade man who admitted to attempting to send obscene images to a minor during an undercover investigation was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Aric Collin Normile, 42, pleaded guilty in September 2022 to attempted transfer of obscene material to a minor.
U.S. District Judge Dana L. Christensen presided.
The government alleged that during an undercover investigation in January 2022, law enforcement posed on social media as an uncle offering for others to have sex with his 12-year-old niece. Normile responded, agreeing to meet for the purpose of having sex with the minor girl and sending the undercover officer an explicit image of himself. After the undercover officer and Normile agreed to a meeting location, law enforcement arrested Normile when he arrived. Normile attempted to flee, but law enforcement deployed a flash bang grenade and blocked the exit of the meeting location.
Assistant U.S. Attorneys Wendy A. Johnson, Cyndee L. Peterson and Ryan G. Weldon prosecuted the case, which was investigated by the FBI, Montana Division of Criminal Investigation, Montana Internet Crimes Against Children Task Force, the FBI Child Exploitation and Human Trafficking Task Force, Gallatin County Sheriff’s Office and Bozeman Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Armed, Drug-Dealing Felon Sentenced to 16 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Eugene Theard, 45, of Indianapolis, was sentenced to 16 years in federal prison for distributing methamphetamine and possessing five firearms in furtherance of drug trafficking.
According to court documents, on May 11, 2021, Eugene Theard became a target of a Drug Enforcement Administration (DEA) investigation after he sold 221 grams of a substance containing methamphetamine to another individual for $2,300.
On June 3, 2021, Theard made a deal to sell another 111 grams of methamphetamine for $1,400. At the time of this transaction, Theard was on parole for domestic battery and failure to return to lawful detention. Following the June 3 drug deal, parole agents with the Indiana Department of Correction conducted a compliance visit at Theard’s motel room in Indianapolis. The parole agents found 382 grams of methamphetamine and five firearms. Theard admitted to DEA agents that he intended to sell the drugs and possessed the guns to protect his drugs and profits.
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
“Armed trafficking of deadly drugs drives violence and fuels substance use disorders,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “These crimes are even more unacceptable when committed by a felon who is still on parole, and clearly has not learned his lesson. I commend the outstanding work of the DEA, IMPD, ATF, and IDOC to take deadly drugs, deadly weapons, and another dangerous trafficker off our streets.”
DEA investigated this case. The Indianapolis Metropolitan Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Indiana Department of Correction provided valuable assistance. The sentence was imposed by U.S District Court Judge James R. Sweeney. Judge Sweeney also ordered that Theard be supervised by the U.S. Probation Office for 4 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this 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.
Amazon Cited by OSHA Based on SDNY Referrals for Serious Violations That Exposed Workers to Safety HazardsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Douglas L. Parker, Assistant Secretary of Labor for Occupational Safety and Health, announced that earlier today the United States Department of Labor’s Occupational Safety and Health Administration (“OSHA”) issued citations for three facilities to AMAZON.COM SERVICE LLC (“AMAZON”) arising out of referrals received from the United States Attorney’s Office for the Southern District of New York (the “Office”).
These citations are for serious violations of Section 5(a)(1) of the Occupational Safety and Health Act (“OSH Act”) for AMAZON’s failure to furnish a place of employment which was free from recognized hazards that were causing or likely to cause death or serious physical harm to employees. Specifically, the citations explained that employees at three AMAZON facilities were exposed to ergonomic hazards which put them at high risk for lower back injuries and other musculoskeletal disorders (“MSDs”). These hazards resulted from the high frequency with which workers are required to lift packages and other items; the heavy weight of the items; awkward postures, such as twisting, bending, and long reaches while lifting; and long hours required to complete assigned tasks. These facilities are located in New Windsor, New York, Waukegan, Illinois, and Deltona, Florida. Additionally, at the Deltona, Florida, warehouse, OSHA also cited AMAZON for exposing workers to the hazard of being struck by falling boxes with merchandise.
U.S. Attorney Damian Williams said: “Amazon became the nation’s largest online retailer thanks, in no small part, to the hundreds of thousands of Americans who work each year in Amazon’s massive warehouses. Each of these workers has the right to a place of work free from severe safety hazards. These citations are a step toward protecting the hard-working people at Amazon’s warehouses who have been laboring under hazardous conditions. OSHA’s investigation regarding workplace safety hazards at Amazon warehouses continues. And our Office is investigating possible fraudulent conduct designed to hide injuries from OSHA and others. We ask that anyone who has information relevant to this investigation contact the U.S. Attorney’s Office.”
OSHA Assistant Secretary of Labor Douglas L. Parker said: “Each of these inspections found work processes that were designed for speed but not safety, and they resulted in serious worker injuries. While Amazon has developed impressive systems to make sure its customers’ orders are shipped efficiently and quickly, the company has failed to show the same level of commitment to protecting the safety and well-being of its workers. Our hope is that the findings of our investigations inspire Amazon and other warehouses to make the safety and health of their workers a core value.”
These citations arise out of workplace safety inspections at six AMAZON warehouses across the country that OSHA conducted beginning in mid-July and early August of last year in response to referrals received from the Office. OSHA’s investigation at three of AMAZON’s facilities — located outside of Albany, New York, Boise, Idaho, and Denver, Colorado — is ongoing. Per the OSH Act, OSHA has six months from a violation to issue citations. In mid-December, OSHA issued citations for AMAZON’s failure to appropriately log injuries for reporting to OSHA at all six facilities.
The Civil Division of the Office is also investigating worker safety hazards at AMAZON warehouses across the country, as well as whether AMAZON engaged in a fraudulent scheme designed to hide the true number of injuries to AMAZON workers and whether AMAZON made false representations to lenders about those injuries and its safety record to obtain credit.
Members of the public can report workplace safety and injury-related issues at AMAZON warehouses to this Office. Anyone who has information about safety issues — including safety issues related to the pace of work — or a failure to report injuries, or inadequate medical care at AMAZON’s onsite first-aid center or at a clinic recommended by AMAZON can share that information with this Office via the following link: https://www.justice.gov/usao-sdny/webform/sdny-amazon-warehouse-investigation.
The matter is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Jacob Lillywhite, Dominika Tarczynska, Elizabeth J. Kim, and Adam Gitlin are in charge of the investigation.
Alabama Resident Pleads Guilty to a Violation of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that QUINCY WHITE, age 41, and a resident of Mobile, Alabama, pled guilty on January 10, 2023 before United States District Judge Greg G. Guidry to a one-count bill of information charging him with possession with intent to distribute 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
According to court documents, on October 24, 2021, federal and local agencies investigated WHITE in LaPlace, Louisiana. After being arrested, WHITE admitted to purchasing packages of “methamphetamine” from inside a spare tire that was recovered from inside of the vehicle he was driving.
