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24 February 2023
Statement of U.S. Attorney Damian Williams on the Convictions of Mohamed Tahlil Mohamed and Abdi Yusuf HassanRead the Press Release
"For 977 days, Michael Scott Moore, an American journalist, was held hostage in Somalia by pirates. Today, a unanimous jury found two key players in Moore's years-long captivity guilty on all counts: Mohamed Tahlil Mohamed and Abdi Yusuf Hassan. Tahlil, a Somali Army officer, left his post to take command of the pirates holding Moore captive and obtained the machineguns and grenade launchers used to threaten and hold Moore. Hassan, the Minister of Interior and Security for the province in Somalia where Moore was held hostage, abused his government position and led the pirates' efforts to extort a massive ransom from Moore's mother. Today's guilty verdicts show that neither time nor distance can weaken our resolve to hold those who dare to take Americans hostage overseas fully accountable for their crimes, and to see justice done for the victims of such brutal and brazen attacks against Americans."
Seven Defendants Charged in Rochester Illegal Sports Gambling BusinessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that seven individuals were charged by criminal complaint for their roles in an illegal gambling business headquartered in Rochester, NY. Named in the complaint are:
• Louis P. Ferrari II is charged with conspiracy, transmission of wagering information, operation of an illegal gambling business, and money laundering.
• Dominic Sprague is charged with conspiracy, transmission of wagering information, and operation of an illegal gambling business.
• Anthony Amato, Joseph Lombardo, Jeffrey Boscarino, and James Civiletti are charged with transmission of wagering information and conspiracy.
• Tomasso Sessa is charged with operation of an illegal gambling business and conspiracy.Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, the defendants conspired to operate illegal poker games at 565 Blossom Road and an illegal sports betting operation through the website sport700.com. Defendants Ferrari and Sprague co-owned and operated the illegal poker games at 565 Blossom Road, and Ferrari operated the illegal sports betting book through sport700.com, managing individual bettors and overseeing sub-agents, including Sprague, who had their own books of individual bettors. In addition, Ferrari owns and operates Ferrari Excavating on Steel Street in Rochester, where he collected cash payment of gambling losses from players and then laundered the illegal proceeds through the Ferrari Excavating business. Sprague also owned and operated a pawn shop on Stone Road in Greece, NY, where he collected cash payments of gambling losses from bettors and paid gambling winnings to bettors.
Defendant Amato administrated sport700.com and assisted Ferrari and others in creating accounts, usernames, and passwords, and managing individual bettors and overseeing sub-agents who had their own books of individual bettors on sport700.com. Defendant Sessa managed the day-to-day operations of the illegal gambling operation at 565 Blossom Road. Defendants Lombardo and Boscarino were sub-agents under Ferrari through sport700.com. Defendant Civiletti was an employee of Sprague’s pawn shop, collecting payments of gambling losses from people on behalf of Ferrari and Sprague.
During the course of the investigation, investigators intercepted a series of calls and text messages between targets of the investigation, sub-agents and individual bettors discussing the placement of bets, collection of winnings, and payment of losses. The investigation revealed that Ferrari generated $1,241,172 in winnings, while Amato generated winnings totaling $8,945,629.
On April 17, 2021, as investigators arrived to execute a search warrant at 565 Blossom Road, they interrupted an ongoing illegal card game, which sent individuals fleeing. An unknown number of individuals successfully fled, eight were temporarily detained. Investigators seized multiple items such documents, which included gambling ledgers and timestamped website printouts of online gambling player account activities. That same day, they also seized the cell phones of Ferrari and Sprague, which both contained evidence of sports bookmaking.
Also previously charged in a separate complaint in connection with this case is former New York State Trooper Thomas Loewke.
The criminal complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Brian Ratajczak, the Greece Police Department, under the direction of Chief Michael Wood, and Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal ChahineRead the Press Release
A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine, a Lebanese citizen, with conspiracy to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, attempt to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, and money laundering conspiracy. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York on January 27, 2023, and relates to Bazzi and Chahine’s alleged activities in the United States, as directed from Lebanon.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel J. Kafafian, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New Jersey Division (DEA), announced the charges.
“As alleged, Mohammad Bazzi thought that he could secretly move hundreds of thousands of dollars from the United States to Lebanon without detection by law enforcement. Today’s arrest proves that Bazzi was wrong,” stated United States Attorney Peace. “Our office is committed to ensuring that sanctions imposed by the U.S. government are respected and that terrorism financiers are starved of funds.”
“The defendants in this case attempted to provide continued financial assistance to Hizballah, a foreign terrorist organization responsible for death and destruction,” stated DEA Acting Special Agent-in-Charge Kafafian. “The men and women of DEA are committed to working with our law enforcement and foreign counterparts to disrupt and dismantle the operations of these organizations and those who choose to support them financially.”
In May 2018, the United States Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring, and providing financial, material, and technological support and financial services to Hizballah, a foreign terrorist organization that, since the 1980s, engaged in numerous terrorist activities, including attacks against American military members, government employees, and civilians abroad. According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States was blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
As alleged, following Bazzi’s designation, Bazzi and Chahine conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the requisite OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- a third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- a third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- as part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested by Romanian law enforcement authorities upon his arrival in Bucharest today. The United States intends to seek Bazzi’s extradition to the Eastern District of New York to face the charges in the indictment. Each count in the indictment is punishable by up to 20 years imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being prosecuted by Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Robert M. Pollack, with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters. The Justice Department’s Office of International Affairs is assisting with the extradition in this case.
The Defendants:
MOHAMMAD BAZZI
Age: 58
Lebanon and BelgiumTALAL CHAHINE
Age: 78
LebanonE.D.N.Y. Docket No. 23-CR-041 (DLI)
San Rafael Man Visiting Yosemite Pleads Guilty to Domestic Violence ChargeRead the Press Release
FRESNO, Calif. — Stefan Niels Weiste Kirkeby, 59, of San Rafael, pleaded guilty to domestic violence within the special maritime and territorial jurisdiction of the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 4, 2022, Kirkeby and his wife got into a verbal confrontation that resulted in park visitors having to intervene due to the yelling as well as the threats of harm being made by Kirkeby. The victim reported she was forcibly grabbed by her wrist and both fell to the ground. Kirkeby was threatening to kill her then kill himself during the altercation. The victim sustained bruising, pain to her wrist, and scratches.
This case is the product of an investigation by the National Park Service with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
Kirkeby is scheduled to be sentenced on June 26, 2023, by U.S. District Judge Jennifer L. Thurston. Kirkeby faces a maximum statutory penalty of five years in prison and a $250,000 fine. 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.
Russian National Charged with Supplying U.S. Technology to the Russian and North Korean GovernmentsRead the Press Release
A five-count indictment was unsealed today in federal court in Brooklyn, New York charging Ilya Balakaev with various charges related to smuggling devices commonly used in counterintelligence operations out of the U.S. to Russia for the benefit of the Federal Security Service of the Russian Federation (FSB) and Democratic People’s Republic of Korea (“DPRK” or “North Korea”).
As alleged, between 2017 and the present, the defendant Ilya Balakaev entered into multiple contracts through his company Radiotester LLC with the FSB—the principal intelligence and security agency of the Russian government—to repair spectrum analyzers and signal generators. The devices that the defendant was tasked to repair were frequently used as part of counterintelligence operations to sweep for surveillance bugs and to transmit covert communications. Because the devices were not readily available in Russia, the defendant created a network of individuals in the U.S. to assist him in purchasing the equipment in the U.S. which he used to repair the FSB devices, in violation of U.S. sanctions.
The defendant worked closely with Russian government officials from FSB Center 8’s Military Unit 43753, the agency responsible for Russia’s communication security and cryptology. In furtherance of his scheme, the defendant entered into at least 10 contracts with FSB Military Unit 43753, purchased approximately 43 devices in the U.S., and traveled to the U.S. approximately 14 times in the span of approximately four years.
In addition to his scheme to evade Russian sanctions, the defendant also provided U.S. technology to a North Korean government official, in violation of U.S. sanctions against North Korea. 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 U.S. for the benefit of the North Korean government.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Special Agent in Charge Jonathan Carson., US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, Ivan Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP) and Andrew Adams, Director, Task Force KleptoCapture, announced the charges.
“As alleged, the defendant violated U.S. law by procuring, smuggling, and repairing counterintelligence operation devices for the benefit of Russia’s secret police and the North Korean government,” stated United States Attorney Peace. “Today’s indictment demonstrates our Office’s commitment to vigorously prosecute those who evade sanctions for a profit, both for their wallet and for Russia as they continue their aggression against Ukraine.”
“The defendant allegedly operated schemes to smuggle software and devices from the United States and provide them to hostile foreign government services in violation of U.S. sanctions. FBI New York and our partners will continue to protect the national security of the United States by disrupting the procurement of sanctioned equipment and technology,” stated Assistant Director-in-Charge Driscoll.
“To prevent the continuance of violations identified in the indictment, the defendant is now subject to a Commerce temporary denial order, which restricts his ability to access U.S. technologies,” said Jonathan Carson, Special Agent-in-Charge of the New York Field Office, Office of Export Enforcement. “These coordinated actions highlight our vigilance and ability to leverage our unique combination of criminal and administrative enforcement authorities to address evasions of U.S. export controls.”
“U.S. Customs and Border Protection is uniquely positioned to enhance the safety of our country. We will continue to work with our partners to be exceptionally focused on addressing the threats posed by counterintelligence activities, terrorism, transnational criminal organizations, and others who wish to do us harm,” said Francis J. Russo, Director New York Field Office. “CBP’s combined efforts with our law enforcement partners in this case serve as a reminder that we will continue to combat and prosecute modern transnational criminal organizations.”
“From the outset of the Task Force, the Department has prioritized the investigation and prosecution of case involving criminal violations of our export controls pertaining to Russia. As today’s case demonstrates, facilitators like this defendant provide smuggling services for all manner of dangerous actors and regimes – it is not possible to disentangle the FSB’s smuggling networks from those servicing other sanctioned state actors, and we must support and applaud comprehensive charges like those set forth in the Eastern District’s indictment,” stated Task Force KleptoCapture Director Adams.
“As alleged, Balakaev and his network actively schemed to circumvent OFAC sanctions in support of enhancing the counterintelligence operations of the Federal Security Service of the Russian Federation (FSB) and the Democratic People’s Republic of Korea. Today’s indictment, on the one year anniversary of the Russian invasion of Ukraine, is a credit to the collaboration of the American law enforcement community to investigate and prosecute those who seek to support oppressive regimes worldwide,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations (HSI) in New York. “HSI and our partners will continue to aggressively pursue criminal charges against those who engage in actions aimed at compromising our national security.”
If convicted, the defendant faces a maximum of 75 years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Sara K. Winik is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ILYA BALAKAEV
AGE: 47
MOSCOW, RUSSIAE.D.N.Y. Docket No. 23-CR-79
Retired U.S. Air Force Officer Pleads Guilty to Unlawful Retention of Classified National Defense InformationRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Robert L. Birchum (55, Tampa) has pleaded guilty to unlawfully possessing and retaining classified documents relating to the national defense of the United States. Birchum faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Birchum has also agreed to surrender certain computer equipment that contained classified information and facilitated the unlawful retention of national defense information.
According to the plea agreement, Birchum, who retired in 2018 as a Lieutenant Colonel in the United States Air Force, had served in various positions in intelligence, including those requiring him to work with classified intelligence information for the Joint Special Operations Command, the Special Operations Command, and the Office of the Director of National Intelligence. While he was on active duty, Birchum entered into several agreements with the United States regarding the protection and proper handling of classified information. In 2017, however, law enforcement officers discovered that Birchum had removed more than 300 classified files or documents, including more than 30 items marked Top Secret, from authorized locations to his home, his overseas officer’s quarters, and a storage pod in his driveway. None of these locations were authorized for storage of classified national defense information, and Birchum knew as much. For example, Birchum possessed two documents on a thumb drive found in his home that contained information relating to the National Security Agency’s capabilities and methods of collection, and targets’ vulnerabilities. Both documents were classified as Top Secret/SCI, and their unauthorized release could be expected to cause exceptionally grave damage to the national security of the United States.
