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27 February 2023
Landlord and Former Operators of Upstate New York Nursing Home Pay $7,168,000 to Resolve False Claims Act Allegations of Worthless Services Provided to ResidentsRead the Press Release
ALBANY, NEW YORK – The Justice Department, together with the New York State Office of the Attorney General, announced today that the United States and New York State have entered into settlement agreements with the landlord and several individuals and entities involved in the operation of Saratoga Center for Rehabilitation and Skilled Nursing Care (Saratoga Center), a nursing facility in Ballston Spa, New York. Leon Melohn; Alan “Ari” Schwartz; Jeffrey Vegh; Jack Jaffa; 149 Ballston Ave., LLC; Ballston Two, LLC; Saratoga Center for Care, LLC; and Saratoga Care and Rehabilitation Center, LLC (the Settling Parties) collectively agreed to pay $7,168,000 to resolve allegations that they violated the False Claims Act by causing the submission of false claims to the Medicaid program for worthless services provided to residents. Saratoga Center closed in February 2021, after this investigation was initiated.
“This settlement demonstrates the Department of Justice’s ongoing commitment to ensuring that nursing home residents receive the quality of care to which they are entitled,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When individuals or entities put the welfare of these vulnerable residents in jeopardy, they will be held accountable.”
Before issuing a license to operate a nursing home, the New York State Department of Health (NYSDOH) thoroughly reviews, among other things, an applicant’s character and competence to ensure that the operator will provide a consistently high level of care to residents. After a months-long vetting process, in 2014, NYSDOH approved Schwartz and Vegh to operate Saratoga Center with Leon Melohn, through entities he managed and controlled, acting as its landlord (Melohn and his entities are hereinafter referred to as the Landlord). This license vested in Schwartz and Vegh the nondelegable duty to oversee the operations of the home. But in or around early 2017, due to a financial dispute, the Landlord required the legally licensed operators to surrender control of Saratoga Center. The Landlord replaced them with Jaffa and a business associate of his, along with various corporate entities, even though none of them had – and they never obtained – the necessary license from the NYSDOH. Jaffa and his associate undertook all the nondelegable duties that remained the responsibility of Schwartz and Vegh.
These unlicensed individuals operated Saratoga Center from February 2017 until it closed in February 2021. During that period, the United States contends that Saratoga Center delivered worthless services to residents, and its physical conditions deteriorated to such a degree that it violated federal and state regulations. Specifically, the operators failed to adequately staff the home, and residents suffered medication errors, unnecessary falls, and the development of pressure ulcers. Additionally, Saratoga Center did not consistently maintain hot water throughout the facility, have an adequate linen inventory, and dispose of solid waste. In 2019, Saratoga Center was placed on the Centers for Medicare and Medicaid Services Special Focus Facility list – a list of the worst-performing nursing homes in the United States. Saratoga Center remained on the list until its closure.
The United States contends that, between February 2017 and February 2021, the Settling Parties knowingly submitted or caused the submission of false claims for payment to Medicaid for worthless nursing services. This settlement resolves those allegations.
“Nursing homes should protect the health and well-being of every resident,” said U.S. Attorney Carla Freedman for the Northern District of New York. “That did not happen at Saratoga Center. Instead, a business dispute between the operators and landlord led to dangerous conditions for residents and staff, and caused the submission of false claims to Medicaid for worthless services. This case demonstrates that we will hold responsible people accountable when they pocket federal funds while providing substandard care. Thank you to Attorney General James and her office for collaborating on this case.”
“We trust nursing homes to protect New Yorkers during their most vulnerable days, but the owners, unlicensed operator and landlord of Saratoga Center repeatedly violated the law for their own benefit,” said Attorney General Letitia James. “Instead of providing the quality care and compassion that residents deserved, the owners of Saratoga Center deceived regulators and left residents to suffer deplorable conditions and neglect. I am grateful to U.S. Attorney Freedman and team for their partnership in holding Saratoga Center accountable for putting New Yorkers in harm’s way. My office will continue to ensure nursing home residents are protected, and I encourage anyone who has witnessed alarming conditions, resident neglect, or abuse at a nursing home to contact my office.”
In connection with the settlement, the United States Department of Health and Human Services, Office of Inspector General (HHS OIG), negotiated voluntary exclusions of the individuals and entities. Schwartz; Saratoga Center for Care, LLC; 149 Ballston Ave, LLC; and Ballston Two, LLC will be excluded from Medicare, Medicaid, and all other Federal health care programs, as defined in 42 U.S.C. § 1320a-7b(f), for a period of ten years. Vegh will be excluded for eleven years. Jaffa and Saratoga Care and Rehabilitation Center, LLC, will be excluded for twenty years.
“Ensuring safety and quality of care for nursing home residents is a top priority,” said Inspector General Christi A. Grimm of the HHS OIG. “When nursing home owners, operators, and landlords are responsible for substandard care in their facilities, HHS OIG will not hesitate to pursue their exclusion and bar them from future participation in federal health care programs.”
The resolution obtained in this matter was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Justice Department’s Civil Division Commercial Litigation Branch, Fraud Section, the New York State Office of the Attorney General’s Medicaid Fraud Control Unit, and the United States Department of Health and Human Services, Office of Inspector General.
Assistant U.S. Attorney Christopher R. Moran and Civil Division Attorneys Carol Wallack and Lyle Gruby handled this matter for the United States. Special Assistant Attorneys General Emily Auletta and Hillary Gray Chapman handled this matter for the Office of the New York Attorney General’s Medicaid Fraud Control Unit. The exclusions of the individuals and entities were negotiated by Senior Counsel Felicia Heimer for HHS OIG.
The United States’ investigation was part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.
Attachments:
- 149 Ballston Ave Ballston Two Settlement Agreement (2-27-2023).pdf
- Jack Jaffa Settlement Agreement (2-27-2023).pdf
- Jeffrey Vegh Settlement Agreement (2-27-2023).pdf
- Ari Schwartz and Saratoga Center Settlement Agreement (2-27-2023).pdf
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – George Michael Thayer, 52, of St. Albans, pleaded guilty today to possession with intent to distribute a quantity of oxycodone.
According to court documents and statements made in court, on January 24, 2022, a law enforcement officer conducted a traffic stop of a vehicle driven by Thayer. The officer searched the vehicle and found approximately 12 oxycodone pills, multiple empty sandwich bags and a set of digital scales. Thayer admitted that he possessed the oxycodone found during the vehicle search and further admitted that he intended to distribute it.
Thayer is scheduled to be sentenced on June 20, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-70.
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KC Man Sentenced to 19 Years for Forcibly Resisting an Officer, Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for ramming into two law enforcement vehicles while attempting to flee while in possession of methamphetamine and firearms.
Anthony M. Quinones, also known as “Droopy,” 50, was sentenced by U.S. District Judge Stephen R. Bough to 19 years in federal prison without parole. The court sentenced Quinones to 17 years in prison for the charges on which he was convicted, plus an additional two years in prison for violating the terms of his supervised release in an earlier, unrelated federal case.
On Feb. 3, 2022, Quinones pleaded guilty to one count of forcibly resisting a federal law enforcement officer, one count of possessing methamphetamine to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
U.S. Marshals Service deputies tracked Quinones, who was being sought for absconding from federal supervision, to a Quality Inn on Nov. 13, 2018. Quinones left the hotel with two females. As he approached his vehicle, deputies used their vehicles to attempt to pin in Quinones’s vehicle. Quinones hopped in the driver’s seat of the vehicle and attempted to flee from the parking lot. Quinones accelerated his vehicle and crashed into the two vehicles occupied by deputies, causing significant damage. Quinones fled and eventually crashed through a gas meter and into a light pole. He got out of the vehicle and attempted to flee on foot. As he fled, he pulled a loaded Smith and Wesson .40-caliber pistol from his waistband just before he was tackled to the ground. Quinones continued to struggle with the deputies but was successfully taken into custody.
Deputies found approximately one ounce of methamphetamine and $3,500 in Quinones’s jacket pockets. Deputies searched Quinones’s vehicle and found 10 ounces of methamphetamine hidden in a stereo box on the front passenger floorboard of the vehicle. Deputies interviewed the two women who left the hotel with Quinones, who told them he was up in a hotel room using methamphetamine with them. They also said Quinones left a gun in the hotel room. The gun, a Taurus 9mm pistol, was recovered by law enforcement officers.
At the time of his arrest, Quinones was on federal supervised release following his 2004 conviction and incarceration for conspiracy to distribute methamphetamine. According to court documents, Quinones is a longtime gang member and drug trafficker with violent tendencies. While in custody in this case, he participated in fights and was caught with homemade weapons.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the U.S. Marshals Service, the Kansas City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Warren County Man of Receiving, Transporting and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Wesley Guard, age 34, of Queensbury, New York, was convicted Friday, after a four-day jury trial, of receiving, transporting and possessing child pornography using the online social networking application Kik. United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli made the announcement.
The trial evidence established that between September 2020 and April 2021, Guard, a registered sex offender, used the Kik Messenger application to receive child pornography from other Kik users. Guard then sent that child pornography to another Kik account under his control as a means of collecting the material. The child pornography the defendant received from other Kik users and transported between his various Kik accounts included numerous videos depicting the sexual exploitation of young children. The trial evidence also established that, at the time of his arrest by law enforcement on April 29, 2021, Guard still possessed the child pornography he had received on Kik.
Sentencing, which will be scheduled at a later date, will be held in Albany, before United States District Judge Mae A. D’Agostino. Guard faces a mandatory minimum term of imprisonment of at least 5 years, a maximum term of imprisonment of 20 years, a fine of up to $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The jury voted to acquit Guard of distributing child pornography to other Kik users.
This case was investigated by HSI, the NYSP Internet Crimes Against Children Task Force, and the NYSP Troop G Computer Crime Unit. Assistant U.S. Attorneys Katherine Kopita, Carling Dunham and Adrian LaRochelle prosecuted this case as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
James L. Luketich, M.D., University of Pittsburgh Medical Center, and University of Pittsburgh Physicians Agree to Pay $8.5 Million and Implement Monitoring Actions to Resolve False Claims AllegationsRead the Press Release
PITTSBURGH – Acting United States Attorney Troy Rivetti announced today that the United States has finalized a Settlement Agreement with James L. Luketich, M.D., University of Pittsburgh Medical Center (“UPMC”), and University of Pittsburgh Physicians (“UPP”), to resolve the lawsuit the United States filed against those Defendants in September 2021.
As part of that Settlement Agreement, Dr. Luketich, UPMC, and UPP agreed to pay $8.5 million to the United States to resolve the claims against them. The Defendants also agreed to create and effectuate a Corrective Action Plan for Dr. Luketich, and to submit to a year-long, third-party audit of Dr. Luketich’s physician fee services billings to Medicare. Pursuant to the Settlement Agreement, UPMC, in turn, has the ability to request information, guidance, assurance and/or an advisory opinion from the Centers for Medicare and Medicaid Services of the Department of Health and Human Services regarding certain Medicare regulations pertaining to the types of surgeries at issue in the case.
The United States’ lawsuit was filed under the False Claims Act, 31 U.S.C. 3729, et seq., and was based on a two-year investigation into allegations originally brought by Jonathan D’Cunha, M.D., a former UPMC surgeon. In its Complaint, the United States alleged that Dr. Luketich – the longtime chair of UPMC’s Department of Cardiothoracic Surgery – regularly performed as many as three, complex surgical procedures at the same time, failed to participate in all of the “key and critical” portions of his surgeries, and forced his patients to endure hours of medically unnecessary anesthesia time, as he moved between operating rooms and attended to other patients or matters. According to the United States’ Complaint, those practices amounted to violations of the statutes and regulations which prohibit “teaching physicians” (like Dr. Luketich) from billing the United States for “concurrent surgeries,” were well known to UPMC leadership, and increased the risk of surgical complications to patients.
In June 2022, the Court denied the Defendants’ attempt to dismiss the Government’s Complaint. The Settlement Agreement provides that it is neither an admission of liability by the Defendants nor a concession by the United States that its claims are not well founded. Instead, in order to avoid delay and the expense of protracted litigation, and in consideration of the promises and obligations of the Settlement Agreement, the parties agreed to resolve the case.