WHITE is scheduled to be sentenced on April 18, 2023. WHITE faces a mandatory minimum sentence of 10 years and up to life imprisonment, a fine of up to $10,000,000, at least five (5) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration, the St. Charles Parish Sheriff's Office, and the St. John Parish Sheriff's Office. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman.
Activity in the United States Attorney's OfficeRead the Press Release
Assault
Chief United States District Court Scott W. Skavdahl sentenced LINDBURG SHONGUTSIE, age 69, of Riverton, Wyoming, for assault, resisting, or impeding a certain officer or employee, to eight months of home confinement with five years of supervised release and payment of a $100 special assessment. On March 4, 2022, Shongutsie assaulted a Bureau of Indian Affairs officer while the federal officer was on duty. The crime was investigated by the Federal Bureau of Investigation, and Assistant United States Attorney Kerry J. Jacobson prosecuted the case. Case No. 22-cr-00039-ABJ
Drug and Firearm Offenses
United States District Court Judge Nancy D. Freudenthal sentenced PETER JAMES HERNANDEZ, age 28, of Cheyenne, Wyoming, for possession with intent to distribute fentanyl and methamphetamine. Hernandez was sentenced to 60 months in prison with seven years of supervised release and was ordered to pay $500 in restitution and a $100 special assessment. The crime was investigated by the Laramie County Sheriff’s Office and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Jonathan C. Coppom. Case No. 22-cr-00085-NDF
United States District Court Judge Alan B. Johnson sentenced JONATHAN QUEEN, age 38, of Torrington, Wyoming, for being a felon in possession of a firearm and possession with intent to distribute methamphetamine, to 87 months’ imprisonment with four years of supervised release, and a $200 special assessment. This crime was investigated by the Gillette Police Department, the Campbell County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Timothy J. Forwood. Case No. 21-cr-00030-ABJ
United States District Court Judge Alan B. Johnson sentenced CHRISTINE DIANE KENNEDY, age 41, of Cheyenne, Wyoming, for manufacturing, distributing, dispensing, and possessing methamphetamine, to 46 months’ imprisonment with three years of supervised release, and ordered her to pay $200 in restitution and a $100 special assessment. The crime was investigated by the Cheyenne Police Department and Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Michael J. Elmore. Case No. 22-00090-ABJ
Chief United States District Court Scott W. Skavdahl sentenced ANDREW DEAN ROGERS, age 59, of Riverton, Wyoming, for possession of a firearm not registered in the National Firearms Registration and Transfer Record, to 48 months’ imprisonment with three years of supervised release and payment of a $5,000 fine and a $100 special assessment. The crime was investigated by the Cody Police Department, the Park County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Timothy W. Gist prosecuted the case. Case No. 22-cr-00082-SWS
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Tuesday 17 January 2023
Youngstown Man Sentenced to Prison for Using False IDs at East Coast CasinosRead the Press Release
PITTSBURGH, PA - A resident of Ohio has been sentenced in federal court to 10 months incarceration and three years of supervised release on his conviction of identity theft, United States Attorney Cindy K. Chung announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Robert Lee Weaver, III, 38, of Youngstown, OH 44509.
According to information presented to the court, in 2017 Weaver used false identifications cards to negotiate counterfeit checks at casinos along the east coast, including Rivers Casino in Pittsburgh.
The Court also ordered restitution totaling $31,050 to be paid to DiTronics Corporation.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Chung commended Homeland Security Investigations and the Pennsylvania State Police for the investigation leading to the successful prosecution of Weaver.
Woman Convicted for Billing Claims as Part of $65 Million Pharmaceutical “Coupon” FraudRead the Press Release
A Dearborn woman was convicted on Friday by a federal jury on charges of conspiracy to commit wire fraud and wire fraud, related to her participation in a multi-year scheme to obtain more than $65 million from numerous pharmaceutical co-pay assistance programs, announced U.S. Attorney Dawn N. Ison.
Joining Ison in the announcement was James A. Tarasca, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation.
A six-day trial, conducted before United States District Judge Nancy G. Edmunds, resulted in the conviction of Suzan Berro, 23. Berro’s sentencing hearing is scheduled for May 1, 2023, where she faces a maximum of twenty years in prison on each count.
According to court documents and evidence presented at trial, Berro, engaged in a conspiracy to submit fraudulent reimbursement claims to numerous pharmaceutical manufacturer’s co-pay assistance programs. These manufacturer-sponsored “coupon” programs exist to assist real patients with the often-high costs associated with name brand prescription drugs. The evidence showed that Berro, who participated in the scheme for nearly a year, was a biller for multiple pharmacies. In that role, she created fake “prescriptions” for fake “patients” by taking addresses from real estate lists, making up names and birth dates, selecting expensive name brand, and then ultimately pairing them with real doctors’ names and credentials. The evidence showed that the conspiracy went to great lengths to make the supposed patients appear real, including ensuring that all three addresses—the real doctor, the fake pharmacy, and the made-up patient—were in close, geographic proximity. However, witness testimony revealed that the majority of pharmacies only existed on paper and never opened to the public, nor even ordered inventory. In total, Berro and her co-conspirators submitted fraudulent claims on behalf of more than 40 pharmacies, totaling over $65 million.
“This was a complicated scheme that abused dozens of programs established to help those who are legitimately unable to afford their medications, said U.S. Attorney Ison. Our office will continue to investigate and unravel these schemes, and will we vigorously pursue those who are responsible.
"The jury's verdict confirms an alarming and unacceptable trend of individuals attempting to exploit segments of the health care system designed to help those who legitimately need prescription assistance," said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The FBI will continue to work with our federal partners to identify fraudsters like this defendant and hold them accountable for their crimes."
The case was led by the FBI with the assistance of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). The case is being prosecuted by Assistant U.S. Attorneys Ryan A. Particka and John K. Neal.
Westwego Woman Charged with Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that PENELOPE PASSERO (“PASSERO”), age 48, of Westwego, Louisiana, was indicted on January 12, 2023 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, from February 2016 to December 2020, PASSERO knowingly accessed and converted approximately $59,320.97 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
On May 17, 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 fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Two Suburban Chicago Police Officers Indicted on Federal Corruption ChargesRead the Press Release
CHICAGO — Two police officers in Phoenix, Ill., conspired to steal cash and drugs from occupants of vehicles during traffic stops in exchange for offering to withhold criminal charges or take other official actions, according to a federal indictment.
Patrol Officer ANTOINE LARRY and Sergeant JARRETT SNOWDEN served on the Phoenix Police Department. An indictment returned Thursday in U.S. District Court in Chicago alleges that Larry and Snowden engaged in a criminal conspiracy from 2020 to 2022. The pair conspired to steal cash, drugs, and other items from vehicle occupants by offering to reduce or withhold criminal charges, decline to tow the vehicles, or release the cars from impoundment, the indictment states. In some instances, Larry and Snowden agreed to sell stolen drugs to a dealer and then split the proceeds amongst themselves, the indictment states. To conceal their thefts, Larry and Snowden falsified police reports so that the reports did not reflect the seized items, the charges allege.
