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8 February 2023
Hudson County Man Admits Soliciting and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted soliciting victims online to send images and videos of sexually explicit conduct, and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of solicitation of child pornography and one count of possession of child pornography.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage two underage victims in sexually explicit conversations. Solis requested that both victims take sexually explicit photographs and videos of themselves and send them to him.
The count of solicitation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison and a $250,000 fine. The count of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 21, 2023.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Office’s OCDETF/Narcotics Unit.
Hombre de Texas se declara culpable de 90 delitos federales de odio y delitos de armas de fuego relacionados con el tiroteo masivo en agosto de 2019 en un Walmart de El Paso, TexasRead the Press Release
Un hombre tejano que llevó a cabo el tiroteo masivo en el Walmart de Cielo Vista en El Paso, Texas, el 3 de agosto de 2019, matando a 23 personas y lesionando a otras 22, se declaró culpable hoy en el Tribunal Federal de Distrito de los 90 cargos de la acusación formal, incluidos 45 cargos de violar la Ley para la Prevención de Delitos de Odio Matthew Shepard y James Byrd, Jr., y 45 cargos de descarga de un arma de fuego en relación con los delitos de violencia.
Conforme al acuerdo de admisión de culpabilidad, el demandado, Patrick Wood Crusius, de 24 años de edad, ha aceptado 90 cadenas perpetuas consecutivas, una por cada cargo en la acusación formal. La declaración de culpabilidad incluyó 23 cargos por actos de delito de odio que resultaron en la muerte de Andre Anchondo, Jordan Anchondo, Arturo Benavides, Jorge Calvillo García, Guillermo García, Leonardo Campos, Angelina Englisbee, María Flores, Raúl Flores, Adolfo Cerros Hernández, Alexander Hoffmann, David Johnson, Luis Alfonso Juárez, María Legarreta Rothe, Maribel Loya Hernández, Iván Filiberto Manzano, Gloria Irma Márquez, Elsa Mendoza Márquez, Margie Reckard, Sara Regalado Monreal, Javier Amir Rodríguez, Teresa Sánchez y Juan Velásquez.
La declaración también incluyó 22 actos de delito de odio que causaron lesión corporal e involucraron tentativas de asesinar a 22 personas lesionadas en el tiroteo. Además de los delitos de odio, el demandado se declaró culpable de 45 violaciones relacionadas con armas de fuego, 23 cargos de uso de arma de fuego en un delito federal de violencia con resultado mortal y 22 cargos de uso de arma de fuego en un delito federal de violencia.
“Hoy, el Departamento de Justicia aseguró la declaración de culpabilidad de Patrick Wood Crusius, un autodenominado nacionalista blanco, por delitos federales de odio y delitos de armas de fuego en relación con el mortal tiroteo masivo contra personas percibidas como inmigrantes hispanos en un Walmart de El Paso, Texas, en 2019”, declaró el Fiscal General Merrick B. Garland. “Nada puede deshacer la pérdida inconmensurable sufrida por los seres queridos de las víctimas de ese ataque o el terror infligido a la comunidad de El Paso como consecuencia. La acción de hoy deja claro que el Departamento de Justicia no tolerará la violencia fomentada por el odio que pone en peligro la seguridad de nuestras comunidades”.
“La declaración de culpabilidad de hoy marca un paso más hacia la justicia para la comunidad de El Paso; sin embargo, debemos recordar que los supervivientes y las familias de las víctimas emprenderán un viaje de sanación de por vida debido a las acciones de este demandado”, afirmó el director de la FBI Christopher Wray. “Extendemos nuestro más sentido pésame a la comunidad hispana que vio su sentido de seguridad destrozado por este atroz ataque. El FBI continuará buscando justicia para todos aquellos cuyos derechos civiles y seguridad se ven amenazados por el odio”.