This case was investigated by the United States Air Force—Office of Special Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Cherie L. Krigsman and Trial Attorney Evan N. Turgeon of the Department of Justice’s National Security Division, Counterintelligence and Export Control Section.
Download Plea AgreementQueens Man Arrested for Defrauding Former Employer of $4.4 Million in Fake Invoice SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of BHASKARRAY BAROT for engaging in a years-long scheme to defraud his former employer out of approximately $4.4 million. BAROT was arrested this morning in Queens, New York, on a criminal Complaint and was presented before a magistrate judge in the Southern District of New York.
U.S. Attorney Damian Williams said: “As alleged, over the course of years, Barot created fraudulent invoices and processed them for payment at the Manhattan-based company where he used to work as a procurement manager. Barot designed the invoices to closely resemble the invoices that the company received from real vendors and other entities owed payment from the company. But the fraudulent invoices differed in a crucial way: they directed payment into Barot’s pocket. Today’s arrest demonstrates that this Office will seek justice for companies that fall victim to corporate theft.”
FBI Assistant Director Michael J. Driscoll said: "As the charges today allege, Barot operated a years-long deception, scamming his employer out of millions of dollars through bogus invoices. Duplicitous schemes like this bring undue harm to the greater financial community. The FBI will continue to investigate complex financial crimes and hold the transgressors accountable in the criminal justice system."
According to the allegations contained in the Complaint, which was unsealed today in Manhattan federal court:[1]
From at least in or about July 2018, up to and including at least August 2022, BAROT engaged in a scheme to defraud his former employer (the “Company”) of approximately $4.4 million through fake invoices designed to resemble those received from legitimate vendors of the Company. BAROT used his position as a procurement manager at the Company to process the fraudulent invoices for payment. When doing so, he often affixed the fake invoices to email messages that he, in some cases, sent in the names of employees of the Company’s real vendors so that it would appear as though the real vendors were seeking payment on the fake invoices.
The fake invoices, however, stated that payment should be made to entities with names that often differed slightly from those of the real vendor companies. BAROT then incorporated companies and opened bank accounts in the names of some of the entities listed for payment on the fake invoices so that he could collect the payments that the Company made on the fake invoices.
BAROT repeated these fraudulent tactics with more than a dozen fictitious entities and caused payment to be made by the Company on approximately 40 fake invoices, totaling approximately $4.4 million.
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BAROT, 32, of Queens, New York, is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Puerto Rican Man Pleads Guilty to Possession of 79 Kilograms of CocaineRead the Press Release
St. Thomas, VI – U.S. Attorney Delia L. Smith announced that Wesly Albert Amaro of Puerto Rico, pleaded guilty before United States Magistrate Ruth Miller to one count of possession with intent to distribute cocaine.
According to court documents, on March 29, 2022, at approximately 4:00 a.m., the United States Coast Guard detected a vessel operating without navigation lights traveling at a high rate of speed from Culebra, PR, towards Hendrick Bay, St. Thomas. The vessel was later intercepted by U.S. Customs and Boarder Protection Air and Marine Operations. The vessel, operated by Amaro, attempted to flee while the co-defendant Brian Santiago Gonzalez began throwing duffel bags overboard. The engine of the vessel was disabled after Amaro failed to stop. Agents later recovered three duffel bags containing 79 kilograms of suspected narcotics which later tested positive for cocaine hydrochloride. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Coast Guard, Drug Enforcement Administration, Homeland Security Investigations and U.S. Customs and Border Protection Air and Marine Operations and was prosecuted by Assistant United States Attorney Kyle Payne. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Puerto Rican Man Pleads Guilty to Possession of 30 Kilograms of CocaineRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced that Rafael Velez-Lopez of Puerto Rico pleaded guilty before United States Magistrate Judge Ruth Miller to one count of possession with intent to distribute cocaine.
According to court documents, on September 22, 2020, Drug Enforcement Administration agents arrested Velez-Lopez and Emanuel Campbell Camacho after they observed Camacho exit the Windward Passage Hotel and enter a blue Mazda sedan that traveled to the parking lot at Nelson Mandela Circle. Camacho later exited his vehicle and approached the passenger side of another vehicle where he removed a black duffle bag and placed it into his vehicle. Camacho then returned to the Windward Passage Hotel with a duffle bag approached the stairs leading to the second- floor level of the hotel. As the agents approached Camacho, they observed Velez-Lopez near the top of the stairs checking his cell phone. Agents inspected the duffel bag and discovered 30 brick-shaped objects inside the duffle bag that Camacho was carrying. Velez Lopez and Camacho were in constant communication during the entire transaction. The bricks later tested positive for cocaine hydrochloride. Velez-Lopez will be sentenced by a federal district court judge who will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by Drug Enforcement Administration and investigated by Assistant United States Attorney Kyle Payne. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Operators of Jacksonville Roofing Business Indicted for Scheme to Evade Payment of Payroll Taxes and Workers’ Compensation Premiums and Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Travis Morgan Slaughter and Tripp Charles Slaughter with conspiracy to commit wire fraud and conspiracy to commit tax fraud related to a roofing business that they operated. Travis Slaughter is also charged with failing to account for and pay over payroll taxes to the IRS and evading personal income taxes for the years 2017 through 2019. Tripp Slaughter is also charged with filing false personal income tax returns for the years 2016 through 2019.
The wire fraud conspiracy count carries a maximum penalty of 20 years in federal prison and the tax fraud conspiracy and evasion of taxes counts each carry a maximum penalty of 5 years’ imprisonment. The filing false tax return counts each carry a maximum penalty of 3 years’ imprisonment. The indictment also notifies the defendants that the United States intends to seek forfeiture of a total of approximately $3 million, the estimated amount of proceeds obtained as a result of the wire fraud conspiracy.
According to the indictment, Travis Morgan Slaughter and Tripp Charles Slaughter operated a roofing business in Jacksonville under the name Great White Construction, Inc. (a/k/a Florida Roofing Experts, Inc., a/k/a 5 Star Roofing Services LLC). The company contracted with professional employer organizations ("PEOs") to prepare payroll checks for the company's employees, after making deductions for payroll taxes, and to file payroll tax returns and forward tax payments to the governmental authorities.
However, the company did not provide the PEOs with information about all of the hours worked by or all of the wages due to its employees. Instead, the company also paid the employees directly, with separate checks drawn on company bank accounts, and did not deduct payroll taxes from these checks. By paying employees with “split checks”—one from the PEO and one from the company—the company avoided paying the full amount of payroll taxes due to the IRS.
On many occasions, the company issued checks from its checking account in lump sum amounts to work crew leaders for work performed by the crews. Many of the workers on these crews were citizens of other countries who were living and working in the United States illegally. The work crew leaders obtained cash for the checks and paid the workers on the crews in cash. Paying the workers in cash helped these undocumented non-citizens to continue to live and work in the United States illegally.
During the period of January 2017 through July 2020, the PEOs issued payroll checks to the employees totaling approximately $4,930,613, after deducting and paying over to the IRS the payroll taxes due. During that same period, the company issued checks to the employees totaling approximately $18,545,845, with no payroll taxes being deducted or paid. The unpaid payroll taxes on that amount—including only the Social Security and Medicare taxes and income tax that should have been withheld from the employees’ pay—was $2,768,377.
The PEOs also secured workers’ compensation insurance coverage for the company. The premiums charged by the workers’ compensation insurers were based on the total amount of payroll that the company reported to the PEOs. If the company had reported the actual amount of payroll, the insurers would have charged additional premiums totaling millions of dollars.
Travis Slaughter evaded the payment of income taxes for the years 2017 through 2019 by, among other things, failing to file a tax return for 2017 and not filing returns for 2018 and 2019 until 2021, which returns significantly underreported his income from the business. He also withdrew hundreds of thousands of dollars from business bank accounts, fraudulently transferred two properties to his children, and purchased four properties that he fraudulently titled in the names of his children.
Tripp Slaughter filed false tax returns for the years 2016 through 2019 by failing to include the income he was paid directly by the company that totaled approximately $121,492 and failing to report business income that totaled approximately $847,597.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Norman Man Sentenced to Serve More Than 11 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
OKLAHOMA CITY – Yesterday, BRADLEY KEITH COLLINS, 44, of Norman, Oklahoma, was sentenced to serve 135 months in federal prison for transportation of child pornography, announced United States Attorney Robert J. Troester.
In July 2021, Homeland Security Investigations received a Cybertip from the National Center for Missing and Exploited Children that Collins uploaded 66 picture images of child pornography to his Google Photos account. On September 7, 2022, a federal grand jury returned a three-count Indictment against Collins, alleging transportation, possession, and accessing of child pornography. On October 28, 2022, Collins pled guilty to transportation of child pornography.
Yesterday, U.S. District Judge David L. Russell sentenced Collins to serve 135 months in federal prison, followed by five years of supervised release, upon release from prison. In announcing the sentence, Judge Russell noted the circumstances of the offense and Collins’ history and characteristics, including that he had sexual contact with a foster child several years ago. At sentencing, Judge Russell remanded Collins into federal custody. He will be required to register as a sex offender upon release from federal prison.
This case is the result of an investigation by the U.S. Homeland Security Investigations and the Oklahoma Highway Patrol. Assistant U.S. Attorney Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
New Orleans Man Indicted for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – EMANUEL ROSS, age 24, a resident of New Orleans, Louisiana, was charged today, in a three-count indictment for violations of the Federal Gun Control and Federal Drug Control Acts.
ROSS is charged in Count 1 with possession with intent to distribute cocaine and fentanyl in violation of 21 U.S.C. § 841(a)(1); in Count 2 with possession of firearms in furtherance of a drug trafficking crime in violation of 18 U.S.C. § 924(c); and in Count 3 with possession of a machinegun, in violation of 18 U.S.C. § 922(o). Count 2 of the indictment alleges that ROSS possessed 10 different guns in furtherance of his drug trafficking activities.
As to Count 1, ROSS faces a maximum term of imprisonment of 15 years, up to a $1,000,000 fine, and at least 3 years of supervised release. For Count 2, ROSS faces a consecutive term of imprisonment of not less than 5 years up to life imprisonment to be served consecutive to any other term imposed, up to a $250,000 fine, and up to 5 years of supervised release. For Count 3, ROSS faces up to a maximum term of imprisonment of 10 years , up to a $250,000 fine, and up to 3 years of supervised release. Finally, ROSS must pay a mandatory special assessment fee of $100 for each count.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Violent Crimes Unit is in charge of the prosecution.
Navajo woman arraigned for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Mariah Chapo was arraigned in federal court on February 23, 2023, on a charge of involuntary manslaughter. Chapo, 26, an enrolled member of Navajo Nation, will remain on conditions of release pending trial.
A grand jury indicted Chapo on January 25, 2023. According to the indictment and other records, on February 11, 2022, Chapo crashed her vehicle after driving at a high rate of speed while intoxicated, ultimately killing an unsecured eight-month-old John Doe. The alleged homicide occurred within the exterior boundaries of the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Chapo faces up to eight years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Naples Felon Sentenced to More Than Seven Years for $2.6 Million COVID Relief Fraud SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Daniel Joseph Tisone (35, Naples) to seven years and three months in federal prison for wire fraud, bank fraud, illegal monetary transactions, and possession of ammunition by a convicted felon. Tisone was also ordered to forfeit the properties, engagement ring, ammunition, and cash seized from bank accounts, as well as to pay restitution in the amount of $2,617,447.17, all traceable proceeds of the offenses. Tisone had pleaded guilty on August 26, 2022.
According to court documents, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent Economic Injury Disaster Loan (EIDL), Main Street Lending Program (MSLP), and Paycheck Protection Program (PPP) loan applications to the Small Business Administration (SBA), as well as PPP and MSLP approved lenders. The loan applications contained numerous false representations, including the criminal history, average monthly payroll, number of employees, and gross revenues of the applicant, Tisone.