The indictment charges Larry, 46, of Bolingbrook, Ill., with conspiracy, extortion, and attempted extortion. Snowden, 34, of Lansing, Ill., is charged with conspiracy and attempted extortion. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Alexandra Morgan.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge is punishable by a maximum sentence of five years in federal prison, while extortion and attempted extortion are each punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Three Women Sentenced to Probation for Interrupting Oral Arguments at the U.S. Supreme CourtRead the Press Release
WASHINGTON – Two Virginia women and an Arizona woman, who verbally interrupted oral arguments inside the United States Supreme Court, each pleaded guilty January 13, 2023, to a single count of Speeches and Objectionable Language in the Supreme Court Building. The defendants were sentenced to one-year terms of probation with stay-away orders from the U.S. Supreme Court.
According to court documents, on November 2, 2022, the Supreme Court held oral arguments the matter of Bittner v. United States. Emily Archer Paterson, 45, of McLean, VA, Nicole Elizabeth Enfield, 44, of Alexandria, VA, and Rolande Baker, 71, of Tucson, AZ, attended the argument. The women spread out in the courtroom, each sitting in a different area. Once arguments began, defendant Paterson stood up and loudly spoke out against the Court’s decision in Dobbs v. Jackson Women’s Health Organization. Ms. Paterson’s conduct caused the attorney arguing before the Court to stop speaking so that Ms. Paterson could be escorted out of the room. After arguments resumed, Ms. Baker stood up and interrupted the Court in a similar manner. Following her removal, arguments resumed. Finally, Ms. Enfield stood up, causing a third interruption in the case at bar. Each defendant’s conduct required the attorney before the Court to stop his argument so the defendant speaking could be removed from the courtroom.
“The government must be able to conduct its business.” said U.S. Attorney Matthew M. Graves. “Interrupting Supreme Court proceedings, even non-violently and briefly, is not First-Amendment protected activity: it is a crime and must be treated as such.”
Each defendant was charged with one count of the federal misdemeanor offense of Speeches and Objectionable Language in the Supreme Court Building. Each defendant promptly accepted responsibility for her conduct and entered a guilty plea.
Ms. Paterson, Ms. Enfield, and Ms. Baker were sentenced by the Honorable Judge Amit P. Mehta to one year of probation, with an order to stay away from the U.S. Supreme Court building and grounds.
Texas Man Flew Victim to Florida for Commercial Sex, Now Serves Eight Years in Federal PrisonRead the Press Release
AUSTIN, Texas – An Amarillo man was sentenced in federal court here on Thursday to serve eight years in prison and pay $30,000 in restitution for transportation for illegal sexual activity.
According to court documents, Jeremy Walton Hibbler, 37, transported a victim from Texas to Florida and back with the intent that she engage in illegal sexual activity. In addition to his prison sentence, Hibbler was sentenced to five years of supervised release. U.S. District Judge Robert Pitman ordered Hibbler remanded to the custody of the U.S. Marshals immediately after imposing his sentence.
“We, along with our law enforcement partners at all levels, remain focused in doing everything within our power to prosecute these predators and obtain justice for their victims,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “In addition to the Austin Police Department, I thank Austin’s SAFE Alliance and their SAFE CARES service, as well as New Friends New Life in the Dallas area, for providing invaluable support to the survivors of this man’s horrendous crime.”
The Austin Police Department Human Trafficking Unit investigated the case.
Assistant U.S. Attorney Grant Sparks prosecuted the case.
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St. Louis Man Sentenced to 17.5 Years in Prison for Four Armed RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Tuesday sentenced a man from St. Louis, Missouri to 17 ½ years in prison for four armed robberies during one month in the summer of 2020.
Louquincy Carr, 37, pleaded guilty in September to four robbery charges, one charge of being a felon in possession of a firearm and two counts of brandishing a firearm during a robbery. He admitted the armed robbery of the T-Mobile store at 3630 South Grand Boulevard on July 24 and August 4 of 2020, a Boost Mobile store at 3706 South Grand Boulevard on Aug. 14, 2020 and a Wingstop restaurant at 3626 South Grand Boulevard on Aug. 25, 2020.
During the July 24 robbery, Carr poured a bottle of hand sanitizer over the store’s counter and ordered the clerk to take off his shirt and wipe away any fingerprints, according to Carr’s guilty plea. But Carr’s fingerprints were later found by police on the sanitizer bottle.
During the August 14 robbery, he demanded money at gunpoint from two employees, stole cash from the register and took about 15 new cell phones from the store.
The case was investigated by the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jennifer Szczucinksi.
Sioux City Woman Pleads Guilty to Meth ConspiracyRead the Press Release
Kailey Olson, 30, from Sioux City, Iowa, pled guilty January 12, 2023, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Olson admitted that from December 2020 through April 2021, she and others distributed more than 12 kilograms of methamphetamine in the Sioux City area. Olson was an interstate transporter of substantial quantities of methamphetamine and cash in a Texas-based methamphetamine distribution conspiracy. The conspiracy included the importation of liquid (for lab-based methamphetamine conversion) plus traditional vehicle transport of drugs from Texas to Iowa and bulk transport of money to Texas in payment for the drugs.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Olson remains in custody of the United States Marshal pending sentencing. Olson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4067. Follow us on Twitter @USAO_NDIA.
San Antonio Man Sentenced on Multiple Counts Related to Child PornographyRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced in federal court last week to 17 years in prison for cyberstalking, extortion and distribution of child pornography.
According to court documents, Jaycob Andrew Bustamante, 21, had distributed sexually explicit images of a minor. Between January 2021 and September 2021, he created multiple social media accounts posing as the victim, through which he posted the sexually explicit images and sent the child pornography to her friends and family. Over the course of Bustamante’s constant harassment, he repeatedly threatened and stalked the victim through social media, placing her and her family in fear of violence, while demanding more sexually explicit images.
“The defendant in this case extorted and harassed a victim to the point she genuinely felt her life was threatened,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Cyberstalking and online extortion of children and adults is one of the fastest growing crimes. We and our partners are committed to holding accountable anyone who uses the internet and social media to terrorize, extort and stalk their victims.”
“The significant sentence imposed on Jaycob Andrew Bustamante sends a clear message that there are serious consequences for those who exploit children. Bustamante will serve the next 17 years in federal prison for his incomprehensible acts,” said Acting Special Agent in Charge Craig Larrabee of the HSI San Antonio Division. “We remain committed to working with our law enforcement partners to aggressively pursue those who victimize the most vulnerable members of our society, our children.”