“This is an important settlement and a just conclusion to the United States’ investigation into Dr. Luketich’s surgical and billing practices, and UPMC and UPP’s acceptance of those practices,” said Acting U.S. Attorney Rivetti. “This Office is committed to safeguarding the Medicare and Medicaid programs, and to protecting those programs’ beneficiaries. No medical provider – however renowned – is excepted from scrutiny or above the law.”
“The Complaint alleged that Dr. Luketich used his position as a trusted doctor to defraud the health care system,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Health are fraud costs our country billions of dollars each year. This money is not just absorbed. It is passed down to the consumer. The Settlement Agreement provides that UPMC will implement a Corrective Action Plan for Dr. Luketich, and he will now have to undergo close scrutiny of his work.”
“Ensuring physicians and other health care entities provide honest and accurate information to their patients and government health care programs, is of the upmost importance,” said Special Agent in Charge Maureen R. Dixon of the HHS-OIG Philadelphia Regional Office. “HHS-OIG will continue to work closely with our law enforcement partners to thoroughly investigate health care fraud allegations to protect the safety of patients and the integrity of taxpayer-supported health care programs.”
The False Claims Act is one of the most powerful tools in the United States’ continued efforts to combat health care fraud. The Act’s whistleblower (or “qui tam”) provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery, and permit the United States to intervene and take over the lawsuit, either in its entirety, or in part (as it did here). Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800 HHS TIPS (800-447-8477).
Assistant United States Attorneys Lee Karl and Adam Fischer litigated this case on behalf of the United States. Prior to the filing of the Government’s Complaint, this matter was investigated by U.S. Attorney’s Office for the Western District of Pennsylvania, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, in conjunction with the Internal Revenue Service – Criminal Investigation, the Department of Defense Office of Inspector General, the Drug Enforcement Administration, Department of Veterans Affairs Office of Inspector General, and the Pennsylvania’s Office of the Attorney General.
The case is captioned United States of America ex rel. Jonathan D’Cunha, M.D. v. James Luketich. et al., No. 19-cv-495 (W.D. Pa.).
Jacksonville Man Sentenced to More Than 8 Years for Downloading Thousands of Videos and Images of Children Being Sexually AbusedRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Michael Ray King (42, Jacksonville) to eight years and one month in federal prison for using the internet to download and receive videos and images showing children being sexually abused. King was also ordered to serve a 15-year term of supervised release, register as a sex offender, and pay child victims a total of $50,500 in restitution. King was arrested by FBI agents at his home on November 18, 2021, and he has been detained since June 1, 2022, when his bond was revoked because he accessed the internet in violation of his release conditions. King had pleaded guilty in September 2022.
According to court documents, in 2021, the FBI was investigating individuals who were using online networks to receive and share child sexual abuse materials. This investigation revealed that in July, August, and September 2021, King used a computer connected to the internet at his Jacksonville residence to access videos depicting young children being sexually abused.
On November 18, 2021, the FBI executed a federal search warrant at King’s house and seized, among other things, an external computer hard drive that was connected by a cable to a gaming computer. A forensic examination of these devices ultimately revealed that King had collected at least 5,000 videos and at least 2,000 images depicting child sexual abuse, including young children being sexually assaulted, bestiality, and bondage. The forensic evidence further showed that King had downloaded these child sexual abuse materials from the internet using a particular file-sharing program.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown. Assistant United States Attorney Mai Tran handled the forfeiture of assets, including the two computer devices used by King to receive and store child sexual abuse materials.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the epidemic of online child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to investigate, locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
HSI San Juan Arrests 2 Men on Child Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico – Homeland Security Investigations (HSI) special agents with the support of the Puerto Rico Police Bureau, arrested two men charged with Transportation of Child Pornography, Possession of Child Pornography, Production of Child Pornography and Coercion and Enticement of minors, in two separate and unrelated cases.
According to court documents, in or about December 2020 through in or about January 2021, Nathan Gallarza Chaparro, 22, of Aguadilla, did knowingly transport one or more images and videos, which contained images of child pornography. Also, Gallarza Chaparro was charged with possession of child pornography. Assistant United States Attorney Ginette Milanes, from the Child Exploitation and Immigration Unit, is prosecuting this case.
In a separate case, HSI special agents arrested Eduardo Luis Marrero Casanova, 52, a religious leader in Cayey. According to the indictment, in or about December 2022, through on or about January 25, 2023, the defendant used a cellular phone, as well as internet instant messaging services, to knowingly persuade, induce, entice, and coerce two fifteen-year-old male minors to engage in sexual activity for which any person can be charged with a criminal offense, which includes the production of child pornography as defined in Title 18, United States Code (U.S.C.). Also, Marrero Casanova did knowingly employ, use, persuade, induce, entice, and coerce a minor, and attempted to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct.
Defendant Marrero-Casanova is facing two (2) counts of coercion and enticement of a minor in violation of 18 U.S.C. § 2422(b), and two (2) counts of production of child pornography in violation of 18 U.S.C. § 2251(a). Assistant U.S. Attorney Daynelle Álvarez-Lora, of the Child Exploitation and Immigration Unit, is prosecuting the case.
“The United States Attorney’s Office and the federal and local law enforcement agencies in Puerto Rico remain steadfast in our commitment to protect our children from sexual predators,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “We remind and encourage the public to report all inappropriate behavior with children to their local authorities and together local and federal law enforcement agencies will seek justice for the victims of these crimes.”
“It is time for us as a community to stand together and protect our minors from these predators,” said Acting Special Agent in Charge Rebecca C. González-Ramos. “We have the services, the help, and the expertise. Please reach out so we can take these individuals out of our society. There will be zero tolerance for those who intend to harm our children.”
On Friday, the defendants had their initial hearings before U.S. Magistrate Judge Giselle López-Soler. The defendants were transferred to the Guaynabo Metropolitan Detention Center to await further judicial proceedings.
If convicted, Nathan Gallarza Chaparro faces a statutory minimum sentence of 5 years up to 20 years of imprisonment followed by a term of supervise release of 5 years up to life for the possession of child pornography. Eduardo Luis Marrero Casanova is facing a minimum mandatory term of imprisonment of 10 years and a maximum of life for each count of coercion and enticement; and a minimum term of imprisonment of 15 years and a maximum of 30 years for each count of production of child pornography. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
HSI is the principal investigative arm of U.S. Department of Homeland Security and a vital U.S. asset in combatting transnational crime and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline. HSI utilizes its vast authorities, international footprint, and strong interagency and public-private partnerships to identify and rescue child victims, identify, and apprehend offenders, prevent transnational child sexual abuse, and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Grand Rapids Pain Management Practice Pays $215,000 to Resolve Allegations of Falsified Medical RecordsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten announced that Javery Pain Institute, PC, located in Grand Rapids, has agreed to pay $215,000 to resolve allegations that it violated the False Claims Act by submitting claims to Medicare for medically unnecessary moderate sedation services and falsifying medical records to support those claims.
“Truthful and accurate medical records are the bedrock of our Medicare system,” said U.S. Attorney Mark Totten. “This settlement reflects the commitment of my office in working with our law enforcement partners to protect the Medicare population and maintain the system of trust and accountability necessary between the patient, physician, and federal healthcare programs.”
The United States alleged that Javery Pain Institute billed Medicare for moderate sedation services in conjunction with certain pain injection procedures when those sedation services did not meet Medicare’s medical necessity requirements. After a Medicaid audit discovered this issue, the practice created template language in its electronic medical records to support medical necessity for these services. The practice then used this templated language for some Medicare beneficiaries receiving moderate sedation services to create medical records that contained statements that were not true. Javery Pain Institute used these statements to justify billing Medicare for moderate sedation services. Additionally, on some occasions, the practice billed Medicare for moderate sedation services when the intraservice time for those procedures was less than the ten minutes required to bill for the service.
“The alleged submission of false claims for medically unnecessary services and falsifying of documentation to justify those services, undermines our federal health care programs and potentially places patients at risk,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”). “Our agency, working with our law enforcement partners, is committed to working to hold those who seek to defraud federally funded health care programs accountable.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and HHS-OIG. Assistant U.S. Attorney Andrew J. Hull investigated the matter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Former Oglala Sioux Tribe President Indicted for Wire Fraud and EmbezzlementRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man on six counts of Wire Fraud, one count of Larceny, and one count of Embezzlement and Theft from an Indian Tribal Organization.
Julian Bear Runner, age 37, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Daneta Wollman on February 24, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Between 2019 and 2020, at Pine Ridge, Bear Runner, while acting in his capacity as President of the Oglala Sioux Tribe, fraudulently submitted travel vouchers for official business travel and received payment for travel that he did not take.
The charges are merely accusations and Bear Runner is presumed innocent until and unless proven guilty.
The investigation is being conducted by Health and Human Services, Office of Inspector General, and the FBI. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Bear Runner was remanded to the custody of the US Marshals Service pending trial. A trial date has been scheduled for May 2, 2023.
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Former FBI Special Agent Sentenced to 6 Years in Prison for Accepting Bribes Paid by Attorney Linked to Organized Crime FigureRead the Press Release
LOS ANGELES – A former FBI special agent was sentenced today to 72 months in federal prison for conspiring to accept at least $150,000 in cash bribes and other items of value in exchange for providing sensitive law enforcement information to a corrupt attorney with ties to Armenian organized crime.
Babak Broumand, 56, of Lafayette, California, was sentenced by United States District Judge R. Gary Klausner. In addition to the prison sentence, Judge Klausner ordered Broumand to pay a $30,000 fine and to forfeit $132,309 linked to his criminal activity.
“Mr. Broumand took an oath of office, swearing to defend the laws of the United States and to uphold the high standards of the FBI. He violated this solemn promise and now he will face the consequences of his choice,” said United States Attorney Martin Estrada. “Not only did this one-time special agent put his self-interest above all else, but he also did so while providing support to other criminals who compromise public safety. I am grateful for our hard-working law enforcement partners, including the FBI, who worked to uncover this misconduct and brought this corrupt agent to justice.”
“Today's sentencing of Mr. Broumand, a former FBI agent who abandoned his pledge to serve the American people in exchange for a lavish lifestyle, is gratifying and reaffirms the FBI’s commitment to weeding out corruption of public officials, including those from within.” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “I'm proud of the agents and prosecutors who devoted years to this sensitive investigation and trial which resulted in today's outcome and a restoration of trust by the people we serve.”
A federal jury in October 2022 found Broumand guilty of one count of conspiracy, two counts of bribery of a public official, and one count of monetary transactions in property derived from specified unlawful activity. The jury found Broumand not guilty of one count of bribery of a public official and one count of monetary transactions in property derived from specified unlawful activity.
Broumand has been in federal custody since the jury returned the guilty verdict against him at the conclusion of an 11-day trial.
“Broumand conspired with the very types of criminals he was trusted to investigate, taking bribes in exchange for information. Today’s sentencing should send a clear message that no one is above the law, and that the Department of Justice Office of the Inspector General is committed to rooting out this kind of corruption,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Los Angeles Field Office.
“Every law enforcement officer took an oath to never betray their integrity and to enforce the law with fairness and justice when they enter this profession. Unfortunately, Babak Broumand betrayed that oath and violated the trust bestowed on him by the American people when he released sensitive law enforcement information in exchange for money, gifts, and other personal benefits,” said Darren Lian, Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office. “Today’s sentence shows that no one is above the law, and those who dare to cross the line will be held responsible for their unlawful actions. IRS Criminal Investigation, along with its law enforcement partners, are fully committed to purse those who undermine the integrity of our justice system.”
Broumand was a Bay Area resident and served as an FBI special agent from January 1999 until shortly after search warrants were served on his home and businesses in 2018. He was responsible for national security investigations and was assigned to the FBI Field Office in San Francisco.
From January 2015 to December 2018, Broumand accepted cash, checks, private jet flights, a Ducati motorcycle, hotel stays, escorts, meals, and other items of value from an organized crime-linked attorney – identified in court papers as “E.S.,” and each man acted to conceal the true nature of their corrupt relationship.