In support of the fraudulent EIDL, PPP, and MSLP applications, Tisone submitted false and fictitious payroll and tax documents, as well as a fake commercial lease. Further, Tisone fraudulently used the means of identification of individuals who purported to work for Tisone’s companies, including their names, dates of birth, and Social Security numbers, to submit false and fraudulent payroll and payroll tax documents. Tisone also fraudulently used the means of identification of an individual, including the individual’s name, date of birth, driver license, and Social Security number, to submit a false and fraudulent EIDL application.
Tisone’s false and fraudulent representations caused the SBA, PPP, and MSLP lenders to approve and fund one MSLP, four EIDL, and five PPP loans, resulting in the deposit of approximately $2,617,447 into bank accounts Tisone controlled. Tisone then used the funds for unauthorized purposes and for his own personal enrichment, including the purchase of residences in Naples, Florida, stocks and investment securities, a 2019 Tiara 34LS boat, a 4.02 carat engagement ring, and ammunition.
On March 20, 2022, while executing a search warrant at Tisone’s residence, FBI agents discovered more than 800 rounds of assorted .223/5.56 and 9mm caliber ammunition in Tisone’s master bedroom and garage. As a convicted felon, Tisone is prohibited from possessing a firearm or ammunition under federal law.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The MSLP was designed to provide support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. The program was intended to help companies, that were in sound financial condition prior to the onset of the pandemic, maintain their operations and payroll until conditions normalized.
“Daniel Joseph Tisone seriously abused three federal programs that used taxpayers’ money to aid struggling small businesses through the pandemic, said Brian Miller, the Special Inspector General for Pandemic Recovery. “SIGPR is glad to have played a significant role teaming with other law enforcement agencies and the United States Attorney’s Office to hold Mr. Tisone accountable.”
This case was investigated by the FBI, Special Inspector General for Pandemic Recovery (SIGPR), IRS – Criminal Investigation, and the Federal Reserve Board OIG. It was prosecuted by Assistant United States Attorneys Trent Reichling, Suzanne Nebesky, and Julie Simonsen.
Morrison Man Indicted for Covid FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Richard Rejan Nieto, age 37, formerly of Morrison, has been indicted on three counts of wire fraud and five counts of money laundering for taking money that he received as a result of fraudulent Paycheck Protection Program (PPP) applications he submitted.
In late March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted, and extended emergency financial assistance to millions of Americans suffering economic harm from the COVID-19 pandemic. The CARES Act expanded existing Small Business Administration programs, including the Economic Injury Disaster Loan (“EIDL”) program, and established new temporary programs, including the Paycheck Protection Program (“PPP”).
According to the indictment, from April of 2020, through April of 2021, the defendant allegedly devised and participated in a scheme to defraud the United States and a lender. The defendant unjustly enriched himself by obtaining $913,551.88 in PPP loans. He obtained the loans by inflating payroll costs, making false statements and certifications, and submitting fake tax returns. Having unjustly obtained PPP loans, he then applied for loan forgiveness for the full amount of the PPP loans. He obtained forgiveness of $176,956.09 through false representations and by submitting fake payroll checks. He allegedly laundered money through large money transfers between bank and investment accounts, including a $40,000 transfer to a cryptocurrency account in January 2021, to purchase Bitcoin. The United States has previously executed seizures of fraud proceeds from the defendant’s E*Trade investment account and from two cryptocurrency trading accounts.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The Internal Revenue Service-Criminal Investigation (IRS-CI) investigated this case. Assistant United States Attorneys Craig Fansler and Martha Paluch are handling the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case number: 22-cr-00262
Montana Man Sentenced to 27 Years in Prison for Child Exploitation CrimesRead the Press Release
BECKLEY, W.Va. – Gary Lee Hodges, 72, of Bigfork, Montana was sentenced today to 27 years in prison, to be followed by 15 years of supervised release, for two counts of attempted enticement of a minor to engage in illegal sexual activity. Hodges must also register as a sex offender.
According to court documents and statements made in court, Hodges contacted a woman in Beckley, West Virginia, on a social networking website dedicated to individuals interested in sexual fetishes. Hodges learned that the woman had two daughters, ages 11 and 13. Hodges expressed interest in coming to West Virginia to establish a household with the woman and children, where he would engage in sexual activity with both minor females. Specifically, Hodges stated that he planned to engage in sexual intercourse and oral sex on a regular basis with both minor females.
During the next month, Hodges continued to make plans to travel to West Virginia to meet the woman and her daughters. To encourage the children to engage in sexual activity with him, Hodges sent them lingerie and other gifts and booked a trip to take them to Washington, D.C., to visit the zoo. Hodges reserved a hotel room in Beckley to meet the woman and the girls. Hodges flew to Charleston on January 14, 2022, where he was arrested.
The court found that Hodges planned to use the two children as “sex slaves” and called his criminal conduct “abominable.”
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Human Trafficking and Child Exploitation Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald and third-year law student intern Ryan Vick prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-33.
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Missouri Nonprofit Admits False Statements About Care of Foster Youth, Agrees to Pay $1.8 MillionRead the Press Release
ST. LOUIS – A Missouri-based nonprofit behavioral health provider has admitted making criminal false statements in claims for services not provided to foster youth and agreed to a series of compliance measures, federal and state officials announced Friday.
In a separate civil settlement, Great Circle of Webster Groves, Missouri agreed to pay $1,866,000, consisting of $933,000 in restitution that was doubled under the False Claims Act.
“In this non-prosecution agreement, Great Circle admits falsely claiming to have provided enhanced supervision to youth at its residential treatment facility in claims for payment to the State of Missouri,” said Assistant U.S. Attorney Meredith Reiter, who is leading the team that worked on the case. “A cascade of issues can arise from inadequate supervision, particularly for children with such intensive need for treatment and assistance.”“These agreements hold Great Circle accountable by requiring it to admit false billing and pay a civil false claims settlement, without jeopardizing continued access to residential treatment services for children in Missouri’s foster care program,” Reiter said.
The non-prosecution agreement (NPA) was entered into for, among other reasons, the nonprofit’s past and continuing cooperation, the lack of a prior criminal history and the $1.8 million civil settlement agreement. A major consideration was also the fact that the nonprofit has been providing behavioral health services to children with special needs in the custody of the Missouri Department of Social Services, Children’s Division, and a criminal conviction resulting in exclusion from federal programs could jeopardize that and thus cause hardship to innocent third parties.
The multi-year investigation and these agreements are the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of Missouri, the Office of Inspector General of the Department of Health and Human Services, the Missouri Department of Social Services, the FBI, the Webster Groves Police Department and the Phelps County Sheriff’s Department.
“Great Circle falsely submitted bills for services it did not provide but were needed by the children,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “Prioritizing profit over safety can put already vulnerable children in peril.”
“To obtain ill-gotten gains, Great Circle knowingly submitted false claims related to services that are intended to benefit children,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “We commend the efforts of our agents and law enforcement partners to hold Great Circle accountable and safeguard the integrity of our federal programs that support health and human services.”
“I’m committed to enforcing the law as written, and that involves ensuring that anyone who defrauds the state is held accountable,” said Missouri Attorney General Andrew Bailey. “I’m proud of the collaboration between this office’s Medicaid Fraud Control Unit and our law enforcement partners to obtain restitution for the state, and we will continue to ensure that those who cheat the state are brought to justice.”
“Following a multi-year investigation of Great Circle related to allegations of abuse of child health care recipients, allegations of failure to report abuse and Medicaid fraud, we are pleased with the results,” said Lt. Jillian McCoy of the Webster Groves Police Department. “The ultimate goal of serving and protecting vulnerable youth was obtained by cooperative efforts with federal agencies through the U.S. Attorney’s Office.”
“Our goal is to ensure every child across the state lives in a safe, nurturing environment that will ultimately help them thrive,” said Robert Knodell, acting director for the Missouri Department of Social Services. “The Department of Social Services is pleased to assist in holding Great Circle accountable for its actions without further jeopardizing the care of some of Missouri’s most vulnerable youth. We are sending a strong message regarding the care we expect our children to receive, and we will continue to do whatever it takes to help ensure the safety and well-being of Missouri’s children.”
As part of the agreement, Great Circle admitted falsely claiming to have provided services for six residents between 2019 and 2020. Great Circle is licensed to provide “intensive residential treatment” services to children, also known as Level IV services, and defined as providing a “highly structured and secure environment designed to: (a) prevent emotionally disturbed youth from runaway behavior; (b) address the likelihood of rage and physical aggression by the residents; and (c) minimize the likelihood of youth injuring themselves or others.”
On multiple occasions, Great Circle falsely claimed to have provided services above Level IV, including increased ratios of staff to residents and other enhanced services.
The company agreed to cooperate with the government in any additional health care fraud investigation and to promptly report any credible evidence or allegations of conduct violating U.S. law to the U.S. Attorney’s Office. Great Circle also has agreed to implement a compliance and ethics program designed to prevent and detect violations of federal fraud and related statutes and adopt new or modify existing internal controls, compliance code and policies and procedures where necessary. Officers, directors and senior management will have to “provide strong, explicit, and visible support and commitment” to the corporate policy against violations of relevant laws.
Great Circle has locations throughout Missouri and in Kansas. KVC Missouri has announced it will take over Great Circle April 1.
Assistant U.S. Attorneys Meredith Reiter, Suzanne Moore and Gwendolyn Carroll handled the case.
great_circle_fully_executed_civil_settlement_agreement.pdfMichigan Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – James Meeks-Little, 29, of West Bloomfield, Michigan, was sentenced today to seven years in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on June 24, 2021, Meeks-Little was a passenger in a vehicle pulled over by law enforcement officers in Beckley. Meeks-Little was the subject of an arrest warrant at the time of the traffic stop. Officers found 247.9 grams of a mixture containing fentanyl hidden behind the glove box, and a Springfield, model XD, 9mm semi-automatic handgun. Meeks-Little admitted to possessing the fentanyl mixture and further admitted that he intended to distribute it.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service, the Drug Enforcement Administration (DEA), the West Virginia State Police, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess and former Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-129.
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Methamphetamine Dealer Sentenced to Twelve Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Martin Felder, Jr. (43, Orlando) to 12 years in federal prison for possession with the intent to distribute methamphetamine. The court also ordered Felder to forfeit assets, which are traceable to proceeds of the offense. Felder had pleaded guilty on October 20, 2022.
According to court documents, Felder, a previously convicted felon, was under investigation for narcotics distribution in the Tampa Bay area. On two subsequent occasions, Felder sold methamphetamine and heroin to a Drug Enforcement Administration (DEA) confidential source. A forensic laboratory test of the narcotics seized indicated that the methamphetamine was “ICE” – which is very high purity methamphetamine.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Callan Albritton and Maria Guzman.
Meridian Man Sentenced to over Three Years in Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian, Mississippi man was sentenced to 41 months in federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Delontay Preston Scott, 31, was found in possession of a firearm by East Mississippi Drug Task Force agents on December 30, 2021, during a traffic stop. Scott has prior felony convictions for Armed Robbery and Burglary of a Dwelling and was under the supervision of the Mississippi Department of Corrections at the time. As a convicted felon, it is contrary to federal law for Scott to possess any firearm
The Lauderdale County Sheriff’s Office and the ATF investigated the case.
Assistant U.S. Attorneys Adam T. Stuart and Charles W. Kirkham is prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Man Sentenced for Shooting Farmville Auto Dealership Owner during Armed RobberyRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to 25 years in prison for committing an armed robbery in Farmville, during which he shot the victim in the leg.
According to court documents, on July 16, 2020, Herbert Young III, 54, committed an armed robbery of the Farmville auto dealership, Auto Connection. During the robbery, Young physically restrained the victim-owner’s hands using an electrical extension cord and a phone charging cord. When a customer entered the store, the victim attempted to free himself and flee. Before the victim could do so, Young shot at him and struck the calf area of the victim’s right leg.