HSI and the Texas Office of Attorney General investigated the case.
Assistant U.S. Attorney Bettina Richardson prosecuted 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 U.S. Attorneys’ Offices and 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.justice.gov/psc.
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Salem Man Pleads Guilty to Unlawful Possession of MachinegunsRead the Press Release
CONCORD – Kyle Morris, 23, of Salem, pleaded guilty in federal court today to the unlawful possession of machineguns, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, on February 16, 2022, law enforcement agents executed a search warrant at Morris’ home in Salem. During the search, agents seized multiple firearms, including a Palmetto State Armory rifle and a Brownells Inc. rifle. Both firearms had been converted into machineguns. Evidence obtained during the investigation, including from a search of the defendant’s cellphone, showed that Morris had researched how to convert firearms into machineguns.
Morris is scheduled to be sentenced on April 6, 2023.
The case was investigated by the Federal Bureau of Investigation and New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski.
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Ravenna Man Sentenced to Prison for Cyberstalking, Sextortion, and Attempted Sexual Exploitation of a ChildRead the Press Release
AKRON – A Ravenna man was sentenced today to more than 12 years – or 151 months – in prison and 15 years of supervised release by U.S. District Judge John R. Adams after he pleaded guilty to cyberstalking, attempted sexual exploitation of a child, and interstate communication with intent to extort.
“It takes great courage for victims to come forward and report coercive behavior and predatory tactics to law enforcement,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Because these victims came forward, this defendant was brought to justice, a minor was prevented from further harm, and our communities and children are now safer.”
“This defendant used deceptive tactics to extort and blackmail numerous victims throughout Northeast Ohio and sexually exploited a minor,” said FBI Special Agent in Charge Gregory Nelsen. “The investigative work of the FBI underscores our duty to protect children from monstrous individuals’ determined to control others through manipulation and cyber stalking. We will continue to work closely with our federal, state, and local partners to find, identify, and investigate predatory behavior and bring justice to the victims of these horrendous crimes.”
According to court documents, from November 2019 through September 2021, Andrew John Drabic, 33, of Ravenna, Ohio, gained unauthorized access to the personal social media accounts of several victims in Northeast Ohio, stole images, and blackmailed victims. Court documents describe a deceptive scheme that Drabic used, known as “social engineering,” to gain unauthorized access to his victim's social media accounts and phone numbers.
After gaining access, court documents show that Drabic would then obtain non-public images, written communications, and other sensitive materials. As part of the scheme, Drabic used the images and files he obtained to intimidate victims by threatening to release the sensitive materials publicly. Court documents state that, in some instances, Drabic did follow through on his threats and released the materials.
On January 12, 2022, law enforcement authorities executed a search warrant at Drabic’s address in Ravenna following an investigation into the matter. During the execution of the warrant, numerous computer systems, cell phones, storage accessories, and other electronic devices were seized.
Authorities examined Drabic’s electronic devices and observed multiple sexually explicit messages between Drabic and a minor victim. In these messages, Drabic directed the minor to perform sexual acts and send sexually explicit photographs.
This case was investigated by the Cleveland FBI and the Cleveland, Cuyahoga Falls, Kent, Kent State University, Stow and Tallmadge Police Departments. Investigative assistance was provided by the Akron Police Department, Ravenna Police Department, Cedar Point Police Department, Portage County Sheriff’s Office, and the United States Secret Service.
This case was prosecuted by Assistant U.S. Attorney Christopher J. Joyce.
Pomona Man Who Worked at Group Homes Sentenced to Life in Prison for Producing Sexually Explicit Material of Disabled ChildrenRead the Press Release
SANTA ANA, California – A certified nursing assistant who worked at a Southern California group home for severely disabled patients has been sentenced to life in federal prison for committing multiple child exploitation crimes, including filming himself sexually abusing several severely disabled children at the group home facility, while he was working as their nighttime caretaker, the Justice Department announced today.
Steve Jackson Rodriguez, 38, of Pomona, was sentenced late Friday afternoon by United States District Judge John W. Holcomb, who said at the hearing that Rodriguez’s crimes constituted “unspeakable acts.” Judge Holcomb scheduled a restitution hearing in this case for March 10.
Rodriguez pleaded guilty in September 2022 to two counts of obtaining custody of a minor for the purposes of producing child pornography, five counts of production of child pornography, and one count of enticement of a minor to engage in criminal sexual activity.
From January 2016 to May 2020, Rodriguez produced sexually explicit images and videos with four minor victims, three of whom were severely disabled patients being housed at an Inland Empire group home that employed Rodriguez. One of the disabled victims was 8 years old when Rodriguez began filming his illegal sexual conduct – two years after he began abusing this victim.
“Rodriguez had a duty as medical caregiver was to keep his victims safe and alive, but he instead violated that trust in the most despicable way,” said United States Attorney Martin Estrada. “His abhorrent abuse of disabled children was intolerable and properly sanctioned by the court. This result underscores our office’s determination to zealously prosecute those who commit these sorts of horrific crimes against children.”
“Rodriguez took advantage of our most vulnerable population. The horror he inflicted upon these children was unconscionable. Homeland Security Investigations will stop at nothing, in order to bring people like Rodriguez to justice,” said Eddy Wang Acting Special Agent in Charge Homeland Security Investigations Los Angeles.
In a related matter, during a five-day trial in November 2022, co-defendants Cyr Dino Banguguilan, 36, of Azusa, and Miguel Bocardo, 23, of Baldwin Park, to whom Rodriguez sent the sexually explicit material he made with his victims, each was found guilty of one count of receipt of child pornography and one count of possession of child pornography.
Judge Holcomb scheduled a February 24 sentencing hearing, at which time Banguguilan and Bocardo will face a mandatory minimum of five years in federal prison and a statutory maximum of 20 years in federal prison.
Homeland Security Investigations investigated this matter as part of the Los Angeles Internet Crimes Against Children Task Force. The United States Postal Inspection Service; the FBI; the Baldwin Park Police Department; the Los Angeles County Sheriff’s Department; the Los Angeles Police Department; the Pomona Police Department; and the Burbank Police Department provided assistance.
Assistant United States Attorneys Scott M. Lara and Catharine A. Richmond of the Violent and Organized Crime Section are prosecuting this case.
Pittsburgh Man Admits Robbing Local BanksRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to bank robbery charges, United States Attorney Cindy K. Chung announced today.
Calvin Leavy, 68, pleaded guilty to three counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on Jan. 31, 2022, Leavy entered the First National Bank located at 3721 Forbes Avenue, Pittsburgh, PA 15213, approached the bank employee and attempted to rob the bank, requesting the bank employee provide him with all of the money. Leavy left the bank, however, without receiving any money. Approximately 12 minutes later, Leavy entered the PNC Bank located at 4600 Fifth Ave, Pittsburgh, PA 15213, wearing the exact same clothing and matching the description of the individual that had attempted to rob the First National Bank. Leavy informed the bank employee, “I have a gun. Give me the money.” Leavy took approximately $1,338 from the PNC.