In return for the bribe payments and other items of value, Broumand conducted law enforcement database inquiries and used those inquiries to help E.S. and his associates avoid prosecution and law enforcement monitoring. Specifically, Broumand informed E.S. whether a particular person or entity was under criminal investigation by stating that E.S. should “stay away” from that person or that they were “OK.”
To conceal the nature of their corrupt relationship, Broumand made it falsely appear that E.S. was working as an FBI source. Broumand wrote false reports after the fact to make it appear that he conducted legitimate law enforcement database inquiries.
In exchange for the illegal inquiries, E.S. paid Broumand at least $150,000 in cash and check bribes, including a Ducati motorcycle and accessories valued at more than $36,000. The bribes were deposited into the accounts for Love Bugs LLC, a Lafayette-based lice-removal hair salon business that Broumand and his wife started in 2007.
Soon after the bribery scheme began, E.S. asked Broumand to query the FBI database for Levon Termendzhyan, an Armenian organized crime figure for whom E.S. had worked. The database search “rang all the bells” and revealed an FBI investigation in Los Angeles, according to court documents, which note that Broumand accessed the FBI case file on Termendzhyan repeatedly in January 2015. Broumand also allegedly accessed the Termendzhyan FBI case file in May 2016.
Termendzhyan, a.k.a. “Lev Aslan Dermen,” was found guilty in March 2020 in federal court in Utah on criminal charges related to a $1 billion renewable fuel tax credit fraud scheme. His sentencing hearing in the District of Utah is scheduled for April 6.
In December 2015, at E.S.’s request, Broumand searched a confidential FBI database for information about Sam Sarkis Solakyan, a medical imaging company CEO, and later warned E.S. to “stay away” from Solakyan, who was “trouble,” meaning that Solakyan was under law enforcement investigation. Solakyan eventually was charged in San Diego federal court, tried, convicted and sentenced to five years in federal prison for running a scheme that submitted more than $250 million fraudulent claims through California’s workers compensation system.
In May 2016, Broumand interfered with an FBI investigation into Felix Cisneros Jr., a corrupt special agent with Homeland Security Investigations who also had ties to Termendzhyan. Cisneros was convicted at trial in two different cases. The first trial, in 2018, resulted from Cisneros’s corrupt acts for Termendzhyan. The second trial, in April 2022, resulted from Cisneros’s corrupt acts for E.S. Cisneros was sentenced to 10 years in federal prison.
The FBI, the United States Department of Justice’s Office of the Inspector General, and IRS Criminal Investigation investigated this matter. The United States Department of Homeland Security’s Office of the Inspector General provided assistance at Broumand’s trial.
Assistant United States Attorneys Michael J. Morse of the Public Corruption and Civil Rights Section, Juan M. Rodriguez of the Environmental and Community Safety Crimes Section, and Tara B. Vavere of the Asset Forfeiture and Recovery Section prosecuted this case.
Former Erie Coke Employee Pleads Guilty to Violating the Clean Air ActRead the Press Release
ERIE, PA - A resident of Fairview, Pennsylvania pleaded guilty in federal court on Feb. 24, 2023, to conspiracy to violate the Clean Air Act, Acting United States Attorney Troy Rivetti announced today.
David Stablein, 54, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, Stablein admitted the facts set forth in the Information filed in the case; that is, from October 2015 to September 2018, Stablein conspired with his supervisor Anthony Nearhoof and others to violate the Clean Air Act while employed at the Erie Coke Corporation. The conspiracy involved employees opening heating flues on top of the coke oven batteries by removing their caps to allow combustion gases to vent directly into the air to avoid the plant’s environmental monitoring system. Stablein and Nearhoof, who is pending trial, personally removed flue caps, and directed others to do so, in order to vent coke oven gas directly into the atmosphere to reduce opacity levels being read by the monitoring system through the smokestack. The improper venting of coke oven gas to bypass the monitoring system and minimize opacity readings resulted in the spread of air pollutants outside the facility’s boundaries to adjoining residential and commercial areas, which presented potential dangers to the public’s health and safety.
Judge Baxter scheduled sentencing for June 30, 2023. The law provides for a total sentence of not more than five years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Nicole Vasquez Schmitt and Michael L. Ivory, and Special Assistant United States Attorneys Perry D. McDaniel and Martin Harrell are prosecuting this case on behalf of the government.
The Environmental Protection Agency conducted the investigation that led to the prosecution of Stablein.
Former Bank Employee Convicted After Trial for Fraudulently Opening Bank AccountsRead the Press Release
Greenbelt, Maryland – A federal jury in Maryland has convicted Diape Seck, age 29, of Rockville, Maryland for his role in a bank fraud scheme in which he and his co-conspirators obtained or attempted to obtain almost $2 million by fraud, including by stealing checks from the mail of churches and religious institutions. The guilty verdict was returned late on February 24, 2023.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Mike Serra of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Terry Sult of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to the evidence presented at his eight-day trial, from at least January 2019 to January 2020, Seck, a customer service representative with Bank A, conspired with Mateus Vaduva, Marius Vaduva, Vlad Baceanu, Nicolae Gindac, Florin Vaduva, Marian Unguru, Daniel Velcu, Vali Unguru and others to commit bank fraud. Specifically, the evidence showed that Seck fraudulently opened bank accounts in fake identities in exchange for cash bribes. Co-conspirators engaged in fraud that included fraud involving rental cars and the deposit of checks stolen from the incoming and outgoing mail of churches and other religious institutions, into the fraudulently opened bank accounts. The co-conspirators then withdrew the funds and spent the fraudulently obtained proceeds.
As detailed in the trial evidence, Diape Seck facilitated the opening of hundreds of bank accounts at Bank A for his co-conspirators, who used purported foreign identity documents, often but not universally Romanian, to fraudulently open bank accounts with him at Bank A, as well as bank accounts at other victim financial institutions. Seck opened accounts for co-conspirators without their presence in the bank, without verifying identity information, and opened accounts for co-conspirators who opened multiple accounts at a time under different identities. To conceal his improper activities, Seck opened accounts for the co-conspirators at the same time he conducted legitimate bank activities. The co-conspirators paid Seck cash in exchange for him opening the fraudulent bank accounts.
According to court documents and witness testimony, Seck violated numerous bank policies in opening approximately 412 checking accounts in a one-year period from approximately January 2, 2019 through January 3, 2020, relying predominantly on purported Romanian passports and driver's license information. Checks payable to and written from churches and other religious institutions from around the country were deposited into many of the 412 checking accounts which were not opened in the names of the churches.
The co-conspirators fraudulently negotiated the stolen checks by depositing them into the victim bank accounts, including the fraudulent accounts opened by Seck at Bank A, often by way of automated teller machine (ATM) transactions. After depositing the stolen checks into the bank accounts, the conspirators made cash withdrawals from ATMs and purchases using debit cards associated with the bank accounts.
Co-conspirators Vlad Baceanu, age 38; Daniel Velcu, age 43; Marian Unguru, age 36; and Vali Unguru, age 20, all of Baltimore, Maryland, previously pled guilty to conspiracy to commit bank fraud and wire fraud. Nicolae Gindac, age 52, of Dania Beach, Florida was sentenced to 54 months in federal prison and ordered to pay restitution of $1,096,660.11; Mateus Vaduva, age 29, of Baltimore was sentenced to five years in federal prison and ordered to pay restitution of $1,320,885.84; Florin Vaduva, age 31, of Dania Beach, Florida was sentenced to 51 months in federal prison and ordered to pay restitution of $1,096,660.11; and Marius Vaduva, age 28, of Baltimore was sentenced to 42 months in federal prison and ordered to pay restitution of $1,334,230.84, after they previously pled guilty to conspiracy to commit bank and wire fraud.
Seck faces a maximum sentence of 30 years in federal prison for each of conspiracy to commit bank fraud; bank fraud; making false entries in bank records; and receipt of a bribe or reward by a bank employee. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Seck on June 2, 2023, at 2:30 p.m.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Aroostook County Man Faces up to 20 Years for Role in Penobscot & Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A former Aroostook County resident pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Andrew Adams, 31, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. His participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia and other items.
Adams faces up to 20 years imprisonment. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Felon Convicted of Possessing a Firearm and AmmunitionRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man last week on charges of possessing a firearm and ammunition as a convicted felon.
According to court records and evidence presented at trial, Rashon Torrence, 26, a convicted felon, threw a firearm during a foot pursuit with a Richmond Police Department officer. Around midnight on January 3, 2022, officers saw a truck speeding in a residential area. The driver, later identified as Torrence, was wearing a black ski mask. The officers attempted to conduct a traffic stop of Torrence, and a brief vehicle pursuit ensued. Torrence then stopped the truck and ran, with an officer in pursuit. When Torrence got to a patch of trees, he made a throwing motion, and the officer saw a black object leave Torrence’s hand. After detaining Torrence, the officer went back to the trees and found a Ruger 9mm semi-automatic pistol.
Officers also recovered from Torrence 10 pills of methamphetamine and 44 pills of Clonazolam, a Schedule I controlled substance in Virginia. Torrence also had $352 in his pocket. The officers also recovered an additional 122 Clonazolam pills from a bottle near to where Torrence was arrested.
Torrence has a prior conviction for possessing a firearm as a convicted felon.
Torrence faces a maximum penalty of 10 years in prison when sentenced on June 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division; and Rick Edwards, Acting Chief of Richmond Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Jessica Wright and Stephen Miller are prosecuting 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-113.
Dominican Citizen Pleads Guilty to Selling Cocaine while Illegally in the United StatesRead the Press Release
SYRACUSE, NEW YORK – Jose Campusano, age 38, a citizen of the Dominican Republic residing in Utica, New York, pled guilty to selling cocaine and illegally reentering the United States.
The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; and Thomas Brophy, Field Office Director of the U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO), Buffalo Field Office.
As part of his plea, Campusano admitted that, at some point after being deported from the United States in 2009, he returned without permission. While he was living in the Utica area illegally, Campusano sold cocaine to another individual on six separate dates. The charges to which Campusano pled guilty carry a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The U.S. Drug Enforcement Administration (DEA) and U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO) are investigating the case with assistance from the New York State Police, Oneida County Sheriff’s Department, Onondaga County District Attorney’s Office, Syracuse Police Department, and Utica Police Department. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
District Man Convicted by Jury for Assault on a Member of the LGBTQ+ CommunityRead the Press Release
Defendant Assaulted Man as He Walked Home
WASHINGTON – Anthony Duncan, 42, of Washington, D.C., was found guilty by a jury today for assaulting a pedestrian in May 2022, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Duncan was found guilty of assault with significant bodily injury and faces up to three years in prison. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for April 28, 2023.
According to the government’s evidence presented at trial, on May 21, 2022, the victim was walking home on 15th Street in Northwest, Washington, D.C. from a Bocce Ball game when he was confronted by Duncan. Duncan, who was a stranger to the victim, accused the victim of directing a sexually suggestive act towards him and took offense. The victim vehemently denied making any such advance. As Duncan confronted the victim for this perceived advanced, he pulled out his cell phone, and recorded himself physically attacking the victim. Duncan broke the victim’s nose and teeth, and the victim required numerous stitches to stop the bleeding. Duncan called the victim a derogatory gay slur numerous times as he attacked the victim.
In announcing the conviction, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jared English and Randle Wilson, who investigated and prosecuted the case.
Des Moines Woman Sentenced to 45 Years in Prison for Child Exploitation ChargesRead the Press Release
Des Moines, IA – A Des Moines woman was sentenced Friday, February 24, 2023, to a total of 45 years in prison for conspiring to produce child pornography and child exploitation.
According to court documents, Ashley Marie Butler, age 33, produced child pornography on at least three occasions in 2021 when she videorecorded her co-defendant and husband, Shane William Butler, sexually abusing a minor victim. Videos of the sexual abuse of the minor victim and child pornography were located on Shane Butler and Ashley Butler’s cell phones.
Chief United States District Court Judge Stephanie Marie Rose imposed a 30-year sentence on the conspiracy count and a 15-year sentence on the production count, to be served consecutively, for a total sentence of 45 years. After her prison term, Butler was also ordered to serve a total of 10 years of supervised release. In addition, Butler was ordered to pay $3,000 in restitution as well as a $200 fine to the Crime Victim’s Assistance Fund.