“La violencia fomentada por los nacionalistas blancos no tiene cabida en nuestra sociedad actual”, manifestó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Esta masacre sin sentido viola la ley, va en contra de nuestros valores como estadounidenses y desafía los principios de tolerancia e inclusión que nos definen como nación. Al declararse culpable, el demandado ha admitido que asesinó a personas inocentes por razón de su origen nacional y que el objetivo eran los hispanos. El Departamento de Justicia continuará usando todas las herramientas a su disposición para combatir los delitos de odio, responsabilizar a los autores, y buscar justicia para las víctimas y los supervivientes. Esta declaración de culpabilidad no puede devolverles la vida a quienes la perdieron, ni curar a quienes siguen sufriendo, pero nos sitúa firmemente en el camino de la justicia. Nuestros corazones están con las víctimas de este horrendo delito, sus familias y toda la comunidad”.
“Siempre ha sido nuestra intención obtener la justicia que corresponde para todas las víctimas del tiroteo sin sentido de El Paso, sus familias siempre resilientes, y la valiente comunidad que sigue sintiendo el dolor de ese día”, afirmó Margaret Leachman, Primera Fiscal Federal Auxiliar del Distrito Occidental de Texas. “Seguimos apoyando a todos cuyas vidas se han visto afectadas, y mi esperanza es que esta declaración de culpabilidad conduzca a una sentencia que sirva como ejemplo de cómo el sistema de justicia de los Estados Unidos no tolera a nadie, especialmente cuando están motivados por el odio, que elija hacerles daño a nuestros seres queridos y a nuestros vecinos”.
Según la declaración de los hechos acordada y firmada por Crusius, e incorporada al expediente jurídico en su audiencia de declaración de culpabilidad, Crusius admitió que asesinó y lesionó a personas en el Walmart debido al origen nacional hispano real y percibido de las personas que esperaba encontrar en el Walmart. Además, admitió que tenía la intención de asesinar a todas las personas a las que les disparó.
Crusius también admitió que escribió un manifiesto, titulado “Una verdad incómoda”, y lo subió al internet minutos antes de comenzar su ataque. En el se describía a sí mismo como un nacionalista blanco, motivado a matar hispanos porque inmigraban a los Estados Unidos. Crusius admitió haber elegido El Paso, una ciudad fronteriza, como blanco para disuadir a los inmigrantes mexicanos e hispanos de venir a los Estados Unidos.
La FBI investigó el caso, en colaboración con el Departamento de Policía de El Paso; la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos (ATF, por sus siglas en inglés); el Departamento de Seguridad Pública de Texas; la Oficina del Alguacil del Condado de El Paso; la Oficina del Condado de El Paso para la Medicina Forense; el Departamento de Policía de Allen y el Departamento de Policía de Dallas.
El caso está siendo procesado por los Fiscales Federales Auxiliares Ian Hanna, Greg McDonald, y Patricia Acosta de la División El Paso del Distrito Occidental de Texas y los abogados de litigios Tim Visser, de la Sección Penal de la División de Derechos Civiles, y Michael Warbel, de la Sección de Casos Capitales de la División Penal.
El Tribunal Federal de Distrito aún no ha fijado una fecha para la sentencia.
Se pueden encontrar documentos judiciales e información relacionados con caso en el sitio web del Tribunal de Distrito para el Distrito Occidental de Texas en http://www.txwd.uscourts.gov/ o en http://ecf.txwd.uscourts.gov/.
Para más información sobre los esfuerzos del Departamento por combatir y prevenir los delitos de odio, visite www.justice.gov/hatecrimes: un portal integral con enlaces a recursos de delitos de odio del DOJ para fuerzas del orden público, medios de comunicación, investigadores, víctimas, grupos de defensa de derechos, y otras organizaciones e individuos.
Holyoke Landlord Agrees to $15,000 Settlement for False Claims Act ViolationsRead the Press Release
BOSTON – A Holyoke landlord, Carmen Manix, has agreed to pay a $15,000 settlement for submitting false claims to the government after receiving illegal utility payments from a low-income tenant while participating in a federal housing subsidy program.