Then, on Feb. 8, 2022, Leavy entered the First National Bank, located at 307 4th Avenue, Pittsburgh, PA 15222, approached the bank employee and stated he had a gun and demanded money. Leavy took approximately $1,238 from the First National Bank.
With the assistance of surveillance footage, investigators determined that Leavy used a Port Authority bus to travel to and from each of the bank robberies and used his bus card to pay for the fare. After tracking Leavy’s movements, investigators located Leavy, wearing the same clothing that he wore for the robbery, and arrested him.Judge Cercone scheduled sentencing for May 16, 2023, at 11:00 AM. The law provides for a total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Calvin Leavy remains in custody.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Calvin Leavy.
Physician Convicted for Misappropriating Approximately $250,000 from COVID-19 Relief ProgramsRead the Press Release
A federal jury convicted a Colorado physician on Friday for misappropriating approximately $250,000 from two separate COVID-19 relief programs.
According to court documents and evidence presented at trial, Dr. Francis F. Joseph, 57, of Highlands Ranch, received government funds for COVID-19 relief from the Accelerated and Advance Payment Program and the Paycheck Protection Program. Each program was designed to provide emergency financial assistance to medical providers and small businesses who were suffering the economic effects resulting from the COVID-19 pandemic. In all, Joseph received approximately $250,000 from these funds and fraudulently used the money to pay for his own personal expenses, and not in accordance with the terms of the relief programs.
Joseph was convicted in the District of Colorado of theft in connection with healthcare and wire fraud. The jury acquitted Joseph of theft of government property related to a separate Covid-relief payment. He faces a maximum penalty of 20 years in prison on the wire-fraud count. A sentencing date has not yet been set.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Curt Muller of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Kansas City Region; and Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region made the announcement.
The HHS-OIG and SBA-OIG investigated the case.
Trial Attorneys Jennifer Bilinkas and John J. Liolos of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat fraud related to the COVID-19 pandemic, particularly with respect to the resources made available by Congress through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for programs including the Paycheck Protection Program, the Economic Injury Disaster Loan program, and the Provider Relief Fund. Since the CARES Act passed, Fraud Section attorneys have prosecuted more than 200 defendants in more than 130 criminal cases related to CARES Act programs and funds. The Fraud Section has also seized more than $80 million in cash proceeds derived from CARES Act-related fraud schemes, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/cares-act-fraud.
In May 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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Organizer of Home-Invasion Robbery Crew Sentenced to 96 Months in PrisonRead the Press Release
Defendant’s Co-Conspirators Sexually Assaulted One Victim Inside Her Home
Earlier today, at the federal courthouse in Brooklyn, Lamonte Johnson was sentenced by United States District Judge Raymond J. Dearie to 96 months’ imprisonment for conspiring to commit robbery and using force and threats in furtherance of robbery, in his role as lead organizer of a home-invasion crew. The sentence will run consecutive to Johnson’s two 20 years-to-life state prison sentences that he was already serving following his conviction for a 1986 double homicide. Johnson was convicted of the federal robbery charges following a one-week jury trial in May 2022. Johnson’s four co-conspirators previously pleaded guilty to related offenses.
Breon Peace, United States Attorney for the Eastern District of New York announced the sentence.
“Lamonte Johnson was not deterred by prison walls from organizing armed home-invasion robberies, but today’s sentence ensures he has been held accountable for these vicious crimes, and that there is justice for his victims,” stated United States Attorney Peace.
Mr. Peace thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York City Police Department for their work leading the investigation.
As proven at trial and detailed in public filings, in March 2019 Johnson was serving consecutive 20 years-to life sentences for two murders in state prison when he organized a robbery crew with the goal of targeting Chinese American victims. Johnson connected his half-brother John Martin with Shi Zhen Lin, a former inmate who Johnson knew from prison. Lin’s role in the conspiracy was to identify Chinese American targets for the crew to rob. Martin recruited other members to join the crew and together they committed or attempted to commit multiple robberies in Queens, Long Island and New Jersey. In May 2019, Corey Mobley, Brandon Daniels, and Martin committed a home-invasion robbery in Little Neck, Queens. During the robbery, Mobley and Daniels held at gunpoint a group of women and children and sexually assaulted one of the victims.
Johnson’s co-conspirators have been sentenced to terms of imprisonment ranging from seven years, for Lin, to 19 years for Mobley.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel and Michael W. Gibaldi are in charge of the prosecution, with assistance from Paralegal Specialist Brittany Wissel.
The Defendant:
Lamonte johnson
Age: 54
Auburn, New YorkDefendants Previously Sentenced
JOHN MARTIN (also known as “Lil John” and “LJ”)
Age: 50
Brooklyn, New YorkBRANDON DANIELS
Age: 28
Brooklyn, New YorkSHI ZHEN LIN (also known as “Kevin Lin” and “Kev”)
Age: 31
Maspeth, New YorkCOREY MOBLEY
Age: 52
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-221 (S-3)
Omak Man Sentenced to 96 Months in Federal Prison for Shooting on the Colville Indian ReservationRead the Press Release
Spokane, Washington – United States District Court Judge Thomas O. Rice sentenced Chance
The Wind Smith, age 32, of Omak, Washington, to 96 months in federal prison for a violent
shooting that took place on the Colville Indian Reservation in September 2021. Judge Rice also
imposed three years of federal supervision upon Smith’s release from custody. Smith pled guilty
to charges of Assault with a Dangerous Weapon in Indian Country and Theft in Indian Country
in August 2022.In announcing the sentence, Judge Rice varied upward from the advisory United States
Sentencing Guidelines range and adopted the United States’ recommendation of 96 months in
federal custody. Judge Rice specifically noted the effects of Smith’s conduct on his victims and
the seriousness of the offense, including that the shooting took place in the presence of small
children.According to court documents and proceedings, on the night of September 11, 2021, Colville
Tribal Police and emergency medical technicians responded to a shooting in Omak, Washington.
A victim had a gunshot wound to his abdomen from a .357 caliber Sig Sauer handgun. The
victim was rushed to the local hospital and had to be life-flighted to Harborview Medical Center
in Seattle for life-saving measures. Several eyewitnesses reported that Smith, who had fled the
scene, shot the victim in the stomach and stole the victim’s Dodge Charger. As Smith was
driving away in the stolen car, he almost ran over a five-year old child. An audio and video
recording of the incident demonstrated that Smith physically assaulted a female witness just
seconds before the shooting and the theft of the victim’s car. Fortunately, the victim survived,
and he continues to recover from the injuries sustained during the shooting.“My office is committed to prosecuting those who commit violence in Indian country,” U.S.