Co-defendant Shane Butler also received a 45-year sentence in December 2022.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Des Moines Police Department, the Polk County Attorney’s Office, the Iowa Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation Human Trafficking and Child Exploitation Task Force investigated the case. The United States Attorney’s Office for the Southern District of Iowa prosecuted the case.
David Apps Pleads Guilty to Defrauding Broad Street United Methodist ChurchRead the Press Release
CHATTANOOGA, Tenn. - On February 27, 2023, David Michael Apps, 50 of Chattanooga, Tennessee, pleaded guilty to an information charging him with wire fraud in violation of 18 U.S.C. 1343. Apps is scheduled to be sentenced on July 27, 2023 at 2:00 p.m., before the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents filed by the United States, from 2014 through 2021, Apps, the business manager of Broad Street United Methodist Church in Cleveland, Tennessee, devised a scheme in which he used an official church credit card to pay for personal expenses in excess of $1.5 million dollars. Some of these expenses included payment for personal travel, automobiles, medical bills for family members, boat/watercraft and marina fees, and firearms, none of which was related to church business. Apps also wrote checks to himself under the guise of church member donations to support supposed medical bills relating to his false claim that he had brain cancer. The specific count of conviction involves the use of the church credit card to buy a luxury watch from an expensive retailer in California for $3,711.
Apps faces a possible sentence of up to 20 years’ imprisonment on the wire fraud count, along with significant fines, restitution, and forfeiture of property.
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the FBI as part of the Smoky Mountains Financial Crimes Task Force.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Davenport Man Sentenced for Unlawful Possession of a Firearm and Distribution of FentanylRead the Press Release
Davenport, IA – A Davenport man was sentenced to 174 months of imprisonment, on Tuesday, February 21, 2023, for possessing a firearm as a felon and possessing a distribution amount of fentanyl.
According to court documents, on November 1, 2021, Linder Kai Divos, age 27, was in possession of a Taurus, nine-millimeter pistol, as well as 96 grams of methamphetamine and 564 fake Percocet pills, which contained fentanyl. Divos ran from the police. Prior to his arrest, law enforcement purchased pills containing fentanyl from Divos. After he is released from prison, Divos will serve five years of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
DOJ and Lincoln Pharmacy in Tacoma settle allegations the pharmacy failed to follow the Controlled Substances ActRead the Press Release
Seattle – The U.S. Attorney’s Office and Lincoln Pharmacy in Tacoma have reached a settlement agreement over inspection findings by the Drug Enforcement Administration that Lincoln had failed to comply with some of the administrative requirements of the Controlled Substances Act (CSA). Lincoln Pharmacy will pay the United States $80,000 to resolve the claims. The settlement is one in a series of enforcement actions the DEA has taken with providers and pharmacies over administrative violations of the CSA.
“The Controlled Substances Act has requirements for medical professionals and pharmacies so that certain narcotic substances are carefully tracked,” said U.S. Attorney Nick Brown. “Those requirements are designed to allow DEA to monitor the distribution of these drugs to try to combat abuse and addiction and the harms that follow.”
The settlement with Lincoln Pharmacy states that during an inspection in June 2021, DEA found that in a variety of ways, Lincoln Pharmacy failed to appropriately track controlled substances coming to the pharmacy. For example: Lincoln Pharmacy failed to maintain records on substances such as oxycodone and hydrocodone between March 2020 and June 2021; Lincoln Pharmacy’s inventories of scheduled drugs were inadequate; the pharmacy failed to keep records of when and how much of certain scheduled drugs were delivered to the pharmacy; the pharmacy failed to secure some of the controlled substances; and the pharmacy failed to keep the ‘private key’ secure - something used to sign DEA orders.
Lincoln is paying the $80,000 settlement but does not admit any liability.
This is the third entity to settle administrative claims with the U.S. Attorney’s Office over administrative failure to follow the Controlled Substances Act.
In September 2021, JRK Pharma Inc d/b/a Edmonds Pharmacy settled allegations that between October 2019 and May 2021, it filled 347 prescriptions for controlled substances written by two practitioners who either did not have valid state licensed to practice medicine or did not have an active DEA license to prescribe controlled substances. Edmonds Pharmacy paid $20,000 to resolve the allegations and does not admit liability.
In August 2022, Dr. Akiko Kato, a naturopathic physician, signed a settlement stating that she prescribed controlled substances that were outside her naturopathic license and limitations under the CSA. Between October 2016 and October 2021, she wrote 644 prescriptions for substances such as Dextroamphetamine, Alprazolam, Clonazepam, Ketamine, and Phentermine. Dr. Kato was not authorized to prescribe such prescriptions. Dr. Kato paid a $37,500 settlement.
These cases were a result of a concerted focus of DEA to prevent pharmacies from filling prescriptions written by providers without prescribing authority for those substances.
“The DEA will hold those medical practitioners accountable who fail to comply with the Controlled Substance Act (CSA) in order to deter pharmaceuticals from being abused,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
The DEA investigated these matters and the cases were resolved by Assistant United States Attorneys Matt Waldrop and Ashley Burns.
Convicted Domestic Abuser Sentenced to over 3 Years in Federal Prison for Illegally Possessing a Firearm After Fleeing Police at 120 Miles-per-HourRead the Press Release
INDIANAPOLIS- Max Gellersen, 27, of Indianapolis, was sentenced to 46 months in federal prison after pleading guilty to Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.
According to court documents, on August 6, 2020, Indianapolis Metropolitan Police Department (IMPD) officers responded to a domestic disturbance. By the time the officers had arrived, Gellersen had left the home. The victim stated that Gellersen pointed a gun at her, struck and choked her.
Later that day, officers attempted to stop Gellersen for a probation violation while he was driving. Gellersen failed to comply and led police on 120 mile per hour vehicle chase that ultimately ended when his vehicle caught on fire. While under arrest, Gellersen directed police to where they would find the firearm in his home.
IMPD officers searched Gellersen’s home and found a Colt Series 4 handgun in the exact location that Gellersen described. Gellersen is prohibited from possessing a firearm under federal law due to his 2018 misdemeanor conviction for Domestic Battery in Boone County.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, Randal Taylor, Chief of Police for IMPD, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
“Many illegally armed perpetrators of gun violence in the home and in mass shootings have a prior history of committing domestic violence,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The U.S. Attorney’s Office, in partnership with ATF and IMPD, will continue to prioritize federal prosecution of the armed criminals who pose the greatest danger to those closest to them and to the public. The sentence imposed today demonstrates that domestic abusers who choose to illegally possess guns risk significant time in federal prison with no possibility of parole.”
ATF investigated this case with valuable assistance provided by IMPD. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Gellersen by supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S Attorney Myers thanked Assistant United States Attorneys Abhi Kambli and Jayson W. McGrath, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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Chugiak Man Indicted for Sexually Exploiting ChildrenRead the Press Release
ANCHORAGE – A federal grand jury returned an indictment on February 23, 2023, charging Jeremy Scott Daniels, 37, of Chugiak for crimes involving the sexual exploitation of children.
The indictment and additional details set out in court documents filed by the government allege that, in December 2021, Daniels used social media to entice and induce a minor to engage in sexually explicit activity and produce child pornography with him. The filings further allege that in October 2010, Daniels communicated online with undercover law enforcement, unbeknownst to him, and attempted to entice a fictitious child, whom he believed to be an 8-year-old girl, to engage in sexually explicit activity with him. The same filings also allege that Daniels distributed, received, and possessed child pornography at various points throughout 2020 and 2022. Between May and June 2020, on ten occasions, Daniels used the messaging application Kik to transmit child pornography videos to other users. On January 28, 2022, the date of Daniel’s arrest, the FBI also recovered child pornography involving prepubescent minors on Daniel’s cellphone.
If the public has any further information regarding Daniels’s activities, please contact the FBI Anchorage Field Office at 907-276-4441.
Daniels was previously taken into federal custody on January 28, 2022, following the government’s filing of a complaint. The indictment charges Daniels with production of child pornography; coercion and enticement; and distribution, receipt and possession of child pornography. The defendant previously made his initial court appearance on the complaint on February 2, 2022, before U.S. Chief Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, Daniels faces a mandatory minimum penalty of 15 years imprisonment and maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lane S. Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force conducted the investigation leading to the indictment in this case.
Assistant U.S. Attorney George Tran is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Chief Financial Officer Sentenced to Three Years for Embezzling More Than $1.3 MillionRead the Press Release
CHICAGO — The former chief financial officer of a suburban IT consulting firm has been sentenced to three years in federal prison after embezzling over $1.3 million from his former company, of which he was a partner, CFO, and Managing Member.
ANTHONY FREMAREK, 49, of Plainfield fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, from 2013 to 2019. Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses and submitting falsified financial information to the company’s banks. Fremarek pleaded guilty to one count of wire fraud in November 2022.
The sentence was imposed by U.S. District Court Judge Robert Gettleman on February 23, 2023.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
“[A]s soon as [defendant] had access to the company’s accounts and financial records, he began abusing his position out of pure greed,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant . . . unrepentantly betray[ed] the trust of his former partners and employees and stopped only when he was caught and terminated.”
Central Valley Man Pleads Guilty to Nearly $9 Million Cow Manure Ponzi SchemeRead the Press Release
FRESNO, Calif. — Ray Brewer, 66, of Porterville, and Sheridan, Montana, pleaded guilty today to wire fraud, money laundering, and identity theft charges for running a multimillion-dollar fraud scheme where he purported to turn cow manure into green energy, U.S. Attorney Phillip A. Talbert announced.
According to court records, from March 2014 through December 2019, Brewer stole $8,750,000 from investors by claiming to build anaerobic digesters on dairies in Fresno, Kern, Kings, and Tulare Counties, as well as other counties in California and Idaho. Anaerobic digesters are large machines that use microorganisms to breakdown biodegradable material and turn it into methane. The methane can then be sold on the open market as green energy. The methane also produces Renewable Energy Credits (REC), which represent the property right to the reduction in greenhouse gas emissions achieved through green energy creation. RECs are commonly purchased by companies to meet green energy regulatory, contractual, and initiative requirements or commitments. Brewer’s investors were supposed to receive 66% of all net profits as well as tax incentives.
Brewer made various misrepresentations to his investors. Brewer took the investors on tours of dairies where he said that he was going to build the digesters and sent them forged lease agreements with the dairy owners. He also sent the investors altered agreements with banks that made it appear as though he had obtained millions of dollars in loans to build the digesters. Finally, he sent the investors forged contracts with multinational companies that made it appear as though he had secured revenue streams. None of this was true.
After Brewer received the investors’ money, he transferred the funds to multiple other bank accounts that he opened in the names of different entities, his family members, and an alias. He used false descriptions for the transfers. He did so to conceal the location, source, ownership, and control of the money before using it for personal expenditures. These expenditures included two plots of land that were 10 or more acres each, a 3,700 square foot custom home, and new Dodge Ram pickup trucks.
Brewer subsequently told his investors that the digesters were progressing when that was not the case. He did so by sending them fake construction schedules, fake invoices for project-related costs, fake power generation reports, fake RECs, and fake pictures.
In some instances, Brewer purported to refund investors all or some of their money. The refunds, however, came from newly received money from other investors who had not authorized Brewer to use their money in this way. When Brewer’s investors realized the fraud and obtained civil judgments against him, he moved to Montana and assumed a new identity. He later claimed to have been wrongfully arrested before admitting who he was.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Joseph D. Barton, Henry Z. Carbajal III, and Alyson A. Berg are prosecuting the case.
Brewer is scheduled to be sentenced on June 26, 2023, by U.S. District Judge Jennifer L. Thurston. Brewer faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for the wire fraud conviction. He also faces a maximum statutory penalty of 20 years in prison and a fine a of $500,000 or twice the amount of money involved for the money laundering conviction, whichever is the greater. Finally, he faces a mandatory two years in prison, consecutive to other counts, for the aggravated identity theft conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Carson Man Sentenced to More Than 11 Years in Prison for Role in International Conspiracy to Launder Money Taken from Fraud VictimsRead the Press Release
LOS ANGELES – A Carson man who was a central figure in an international fraud and money-laundering network that targeted $25 million through a variety of frauds – including romance scams and elder fraud – was sentenced today to 135 months in federal prison.