Young then stole a 2000 BMW, which belonged to the Auto Connection and fled the scene. In addition to the 2000 BMW, Young took the victim’s cell phone as well as other property that belonged to the Auto Connection. DNA evidence obtained from the extension cord later tied Young to the armed robbery. Prior to his conviction in this case, Young had been previously convicted of three separate armed robberies and an aggravated assault where he shot the victim.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael R. Gill prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-77.
Las Vegas Woman Pleads Guilty to Committing COVID Relief Fraud While on Federal ProbationRead the Press Release
LAS VEGAS – A Las Vegas woman pleaded guilty yesterday before U.S. District Judge Cristina D. Silva to filing fraudulent applications seeking thousands of dollars in loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
According to court documents, Mikaela Marie Cuevas (24) — while on probation for assaulting a federal law enforcement officer — submitted at least two fraudulent loan applications and received thousands of dollars of Paycheck Protection Program (PPP) funding she was not eligible to receive. As part of the scheme, Cuevas submitted PPP loan applications in the name of a fake management consulting business, falsely claiming gross annual revenues of $106,000 from the non-existent business. Shortly after receiving the PPP funds, she filed fraudulent loan forgiveness applications, seeking to have her responsibility to re-pay the stolen loans absolved. In total, Cuevas caused a loss of about $47,000.
Cuevas pleaded guilty to one count of wire fraud. She is scheduled to be sentenced on May 25, 2023, and faces a maximum statutory sentence of up to 20 years in prison. In addition to time in prison, Cuevas faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans for the FBI; Special Agent in Charge Weston King for the Small Business Administration Office of the Inspector General’s (SBA OIG) Western Region Office; Special Agent in Charge Albert Childress for the IRS Criminal Investigation (IRS CI); Acting Special Agent in Charge Cory Nootnagel for the Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (FRB-OIG) made the announcement.
The FBI, SBA OIG, IRS CI, FRB-OIG, and the Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Kimberly Frayn prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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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Lake County Man Convicted of Distributing Fentanyl Resulting in DeathRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Jermaine Lamar Harvard (41, Lake County) guilty of distributing fentanyl resulting in the death of another. Harvard faces a minimum mandatory penalty of 20 years, and up to life, in federal prison. His sentencing hearing is scheduled for May 15, 2023.
According to testimony and evidence presented at trial, in October 2019, Harvard distributed a quantity of fentanyl to the victim, M.R. An analysis of the victim’s cellphone revealed that Harvard had set up multiple drug transactions with the victim. These drugs led directly to the victim’s death. Harvard represented that the substance was heroin. A medical examiner subsequently determined that the victim had died of acute fentanyl toxicity.
Harvard has prior state convictions for the sale of cocaine in 2013.
This case was investigated by the Federal Bureau of Investigation and the Lake County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton and Hannah J. Nowalk.
Laconia Man Sentenced to 60 Months in Federal Prison for Methamphetamine Distribution Conspiracy and Firearm ChargesRead the Press Release
CONCORD, N.H. –United States Attorney Jane E. Young announces that Dylan Miles, 29, previously of Laconia, was sentenced to 60 months of imprisonment today following his sentencing for participating in a methamphetamine distribution conspiracy and for his unlawful possession of firearms.
According to court documents and statements made in court, the defendant and others were involved in a conspiracy to ship methamphetamine from Arizona to New Hampshire. In May of 2019, Drug Enforcement Administration agents were alerted to suspicious parcels sent from co-defendants Heather Dubeau and Gary Sewell in Arizona to two different addresses in New Hampshire. Investigators obtained a warrant to open the packages and found that one contained over 336 grams of methamphetamine and the other contained over 665 grams of methamphetamine. The methamphetamine was intended for further distribution. Investigators learned that the package containing 665 grams of methamphetamine was intended for Miles. Law enforcement searched Miles’s home pursuant to a warrant and seized drug distribution paraphernalia and multiple firearms. Miles was legally prohibited from possessing firearms by virtue of a prior felony conviction.
All of Miles’s co-defendants previously pleaded guilty. Andrew Hutchins pleaded guilty on May 5, 2022, and was sentenced on August 30, 2022 to time served and 3 years supervised release. Sewell pleaded guilty on May 5, 2022, and was sentenced on February 7, 2023 to 72 months in prison. Dubeau pleaded guilty on May 4, 2022, and was sentenced on February 16, 2023 to 40 months in prison. Chad Rombow pleaded guilty on January 26, 2022 and was sentenced on February 21, 2023 to 72 months in prison. Eli Margolis pleaded guilty on May 27, 2022, and is scheduled to be sentenced on April 6, 2023.
After completion of his prison sentence, Miles will be under four years of supervised release.
After the sentencing, USA Young said “Mr. Miles was another conspirator in a scheme to obtain methamphetamine from Arizona for distribution into our communities. In addition to his drug trafficking, he unlawfully possessed firearms as he was a convicted felon. As evidenced from the sentences imposed in this investigation, such brazen criminal conduct will vigorously be prosecuted so that dangerous criminals like the defendant will be removed from our communities for significant periods of time.”
“As methamphetamine seizures are on the rise, DEA stands committed to keeping this highly addictive drug out of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Drugs and guns are a deadly combination. Today’s sentence not only holds Mr. Miles accountable for his crimes but serves as a warning to those who attempt to bring this poison to the Granite State. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This matter was investigated by the United States Postal Inspection Service and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Anna Krasinski.
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Labor Union Treasurer Convicted After Embezzling More Than $91,000 over Six YearsRead the Press Release
INDIANAPOLIS- Matthew Archer, 59, of McCordsville, Indiana, has been convicted of wire fraud.
According to court documents, from 2006 to December of 2019, Matthew Archer served as the treasurer for an industrial union (the Union) located in Indianapolis, Indiana. As part of his employment, Archer was responsible for maintaining the Union’s bank accounts and records.
On multiple occasions between 2013 and 2019, Archer illegally transferred funds from the Union’s bank account into his personal bank accounts. Between 2017 and 2019, Archer also electronically transferred funds from the Union’s bank account into his own to pay his personal car loan.
Additionally, in 2018 and 2019, Archer submitted fraudulent Labor Organization Annual Reports to the Department of Labor. On these forms, Archer falsely reported the Union’s assets and overstated how much money was in its bank account. On both occasions, Archer reported that the Union had $151,000 available when it actually had less than $11,000.
To conceal his scheme, Archer created fraudulent bank statements that overstated how much money was in the Union’s accounts and forged the signatures of the Union’s auditors on internal reports.
In total, Archer embezzled $91,951.86 from the Union, and has been ordered to repay the stolen funds as restitution.
“For years, this defendant lied and abused his position of trust to line his own pockets at the expense of the union and members he was supposed to serve,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “This prosecution demonstrates that the Department of Labor and the U.S. Attorney’s Office are watching, and those who embezzle funds will be held accountable.”
“Safeguarding financial integrity and combating fraud in labor unions is a high priority for the U.S. Department of Labor,” said Megan Ireland, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Most union officials do their work with great care, but Matthew Archer betrayed the trust placed in him by the Laborers’ International Union of North America (LIUNA) and embezzled over $91,000 from LIUNA Local 1325, at the expense of LIUNA and its members. OLMS continuously works to identify criminal violations and pursue legal action when individuals unlawfully exploit their union positions without regard to the best interests of the union and its members.”
The U.S. Department of Labor, Office of Labor-Management Standards, investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus Stinson. Archer has been ordered to pay $82,462.02 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney Adam Eakman, who prosecuted this case.
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Kalispell man charged with making threats to kill U.S. Senator Jon TesterRead the Press Release
MISSOULA — A Kalispell man accused of threatening to injure and murder Montana U.S. Senator Jon Tester was arraigned on Feb. 23 on an indictment, the U.S. Attorney’s Office said today.
Kevin Patrick Smith, 45, pleaded not guilty to an indictment filed on Feb. 22 charging him with two counts of threats to injure and murder a United States Senator. If convicted of the most serious crime, Smith faces 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Smith was detained pending further proceedings.
According to court documents, on Jan. 30, Smith allegedly made numerous threatening calls to Sen. Tester by phone, leaving voicemails at Sen. Tester’s office in Kalispell. In one instance, Smith stated:
“There is nothing I want more than to have you stand toe to toe with me. You stand toe to toe with me. I rip your head off. You die. You stand in a situation where it is physical between you and me. You die.
“I will never stop.…And I would love to destroy you and rip your (obscenity) head from your shoulders. That is no problem. Call that a threat. Send the FBI.
“I would love to (obscenity) kill you. I would love to see your FBI at my door. I would love to see something in the news”
According to court documents, Smith allegedly acknowledged in the recording that he threatened Sen. Tester and such threats were “on purpose.”
Court documents further allege that on Feb. 1, the FBI contacted Smith and instructed him not to threaten physical violence toward Sen. Tester. On Feb. 10, Smith again called Sen. Tester, stating in one voice message, “I want you to understand. If I ever pull my trigger, I know what dies.”
As further alleged in the indictment, Smith stated in another voicemail, “It is important for you to understand that I won’t live under your rule.…If it becomes time that I die, I’d take a significant number with me.”
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI and U.S. Capitol Police.
PACER case reference. 23-15.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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KC Man Sentenced to 45 Years for Conspiracy to Commit Armed Robberies of Local BusinessesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to commit nine armed robberies of local businesses in the summer of 2018, as well as an armed robbery in which a convenience store employee was beaten and then fatally shot.
Joe Lee Nichols, 30, was sentenced by U.S. District Judge Roseann Ketchmark on Thursday, Feb. 22, to 45 years in federal prison without parole.
On March 11, 2022, Nichols pleaded guilty to one count of conspiracy to commit robbery, three counts of robbery, and three counts of using a firearm in furtherance of a crime of violence. Additionally, federal prosecutors used evidence of Nichols’s involvement in a tenth, uncharged armed robbery in which a person was killed as relevant conduct for determining his sentence.
Nichols admitted that he was part of a conspiracy to rob nine businesses at gunpoint between June 1 and July 18, 2018. Nichols also admitted that he was directly involved in the armed robbery of Boost Mobile, 5218 E. Truman Road, on June 12, 2018; the armed robbery of Arrowhead Inn, 6006 E. 31st Street, on July 2, 2018; and the armed robbery of Wood Springs Suites, 11301 Colorado Avenue, on July 14, 2018.
The government presented evidence at Nichols’s sentencing hearing that he was also involved in a tenth, uncharged, armed robbery of Inner-City Oil convenience store, 5901 Swope Parkway, on July 16, 2018. The court determined there was sufficient evidence of Nichols’s involvement to consider the robbery as relevant conduct, which impacted the court’s sentencing decision.
Video surveillance evidence introduced during yesterday’s sentencing hearing indicated that Nichols pointed a handgun at an employee of Inner-City Oil, who resisted and engaged in a struggle for Nichols’s firearm. Nichols fired his gun multiple times before the employee fell to the floor. The employee then retrieved a handgun and began to fire back at Nichols. Nichols began to stomp and kick at the head and body of the employee, who was still lying on the floor. The employee lost his firearm, which was recovered by Nichols’s accomplice, who then used it to also shoot the store clerk. When they were unable to access the cash register, Nichols and his accomplice left the store. The employee can be seen on the surveillance video, still moving while lying on the floor, until eventually becoming motionless when he died from his injuries. A witness who saw their car leaving the area and discovered the body of the employee immediately called 911.
The surveillance video depicts Nichols leaning on an ice cream freezer with his left hand while assaulting the employee on the floor. Investigators determined that a palm print found on the ice cream freezer belonged to Nichols. Nichols was also identified by his appearance in other robbery videos and by several witnesses who viewed the Inner-City Oil video.
Nichols is the third defendant to be sentenced in this case. One additional co-defendant has pleaded guilty and awaits sentencing and two other defendants remain set for trial in May 2023.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Maureen Brackett. It was investigated by the Kansas City, Mo., Police Department, and agents and task force officers of the FBI.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 24 was:
Moises Zamora, 38, of Greely, Colorado, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Zamora faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Zamora was detained pending further proceedings. The Yellowstone County Sheriff’s Office, Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI investigated the case. PACER case reference. 23-20.