Attorney Vanessa R. Waldref stated. “I’m grateful for all victims and witnesses who come
forward to report crime. When we build trust between law enforcement and members of our
community, we make Eastern Washington safer and stronger.” U.S. Attorney Waldref continued,
“Native Americans experience some of the highest rates of violence in the country, a situation
that is all the more tragic in light of the generations of trauma already suffered by Indigenous
people. The Colville Tribal Police and the FBI did an incredible job of investigating this tragic
crime. We are grateful for the tremendous partnership between the FBI and Tribal law
enforcement, which helped achieve justice for the victim and his family.”“Violence on our state’s Indian Reservations is at an intolerable level,” said Richard A. Collodi,
Special Agent in Charge of the FBI’s Seattle field office. “When you consider the impact Mr.
Smith’s crimes had on children, who were innocent witnesses, this significant sentence is
warranted. I am grateful for the professionalism of our investigators and partners who work these
difficult cases.”The case was investigated by the Colville Tribal Police Department and the Federal Bureau of
Investigation. This case was prosecuted by Richard R. Barker, Assistant United States Attorney
for the Eastern District of Washington.2:21CR00146-TOR-1
Omaha Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Steven Russell announced that James Finley, 38, of Omaha, Nebraska, was sentenced Friday, January 13, 2023, in federal court in Omaha for conspiracy to distribute and possess with intent to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Finley to a term of imprisonment of 220 months. There is no parole in the federal system. After his release from prison, he will begin a 10-year term of supervised release.
In September 2020, the Omaha Police Department began investigating Carla Colliers for distributing methamphetamine in the Omaha-Metro area. On November 12, 2020, a search warrant was executed on Colliers’s residence and officers located approximately 900 grams of methamphetamine. During the execution of the search warrant, Finley arrived at the residence with a bookbag containing 642 grams of pure methamphetamine.
Colliers was sentenced on March 25, 2022, to 186 months’ imprisonment and 10 years of supervised release.
This case was investigated primarily by the Omaha Police Department.
Omaha Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Gary Ross, 24, of Omaha, Nebraska, was sentenced on January 13, 2023, in federal court in Omaha for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ross to 61 months of 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 August 28, 2020, officers conducted a search warrant at Ross’s Omaha apartment. Officers located approximately three pounds of marijuana, a 9 mm handgun, a scale, and approximately $15,300. The firearm was in Ross’s bedroom and the marijuana was near it in a duffel bag. Per the plea agreement, the $15,300 was forfeited.
This case was investigated by the Federal Bureau of Investigation, Safe Streets Task Force, Omaha Police Department.
Ohio Man Pleads Guilty to Trafficking Cocaine from a Butler ApartmentRead the Press Release
PITTSBURGH, PA -- A former resident of Columbus, Ohio, pleaded guilty in federal court to charges of violating federal narcotic laws, United States Attorney Cindy K. Chung announced today.
Keith Massey, age 40, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between May 2018 and December 2018, the Pennsylvania Office of Attorney General and Butler County Drug Task Force conducted an investigation into Keith Massey and Marshall Grimes, a known drug dealer from Columbus, Ohio, who was operating in Butler, Pennsylvania. Throughout the investigation, law enforcement conducted several controlled purchase operations from Massey out of an apartment in Butler. On Dec. 11, 2018, law enforcement recovered approximately 200 grams of cocaine, digital scales, and indicia for Massey in the apartment.
Judge Cercone scheduled sentencing for May 23, 2023, at 11:00 am. The law provides for a term of imprisonment not more than 20 years, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Massey on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania Office of the Attorney General and Butler County Anti-Drug Task Force conducted the investigation that led to the prosecution of Massey.
Ohio Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Timothy Edwin Payne Jr., 41, of Belpre, Ohio, pleaded guilty today to conspiracy to possess with intent to distribute 100 grams or more of a fentanyl analogue.
According to court documents and statements made in court, on April 4, 2022, Payne arranged for a package containing approximately 1 kilogram of a fentanyl analogue to be shipped through the United States Mail from California to an apartment in Parkersburg, West Virginia. Payne paid the apartment’s resident more than $1,000 to receive and hold the package for Payne.
Law enforcement officers intercepted the package before it arrived at the apartment, and replaced the fentanyl with a sham substance and a tracking device before the package was delivered to the apartment. Payne tracked the package’s delivery using his mobile phone, and went to the apartment when the package arrived there on April 8, 2022. When Payne opened the package, law enforcement officers knocked on the apartment door. Payne attempted to flee but was arrested.
Payne is scheduled to be sentenced on May 9, 2023, and faces a mandatory minimum of 15 years and up to life in prison, 10 years and up to a lifetime of supervised release, and a $20 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the Drug Enforcement Administration (DEA), the Parkersburg Narcotics Task Force, and the Parkersburg Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Jeremy B. Wolfe and Andrew D. Isabell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-108.
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Oakland Man Sentenced to 16 Months in Prison for Multi-Million Dollar Fraud Targeting Foreign InvestorsRead the Press Release
OAKLAND - Thomas Henderson was sentenced today to 16 months in prison for making a false statement to the U.S. Citizenship and Immigration Services (USCIS) and for his role in a conspiracy to defraud foreign investors who were investing in Oakland-based businesses as a means to obtain permanent U.S. residency announced United States Attorney Stephanie M. Hinds; U.S. Department of State’s Diplomatic Security Service (DSS) Special Agent in Charge William Chang; Homeland Security Investigations Special Agent in Charge Tatum King; and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by Chief United States District Judge Richard Seeborg.
Henderson, 72, of Oakland, pleaded guilty to the charges on July 21, 2021. According to his plea agreement, Henderson admitted he formed the San Francisco Regional Center, LLC (SFRC) in 2010 to raise money from foreign investors through the “EB-5” visa program, a job-creation and immigration program administered by U.S. Citizenship and Immigration Services (USCIS). Under the USCIS program, foreign nationals may obtain permanent United States residency, commonly known as a Green Card, by investing in qualifying U.S. businesses and creating jobs for U.S. citizens and residents. To receive a two-year grant of conditional permanent residency status, foreign investors must meet certain requirements for an entry visa, comply with program requirements and make an investment of a minimum of $1 million, or $500,000 if the investment is made in certain areas of high unemployment. After two years, the foreign investor and immediate family can petition for permanent residency after meeting program requirements, including the creation of at least 10 jobs for United States citizens and residents through the business funded by the investment.