Valentine Iro, 34, the lead defendant in a 252-count federal grand jury indictment that charged 80 individuals, was sentenced by United States District Judge R. Gary Klausner. Judge Klausner also ordered Iro to pay $1,397,553 in restitution.
Iro pleaded guilty in October 2020 to one count of conspiracy to engage in money laundering. He has been in federal custody since August 2019.
From October 2014 to August 2019, Iro helped lead a massive international criminal network that conspired to defraud individuals and companies all over the world and then to launder an intended amount of more than $25 million in intended ill-gotten gains. Known globally to fraudsters and their middlemen, Iro communicated primarily through encrypted messaging applications and phone calls. He worked to connect the fraudsters, who were committing various online scams, with money movers and bank accounts that could be used to receive and launder money from victims.
Iro knew that the scams included business email compromise (BEC) fraud, romance scams, and other fraud schemes. A native of Nigeria, Iro at times used code words and Nigerian pidgin – an English-based dialect used across that nation – to avoid detection by law enforcement. The fraudsters perpetrating these criminal activities largely were located outside the United States.
As part of the scheme, Iro negotiated his “cut” of the illegal proceeds that he would keep for himself for organizing the receipt and laundering of funds. He then would select or find a bank account, or assist in opening bank accounts, to be used to receive victims’ money. Iro collected bank account information for banks in the Los Angeles area and in other cities and nations often in preparation for requests to come from co-conspirators.
For romance scams and elder fraud, Iro sometimes used bank accounts under his personal control. For BEC frauds, if a bank account with a specific business name was required to trick a business-victim into making a payment, Iro often coordinated with “money movers” to open accounts that could receive funds obtained, according to court documents. In addition to making the fake business name mirror the name of a legitimate company, members of the conspiracy routinely filed fictitious business name statements with the Los Angeles County Registrar/Recorder’s Office that were presented to banks when the fraudulent accounts were opened.
Once a victim deposited funds into a bank account or a money service account, Iro coordinated with others to further launder the funds. Members of the conspiracy sometimes wired funds to other bank accounts under their control; in other cases, they simply withdrew funds as cash or negotiable instruments such as cashier’s checks.
When stolen funds were withdrawn as cash, the conspirators frequently used illicit money exchangers to move funds overseas, generally avoiding transferring the funds directly through banking institutions. To do this, Iro coordinated the transfer of a victim’s funds from a fraudulent bank account they controlled to U.S. bank accounts belonging to illicit money exchangers. Those money exchangers, in turn, used a Nigerian banking application to transfer other funds in naira (₦), the currency of Nigeria, from Nigerian bank accounts they controlled to the Nigerian bank accounts specified by Iro. This method was used to transfer millions of dollars to Nigerian co-conspirators without directly transferring funds overseas.
“This case is part of our multiprong approach to protect Americans from attempts to steal their money through elaborate scams being perpetrated around the world,” said United States Attorney Martin Estrada. “Through lies and deceit, these fraud artists try to fleece businesses and individuals, including the elderly and vulnerable. This case demonstrates that we can and will identify, charge, and prosecute fraudsters and their money laundering accomplices, no matter how far across the world their criminal network may stretch.”
“Defendant Iro masterminded this international money laundering scheme for years and, in the process, stole money and identities from hundreds of victims, including some who were led to believe they were in a romantic relationship only to learn they were being scammed,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “As we continue to investigate this case and look for fugitives, we urge Americans to learn how to identify BEC, romance, and other schemes, which have increased dramatically in recent years.”
Federal prosecutors have secured 21 convictions in this case so far. Additional defendants have been arrested in Nigeria, and others are at large.
The FBI Cyber Task Force led this investigation. The Justice Department also recognizes substantial assistance from the United States Department of State’s Diplomatic Security Service; the Los Angeles County District Attorney’s Office; the Orange County District Attorney’s Office; the Ventura County District Attorney’s Office; the San Bernardino Police Department; the Los Angeles County Sheriff’s Department; and the California Franchise Tax Board.
Many of the FBI’s Legal Attachés provided assistance throughout this investigation, as did the Office of International Affairs in the Justice Department’s Criminal Division and foreign authorities around the world.
Multiple private sector partners were also instrumental throughout this investigation, including Palo Alto Networks, Flashpoint, and the National Cyber-Forensics and Training Alliance (NCFTA).
Assistant United States Attorney Sue J. Bai of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
The FBI has issued a report on the rise of BEC schemes, and published a recap of Operation WireWire, which was an international effort to disrupt international BEC scams. An FBI public service announcement that warns of the dangers of BEC schemes encourages businesses to “trust but verify.”
California Man Sentenced to More than Seven Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
COLUMBIA, SOUTH CAROLINA — David Ruger, 44, of Long Beach, California, was sentenced to more than 7 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute methamphetamine.
Evidence presented to the Court showed that over several years, Ruger was involved in a methamphetamine trafficking conspiracy. Ruger’s role in that conspiracy was as a methamphetamine source of supply for distributors in South Carolina. Over the course of the conspiracy, Ruger was attributed more than four kilograms of methamphetamine.
United States District Judge Mary Geiger Lewis sentenced Ruger to 87 months in prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Richland County Sheriff’s Department, the Drug Enforcement Administration (DEA), and the United States Postal Inspection Service. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Bullying and Internet Safety a Top Priority for U.S. Attorney’s Office Community Outreach StaffRead the Press Release
MIAMI – Nearly one in four students ages 12-18 experiences bullying. It can eat away at a student’s self-esteem and make attending school a serious challenge. That’s why staff from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office, Southern District of Florida, regularly travel to area schools to shine a light on this behavior at an early age.
Most recently, more than 100 fifth and sixth graders gathered in the Academir Charter School East gymnasium in Doral, Fla., for a presentation about bullying, cyberbullying, and tips to stay safe on the internet.
According to research, one typically bullies because he or she likely was bullied themselves. And rather than stop the cycle of behavior, they choose to bully for fear of becoming a victim.
“When being bullied, don’t take the bait,” said Law Enforcement Coordination Specialist Darcey Lindsley. “Don’t get upset because that’s exactly what they want you to do. If someone says you’re ugly, respond with well I think you’re beautiful.”
And always report bullying. When it’s reported, there is a record of it.
“If you see something, get involved,” said Lindsley. “Be that person you want others to be toward you.”
In the past, bullying was usually face-to-face. Now it’s all over social media and many children become victims of it.
“Who knows what cyberbullying is?” asked Lindsley. Nearly every hand went up. “To be considered cyberbullying it needs to be minor against minor. After that it becomes harassment. Judges are taking this type of bullying very seriously. They aren’t necessarily slapping minors on the wrist anymore.”
Regarding internet safety, Lindsley stressed the need to always be skeptical about online chatting. That fellow 10-year-old on the chat quite easily could be a 40-year-old with bad intentions.
“You have to think,” said Lindsley. “Don’t slip up and don’t be so trusting. Don’t reveal too much as you never know who is on the other end of that instant message.”
Law Enforcement Coordination Specialist Darcey Lindsley of the U.S. Attorney’s Office, Southern District of Florida, rewards a student with a piece of candy for a correct answer during a recent presentation on bullying, cyberbullying, and internet safety.
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Brothers Convicted of Methamphetamine ConspiracyRead the Press Release
Memphis, TN – Today, a federal jury convicted brothers Julio Garcia, 42, and Juan Garcia, 38, of conspiracy to distribute 500 grams or more of methamphetamine. United States Attorney Kevin G. Ritz announced the guilty verdict.
According to information presented in court, in 2019, investigators with Homeland Security Investigations (HSI) began investigating the drug trafficking activities of the brothers. Julio Garcia was serving a 10-year federal sentence at the time for another drug offense and while in custody he used contraband phones to continue his drug trafficking activities.
Juan Garcia, who was not in custody, served as a “middle-man.” He was tasked with, among other things, accepting payments for shipments of narcotics and depositing the money from those payments into various bank accounts. During this conspiracy, investigators were able to seize two shipments, each containing over 1 kilogram of methamphetamine.
Julio Garcia is scheduled to be sentenced on June 27, 2023, and Juan Garcia is scheduled to be sentenced on June 28, 2023, both before United States District Judge Mark S. Norris. Both men face not less than 10 years imprisonment, not more than life, not more than a $10,000,000 fine, and not less than five years of supervised release.
This case was investigated by Homeland Security Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, the Shelby County Sheriff’s Office, the Tennessee Bureau of Investigation, and the Desoto County Sheriff’s Department.
This prosecution, as well as the previous investigation into Julio Garcia, is part of an investigation conducted by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Greg Allen and Michelle Kimbril-Parks, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Brookline Man Admits Robbing Dormont Dollar BankRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal law, Acting United States Attorney Troy Rivetti announced today.
Ahmed Asiri, 26, of the City’s Brookline neighborhood, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on December 7, 2022, Asiri robbed the Dollar Bank located at 3029 West Liberty Ave, in Pittsburgh, Pennsylvania 15216. As a result of the robbery, Asiri obtained $20,000 in United States currency. These funds were later recovered by law enforcement.
Judge Horan scheduled sentencing for June 21, 2023 at 10:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department, and the Dormont Police Department conducted the investigation that led to the prosecution of Ahmed Asiri.
Boone County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Troy Wilson Wheatley, 42, of Boone County, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on August 30, 2021, law enforcement officers responded to reports of a shooting at Wheatley’s residence near Chapmanville. Officers encountered Wheatley and seized a Ruger, model Security-9, 9mm pistol and a Smith & Wesson, .22-caliber pistol. One firearm was in a holster on Wheatley’s hip and the other was in his back pocket. Wheatley admitted to possessing the firearms and further admitted to the officers that he had discharged a firearm when his nephew drove past the residence that morning.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Wheatley was prohibited from possessing a firearm because of his prior felony conviction for delivery of a controlled substance in Nicholas County Circuit Court on February 3, 2006.
Wheatley is scheduled to be sentenced on June 22, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
Acting U.S. Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Boone County Sheriff’s Department, and the West Virginia State Police.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Nowles Heinrich and Lesley Shamblin 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-225.
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Bergen County Man Charged for Possession of Machine Gun, Rifle, Handgun, and Fraudulent United States Marshals Service Credentials in Newark AirportRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged following his attempt to bring firearms, ammunition, a bulletproof vest, fraudulent law enforcement credentials, and other items on a domestic flight to Fort Lauderdale, Florida, U.S. Attorney Philip Sellinger announced today.
Seretse Clouden, 42, of Wallington, New Jersey, is charged by complaint with unlawful possession of firearms and ammunition by a convicted felon and fraudulent possession of an identification document and authentication feature of the United States. He made his initial court appearance today before the U.S. Magistrate Judge James B. Clarke III in Newark federal court and was detained.
According to the documents filed in this case and statements made in court:
On Dec. 30, 2022, Clouden entered Newark Liberty International Airport for a scheduled flight to Fort Lauderdale. During routine screening of checked luggage that was destined for Fort Lauderdale, Transportation Security Administration agents discovered two .40 caliber Glock magazines, each containing 15 rounds of .40 caliber ammunition and a ballistic vest carrier that displayed the words “Deputy Marshal.”
Further investigation revealed that the checked luggage belonged to Clouden, which resulted in additional screening of Clouden’s other luggage, which contained an ASP expandable baton, a spring loaded knife, a taser, a .40 caliber Glock 22 handgun, a .308 caliber DPMS Panther Arms rifle, and one 5.56 caliber AR-15 rifle, which meets the definition of a machine gun.
That luggage also contained “United States Marshal” credentials, bearing Clouden’s name and photograph, and a “United States Marshal” badge. An inquiry with the United States Marshals Service confirmed that Clouden is not, and was not, employed with the United States Marshal Service.
The count of unlawful possession of firearms and ammunition by a convicted felon carries a maximum potential penalty of 15 years in prison. The count of fraudulent possession of an identification document and authentication feature of the United States carries a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special deputies of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the Transportation Security Administration.