The Federal Housing Choice Voucher Program, commonly referred to as “Section 8,” provides federal funding to low-income individuals to help them secure safe and affordable housing. The Department of Housing and Urban Development (HUD) provides this funding through local public housing agencies, which establish the total monthly rent, including certain utilities, due to landlords of Section 8 tenants. HUD pays the housing subsidy directly to landlords. In return, landlords agree to comply with certain program requirements, including that they will not charge Section 8 tenants rent or utilities in excess of the amount set by the public housing agency.
Despite this restriction, from September 2000 to August 2017, Carmen Manix demanded and received monthly utility payments from a Section 8 tenant, who brought a lawsuit against Manix under the whistleblower provisions of the False Claims Act. As part of today’s settlement, Manix admits to demanding and receiving utility payments from the Section 8 tenant in violation of her agreements with HUD.
“The Section 8 program provides critical assistance to low-income families in need of safe and affordable housing,” said United States Attorney Rachael S. Rollins. “This case should be a warning that landlords who exploit low-income housing-insecure people to line their own pocket will be called out and held accountable. We use the False Claims Act every day to recover millions of dollars from companies that commit health care fraud. We will also use it to vindicate the rights of everyday citizens who rely on the government programs being followed with integrity. Any Section 8 tenant who has been forced to pay excess rent or utilities in violation of the terms of his or her lease is encouraged to bring their concerns to our Office’s attention.”
“This settlement represents HUD OIG’s priority in protecting HUD beneficiaries from bad actors who prey on their vulnerability for self-enrichment,” said Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region. “HUD OIG will continue to pursue and bring to justice landlords who fraudulently overcharge HUD- assisted tenants in violation of Federal law.”
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government. The settlement agreement requires the defendant to pay $15,000 to the United States, and the whistleblower will share in that recovery.
U.S. Attorney Rollins and HUD OIG SAC Scaringi made the announcement today. Assistant U.S. Attorneys Diane C. Seol and Alexandra Brazier of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
Haines Man Sentenced to 20 Years in Prison for Sexually Exploiting MinorsRead the Press Release
ANCHORAGE – A Haines man was sentenced today to 20 years in prison for sexually exploiting minors.
According to court documents, Christopher Panagiotou-Scigliano, 41, pled guilty to one count of Production of Child Pornography, involving coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
In 2015 Panagiotou-Scigliano moved to a farm in Haines. After his arrival, Panagiotou-Scigliano arranged for several children he had been grooming and abusing in another state to visit his farm in Haines multiple times. When the children arrived Panagiotou-Scigliano continued grooming and sexually exploiting them by taking numerous sexually explicit images and videos of the victims.
Panagiotou-Scigliano is also charged with the sexual abuse of multiple child victims in another state. That case is still pending.
“This office will continue to vigorously prosecute heinous predatory crimes such as this,” said S. Lane Tucker, United States Attorney for the District of Alaska. “Although no term of imprisonment can repair the harm caused to the victims, anyone engaging or thinking about engaging in grooming and sexual conduct with minors should take warning from this significant sentence.”
“In this unconscionable case, the defendant engaged in a years-long manipulation and grooming process to isolate and sexually abuse minors, all under the guise of being a trusted family friend,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “The FBI and our law enforcement partners will continue to identify, aggressively pursue, and hold accountable those who commit these vile crimes against children.”
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force investigated the case. The Haines Police Department, the Bonner County, Idaho, Sheriff’s Office, the Bonner County Prosecutor’s Office and the Alaska State Troopers supported the investigation.
Assistant U.S. Attorneys Jennifer Ivers and James Klugman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Franklin, PA Felon Admits Illegally Possessing Numerous FirearmsRead the Press Release
ERIE, Pa. - A resident of Franklin, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
Phillip John Dechant, 39, 739 Buffalo Street, Franklin, Pennsylvania, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that on or about April 22, 2020, Dechant possessed numerous firearms while being a convicted felon. As part of his plea agreement, Dechant agreed to a sentence of forty (40) months of imprisonment to be followed by three years of supervised release.
Judge Baxter scheduled sentencing for June 8, 2023 at 1:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Dechant on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Dechant. 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.