From 2011 to 2017, SFRC raised more than $100 million from foreign investors for seven commercial enterprises approved under the EB-5 program. In his plea agreement, Henderson admitted that he conspired with his business associate, Cooper Lee, and others to defraud investors who sought to avail themselves of the EB-5 program. Specifically, Henderson admitted that by at least the middle of 2014, SFRC began using investor funds for purposes and projects other than the specific enterprise corresponding to the investment, and that investors were not specifically told that their investment funds would be or were used for those purposes. For example, Henderson admitted that funds raised from 42 investors for the enterprise North America 3PL LP were used for other projects and businesses, including to fund the operation of earlier struggling projects. Henderson also admitted that he made false statements to USCIS when he submitted a declaration to the agency regarding the use of North America 3PL investor funds.
Lee also pleaded guilty to participating in the conspiracy. According to Lee’s plea agreement, from about August 2016 to January 2017, Lee conspired with Henderson to divert some funds raised for the EB-5 enterprise operating as California Gold Medal LP to other EB-5 enterprises and businesses controlled by Henderson. Lee admitted that he transferred funds and prepared documents to make it appear that the transfers were for legitimate business transactions.
On August 15, 2019, a federal grand jury indicted Henderson and Lee, charging both with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. In addition, Henderson was charged with 12 counts of wire fraud, in violation of 18 U.S.C. § 1343; conspiracy to commit offenses against the United States, in violation of 18 U.S.C. § 371; making a false statement to a government agency, in violation of 18 U.S.C. § 1001(a)(2); and making false writings to a government agency, in violation of 18 U.S.C. § 1001(a)(3). Lee, in addition to being charges with conspiracy, also was charged with six counts of wire fraud.
Pursuant to Henderson’s plea agreement, he pleaded guilty to the conspiracy to commit wire fraud count and the false statements count. The remaining counts against Henderson were dismissed at sentencing. In addition to the prison term, Judge Seeborg also ordered Henderson to serve three years on supervised release. Restitution will be determined at a later date.
On July 21, 2021, Lee pleaded guilty to the conspiracy count and on April 26, 2022, Judge Seeborg sentenced Lee to serve three years’ probation and to pay $20,000 restitution to a receiver appointed by the court in a separate action to recover assets for the victim investors. The remaining counts against Lee were dismissed.
Assistant U.S. Attorneys Lloyd Farnham is prosecuting the case, with the assistance of Patricia Mahoney. The prosecution was the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by the HSI, with the participation of the Federal Bureau of Investigation. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Additional assistance was provided by the San Francisco Regional Office of the Securities and Exchange Commission.
New Hampshire Man Pleads Guilty to Using Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A New Hampshire man has pleaded guilty to his role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards.
Ricardo Acevedo, 34, of Manchester, N.H., pleaded guilty on Jan. 13, 2023 to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 27, 2023.
The defendant and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020. In a coordinated multi-jurisdictional effort, the defendant was also charged in the State of New Jersey, and others involved in the scheme were also charged there, in the District of New Jersey, the Northern District of Ohio, and the Eastern District of Pennsylvania.
According to charging documents, between October 2017 and January 2019, Acevedo visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, Acevedo provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. Acevedo used the stolen identities to illegally open bank accounts and credit cards and to purchase vehicles, many of which were exported out of the United States. In total, Acevedo used stolen identities to obtain car loans and purchase three cars worth $90,582, collectively.
The charges of wire fraud and conspiracy to commit 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 from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five 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; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Rollins’ Criminal Division are prosecuting the case. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nashua Man Sentenced to 72 Months for Possession of Methamphetamine and Fentanyl with Intent to Distribute and Carrying a Firearm While Dealing DrugsRead the Press Release
CONCORD – David Lamoureux, 34, of Nashua was sentenced today to 72 months in federal prison for two counts of possession with intent to distribute methamphetamine and fentanyl, and for possessing a firearm in furtherance of drug trafficking, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, on May 18, 2021, Hudson Police Detectives initiated a vehicle stop to execute an arrest warrant for Mr. Lamoureux. Upon interacting with officers, Mr. Lamoureux continuously placed his hand in a front pocket despite repeated orders not to do so. When he removed his hand, it was covered in powder. Mr. Lamoureaux admitted the powder was “dope.” During the booking process, detectives preserved the drugs by cutting the pocket from his pants. A search of Lamoureux’s person also revealed baggies of powder stuffed in his socks. A lab test confirmed the drugs to be fentanyl. A subsequent search of his car yielded scales, and roughly 20 grams of methamphetamine and additional fentanyl. A search of his cell phone revealed various texts evidencing his drug trafficking.
Later, on October 6, 2021, Nashua Police Detectives conducting surveillance observed Mr. Lamoureux ride into a parking lot on a motorcycle, approach a building known for drug activity, and return to the lot accompanied by two known drug users. Law enforcement officers detained Mr. Lamoureux and searched him, whereupon they discovered three baggies of methamphetamine, two baggies of fentanyl, a digital scale, $362 in cash, and a stolen firearm in his backpack. Evidence from his phone revealed he had been involved in dealing drugs for months.
“Criminals who carry guns and deal drugs pose a dual threat to the safety of our communities: with the deadly drugs they traffic coupled with the actual threatened violence they use in conducting drug deals,” said U.S. Attorney Young. “Due to the efforts of the Nashua and Hudson Police Departments, the defendant was stopped in his tracks attempting to distribute dangerous narcotics while carrying a stolen gun. His conduct certainly warrants the significant sentence imposed by the court.”
This matter was investigated by the Hudson and Nashua Police Departments. The case was prosecuted by Assistant U.S. Attorney Aaron Gingrande.
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Military Contractor Pleads Guilty to Bid RiggingRead the Press Release
A Texas military contractor pleaded guilty on Jan. 12 to rigging bids on public military contracts in the state of Texas.
According to court documents, Aaron Stephens, 53, conspired with others to rig bids on certain government contracts from May 2013 to January 2018 in order to give the false impression of competition and to secure government payments in excess of $17.2 million. The plea agreement detailed six contracting bids that Stephens and his co-conspirators rigged, which included work performed for the Red River Army Depot in Texarkana, Texas. The projects included heavy military equipment work such as refurbishing armor kits for military trucks and turrets for Humvees. One of Stephens’s co-conspirators, John “Mark” Leveritt, pleaded guilty in July 2022.
Stephens pleaded guilty to a violation of Section 1 of the Sherman Act. He faces a maximum penalty of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Middle District of Florida Task Force Continues to Combat COVID-19 FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida’s efforts to combat fraud related to COVID-19. Those efforts have included complementary actions by the Criminal, Asset Recovery, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The Middle District of Florida United States Attorney’s Office remains committed to protecting the integrity of government programs established to provide relief for those impacted by the COVID-19 pandemic,” said U.S. Attorney Handberg. “These cases should serve as a warning to those who might have engaged in similar fraudulent activity that holding those accountable for these crimes remains a high priority for federal authorities.”