The government is represented by U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Jenny Chung, Assistant U.S. Attorney of the Office’s OCDETF/Narcotics Unit, in Newark.
Another guilty of trafficking women in cantina backroomRead the Press Release
HOUSTON – A 30-year-old man who resided in Houston has pleaded guilty to several sex trafficking crimes and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Edgar Botello admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as possession of child pornography.
“Sex traffickers prey on the vulnerable, including those in the United States without documentation,” said Hamdani. “These victims are often fearful of law enforcement and reluctant to come forward. I praise the bravery of the victims which led to the conviction of Botello and his mother. If you are a victim or know someone who is, please contact authorities. We work side-by-side with victims to bring people like Botello to justice.”
Botello worked with his mother - Maria Botello-Morales - to run a cantina known as Puerto Algre. There, they forced several females to engage in commercial sex in backrooms built specifically for that purpose.
As part of his plea, Botello threatened and intimidated these victims with violence to manipulate them into the sex acts for his personal financial benefit.
The victims reported they had started at the bar as waitresses. However, Botello-Morales used Botello as her representative and enforcer and told them they had to engage in commercial sex. If they refused, she threatened them with violence. The women reported Botello always carried a gun with him and, on occasion, threatened them.
Some of the victims witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. Upon exit, they had to turn the money over to whoever was guarding the room, which was often Botello.
Law enforcement conducted a search at Botello’s residence on April 1, 2021. At that time, they found numerous weapons in his room. They also discovered a computer which was found to contain child pornography.
U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for June 12. At that time, Botello faces up to life in prison for the sex trafficking charges as well as up to another 10 years for the possession of child pornography.
Botello has been and will remain in custody pending that hearing. Botello-Morales, 56, pleaded guilty Jan. 3o and also remains in custody pending sentencing.
The Texas Alcoholic Beverage Commission (TABC) and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners.
Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
7 defendants sentenced for conspiring to launder more than $11.8 million of online romance scam proceedsRead the Press Release
COLUMBUS, Ohio – The final defendant charged in a conspiracy to launder the money generated from online romance scams was sentenced in federal court here today to 18 months in prison and three years of supervised release.
Kwame O. Yeboah, 38, of Columbus, conspired to launder more than $1.7 million through bank accounts in his control. As part of his sentence, Yeboah is ordered to pay the $1.7 million in restitution.
Yeboah and six other co-conspirators were convicted and sentenced for laundering the proceeds of online romance scams; they did not conduct the actual online scamming. The total amount generated by romance fraud that these individuals laundered was more than $11.8 million.
The other defendants convicted and sentenced include:
Name
Age
City of Residence
Sentence Received
Robert K. Asante
39
Canal Winchester
60 months in prison
Eric Ahiekpor
52
Lewis Center
36 months in prison
Edward Amankwah
45
Westerville
48 months in prison
Uriah Lamdul
30
Columbus
24 months in prison
Mohamed Toure
28
Columbus
18 months in prison
Alexis Wellington
32
Canal Winchester
Term of probation
The romance scams involved individuals who created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were in the names of the defendants, their family members and their companies.
Funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, the co-conspirators conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, the United States, and more. Part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
As part of their sentences, the defendants will pay the approximately $11.8 million in total.
Toure was also sentenced for money laundering as part of an unrelated COVID fraud scheme. Another individual submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL). The U.S. Small Business Administration approved the COVID disaster-related loan and sent $110,000 in loan proceeds to Toure’s bank account. He then laundered the funds to conceal and disguise the fraud proceeds.
Ahiekpor was also sentenced for Wire Fraud for his role in defrauding the EIDL Program. In June 2020, he obtained a fraudulent $150,000 EIDL for his business. He spent the funds on two boats, an outboard motor, and a boat trailer. Ahiekpor committed part of his fraud scheme while on pretrial release for his money laundering charges, which means he will serve his Wire Fraud sentence after he completes his Money Laundering sentence.
The public can report online romance scams and other internet crimes at ic3.gov.
Experts offer tips for flagging romance scams:
- Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.
- Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly.
- Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.
- Beware if the individual promises to meet in person but then always comes up with an excuse why he or she can’t. If you haven’t met the person after a few months, for whatever reason, you have good reason to be suspicious.
- Never send money to anyone you have only communicated with online or by phone. Never provide your financial information or allow your bank accounts to be used for transfers of funds.
Requests for gift cards are also a red flag. The FBI has additional tips and information for protecting against romance and confidence fraud: https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/romance-scams.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10 a.m.–6 p.m. Eastern Time, Monday–Friday. English, Spanish and other languages are available.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI), announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
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3D Printing Company to Pay up to $4.54 Million to Settle False Claims Act Allegations for Export Violations in Connection with NASA and DOD ContractsRead the Press Release
A 3D printing company has agreed to pay the United States up to $4.54 million to resolve allegations that it violated the False Claims Act by improperly transmitting export-controlled technical data to China in violation of the export control laws of the United States in connection with certain NASA and DOD contracts, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In parallel agreements also related to alleged export violations, the company has agreed to a $20 million administrative settlement with the U.S. Department of State, and a $2.77 million administrative settlement with the U.S. Department of Commerce.
Per the terms of a civil settlement executed with the Department of Justice on February 27, 2023, South Carolina-based 3D Systems Corporation agreed to pay $2.27 million in restitution to the federal government within the next 30 days. The company may be required to pay an additional $2.27 million in penalties under the Justice Department settlement agreement, for a total of up to $4.54 million, if it fails to pay at least that amount in civil penalties to the Department of State and the Department of Commerce in connection with the parallel administrative settlements referenced above.
According to the Justice Department Settlement Agreement, 3D Systems – through its Quickparts subsidiary – completed on-demand manufacturing projects both directly and indirectly on contracts issued by DOD and NASA, including for projects involving technical or other data potentially classified under and controlled by the International Emergency Economic Powers Act, the Arms Export Control Act, the Export Administration Regulations, and/or the International Traffic in Arms Regulations (collectively, the Export Control Laws).
Generally, the Export Control Laws prohibit certain controlled items and/or intellectual property from being exported to certain foreign countries, including the People’s Republic of China, without a license or authorization from the appropriate federal agencies. In the Justice Department settlement agreement, the United States alleged that between January 1, 2012 and December 31, 2017 3D exported certain items and/or intellectual property to China without the appropriate license or authorization in violation of the Export Control Laws in connection with certain contracts issued by DOD and NASA in violation of the False Claims Act.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
This matter was jointly investigated by the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, the National Aeronautics and Space Administration Office of Inspector General, Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement. Assistant U.S. Attorney Kenneth Coffin handled this matter on behalf of the Department of Justice.
26 February 2023
U.S. Attorney's Office Launches “United Against Hate” Initiative with Outreach EventRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King, along with members of the U.S. Attorney’s Office Civil Rights Team and federal and local law enforcement partners, met with representatives of the Sikh community.
Today’s meeting was the first of a series of planned outreach and educational events to be conducted by the U.S. Attorney’s Office as part of the Justice Department’s “United Against Hate” (UAH) initiative. In September 2022, the Justice Department announced the launching of UAH, a nationwide program created to combat the rise in unlawful acts of hate.
In the Western District of North Carolina, the UAH initiative will include a series of events focusing on community groups at risk of being targeted in hate crimes and incidents of hate. Each event will give participants an opportunity to directly connect with federal prosecutors and law enforcement to increase community understanding of hate crimes and hate incidents; provide a mechanism for reporting potential hate crimes and civil rights violations; build trust between law enforcement and communities; and create and strengthen alliances with government partners and community groups to combat unlawful acts of hate.
“People in communities across the Western District have the right to live their lives free from fear, violence, and intimidation. This fundamental right is guaranteed and protected by the Constitution. Unfortunately, certain groups are frequent targets of acts of hate and abuse,” said U.S. Attorney King. “The purpose of this initiative is to protect our communities, educate members on their rights and the relevant law, provide an avenue for reporting hate crimes and incidents of hate, and increase trust in our criminal justice system. I am looking forward to attending the outreach events, participating in a productive dialogue with community members, and working collaboratively to combat hate crimes.”
Today’s event, which was held at the Gurdwara Khalsa Darbar, the Sikh faith center in Charlotte, featured a presentation by Assistant U.S. Attorneys with experience in prosecuting hate crimes and civil rights violations, and law enforcement representatives with the FBI, and the Charlotte Mecklenburg Police Department. In addition to law enforcement, representatives from the Justice Department’s Community Relations Service were also in attendance. The presenters facilitated a discussion with representatives of the Sikh community centered on hate crimes, including defining hate crimes versus hate incidents; the importance of reporting acts of hate to law enforcement; providing options for responding to hate incidents when situations do not constitute federal or state crimes; and distinguishing unlawful conduct from protected First Amendment activity, with a focus on identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
“The Sikh community of Charlotte greatly values the relationship it has built with the U.S. Attorney’s Office, going back to 2008. With the Office’s help, we have always been able to reach out to federal law enforcement for assistance with any challenge our community faces, whether it is school bullying, diversity training at the airport, security of the Gurdwara, or civil rights matters. Today, the U.S. Attorney’s Office continues to play a pivotal role in shaping and nurturing this relationship. Our community is grateful for everything this Office has done for us,” said Pushpinder Garcha, a representative of the United Sikhs.
The U.S. Attorney’s Office will hold additional UAH events in the upcoming months to engage with communities throughout the Western District.
On May 27, 2021, U.S. Attorney General Merrick B. Garland issued a memorandum on improving the Justice Department’s efforts to combat unlawful acts of hate, and emphasized the need to actively engage in outreach and educational efforts centered around hate crimes.
25 February 2023
Springfield, Illinois, Man Convicted of Possession of Firearm by a FelonRead the Press Release
SPRINGFIELD, Ill. – A federal jury returned a guilty verdict on February 22, 2023, against Aaron Jackson, 30, of Springfield, Ill. for knowingly possessing a firearm as a convicted felon. Sentencing for Jackson is scheduled for June 21, 2023, at the U.S. Courthouse in Springfield.
Over two days of testimony in front of United States District Judge Sara Darrow, the government presented evidence establishing that Jackson had previously been convicted of two felonies when he was stopped for traffic offenses on August 18, 2021, and was found to be in possession of a firearm. Officers from the Springfield Police Department located a loaded Ruger LCP 380 in the front seat of the car Jackson was driving. Jackson was the only occupant of the car and was also in possession of methamphetamine, marijuana, and cocaine.
Jackson remains in the custody of the United States Marshals Service. At sentencing, Jackson will face statutory penalties of up to ten years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release.
The case investigation was conducted by the Springfield Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Sierra Senor-Moore and Tanner Jacobs represented the government at trial.
The case against Jackson 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.
Quincy, Illinois, Woman Convicted of Various Drug and Gun OffensesRead the Press Release
SPRINGFIELD, Ill. – A federal jury returned guilty verdicts on February 23, 2023, against Kelsey Hickman, 31, of Quincy, Ill. for distributing more than five grams of methamphetamine, possessing with the intent to distribute methamphetamine, and possessing a firearm as a convicted felon. She was acquitted of possessing a firearm in furtherance of drug trafficking. Sentencing for Hickman has not yet been scheduled.
Over two days of testimony in front of Senior United States District Judge Sue E. Myerscough, the government presented evidence establishing that Hickman sold 7.98 grams of methamphetamine in February 2021; she possessed with the intent to distribute methamphetamine; and she illegally possessed a firearm after having previously been convicted of a felony in March 2021. Following the trial, Hickman was remanded into the custody of the United States Marshals Service.
At sentencing, Hickman will face between five and forty years’ imprisonment for the distribution of methamphetamine, up to twenty years’ imprisonment for possession with intent to distribute methamphetamine, and up to ten years’ imprisonment for illegally possessing the firearm. She also faces up to a lifetime term of supervised release and up to a $5 million fine.
The case investigation was conducted by the Quincy Police Department and the Illinois State Police, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Matt Weir and Nate Bertrand represented the government at trial.
The case against Hickman 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.