Fort Wayne Woman Sentenced to 30 Months in PrisonRead the Press Release
FORT WAYNE – Lisa A. Downey, age 50, of Covington, Virginia, was sentenced before United States District Court Judge Holly A. Brady after pleading guilty to wire fraud, announced United States Attorney Clifford D. Johnson.
Downey was sentenced to 30 months in prison, 2 years of supervised release, and ordered to pay $189,638.99 in restitution to the victims of the offense.
According to documents in this case, Downey owned and operated a homeowners association management business. From 2019 through 2020, she perpetrated a scheme which involved the theft of funds from multiple Fort Wayne neighborhoods. Downey used her position as manager for several homeowners’ association accounts to make unauthorized purchases and cash withdrawals for her own benefit. Downey also paid herself more money than she was entitled to for her services and in some cases submitted false statements to conceal her mishandling of funds. The total fraudulent activity resulted in over $189,000 in losses to the victims.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Allen County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Brent Ecenbarger.
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Former sailor sentenced to federal prison for distributing child pornography and bestiality videosRead the Press Release
NEWNAN, Ga. – Former U.S. Navy sailor William Vincent has been sentenced to federal prison for distributing child pornography and a video of himself engaging in a sex act with a dog.
“In addition to collecting and trafficking horrific images of child rape, Vincent sexually abused an animal,” said U.S. Attorney Ryan K. Buchanan. “With Vincent now unable to exploit the most vulnerable amongst us, our community is safer.”
“This case is particularly disturbing because of the age of the victims and large number of abhorrent videos that were filmed and distributed. Predators like Vincent are appalling and have no place in civilized society,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is thankful for our law enforcement partnerships that make it possible to put sexual predators, like Vincent, behind bars for significant periods of time where they cannot victimize any more innocent children, or animals.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Starting in August 2020 and continuing for several months thereafter, William Vincent used a cloud-based instant messaging service to unlawfully distribute child pornography and bestiality videos. Vincent was unaware that the recipient of the videos was an undercover employee of the FBI. Vincent initially sent a video depicting himself engaging in sexual acts with a dog. He then sent the undercover employee a video of an adult man sexually abusing an infant child.
FBI agents executed a federal search at Vincent’s home once they were able to pinpoint his address. The agents’ search uncovered numerous digital storage devices, including a memory card containing more than 970 videos of child sexual abuse and dozens of bestiality videos. Agents also recovered the dog depicted in the video that Vincent sent the undercover employee.
William Vincent, 31, of Peachtree City, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to 10 years in prison with credit for one year, nine months served to be followed by 15 years of supervised release. Vincent was convicted of one count of distributing child pornography and one count of distributing an animal crush video, after he entered a guilty plea on September 13, 2022. Under federal law, the definition of “animal crush video” includes the obscene depiction of actual sexual abuse of a live non-human mammal, bird, reptile, or amphibian.
This case was investigated by the Federal Bureau of Investigation. The Peachtree City Police Department provided assistance.
Assistant U.S. Attorneys Theodore S. Hertzberg and Leanne Marek prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 Maui County Official Sentenced to Ten Years in Federal Prison for Honest Services Wire FraudRead the Press Release
HONOLULU – Chief United States District Judge Derrick K. Watson sentenced Stewart Olani Stant, 55, of Maui, today to serve ten years in federal prison and pay a $1.9M money judgment forfeiture for honest services wire fraud consisting of acceptance of multiple bribes in the form of cash, bank deposits, and gambling trips to Las Vegas in order to provide lucrative sole source contracts from Maui County’s Department of Environmental Management to businessman Milton Choy.
According to information presented to the court, Stant was a public official employed by Maui County’s Department of Environmental Management (“DEM”), who held the position of Director of DEM between approximately December 2015 and December 2018. Between October 2012 and December 2018, Stant accepted bribery payments from Choy comprised of cash, bank deposits, casino chips, travel benefits, and/or other gifts, totaling up to $2,000,000, in exchange for Stant’s agreement, in his official capacity as a Maui County official at DEM, to steer and award over $19 million dollars in sole source contracts and purchase orders to Choy’s company. By accepting the bribes to funnel contracts and corruptly failing to disclose them, Stant defrauded the citizens of Maui County of their right to his honest and conflict free services as a public official.