Appearing on Feb. 23 was:
Edwin Ivan Don’tMix, 59, of Crow Agency, on charges of abusive sexual contact. If convicted of the most serious crime, Don’tMix faces a maximum of life in prison, a $250,000 fine and five years to life of supervised release. Don’tMix was released pending further proceedings. The FBI investigated the case. PACER case reference. 22-147.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 22 was:
Bo Jordan Bradley, 31, of Bozeman, on charges of felon in possession of a firearm and ammunition. If convicted of the most serious crime, Bradley faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Bradley was released pending further proceedings. The Montana Probation and Parole and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-01.
Appearing on Feb. 21 was:
Joseph Anthony Schrantz, 35, of Missoula, on charges of possession with intent to distribute controlled substances, prohibited person in possession of a firearm and unlawful taking of firearm form a licensed firearm dealer. If convicted of the most serious crime, Schrantz faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Schrantz was detained pending further proceedings. The Missoula Police Department, Montana Probation and Parole, Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 23-6.
Darcel Portra Saunders, 65, of Bozeman, on charges of wire fraud and money laundering. If convicted of the most serious crime, Saunders faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Saunders was released pending further proceedings. The FBI and IRS Criminal Investigation investigated the case. PACER case reference. 23-02.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – CHRISTIAN PENA-OCHOA, age 29, a citizen of Honduras, was charged on February 24, 2023, in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, PENA-OCHOA reentered the United States after he was previously removed on September 7, 2018.
If convicted, PENA-OCHOA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Homeland Security Investigations, and United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Greenbrier County Man Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
BECKLEY, W.Va. – Justin Charles Baker, 35, of Smoot, pleaded guilty today to failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, Baker was required to comply with the provisions of SORNA because of his conviction for sexual battery in North Carolina on July 19, 2021. Baker traveled from Covington, Virginia, to the area of Smoot, West Virginia, where he resided and worked from August 2022 until November 29, 2022, and failed to register as a sex offender in West Virginia in violation of the requirements of SORNA.
Baker is scheduled to be sentenced on June 9, 2023, and faces a maximum penalty of 10 years in prison, five years and up to a lifetime of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
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-226.
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Granbury Man Convicted at Trial Following Child Porn Tip by SonRead the Press Release
A Granbury man whose son reported him to law enforcement was convicted at trial of child sexual exploitation, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
After three days of trial and just 45 minutes of deliberation, a federal jury found David Earl Boyd, 64, guilty of two counts of producing child pornography, one count of possession of child pornography, and one count of penalties for registered sex offenders.
According to evidence presented at trial, in the spring of 2022, Mr. Boyd, already a registered sex offender, took sexually explicit images of two young children, aged 6 and 3.
Mr. Boyd’s son discovered nude images of the children in his father’s trash folder. He took a screenshot of the trash gallery and submitted a report to the National Center for Missing and Exploited Children, which forwarded the tip to law enforcement.
Shortly thereafter, officers arrested Mr. Boyd and seized his Samsung smartphone.
During an extraction of the phone, forensic examiners discovered thousands of child pornography images in a directory associated with the application “Hide it Pro,” an application designed to conceal images and videos. (Although Mr. Boyd had previously deleted the app, the directory retained the images and videos.)
“We are grateful to the defendant’s son for reaching out to the National Center for Missing and Exploited Children. It cannot have been easy to report his father’s crimes, but in so doing, he likely saved two children from further victimization. We are proud to hold this predator to account,” said U.S. Attorney Leigha Simonton.
Mr. Boyd now faces a minimum of 45 years in federal prison. He is slated to be sentenced on June 27.
Previously, Mr. Boyd was convicted of possession of child pornography in Taylor County. In 2003, the state sentenced him to three years and required to register as a sex offender.
Homeland Security Investigations’ Dallas Field Office, the Hood County District Attorney’s Office, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case with the help of Assistant U.S. Attorney Alex Lewis. U.S. District Judge Terry Means oversaw the trial.
Former San Quentin Prison Guard Sentenced to 20 Months in Prison for Accepting Bribes to Smuggle Contraband into Death RowRead the Press Release
SAN FRANCISCO – Former Corrections Officer Keith Christopher was sentenced today to 20 months in prison for his role in a conspiracy to smuggle contraband into San Quentin State Prison (SQP), announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Susan Illston, United States Senior District Judge.
Christopher, 38, of Pittsburg, Calif., pleaded guilty to crimes related to the conspiracy on September 16, 2022. Christopher was employed as a Correctional Officer at SQP and, as described in the indictment, worked in SQP’s East Block, known as Death Row. He admitted in his plea agreement that he accepted payments as bribes in exchange for smuggling at least 25 contraband cell phones into SQP. Cell phones are deemed contraband for prisoners in all parts of the prison as they create safety and security risks for prison employees, other inmates, and the public at large when used by inmates to direct criminal activity outside the prison. The California Code of Regulations accordingly prohibits prisoners from possessing cell phones.
Christopher admitted in his plea agreement that he delivered cell phones and accessories, such as chargers, to a condemned inmate who then sold many of the phones to other inmates. Christopher acknowledged that as early as 2019, he orchestrated a conspiracy involving an inmate; co-conspirators Isaiah Wells, 32, of Tracy, Calif., Tanisa Smith-Symes, 46, of Las Vegas, NV, and Dustin Albini, 37, of Pittsburg, CA; and others. Christopher’s plea agreement includes descriptions of two instances in which he arranged to receive bribes in exchange for smuggling cell phones into the prison. In the first instance, the prison inmate working with Christopher arranged for 10 cell phones to be shipped to the Nevada residence of an associate. That associate was Smith-Symes. According to Christopher, in December 2019, the inmate arranged for a package containing 10 cell phones to be delivered to Smith-Symes’ residence in Nevada. Christopher acknowledged that he directed Smith-Symes to send the phones to Albini who delivered the phones to Christopher. Christopher further admitted that he sent a text message to Smith-Symes establishing that he would smuggle the cell phones into the prison for $5,000 and that the money should be sent using Venmo and Walmart money transfers—some of the money through Albini and some through Wells. The second incident described in Christopher’s plea agreement involves an agreement in May of 2020, in which Christopher arranged to smuggle an additional 15 cell phones into SQP for a payment of $7,500. The cell phones again were delivered first to Smith-Symes, but this time were routed through Wells who then delivered them to Christopher. Christopher agreed with the inmate to reduce his fee for this second smuggling transaction and, ultimately, Christopher delivered the phones to the inmate for a $6,500, a small portion of which went to Wells in exchange for his participation in the conspiracy.
On September 29, 2021, federal grand jury indicted Christopher, Wells, Albini, and Smith-Symes charging each with conspiracy to commit honest services fraud (bribery), in violation of 18 U.S.C. §§ 1341, 1343, 1346, and 1349, and various other crimes in accordance with their particular role in the scheme. Christopher pleaded guilty to the count alleging conspiracy to commit honest services fraud and to two counts of accepting bribes, in violation of 18 U.S.C. § 666(a)(1)(B).
In addition to Christopher’s prison term, Judge Illston ordered Christopher to serve three years of supervised release that will begin after the conclusion of his prison term. Judge Illston ordered Christopher to surrender on or before May 25, 2023, to begin serving his prison term.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the FBI and the California Department of Corrections and Rehabilitation’s Office of Internal Affairs.
Former Nurse Indicted for Drug Diversion from Boston-Area HospitalRead the Press Release
BOSTON – A former nurse has been indicted by a federal grand jury in Boston for allegedly diverting opioids from a Boston-area hospital.
Andrea Falzano, 38, of Winchester, was indicted on three counts of unlawfully obtaining controlled substances by fraud, deception and subterfuge. Falzano was arrested this morning and will appear in federal court in Boston today at 1:30 p.m. before U.S. District Court Magistrate Judge M. Page Kelley.
According to the indictment, while working as a registered nurse at a hospital in the Boston-area, Falzano acquired hydromorphone and morphine both of which are opioids and Schedule II controlled substances.
The charge of unlawfully obtaining controlled substances by fraud provides a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Evan Panich of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former New Jersey Resident Sentenced to Two Years in Prison for Conspiring to Distribute Fentanyl AnalogueRead the Press Release
A former New Jersey resident was sentenced on Feb. 23, 2023, to two years in prison for conspiring to distribute a fentanyl analogue. Darryl Hinkson, 47, formerly of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi on July 20, 2021, to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a fentanyl analogue.
Former Insurance Executive Indicted for $2B Fraud SchemeRead the Press Release
A federal grand jury in Charlotte returned an indictment yesterday charging a North Carolina man with masterminding and directing a massive scheme to deceive state insurance regulators and defraud thousands of policyholders and others in connection with insurance companies he controlled.
According to court documents, from no later than 2016 through at least 2019, Greg E. Lindberg, 53, of Durham, and others allegedly agreed to defraud various insurance companies, other third parties, and ultimately, thousands of insurance policyholders. Lindberg allegedly deceived the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his insurance companies, and improperly used insurance company funds for his personal benefit. In particular, the indictment alleges that Lindberg personally benefitted from the fraud in part by using insurance company funds to finance his lavish lifestyle, including the purchase and refinancing of personal real estate and “forgiving” more than $125 million in loans from his affiliated companies to himself.
“Policyholders rely on insurance company owners to follow the rules so that the benefits they deserve and depend on will be available when needed,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this alleged $2 billion scheme, the defendant defrauded regulators and policyholders alike, causing substantial financial harm to thousands of victims. As this prosecution demonstrates, no matter how complex the scheme, the department will hold accountable corporate executives whose crimes leave policyholders holding the bag while lining their own pockets.”
The charged conduct allegedly caused substantial financial hardship to the victims. Lindberg allegedly caused the insurance companies to engage in investments of nearly $2 billion as part of his scheme, most of which remained outstanding as of September 2022. Since 2019, multiple insurance companies controlled by Lindberg have been placed into rehabilitation or liquidation.
“The indictment reveals a carefully orchestrated scheme that relied on a web of complex financial investments and transactions designed to evade regulators, disguise the financial health of Lindberg’s insurance companies, and conceal the alleged purpose of the scheme: Lindberg’s personal gain,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “My office will continue to work with our law enforcement partners to investigate and prosecute financial wrongdoing and hold perpetrators accountable for their actions.”
“People buy insurance products to provide comfort and security. However, this indictment alleges this was a sophisticated and intricate scheme designed for one reason, to benefit Lindberg,” said Acting Special Agent in Charge Michael C. Scherck of the FBI Charlotte Field Office. “The FBI is unwavering in our efforts to hold those accountable who commit federal financial crimes.”
Lindberg is charged with one count of conspiracy to commit crimes in connection with insurance business, wire fraud, and investment adviser fraud; one count of wire fraud; four counts of false insurance business statements presented to regulators; six counts of false entries about the financial condition or solvency of an insurance business; and one count of money laundering conspiracy. If convicted, he faces a maximum penalty of 20 years in prison on each of the top counts.
In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance.
Separately, Lindberg remains under indictment and is awaiting retrial in a case in which he faces several charges stemming from alleged attempts to bribe the Commissioner of the North Carolina Department of Insurance.
The FBI Charlotte Field Office is investigating the case.
Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina and Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-greg-e-lindberg.
Former Insurance Executive Indicted for $2B Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte returned an indictment charging a North Carolina man with masterminding and directing a massive scheme to deceive state insurance regulators and defraud thousands of policyholders and others in connection with insurance companies he controlled.
According to court documents, from no later than 2016 through at least 2019, Greg E. Lindberg, 53, of Durham, and others allegedly agreed to defraud various insurance companies, other third parties, and ultimately, thousands of insurance policyholders. Lindberg allegedly deceived the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his insurance companies, and improperly used insurance company funds for his personal benefit. In particular, the indictment alleges that Lindberg personally benefitted from the fraud in part by using insurance company funds to finance his lavish lifestyle, including the purchase and refinancing of personal real estate and “forgiving” more than $125 million in loans from his affiliated companies to himself.