24 February 2023
Заява Генерального Прокурора Мерріка Б. Гарланда у зв’язку з Річницею Нападу Росії на УкраїнуRead the Press Release
Сьогодні Міністерство юстиції опублікувало наступну заяву Генерального Прокурора Мерріка Б. Гарланда у зв’язку з Річницею Нападу Росії на Україну:
Протягом минулого року США і світ спостерігали жахливі картини й чули трагічні історії про жорстокість і смерть, спричинені несправедливим і неспровокованим нападом Росії на Україну.
Сьогодні Міністерство юстиції підтверджує свою рішучу підтримку українським партнерам у боротьбі за правосуддя.
Прокурори Міністерства юстиції з команди із притягнення до відповідальності за воєнні злочини як ніколи тісно співпрацюють з українськими колегами у справах розслідування конкретних злочинів, скоєних російськими силами, зокрема нападів на цивільних. Водночас Конгрес розширив наші повноваження щодо притягнення до відповідальності за скоєні воєнні злочини ймовірних виконавців, виявлених у Сполучених Штатах.
Наша оперативна група «KleptoCapture», до складу якої входять прокурори, агенти, аналітики, перекладачі, інші працівники Міністерства та партнери з правоохоронних органів, продовжує притягати до відповідальності та конфіскувати активи осіб, санкціонованих за підтримку Кремля і російських військ.
Ми також застосовуємо надані Конгресом нові законні повноваження для передачі певних активів, конфіскованих у російських олігархів, для відновлення України. На початку цього місяця я схвалив першу передачу таких коштів Державному департаменту для підтримки народу України. На черзі інші.
Я відчуваю гордість за виконання такої важливої роботи й за численних працівників Міністерства, які підтримують цю роботу.
Протягом минулого року український народ показав світові, що таке мужність. Міністерство юстиції продовжуватиме стояти пліч-о-пліч з нашими українськими й міжнародними партнерами стільки, скільки буде потрібно для захисту правосуддя і верховенства права.
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West Warwick Man Sentenced in Unemployment Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A West Warwick man who admitted to a federal judge that he participated in a conspiracy to use the stolen identities of others to gain COVID related unemployment insurance benefits was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Richard Allen, 57, previously admitted to the court that he and other members of the conspiracy used stolen personal identifying information of other individuals, to file for COVID-related unemployment benefits in multiple states, including Ohio, Massachusetts, Arizona, and Texas. In the fraudulent applications, co-conspirators listed addresses associated with Allen to which benefit payments by check or debit card were mailed.
According to information presented to the court, Allen communicated with co-conspirators to activate fraudulently obtained benefit debit cards; withdrew funds from the debit cards; and sent a portion of the funds to co-conspirators, including via Bitcoin transactions.
Additionally, Allen admitted that he failed to report a change of income to the Social Security Administration (SSA), and specifically stated on SSA documents that “I do not receive any other type of income,” thus fraudulently continuing to collect Supplemental Security Income payments from the SSA he began receiving in June 2018.
Allen, detained in federal custody, pleaded guilty on June 29, 2022, to conspiracy to commit mail fraud, five counts of aggravated identity theft, and two counts of theft of government money. He was sentenced today by U.S. District Court Judge William E. Smith to 36 months of incarceration to be followed by 3 years of federal supervised release, and pay restitution in the amount of $152,054.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
United States Attorney Cunha and Attorney General Neronha thank the Social Security Administration, Office of Inspector General for their assistance in the investigation of this matter.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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West Des Moines Man Sentenced to 60 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
Des Moines, IA – A West Des Moines man was sentenced today to 60 years in prison for multiple child exploitation offenses.
For the last twelve years, Jonathan Francis Speidel, age 31, of West Des Moines, used social media platforms, including Snapchat, Kik, TikTok, and MeetMe, to communicate with minor females. During the conversations, Speidel directed numerous children to take explicit photos or videos of themselves. To persuade children to produce and send him child pornography, Speidel used various tactics. Among other things, Speidel misrepresented facts about himself, such as his name, employment information, and age; he paid children in exchange for sexually explicit content; he claimed to be looking for models; and he sent children child pornography or depictions of him masturbating. The minor victims ranged in age from 8 to 17 years old and were located across the United States, including several victims who lived in or near Des Moines.
Over the same period, Speidel collected and exchanged child pornography using various internet sites. On or about March 30, 2022, Speidel knowingly possessed visual depictions of child pornography, including over 800 images and over 200 videos, some of which included minors younger than twelve years old.
Speidel also traveled over state lines with the intent to engage in illicit sexual conduct with a child. While living in Oregon from October 2018 to August 2019, Speidel engaged in a sexual relationship with a child, who was between 14 and 15 years old. Speidel was charged in Oregon with several counts of sexual abuse. Those charges remain pending. After being charged, Speidel returned to the Des Moines area some time in 2020. In September 2020, Speidel flew to Oregon, picked up the child, who by that time had turned 16 years old, and drove the child to Washington. Speidel took the child to Washington, where the age of consent is 16, younger than the age of consent in Oregon. The purpose of Speidel’s trip was to engage in sexually explicit conduct with the child and to produce child pornography. In Washington, Speidel did both of those things with the child.
Following his prison term, Speidel will be on supervised release for life and required to register as a sex offender. There is no parole in the federal system.
After the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “We are proud of the work of our FBI Child Exploitation and Human Trafficking Task Force in Des Moines. This joint investigation brought an end to Jonathan Speidel’s appalling and heinous crimes. Today’s sentence ensures Speidel will no longer be allowed to victimize children. It also sends a message to predators, the FBI and our federal, state, and local partners will remain relentless to ensure children are protected.”
Iowa Division of Criminal Investigation Cyber Crime Bureau Special Agent in Charge, and Iowa Internet Crimes Against Children (ICAC) Task Force Commander Nathaniel McLaren said “This case highlights the collaboration of information between ICAC Task Force agencies combating this type of child sexual exploitation. The DCI Cyber Crime Bureau - Iowa ICAC Task Force worked closely alongside Ohio Law Enforcement, and Oregon (State) Law Enforcement to arrest the suspect. This collaboration ultimately led to the identification of numerous victims nationwide and multiple victims locally in the Des Moines area.”
United States Attorney Richard D. Westphal of the Southern District of Iowa said “Speidel is a dangerous child predator, pure and simple. Today’s sentence provides some degree of justice for Speidel’s actions to the victims, who in the face of indescribable trauma, have courageously contributed to help prevent Speidel from harming any other minors. For over a decade, he targeted, manipulated and enticed minors, exchanging thousands of electronic messages, with the goal to produce child pornography and engage in illegal sex acts. Our thanks to the Iowa Division of Criminal Investigation (DCI)’s Internet Crimes Against Children Task Force and the FBI Child Exploitation Task Force and their continued dedication to protecting children and bringing individuals like Speidel to justice.”
The case was investigated by the Iowa Division of Criminal Investigation’s Cyber Crime Bureau and Internet Crimes Against Children Task Force, the FBI Child Exploitation and Human Trafficking Task Force in Des Moines, the North Olmstead, Ohio Police Department, and the Gladstone, Oregon Police Department. Assistant United States Attorney Kyle Essley prosecuted the case.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’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. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Parents and guardians are encouraged to have open and ongoing conversations about internet safety with children. For more information about internet safety education, please visit https://www.justice.gov/psc and click on the Publication & Resources tab.
Two Individuals Sentenced to Prison for Tax Fraud SchemeRead the Press Release
A North Carolina woman and a Maryland man were each sentenced today to 30 months in prison for conspiring to defraud the United States, aiding in the preparation of false tax returns and stealing government funds.
According to court documents, between 2013 and 2016, Sandra Denise Curl of Charlotte, North Carolina, and Percy Leroy Jacobs of Prince Frederick, Maryland, filed estate and trust tax returns (Forms 1041) on behalf of multiple fraudulent trusts they owned, seeking refunds to which they were not entitled. Curl and Jacobs also filed false personal returns, claiming fictitious tax withholdings in order to generate refunds. In total, the defendants attempted to defraud the IRS of more than $2.2 million.
In addition to the terms of imprisonment, U.S. District Judge George J. Hazel ordered both defendants to serve three years of supervised release and to each pay $959,044 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Jeffrey McLellan and George Meggali of the Tax Division and Assistant U.S. Attorney Michael Morgan for the District of Maryland prosecuted the case.
Two Individuals Sentenced to More Than Two Years in Federal Prison for Tax Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Sandra Denise Curl of Charlotte, North Carolina, and Percy Leroy Jacobs of Prince Frederick, Maryland late yesterday to 30 months each in federal prison, followed by three years of supervised release, for conspiring to defraud the United States, helping file false tax returns, and theft of government funds. Judge Hazel also ordered the defendants to each pay $959,044 in restitution. On March 21, 2022, a federal jury convicted the defendants after trial.
The sentences were announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to evidence presented at trial, between 2013 and 2016, Curl and Jacobs filed tax returns on behalf of multiple fraudulent trusts they owned, seeking refunds to which they were not entitled. Curl and Jacobs also filed false individual tax returns in their own names, claiming fictitious tax withholdings in order to generate refunds. In total, the defendants attempted to defraud the IRS of more than $2.2 million.
U.S. Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division commended IRS-Criminal Investigation for its work in the case. U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg thanked Assistant U.S. Attorney Michael Morgan and Trial Attorneys Jeffrey McLellan and George Meggali of the Tax Division, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach
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Trinity County Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment Thursday against Anthony Jair Demedeiros, 23, of Weaverville, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 9, 2021, law enforcement received a report of Demedeiros boarding a bus, carrying a duffel bag believed to contain a firearm. Demedeiros was on searchable Post Release Community Supervision (PRCS) from a prior conviction in Tehama County for carrying a concealed firearm when having been previously convicted of a felony, and also had prior arrests for violent crimes.
Officers located the bus they suspected Demedeiros had boarded and followed it. When it came to a stop, officers boarded the bus and detained Demedeiros. Next to Demedeiros’ seat, officers saw a bag matching the description of the reported duffel bag. Demedeiros denied the bag was his and no other party on the bus claimed it as theirs. Officers seized the bag and inside it found a Bushmaster Carbon-15 .223-5.56 caliber rifle, with a telescope, partially disassembled (making it more readily concealable). All parts were present to reassemble a complete and operational rifle. The rifle had a round in the chamber and a 10-round magazine loaded with four rounds. A records check of the rifle’s serial number indicated that it had been reported stolen from an address in Trinity County.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Redding Police Department, and the Shasta County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Demedeiros faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Three Arrested in Attempted Human Smuggling Event Near Morses LineRead the Press Release
Burlington, Vermont - The United States Attorney for the District of Vermont announced that three persons were arrested near Morses Line on February 19, 2023 in connection with an attempt to smuggle individuals without legal status into the United States. Aaron Cruz-Castelazo, 32, a Mexican national who has no immigration status in the United States, and Marcos Rosas-Mendoza, 34, also a Mexican national without status here, appeared Wednesday in United States District Court in Burlington on a charge that they attempted to transport individuals without legal status within the United States. Emmanuel Moheno-Gomez, 30, a citizen of Mexico without legal status in the United States, appeared in court yesterday on a charge that he unlawfully entered the country. U.S. Magistrate Judge Kevin J. Doyle ordered that all three defendants be held without bail pending trial. Two other individuals without status in the United States who were apprehended with Moheno-Gomez were released to immigration custody for removal from the United States.
According to public court documents, in the late afternoon of February 19, law enforcement officials in Canada notified the Border Patrol in Vermont that a vehicle had dropped off three individuals just north of the border in Canada. Believing that the individuals were planning to enter the United States on foot, Border Patrol agents responded to the area and eventually apprehended three Mexican nationals, including Moheno-Gomez. During that investigation, agents also encountered a rental vehicle with North Carolina license plates. An agent stopped that vehicle when it drove to the area just south of the border where the three individuals likely would have crossed into the United States. Agents detained the driver, Cruz-Castelazo, and the passenger, Rosas-Mendoza. Agents later determined that Rosas-Mendoza had been in cellphone communication with one of the three individuals as they walked across the border.