On the criminal enforcement front, the United States Attorney’s Office and federal, state, and local law enforcement agencies joined together in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception, the task force has prosecuted 52 individuals for fraud schemes designed to exploit federal programs created or expanded to address the COVID-19 pandemic, including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), and the Emergency Rental Assistance Program (“ERAP”). These individuals collectively sought to defraud the United States of more than $57 million. Thirty-seven of those defendants have been found guilty, while prosecution remains pending against fifteen others. (See chart for criminal case details.)
In one example, U.S. District Judge Wendy W. Berger sentenced Don V. Cisternino (47, Chuluota) to eight years and six months in federal prison for wire fraud, aggravated identity theft, and illegal monetary transaction related to Cisternino’s obtaining more than $7.2 million in emergency funds through a PPP loan to which he was not entitled. Cisternino pleaded guilty on September 20, 2022, after being extradited from Croatia.
In December 2022, U.S. Attorney Handberg announced the unsealing of a six-count indictment charging Canadian citizens Evan Edwards (64, New Smyrna Beach) and Joshua Edwards (30, New Smyrna Beach) with federal offenses related to the CARES Act and visa fraud. According to the indictment, Evan and Joshua Edwards conspired to commit bank fraud and committed bank fraud by submitting a fraudulent PPP loan on behalf of Aslan International Ministry, Inc. (“Aslan”)—a not-for-profit corporation that purportedly provided religious services. In the loan application, the pair significantly overstated the number of employees and average monthly payroll for Aslan, claiming that it had almost 500 employees and over $2 million in average monthly payroll expenses. They also falsely certified in the loan application that the PPP funds would be used to maintain payroll and for other authorized purposes. Based on the false representations made in the loan application, Evan and Joshua Edwards received into their bank account approximately $8,417,200 in PPP loan funds, a portion of which they used to make a down payment for the attempted purchase of a multi-million-dollar residence for themselves.
Further, the Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $16.8 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $9.8 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The Attorney General has 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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Small Business Administration, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, the Federal Reserve Board – Office of Inspector General, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
MDFL COVID Fraud Criminal Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Joseph Abdo (39)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Alexander Leszczynski (22)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$200k
Charles Cunningham (72)
Bank fraud
Maximum Prison Term: 30 years
PPP
$800k
Ellyn Pinkney (60)
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$14M
Kieanna Garrett
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Nicole Bramble-King
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Greg Pizzo, Candace Rich, and Jennifer Peresie
Orlando Division
Evan Edwards (64)
Joshua Edwards (30)
Conspiracy to commit bank fraud
Maximum Prison Term: 30 years
Bank fraud
Maximum Prison Term: 30 years
Visa fraud
Maximum Prison Term: 10 years
False statements
Maximum Prison Term: 30 years
PPP
$8M
Emmet Bowens (53)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
Keith Ingersoll
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
EIDL
$66k
Jaheim Davis
Access device fraud
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$219k
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Kara Wick, Chauncy Bratt, Shannon Laurie, and Amanda Daniels
Jacksonville Division
Jacob Byrd
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
Desmond Williams
Wire fraud conspiracy
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
These COVID Fraud cases from the Jacksonville Division are being handled by AUSA Kevin Frein
Fort Myers Division
Venera Price (45)
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82k
This COVID Fraud case from the Fort Myers Division is being handled by AUSA Yolande Viacava
Ocala Division
Lavelle Harris (36)
Wire Fraud
Maximum Prison Term: 20 Years
PPP
$1.2M
Henry Wade
Wire Fraud
Maximum Prison Term: 20 Years
EIDL
$500k
These COVID Fraud cases from the Ocala Division are being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Jorge Gutierrez Echeverria (33)
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$150k
Keaujay Hornsby (26)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Kareem Spann (27)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Richard Simpkins (47)
Conspiracy to commit bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$1.9M
Steve Moodie (33)
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$1.5M
Marqus Willard Johnson
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 20 Years
PPP
$500k
Omar Esquivel Bello
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$242k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Diego Novaes, Tiffany Fields, Jennifer Peresie, and Greg Pizzo, and DOJ Trial Attorney John Scanlon
Orlando Division
Brian Blake (30)
Possession of device-making equipment
Maximum Prison Term: 15 Years
Access device fraud
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
PPP/UI
$832k
Daniel Johnson (34)
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Unlawful transfer of firearm
Maximum Prison Term: 5 Years
UI
$2.3M
Teresa McIntyre (55)
Conspiracy to commit wire fraud and other offenses
Maximum Prison Term: 5 Years
EIDL
$730k
This COVID Fraud case from the Orlando Division is being handled by AUSAs Chauncey Bratt, Amanda Daniels, Jennifer Harrington, and Dana Hill, and U.S. Attorney Roger Handberg
Fort Myers Division
Daniel Joseph Tisone (34)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 10 Years
Aggravated Identity Theft
Maximum Prison Term: 2 Years Consecutive
Possession of Ammunition by a Prohibited Person
Maximum Prison Term: 10 Years
PPP/EIDL/MSLP
$2.6M
Liliana Gonzalez (31)
Wire fraud
Maximum Prison Term: 20 Years
PPP
$169k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Trent Reichling and Jesus M. Casas
Sentenced Cases
Tampa Division
Louis Thornton, III (63)
Wire Fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson (48)
Corey Quinn (35)
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim (52)
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway (47)
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley (29)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield (39)
Access device fraud, Aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann (25)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones (34)
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo (45)
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
Keith Nicoletta (49)
Conspiracy to commit money laundering
Sentence Imposed: 24 months in federal prison
PPP
$1.9M
Rosenide Venant (37)
Conspiracy to commit money laundering
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$413k
Melinda Hernandez (33)
Conspiracy to commit wire fraud
Wire fraud and aggravated identity theft
Sentence imposed: Three years and six months in federal prison
UI
$1.5M
Briantina Mills
Wire fraud and theft of government funds
Sentence imposed: 15 months in federal prison
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, and SAUSA Chris Poor
Orlando Division
Jacquavius Smith (21)
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache (40)
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison (43)
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys (39)
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban (36)
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
Joel Greenberg (37)
Conspiracy to commit wire fraud and other offenses while on pretrial release
Sentence Imposed: 11 years in federal prison
EIDL
$430k
Don Cisternino (46)
Wire fraud, illegal monetary transactions, and aggravated identity theft
Sentence Imposed: 8 and one half years in federal prison
PPP
$7.2M
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, and Jennifer Harrington, and U.S. Attorney Roger Handberg
Fort Myers Division
Casey Crowther (36)
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey (36)
Amber Bruey (35)
Conspiracy to commit wire fraud, wire fraud, Conspiracy to commit money laundering, Illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson (30)
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
These COVID Fraud cases from the Fort Myers Division were handled by AUSA Trent Reichling and AUSA Jesus M. Casas
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)