“Policyholders rely on insurance company owners to follow the rules so that the benefits they deserve and depend on will be available when needed,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this alleged $2 billion scheme, the defendant defrauded regulators and policyholders alike, causing substantial financial harm to thousands of victims. As this prosecution demonstrates, no matter how complex the scheme, the department will hold accountable corporate executives whose crimes leave policyholders holding the bag while lining their own pockets.”
“The indictment reveals a carefully orchestrated scheme that relied on a web of complex financial investments and transactions designed to evade regulators, disguise the financial health of Lindberg’s insurance companies, and conceal the alleged purpose of the scheme: Lindberg’s personal gain,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “My office will continue to work with our law enforcement partners to investigate and prosecute financial wrongdoing and hold perpetrators accountable for their actions.”
“People buy insurance products to provide comfort and security. However, this indictment alleges this was a sophisticated and intricate scheme designed for one reason, to benefit Lindberg,” said Acting Special Agent in Charge Michael C. Scherck of the FBI Charlotte Field Office. “The FBI is unwavering in our efforts to hold those accountable who commit federal financial crimes.”
The charged conduct allegedly caused substantial financial hardship to the victims. Lindberg allegedly caused the insurance companies to engage in investments of nearly $2 billion as part of his scheme, most of which remained outstanding as of September 2022. Since 2019, multiple insurance companies controlled by Lindberg have been placed into rehabilitation or liquidation.
Lindberg is charged with one count of conspiracy to commit crimes in connection with insurance business, wire fraud, and investment adviser fraud; one count of wire fraud; four counts of false insurance business statements presented to regulators; six counts of false entries about the financial condition or solvency of an insurance business; and one count of money laundering conspiracy. If convicted, he faces a maximum penalty of 20 years in prison on each of the top counts.
In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance.
Separately, Lindberg remains under indictment and is awaiting retrial in a case in which he faces several charges stemming from alleged attempts to bribe the Commissioner of the North Carolina Department of Insurance.
The FBI Charlotte Field Office is investigating the case.
Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina and Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at www.justice.gov/criminal-vns/case/united-states-v-greg-lindberg.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Detroit Resident Sentenced to Prison for $27 Million Tax Fraud SchemeRead the Press Release
DETROIT – A former Detroit resident was sentenced to 4 ½ years in prison for a tax fraud scheme where she sought to cheat the Internal Revenue Service and the state treasuries of six states of over $27 million in fraudulent tax refunds, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Charles Miller, Acting Special Agent in Charge of the Detroit Field Office of IRS Criminal Investigations.
Sameerah Marrell, aka “Sameerah Anderson,” aka “Sameerah Pickett,” aka “Crème,” aka “Loren Boyd,” age 42, received the sentence from the Honorable Linda V. Parker, United States District Judge, in Detroit, Michigan. Judge Parker also ordered that the defendant serve three years on supervised release after her release from federal custody and pay the remaining restitution owed totaling $7,979,041.71. During the course of the scheme, Marrell had successfully stolen $8.5 million, and the amount owed in restitution has been reduced by money, cars, and jewelry seized by the federal government and the states from Marrell during the course of this investigation.
Marrell pleaded guilty on January 11, 2023 to Mail Fraud, Wire Fraud, and Committing an Offense While On Bond. According to court records, the scheme began in 2014 and continued through April 2022. During that time, Marrell and other accomplices defrauded the Internal Revenue Service and the State Treasury Departments of Minnesota, Georgia, Maryland, Arizona, Connecticut, and Colorado, by filing 122 false and fictitious Income Tax Returns for Estates and Trusts and numerous state income tax returns, seeking over $13,690,341 from the IRS and $14,730,365 from the six states, by claiming bogus “refunds,” to which neither she nor her accomplices were entitled.
These federal and state income tax returns contained various false and material assertions of fact, most notably that the IRS and state taxing agencies had withheld large amounts of income tax from the trusts purportedly filing the returns, and that those trusts were therefore entitled to large refunds. In truth, however, the IRS and the state taxing agencies had withheld nothing from these trusts, and Marrell and her accomplices were entitled to no refund of any kind. Before discovering the fraud, the IRS paid out over $5,539,049 and the state agencies paid out a total of $2,972,588.93, all based on Marrell’s spurious claims. Altogether, Marrell and her accomplices successfully caused the issuance of approximately $8,511,637.93 in fraudulent tax refunds.
Marrell committed some of these offenses after she was arrested on a criminal complaint charging her with, among other things, making false claims to the IRS based on some of the conduct described above. Thus, even while Marrell was on bond, she continued to execute her scheme to defraud.
“Ms. Marrell committed an astonishing amount of fraud against federal and state agencies. She also proved herself incorrigible, continuing her scams even after her initial arrest. We hope that today’s sentence will deter both Ms. Marrell and anyone else who seeks to steal public funds for private gain.”
"Today's sentencing again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system," said Charles Miller, Acting Special Agent in Charge of IRS Criminal Investigation, Detroit Field Office. "Honest taxpayers have been reassured today that no one is above the law, especially when the integrity of tax administration is at stake.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by AUSAs Craig Weier and Adriana Dydell of the United States Attorney’s Office.Former Correctional Officer Sentenced to More than Six Years for Smuggling Greeting Cards Laced with Drugs into PrisonRead the Press Release
NEW BERN, N.C. –Leann Little, 37, of Lumberton was sentenced yesterday to 75 months in prison for drug and money laundering crimes for providing contraband to inmates in North Carolina prisons. Little previously pled guilty to the charges.
In December of 2019, the Federal Bureau of Investigation (FBI) and the North Carolina Department of Public Safety (NCDPS) initiated an investigation involving the distribution of illicit contraband in prisons throughout North Carolina. The evidence revealed that Little, a former correctional officer and postal contractor, conspired with inmates to send them 45-MDMB-BINACA, a synthetic cannabinoid that is smoked for psychoactive effects. The inmates would place the orders over the phone and use CashApp to pay Little. Little would obtain greeting cards or paper, spray them with liquid 45-MDMB-BINACA and mail them to inmates in state corrections facilities. The cards were then cut into dosage units and consumed or used for currency.
Little pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of 4F-MDMB-BINACA, distributing a quantity of a mixture and sub substance containing a detectable amount of 4F-MDMB-BINACA and money laundering conspiracy.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation, the North Carolina Department of Public Safety and the United States Postal Inspection Service Office of Inspector General investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-199-FL.
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Former City of Atlanta official sentenced for accepting bribesRead the Press Release
ATLANTA – Former City of Atlanta Commissioner of Watershed Management Jo Ann Macrina has been sentenced to four years and six months in prison for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.
“Jo Ann Macrina was entrusted to safeguard the water supply for millions of Atlanta residents but instead resorted to corruption by steering work to a city contractor in exchange for cash, luxury items, and a lucrative job offer,” said U.S. Attorney Ryan K. Buchanan. “We are committed to working closely with our partners to rid local government of those who allow personal greed to lead to the abuse of positions of trust.”
“Macrina exploited her position to feed her own greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case is especially disturbing because she was the head of a department. This conviction reflects our continuing commitment to root out corruption and bring to justice those who abuse positions of power.”
“By enriching herself through bribes, Jo Ann Macrina abused her public trust,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The sentence she received serves notice to public officials that they are not above the law and will be held accountable for using public funds for their own use.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Macrina served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded millions of dollars in contracts to an architectural, design, and construction management and services firm based in Atlanta. Macrina took multiple steps to steer lucrative contracts toward the firm’s joint venture. Those actions included casting aside prior final scores ranking potential vendors where the joint venture ranked near the bottom, replacing two evaluators who previously represented the Department of Watershed Management with herself and Macrina’s employee, and scoring the joint venture higher than all other evaluators during a reevaluation.
In exchange for providing the firm’s executive vice president with access to confidential information and preferential treatment on City of Atlanta projects, Macrina was offered a job and accepted things of value. For instance, Macrina accepted $10,000 in cash, a diamond ring, a room at a luxury hotel in Dubai, and landscaping work at her home from the firm’s executive vice president either directly or through another employee of the firm. Shortly after Macrina’s employment with the City of Atlanta ended, she began working for the firm. Between June 2016 and September 2016, the firm and its executive vice president paid Macrina $30,000 in four separate payments.
Jo Ann Macrina, 66, of Daytona Beach, Florida, was sentenced by U.S. District Judge Steve C. Jones to four years and six months in prison, to be followed by three years of supervised release, and $40,000 in restitution. Macrina was convicted of conspiracy and federal program bribery on October 14, 2022, following a jury trial.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation.
Assistant U.S. Attorney Nathan P. Kitchens for the Northern District of Georgia and Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former City of Atlanta Official Sentenced for Accepting BribesRead the Press Release
A former City of Atlanta Commissioner of Watershed Management was sentenced today to four and a half years in prison for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.
According to court documents, Jo Ann Macrina, 66, of Daytona Beach, Florida, served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded millions of dollars in contracts to an architectural, design, and construction management and services firm based in Atlanta. Macrina took multiple steps to steer lucrative contracts toward the firm’s joint venture. Those actions included casting aside prior final scores ranking potential vendors where the joint venture ranked near the bottom, replacing two evaluators who previously represented the Department of Watershed Management with herself and Macrina’s employee, and scoring the joint venture higher than all other evaluators during a reevaluation.
In exchange for providing the firm’s executive vice president with access to confidential information and preferential treatment on City of Atlanta projects, Macrina was offered a job and accepted things of value. For instance, Macrina accepted $10,000 in cash, a diamond ring, a room at a luxury hotel in Dubai, and landscaping work at her home from the firm’s executive vice president either directly or through another employee of the firm. Shortly after Macrina’s employment with the City of Atlanta ended, she began working for the firm. Between June 2016 and September 2016, the firm and its executive vice president paid Macrina $30,000 in four separate payments.
In October 2022, Macrina was convicted at trial of conspiracy and federal program bribery.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Keri Farley of the FBI Atlanta Field Office, and Special Agent in Charge James Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI investigated the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nathan P. Kitchens for the Northern District of Georgia prosecuted the case.
Former Birmingham-Area Bank Insiders Charged in Connection with Account Takeover SchemeRead the Press Release
BIRMINGHAM, Ala. – A grand jury yesterday indicted two former bank employees for their role in a conspiracy to steal customer account information, announced U.S. Attorney Prim F. Escalona and United States Secret Service Special Agent in Charge Patrick M. Davis
A six-count indictment filed in the U.S. District Court charges Chimere Shanta Mitchell, 31, and Jamila Afhtan Davis, 31, both of Birmingham, with wire fraud and conspiracy to commit wire fraud.
According to the indictment, Mitchell was previously employed by Wells Fargo Bank as a Fraud and Claims Operations Specialist responsible for working with bank customers who suspected fraudulent activity in their accounts. Davis was previously employed by Regions Bank as a teller responsible for processing transactions and providing customer service.
The indictment alleges that between October 2020 and October 2021, Mitchell and Davis used their positions as bank employees to obtain financial account information from accountholders at Wells Fargo and Regions banks. They would then provide that information to another individual who would either use it in connection with account takeover schemes or market it on Telegram, an encrypted mobile messaging application favored by cybercriminals.
The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine. The maximum penalty for conspiracy to commit wire fraud is the same.