The United States Attorney emphasizes that the charges against these defendants are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.As currently charged, Cruz-Castelazo and Rosas-Mendoza face up to five years of imprisonment if convicted. The unlawful entry charge against Moheno-Gomez is a misdemeanor punishable by up to six months of imprisonment. The actual sentences would be determined with reference to the Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their continued efforts to prevent the exploitation of foreign nationals by human smuggling organizations.
Rosas-Mendoza is represented by Assistant Federal Public Defender Steven Barth. Cruz-Castelazo is represented by Robert Katims, Esq. Moheno-Gomez is represented by John-Claude Charbonneau, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Texas Man Sentenced to Prison for Wire Fraud ConspiracyRead the Press Release
A Texas man was sentenced today to 65 months in prison for wire fraud conspiracy and aggravated identity theft.
According to court documents, Ryan Shern, 34, of Kyle, participated in a conspiracy to use stolen identity theft information to seek fraudulent tax refunds from the IRS in the names of unsuspecting taxpayers. From 2016 through 2019, to facilitate access to the payments, Shern allowed co-conspirators to direct such refunds to his and his wife’s personal bank accounts and to prepaid debit cards he purchased and controlled.
Shern used a portion of the tax refunds to purchase money orders and luxury goods for himself. On at least one occasion, Shern used a copy of a false tax return filed using stolen identifying information to persuade the bank that it should release to his account a fraudulent refund totaling more than $250,000. Shern also wired, or directed his wife to wire, funds to co-conspirator bank accounts.
In addition to the term of imprisonment, U.S. District Judge Lee Yeakel ordered Shern to serve three years of supervised release and to pay $726,165 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Mitchell T. Galloway, Robert A. Kemins and Mary Frances Richardson of the Tax Division prosecuted the case.
Task Force KleptoCapture Unseals Two Cases Charging Evasion of Russian Economic CountermeasuresRead the Press Release
From the outset of Russia’s unprovoked, full-scale invasion of Ukraine, one year ago today, the Department of Justice has prioritized enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed alongside our global partners. Today, the Department continues that work by actions in two separate federal cases to disrupt sanctions evasion and smuggling networks supporting the Russian regime.
“Over the past year, the Ukrainian people have shown the world what courage looks like,” said Attorney General Merrick B. Garland. “For as long as it takes, the Department of Justice will continue to stand shoulder-to-shoulder with our Ukrainian and international partners in defense of justice and the rule of law.”
“It has been one year since Russia launched an unprovoked invasion of its neighbor, but the FBI has been working with our Ukrainian partners for years to battle Russian aggression there — and we aren’t going anywhere,” said FBI Director Christopher Wray. “The FBI's commitment to Ukraine remains unwavering, and we will continue to stand against Russia at home and abroad.”
The U.S. Attorney for the Southern District of New York has filed a civil forfeiture complaint against six real properties located in New York, New York; Southampton, New York; and Fisher Island, Florida, worth approximately $75 million. The complaint alleges that the properties beneficially owned by Russian oligarch Viktor Vekselberg are the proceeds of sanctions violations and were involved in international money laundering transactions. The case arises in the wake of the indictment of Vekselberg’s alleged strawman, Vladimir Voronchenko, a fugitive previously charged in the Southern District of New York. In the Eastern District of New York, a five-count indictment was unsealed today charging Ilya Balakaev, 47, of Moscow, with various offenses related to a years-long scheme to illegally smuggle sensitive devices used in counterintelligence operations from the United States to Russia for the benefit of the Federal Security Service of the Russian Federation (FSB), the principal intelligence and security agency of the Russian government. Balakaev is further charged with illegally exporting a gas detector and related software from the United States to Russia for the benefit of the Democratic People’s Republic of Korea (DPRK or North Korea). Concurrent with today’s action in the Eastern District of New York, the Department of Commerce separately issued a Temporary Denial Order denying the export privileges of Balakaev and his company, Radiotester OOO (aka Radiotester LLC), for 180 days with the possibility of renewal.
Today’s actions coincide with the one-year mark of Russia’s unprovoked war in Ukraine. Read more about the Justice Department’s efforts to hold Russia accountable here.
The Vekselberg Properties
According to court documents, on April 6, 2018, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Vekselberg as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States.
Prior to his designation by OFAC, between in or about 2008 and in or about 2017, Vekselberg, through a series of shell companies, acquired six real properties in the United States, today worth approximately $75 million:
- 19 Duck Pond Lane, Southampton, New York 11968.
- 515 Park Avenue, Units Units 21 and 2I, New York, New York 10022.
- 7002 Fisher Island Drive, Unit 7002 PH2, Miami Beach, Florida 33109.
- 7183 Fisher Island Drive, Units 7182 and 7183, Miami Beach, Florida 33109.
The FBI and HSI are investigating the case. The Justice Department’s National Security Division and Office of International Affairs, and OFAC provided valuable assistance.
Assistant U.S. Attorneys Jessica Greenwood, Joshua A. Naftalis, and Sheb Swett for the Southern District of New York are prosecuting the case.
United States v. Ilya Balakaev
As alleged in the indictment, between 2017 and the present, Balakaev contracted with a part of the FSB that is responsible for the Russian government’s communication security and cryptology, to repair spectrum analyzers and signal generators, devices used to detect surveillance equipment and to transmit covert communications. Because the devices were not readily available in Russia, the defendant established a network of individuals in the United States to assist him in purchasing the equipment, which the defendant then smuggled out of the United States, in violation of U.S. export control and sanctions laws.
In addition to his scheme to evade Russian sanctions, the defendant also illegally exported U.S. technology on behalf of a North Korean government official, in violation of U.S. export laws. As alleged, the defendant contracted with the First Secretary of the North Korean Embassy to the Russian Federation, based in Moscow, to obtain hazardous gas detectors and software from the United States for the benefit of the North Korean government.
If convicted on all counts, Balakaev, currently a fugitive, faces a maximum of 75 years in prison.
The FBI, HSI, Commerce Department’s Office of Export Enforcement (OEE), and CBP are investigating the case.
Assistant U.S. Attorney Sara K. Winik for the Eastern District of New York is prosecuting the case with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
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These cases were coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Tampa Man Who Led Officers on High-Speed Chase Sentenced to More Than Six Years for Firearm and Drug Trafficking OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Raequin Smith (27, Tampa) to six years and three months in federal prison for possession with the intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. Smith had pleaded guilty on December 1, 2022.
According to court documents, on April 5, 2022, Smith was stopped by law enforcement for driving at a high rate of speed. When asked to exit the vehicle, Smith fled in the vehicle. Police helicopters were dispatched and located Smith driving at a high rate of speed and disregarding traffic signals through busy roadways in Tampa. Officers used spike strips to disable Smith’s vehicle, but Smith fled on foot, discarding a bookbag in a driveway as he ran. Officers pursued Smith until he was apprehended. They retrieved the bookbag which contained a firearm, ammunition, cocaine, marijuana, two digital scales, and multiple empty baggies.
This case was investigated by the Tampa Police Department and the Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) unit of the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Maria Guzman.
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.
Tampa Man Sentenced to 10 Years in Federal Prison for Attempted Coercion and Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Demetrius Reddick (36, Tampa) to 10 years in federal prison for attempted coercion or enticement of a minor to engage in sexual activity. The court also ordered Reddick to serve a 15-year term of supervised release and to register as a sex offender. He also forfeited a cellphone that was used in the commission of the offense. Reddick had pleaded guilty on September 13, 2022.
According to court documents, Reddick spent approximately two months communicating with an undercover detective, who was posing as a 13-year-old girl, over a social media platform. During these conversations, Reddick engaged the fictious child in sexual conversations, and ultimately traveled to a hotel in Orlando to meet for the purpose of engaging in sexual activities with the child.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney Shannon Laurie.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Muhammed Momtaz Al-Azhari (26, Tampa) has pleaded guilty to attempting to provide material support or resources to a designated foreign terrorist organization, namely, the Islamic State of Iraq and al-Sham (“ISIS”). Pursuant to the terms of his plea agreement, Al-Azhari and the United States have agreed to the imposition of a stipulated sentence of 18 years in federal prison. Al-Azhari has also agreed to forfeit certain assets that are traceable to proceeds of the offense, as well as various items of property, including gear involved in, or intended to be used to commit the offense.
According to the plea agreement, Al-Azhari is a United States citizen who spent most of his life abroad and came to embrace dogmatic, Islamist/Salafist beliefs. In or around 2015, Al-Azhari was convicted of advocating for Jaysh al-Islam, an armed Islamist group then participating in the Syrian conflict, in Saudi Arabia. Al-Azhari spent approximately three years in Saudi Arabian custody, after which he was removed to the United States. Upon Al-Azhari’s arrival to the United States, in or around December 2018, the FBI began investigating him for potentially providing material support to ISIS, which, at all relevant times, was designated as a foreign terrorist organization under federal law.
In or around April 2020, Al-Azhari began planning to carry out an attack in support of ISIS. Around the same time, Al-Azhari began to acquire multiple firearms. He also researched and scouted potential locations in the Tampa Bay area. Since at least May 2019, Al-Azhari consumed ISIS propaganda and spoke favorably about ISIS, to whom he eventually pledged his allegiance through a bay’ah (an Islamic oath of allegiance). Furthermore, Al-Azhari spoke about avenging the United States’ imprisonment of Muslims, including ISIS fighters, and the United States’ military actions in the Middle East. In addition, Al-Azhari rehearsed parts of the plan described above, including practicing statements that he would make during, or in connection with, an attack in support of ISIS.
Between late April and May 2020, Al-Azhari also had multiple interactions with an FBI undercover employee (“UC-1”) and a confidential human source (“CHS-1”), during which Al-Azhari tried to buy guns from the UC-1, including a fully automatic rifle, but he was arrested on unrelated state charges while negotiating the purchase. Al-Azhari thereafter met CHS-1, attempted to “convert” CHS-1 to Islam, and confided in CHS-1 about his affiliation with ISIS and his plans to provide material support to ISIS, as well as to send money to ISIS. Al-Azhari recruited CHS-1 to help him carry out the plans described above in support of ISIS, as well as robberies, and he asked CHS-1 to obtain a Glock pistol and an unregistered silencer for him. Agents arrested Al-Azhari when he took possession of the gun and silencer on May 24, 2020.
This case was investigated by FBI’s Joint Terrorism Task Force, including Homeland Security Investigations (HSI), the Tampa Police Department, the Pinellas County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the St. Petersburg Police Department, the Clearwater Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Patrick Scruggs and Risha Asokan.
Straw Purchaser Sentenced for Role in Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Maurice Johnson, 36, of Mount Hope, was sentenced today to one year in prison, to be followed by three years of supervised release, for his role in a conspiracy to traffic more than 140 firearms from the Beckley area to Philadelphia, Pennsylvania.
According to court documents and statements made in court, Johnson participated in a conspiracy led by Bisheem Jones, also known as “Bosh,” that trafficked in firearms purchased in the Southern District of West Virginia from around June 2020 to around July 2021. Johnson was among several straw purchasers enlisted to buy the firearms, with Jones or an intermediary telling Johnson what firearms to purchase and providing the money to buy them.
Johnson bought a HS Produkt, Model XDS MOD (Springfield Armory), 9mm pistol and a Ruger, Security-9, 9mm pistol, for Jones in Mount Hope on December 29, 2020. Johnson admitted that he falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that he was the buyer of the firearms when he knew he was purchasing them for Jones and his trafficking conspiracy.
Johnson pleaded guilty to conspiracy to travel interstate with the intent to engage in dealing firearms without a license and making false statements in acquisition of firearms. Johnson is among 18 defendants who pleaded guilty in connection with firearms trafficking. Of the over 140 firearms trafficked in the conspiracy, approximately 45 have been recovered at crime scenes primarily in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent offenses. One of the firearms Johnson purchased was recovered at a crime scene in Philadelphia.
After five days of trial, a federal jury found Jones, 37, of Philadelphia, guilty on December 16, 2022, of conspiracy to travel interstate with the intent to deal in firearms without a license, conspiracy to commit money laundering, and interstate travel with the intent to deal in firearms without a license. Jones is scheduled to be sentenced on April 7, 2023, and faces a maximum penalty of 35 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Negar M. Kordestani and Steve Loew prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 5:22-cr-46.
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