The U.S. Secret Service Cyber Fraud Task Force investigated the case with assistance from the Vestavia Hills Police Department. Assistant U.S. Attorney Edward J. Canter is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Witness Sentenced to Federal Prison for Soliciting a Bribe from a DefendantRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Jolen Michael Ghorbani, a/k/a “Jay,” age 28, formerly of Fairfax, Virginia, to 18 months in federal prison, followed by three years of supervised release, for bribery of a witness related to a federal criminal trial in which Ghorbani was a witness.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his plea agreement, on February 3, 2021, Ghorbani was the victim of a kidnapping, assault, and robbery committed by Tray David Sherman and Sherman’s co-conspirators. During the kidnapping, Ghorbani was transported from Maryland to Washington, D.C. where Sherman and his co-conspirators assaulted and robbed Ghorbani. Sherman was indicted and arrested on March 31, 2021, for conspiracy to commit kidnapping. On April 15, 2022, Ghorbani was served with a subpoena requiring his testimony at Sherman’s trial, which was initially scheduled to begin on July 11, 2022.
As detailed in the statement of facts, beginning on June 5, 2022, Ghorbani used a social media account to send a series of threatening and intimidating direct messages to Sherman, including a message where Ghorbani sent his telephone number to Sherman and said “[C]all me If you want to finesse trial.” Approximately three weeks before the scheduled start of Sherman’s trial, Ghorbani sent another series of messages to Sherman through his social media account, this time soliciting a payment of $5,000 from Sherman in exchange for Ghorbani’s agreement to testify falsely or to refuse to testify at all at Sherman’s trial. Ghorbani shared the messages he sent to Sherman with another individual, bragging that he (Ghorbani) was “[d]ancing with the devil,” and referring to Sherman, stating, “I’m auctioning off his freedom.”
On January 20, 2023, Tray Sherman, age 28, of Washington, D.C., the final member of the five-defendant kidnapping conspiracy, was sentenced to 126 months’ imprisonment. Sherman and his coconspirators pleaded guilty to luring Ghorbani from a casino in Maryland to a building in Southeast Washington, D.C., where they threatened Ghorbani’s life, took his personal items, and held him hostage at gunpoint while Sherman and another co-conspirator returned to the casino to steal items from the victim’s hotel room. The other four defendants all pleaded guilty to their roles in the conspiracy and were sentenced to between 10 and 14 years in federal prison.
United States Attorney Erek L. Barron commended the FBI Washington Field Office and the Prince George’s County Police Department for their work in the investigation and thanked the FBI Miami Field Office for its assistance. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant who prosecuted the case and thanked Assistant U.S. Attorney Leah B. Grossi for her assistance.
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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Federal Jury Convicts Tulsa Man for Assaulting St. Francis Hospital Security OfficersRead the Press Release
A federal jury found a Tulsa man guilty this week for assaulting two security officers with his vehicle, announced U.S. Attorney Clint Johnson.
Leeroy Wendell McQueary II, 40, was convicted of two counts of assault with a dangerous weapon with intent to do bodily harm in Indian Country.
“Two security officers tried to calm Leeroy McQueary II down inside St. Francis Hospital, and when that failed, they escorted him out of the facility to protect employees and patients,” said U.S. Attorney Clint Johnson. “Then McQueary aimed his vehicle at the officers, accelerated, and attempted to run them down. He’s now learned there were consequences for his criminal behavior.”
On Nov. 4, 2022, McQueary entered the St. Francis Hospital lobby, acting agitated and stating that he was trying to locate a friend, whom he couldn’t name. Concerned about his erratic and angry behavior, front desk employees asked him to step to another area of the lobby while they tried to gather more information. They then contacted security for assistance.
When two security officers arrived and calmly requested more information about the “patient,” McQueary again could not provide the patient’s name nor a valid hospital room number. He continued to act erratic. McQueary’s behavior further escalated when security asked him to leave and eventually escorted him from the facility using verbal commands.
McQueary continued yelling expletives at the security team and repeatedly threatened to hunt them down and kill them. Security provided the defendant space and a clear path to exit the parking area.
McQueary entered his vehicle and backed out of his parking spot, then accelerated his car, aimed at, and rammed a parked security vehicle occupied by a third officer. He then accelerated down the parking lane.
Officers ran across the parking lot to see where McQueary was headed. At one point, McQueary made a deliberate U-turn and accelerated toward both security officers at a dangerous pace. He then aimed more deliberately toward them. Officers drew their firearms to no effect and eventually fired at the defendant’s car. Before being struck, both security officers jumped away from the vehicle, which almost hit them.
The defendant then sped up, drove over a parking lot curb, attempted to drive away, and crashed into an electric box. He exited the vehicle and fled the scene on foot.
Hospital surveillance video verified the front desk employees’ and officers’ accounts about what happened in the lobby. Surveillance and several witnesses further verified the incident that occurred outside the hospital.
The Tulsa Police Department located and arrested McQueary on Nov. 30, 2022.
The Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Niko A. Boulieris and Adam C. Bailey are prosecuting the case.
Federal Jury Convicts McAlester Couple of Committing Child Abuse and Child Neglect in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that McAlester residents, Billy James Menees, age 29, and Ashley Dawn Marie Schardein, age 27, were both found guilty by a federal jury of one count of Child Abuse in Indian Country and one count of Child Neglect in Indian Country.
The jury trial began with testimony on Tuesday, February 14, 2023 and concluded on Thursday, February 23, 2023 with the guilty verdicts.
During the trial, the United States presented evidence that beginning in January of 2019 Billy Menees and his live-in girlfriend, Ashley Schardein, began the systematic abuse and neglect of a child victim in their care.
The guilty verdicts were the result of an investigation by the McAlester Police Department, the District Attorney’s Office for District 18, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the victim in this case is a member of a federally recognized Indian tribe and the crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, U.S. Chief District Judge of the United States District Court for the Western District of Oklahoma, in Oklahoma City, presided over the trial and ordered the completion of the presentence reports. The sentencings will be scheduled following completion of the reports and the Defendants will remain in custody of the United States Marshal until then.
Assistant United States Attorneys Nicole Paladino and Caila M. Cleary represented the United States.
February 2023 Grand Jury for the District of NebraskaRead the Press Release
United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 26 unsealed Indictments charging 28 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Sergio Ambriz, age 37, of Paramount, California, is charged in a two-count Indictment. Count I charges Ambriz with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about December 29, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Ambriz with possession of a firearm during a drug trafficking crime on or about December 29, 2022. The penalty if convicted is not less than 5 years’ and up to life imprisonment consecutive to any other sentence, a $250,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Juan Andres-Pedro, age 29, is charged with illegal reentry of a removed alien after a felony conviction on or about January 24, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Justin Wayne Burney, age 41, of Omaha, Nebraska, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about August 15, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than eight years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Taft Burtton, age 50, of Omaha, Nebraska, is charged with possession with intent to distribute 100 grams or more of fentanyl analogue on or about February 15, 2023. The penalty if convicted is not less than 15 years’ and up to life imprisonment, a $20,000,000 fine, not less than ten years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Jesus Camarillo-Soria, age 44, of Omaha, is charged in a two-count Indictment. Count I charges Camarillo-Soria with possession with intent to distribute cocaine on or about August 14, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, three-year term of supervised release, and a $100 special assessment. Count II charges Camarillo-Soria with possession of a firearm during a drug trafficking crime on or about August 14, 2022. The penalty if convicted is not less than 5 years’ and up to life imprisonment consecutive to any other sentence, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Baudilio Coronado-Ramirez, of Columbus, Nebraska, is charged with knowingly possessing with the intent to use unlawfully or transfer unlawfully five or more false identification documents beginning on or about September 28, 2022 and continuing to on or about November 14, 2022. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Amy Duncan, age 51, of Omaha, Nebraska, is charged with possession with intent to distribute 100 grams or more of fentanyl analogue on or about February 15, 2023. The penalty if convicted is not less than 15 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Dragen Flores Cortes, age 28, is charged with illegal reentry of a removed alien after a felony conviction on or about January 25, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* David Garcia, age 29, of Omaha, Nebraska, is charged with escape from custody on or about October 15, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
Alejandro Garcia Perez a/k/a Alejandro Garcia, age 36, is charged with illegal reentry of a removed alien after a felony conviction on or about December 2, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* William L Gienger, age 57, of Omaha, Nebraska, is charged with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about February 27, 2021. The penalty if convicted is not less than 15 years’ and up to life imprisonment, a $20,000,000 fine, not less than ten years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Amy Michelle Holmdohl, age 45, is charged with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine on or about December 2, 2022. The penalty if convicted is not less than 15 years’ and up to life imprisonment, a $20,000,000 fine, not less than ten years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Archollis Larmor Johnson, age 36, of Monrovia, California, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual), 500 grams or more of methamphetamine (mixture) and 500 grams or more of cocaine on or about August 4, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Gregory Scott Jones, age 49, of Roseland, Nebraska, is charged in a nine-count Indictment. Counts I-IX charge Jones with theft of a mail matter on or about April 14, 2021, and continuing to on or about December 17, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment for each count.
Contact Criminal Chief Mike Norris at 402-661-3700 for further information.
* Robert E. Kaczmarek, age 54, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Kaczmarek with sexual exploitation of a minor beginning on or about July 6, 2021 and continuing to on or about August 22, 2022. The maximum possible penalty if convicted is not less than 15 years’ and up to 30 years’ imprisonment, a $250,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment, $55,000 additional special assessment. Count II charges Kaczmarek with sex trafficking of a minor by force beginning on or about July 6, 2021 and continuing to on or about August 22, 2022. The maximum possible penalty if convicted is not less than 15 years’ and up to life imprisonment, a $250,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment, $5,000 additional special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Lucas J. Lacy, age 37, is charged with accessing with intent to view visual depictions of minors engaging in sexually explicit conduct under the age of 12 beginning on or about November 15, 2021 and continuing to on or about November 22, 2021. The maximum possible penalty if convicted is not less than 10 years’ and up to 20 years’ imprisonment, a $250,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment, $17,000 additional special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Charees Loftin, age 18, of Omaha, Nebraska, is charged with unlawful user of or addicted to any controlled substance in possession of a firearm on or about January 5, 2023. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Jose Mendes Hernandez a/k/a Jose F. Mejia-Guiterrez, age 27, is charged with illegal reentry of a removed alien after an aggravated conviction on or about February 1, 2023. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Richard Gedion Parent a/k/a Richard Gideon Parent, age 54, of Lincoln, Nebraska, and Jon Gregory Hillman, Jr., age 48, of Lincoln, Nebraska, are charged with possession with intent to distribute 50 grams or more of methamphetamine (actual), and 50 grams or more of methamphetamine (mixture) on or about August 5, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
There is also an allegation to forfeit United States currency and property seized on or about August 5, 2022.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Tony Torres Perez, age 34, of Hastings, Nebraska, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about May 17, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $8,000,000 fine, not less than eight years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Carey Dean Phillips, Jr., age 29, of Omaha, Nebraska, is charged with failure to register as a sex offender on or about October 1, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, not less than five years’ and up to life term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Christopher Ramos-Rivas, age 27, of Omaha, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about December 30, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
There is also an allegation to forfeit $9,159.00 in United States currency and property seized on or about December 30, 2022.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Juan Rodriguez-Rios, age 37, of Colorado Springs, Colorado, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about September 6, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Kenneth M. Sedlak, age 55, of Lincoln, Nebraska, is charged with theft of mail matter from a post office or other authorized depository on or about June 1, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Mike Norris at 402-661-3700 for further information.
* Taliaferro Thompson, age 26, and Andrew Kincaid, age 28, both of Omaha, Nebraska, are charged in a two count Indictment. Count I charges Thompson and Kincaid with bank robbery on or about January 26, 2022. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Thompson and Kincaid with brandishing/using a firearm during and in relation to a crime of violence on or about January 26, 2022. The maximum possible penalty if convicted is not less than 7 years’ and up to life imprisonment, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Anthony Unocic, age 53, is charged with influencing and retaliating against a federal official by threat on or about January 1, 2022 and continuing through on or about April 12, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
Eleventh Defendant from Cedar Rapids Ice Methamphetamine Wiretap Case Found Guilty After TrialRead the Press Release
A man who was intercepted in a wiretap conspiring to distribute large quantities of ice methamphetamine was convicted by a jury today after a three-day trial in federal court in Cedar Rapids, Iowa.
Elmer Mims, age 68, from Cedar Rapids, was convicted of one count of conspiring to distribute methamphetamine. The verdict was returned this afternoon following about four hours of jury deliberations.
The evidence at trial showed that the Cedar Rapids Drug Enforcement Administration (DEA) conducted a wiretap investigation in late 2021 and early 2022 targeting a group of individuals who were shipping large quantities of ice methamphetamine from Los Angeles, California, to Cedar Rapids. The DEA intercepted calls over phones used by David Belton (a/k/a “Blood”) and Derek Mims (a/k/a “D Mo”) in which they orchestrated the shipment of loads of thirty to sixty pounds of ice methamphetamine. Elmer Mims was intercepted in a call in early December 2021 discussing a prior occasion during which Elmer Mims had obtained 14 pounds of ice methamphetamine for $26,000. During an intercepted call in early February, Belton and Derek Mims discussed how they were going to obtain 60 pounds of ice methamphetamine, 20 pounds for each of them and 20 pounds for “Unc,” a nickname for Elmer Mims.
Less than two weeks after that call, DEA contacted local authorities in York County, Nebraska, to assist in stopping a truck that was believed to be transporting the 60 pounds of ice methamphetamine. The Nebraska officers stopped the truck and seized a tote that contained sixty, one‑pound packages of 99% pure methamphetamine. During an intercepted call on February 28, 2022, Elmer Mims and Belton discussed the seizure of the 60 pounds in Nebraska, believing that Derek Mims may have been stealing from them.
In March 2022, investigators searched Elmer Mims’s Cedar Rapids residence, seizing nearly $19,000 in cash drug proceeds, a box for a Glock handgun, ammunition, a holster, a tactical vest, and over four pounds of marijuana. Elmer Mims had previously been convicted in federal court in 1985 for a heroin conspiracy that involved smuggling large quantities of heroin using drug couriers and sending drug money to Hong Kong and Nepal.
The following ten co‑defendants charged in the same indictment had previously pled guilty in federal court:
David Poitier Belton
Derek Michael Mims
Phillip Lanell Rogers
Robert Lee Michael Bates
Anton Tarrice Whitney, Jr.
Christopher Eric Curley
Calub Joseph Storlie
Timothy Michael Webber
Kiyonte Levell Sowell
Jesus Vera
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Mims remains in custody of the United States Marshal pending sentencing. Mims faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. The case is being prosecuted by Assistant United States Attorneys Dan Chatham and Kraig Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22‑CR‑39‑CJW‑MAR.
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Dothan Man Pleads Guilty to Federal Tax Evasion, Mail Fraud, and Drug ChargesRead the Press Release
Montgomery, Alabama – Today, Kenneth Cherden Glasgow, also known as “Kenneth Sharpton Glasgow,” 57, from Dothan, Alabama, pleaded guilty to tax evasion, mail fraud, and drug conspiracy charges, announced United States Attorney Sandra J. Stewart.
According to the plea agreement and other court documents, Glasgow founded the Ordinary Peoples Society and the Prodigal Child Project, both 501(c)(4) nonprofit organizations. Glasgow solicited donations for these two organizations from other nonprofits and foundations, representing that he would use those donations for charitable purposes. Instead, as Glasgow admitted in his plea agreement, during the 2018 calendar year alone, he withdrew $407,450.00 in cash from the bank accounts of one of his nonprofit organizations and used the money for his own benefit. Because he used the money for personal expenses, he was legally required to report the funds as income on his tax return. However, Glasgow failed to even file a return for that year. Glasgow also attempted to conceal this activity by causing his tax preparer to complete inaccurate IRS 990 forms for Glasgow’s nonprofit organizations that vastly understated the income of the organizations and omitted the financial benefits Glasgow received from them. In his plea agreement, Glasgow specifically acknowledged committing this fraudulent conduct during the 2018 tax year. He also agreed to pay the IRS $376,720.00 in restitution for tax years 2016 through 2019.
During today’s plea hearing, Glasgow also admitted to mailing documents containing false statements to the Social Security Administration (SSA) so that he could continue receiving SSA disability benefits and related health benefits under the Medicare and Medicaid programs. Glasgow made written statements on various SSA forms describing his physical abilities and daily activities as being very limited, despite reporting on IRS 990 forms for his nonprofits that he worked 50 to 60 hours per week. In some SSA forms, Glasgow claimed that, due to physical limitations, he had difficulty driving and had to ride with someone. These statements were not true. In his plea agreement, Glasgow admitted that he leased a vehicle using funds from one of his nonprofits and listed himself as the sole authorized driver. In addition, between February 5, 2015, and August 11, 2020, Glasgow received traffic citations relating to approximately 27 different traffic stops, all of which indicated that Glasgow was the driver.
Glasgow also pleaded guilty today to conspiracy to possess cocaine with intent to distribute. According to the plea agreement, the drug conspiracy started with others at an unknown date and continued through August 2020.
Glasgow was indicted for the drug conspiracy charge in October 2021. The additional charges of tax evasion and mail fraud were recently filed on February 13, 2023. A sentencing hearing will be scheduled in the coming months. At that hearing, Glasgow will face a maximum sentence of 20 years in prison, along with substantial fines and restitution.
“Mr. Glasgow caused immeasurable harm,” stated United States Attorney Stewart. “Through his drug dealing, he released dangerous, addictive substances to the streets of his own community. By failing to pay his taxes and then fraudulently obtaining government benefits, he took from every American taxpayer. I am grateful to each agency involved in this investigation. Their combined effort ensures that the Dothan community is safer and that public funds will be put to the public’s benefit—instead of being put into Mr. Glasgow’s pocket.”
“Kenneth Glasgow's actions not only endangered the community, but defrauded the American taxpayers,” said Paul Brown, Special Agent in Charge for the FBI. “His guilty plea should help to dissuade others from following this same path."
“The guilty plea today serves as a notice to those who believe committing crimes comes with no consequences, it is only a matter of time before they are held accountable,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-Criminal Investigation is committed to bringing justice to those who try to avoid their federal income tax responsibilities.”
"Defrauding federal health care programs not only wastes valuable taxpayer dollars, but it also diverts resources meant to pay for medically necessary care for eligible enrollees," said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is proud to work with our law enforcement partners to hold fraudsters who exploit these programs accountable."
“For several years, Mr. Glasgow managed his non-profit organizations while pretending he had a qualifying disability with the Social Security Administration; he concocted this scheme to receive SSA benefits that he was not entitled to receive,” said Gail S. Ennis, Inspector General for SSA. “His guilty plea holds him accountable for theft and demonstrates that my office will continue to work to protect SSA benefits and taxpayer funds. I thank our law enforcement partners for their outstanding work in this investigation and the U.S. Attorney’s office for prosecuting this case.”
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, IRS - Criminal Investigation, the U. S. Department of Health and Human Services, Office of Inspector General, and the U.S. Social Security Administration, Office of Inspector General, with assistance from the Dothan Police Department. Assistant United States Attorneys Megan A. Kirkpatrick, Stephen K. Moulton, and Brandon W. Bates are prosecuting the case.
Dominican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican man pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Felix Bienvenido Gonzalez-Arias, a/k/a “Victor Manuel Trinidad-Lugo,” 38, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Indira Talwani scheduled sentencing for May 17, 2023. Gonzalez-Arias was indicted by a federal grand jury in December 2022.
At an unknown time, Gonzales-Arias illegally entered the United States. In November 2014, he was arrested in Essex County on state charges of heroin trafficking. Gonzales-Arias was convicted of the offense, sentenced to three and a half to five years in state prison and upon completion of his sentence, he was removed from the United States in April 2018. Some point thereafter, Gonzales-Arias illegally reentered the United States.
On Sept. 1, 2022, Gonzalez-Arias was arrested in Lawrence on drug trafficking charges. . Gonzalez-Arias’ fingerprints produced a positive match from those from his 2014 arrest and 2018 removal and he was identified as being illegally present in the United States after deportation.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins and Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
Defendant in Case that Led to the One of the Largest Fentanyl Seizures in the Northern District of Oklahoma Pleads GuiltyRead the Press Release
A man whose illicit drug operation resulted in one of the largest fentanyl seizures in the Northern District of Oklahoma pleaded guilty in federal court, announced U.S. Attorney Clint Johnson.
Raul Plata-Cibrian, 25, a Mexican National illegally residing in United States, pleaded guilty to possession of fentanyl with intent to distribute.
“In the last year, the illicit sale of deadly fentanyl has dramatically increased in the Northern District of Oklahoma,” said U.S. Attorney Clint Johnson. “Drug traffickers are pushing this poison in our communities without regard to the human toll it exacts. The U.S. Attorney’s Office and our law enforcement partners will continue to target individuals, from high-level fentanyl traffickers to street level dealers, and hold them accountable for spreading addiction and causing death throughout northeastern Oklahoma.”
“Fentanyl and other illicit drugs are not victimless crimes,” said Tulsa Police Chief Wendell Franklin. “They have always been an overwhelming contributor to today’s problems to include homelessness, property crimes, and violent crimes. Drugs are the one constant present in crime, and it is overlooked and accepted by many. The Tulsa Police Department, United States Attorney’s Office, and the DEA will continue to focus our efforts on the root cause of crime.”
“This guilty plea sends a message to drug traffickers that those who endanger innocent lives by pushing fentanyl will not be tolerated,” said Eduardo A. Chávez, Special Agent in Charge of the Dallas Field Division, who oversees operations in Oklahoma. “Drugs and those who distribute these poisons have no place in our neighborhoods. The DEA will never waver in our resolve to identify and hold those responsible for their actions.”
Investigators with the Tula Police Department began tracking Plata-Cibrian in July 2022. They noted that Plata-Cibrain would drive to various parking lots throughout Tulsa in a matter of hours and that he would repeat the driving behavior daily. Investigators knew the defendant’s behavior to be indicative of drug trafficking and eventually executed a search warrant of the trafficker’s residence on Aug. 2, 2022.
During the search, officers located approximately 3,530 grams of fentanyl powder, 1,343 grams of fentanyl pills, 2,732 grams of methamphetamine, 498 grams of cocaine, and 146 grams of black tar heroin. They further located six cellphones, digital scales, a .380 caliber pistol, associated ammunition, and almost $7,000 in cash.
Plata-Cibrian is in the custody of the U.S. Marshals Service and will be sentenced at a later date.
The Tulsa Police Department and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting the case.
D.C. Department of Youth Rehabilitation Services Employee Charged with Sexual AbuseRead the Press Release
Kelvin Powell Arrested
WASHINGTON – Kelvin Powell, 61, an employee of the D.C. Department of Youth Rehabilitation Services, is charged by indictment, unsealed today in the United States District Court for the District of Columbia, with sexual abuse of and abusive sexual contact with a minor in his care. FBI agents arrested Powell this morning. The indictment and arrest were announced by United States Attorney Matthew M. Graves and Assistant Director in Charge of the FBI’s Washington Field Office David Sundberg.
The Department of Youth Rehabilitation Services (DYRS) is the government agency in the District of Columbia responsible for the supervision, custody, and care of young people detained while pending charges for a delinquent act. According to the eight-count indictment, between December 2021 and February 2022, while employed as a Youth Development Representative at DYRS, Kelvin Powell sexually abused a minor (“Person A”) who was detained and residing at the facility where Powell worked.
Powell is charged with four counts of sexual abuse of a ward and four counts of abusive sexual contact. Each count of sexual abuse of a ward carries a maximum possible penalty of 15 years in prison; each count of abusive sexual contact carries a maximum possible penalty of two years in prison. Powell was first arrested in March of 2022 on charges of sexual abuse of a minor filed in D.C. Superior Court.
This investigation remains ongoing. Anyone with additional information about similar conduct involving Kelvin Powell or others is encouraged to contact the FBI at 1-800-CALL-FBI (225-5342).
This case is being investigated by the FBI’s Washington Field Office. The case is being prosecuted by Assistant United States Attorneys Timothy Visser and Cara Gardner of the U.S. Attorney's Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.