“Mr. Stant was a public official given the discretion to use government funds for public contracts with the public’s expectation that he would do so honestly. By directing public contracts to a specific company in exchange for money and other financial benefits, all in violation of federal law and state ethics requirements, he failed to discharge that responsibility faithfully,” said U.S. Attorney Clare E. Connors. “This office is committed to prosecuting public officials who criminally abuse their official positions to serve their personal interests and thereby deprive the people of Hawaii of honest services.”
"Mr. Stant was a public servant entrusted by the taxpayers to act in their best interest," said Federal Bureau of Investigation (FBI) Special Agent in Charge Steven Merrill. “Instead, he violated that trust by accepting nearly $2 million in bribes. Today's sentence sends a clear message: the FBI will work tirelessly to investigate public corruption and bring those responsible to justice."
The Federal Bureau of Investigation conducted the investigation that resulted in the prosecution. Assistant U.S. Attorneys Ken Sorenson, Micah Smith and Michael Albanese handled the prosecution.
Former Correctional Officer Sentenced to 36 Months in Prison for Obstructing Investigation into Smuggling of Firearm into Metropolitan Correctional CenterRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that GREG MCKENZIE, a former Bureau of Prisons correctional officer, was sentenced to 36 months in prison for obstructing a federal investigation into the smuggling of a firearm into the Metropolitan Correctional Center (“MCC”) by lying to federal investigators about using a prepaid cellphone to communicate secretly with Deejay White, the inmate who possessed the firearm in the MCC, and his wife Dawntiana White, who helped smuggle in the firearm. The loaded firearm was recovered from inside the MCC on March 5, 2020. MCKENZIE pled guilty before United States District Judge P. Kevin Castel on September 14, 2022. Judge Castel sentenced MCKENZIE earlier today.
U.S. Attorney Damian Williams said: “Greg McKenzie, a former correctional officer, obstructed an investigation into the smuggling of a firearm into the MCC that endangered the safety of inmates, prison staff, and the greater community. By lying about his secret communications with the very inmate who possessed a firearm in the MCC and that inmate’s wife, who helped smuggle the firearm into the MCC, McKenzie thwarted a serious criminal investigation and sacrificed the integrity of the institution he swore to protect. McKenzie’s sentence underscores this Office’s commitment to holding public servants accountable and ensuring that no one is above the law.”
According to the Indictment, public court filings, and statements made in court proceedings:
On or about March 5, 2020, a loaded .22 caliber firearm (the “Firearm”) was recovered from inside an MCC prison cell that had last been occupied by two inmates, including Deejay White. Approximately five weeks earlier, on January 30, 2020, MCKENZIE purchased a prepaid cellphone (the “McKenzie Prepaid Cellphone”) and used it to communicate with Deejay White and his wife Dawntiana on multiple occasions on January 31, 2020, and February 1, 2020. In addition, cellphone location information indicated that on the evening of January 31, 2020, MCKENZIE and Dawntiana each traveled to the same vicinity in the Bronx at about the same time, after which MCKENZIE drove to lower Manhattan and started a shift at the MCC at midnight. MCKENZIE’s assignment for that shift was to work on the unit where Deejay was housed.
Surveillance video and call detail records further established that, upon entering the MCC for his shift, MCKENZIE circumvented a metal detector. Shortly after MCKENZIE’s shift began, Deejay White used a contraband cellphone to call and then text the McKenzie Prepaid Cellphone. Within minutes, MCKENZIE returned to Deejay White’s cellblock – alone – while appearing to carry an object under his left arm.
On July 23, 2021, Deejay White pled guilty to possessing the Firearm inside the MCC before Judge Castel, and on July 13, 2021, Dawntiana White pled guilty to conspiring to smuggle the Firearm into the MCC before U.S. District Judge Katherine Polk Failla.
On November 4, 2021, two federal agents conducted a voluntary interview with MCKENZIE. During the interview, MCKENZIE falsely denied ownership, possession, and use of the McKenzie Prepaid Cellphone, and falsely denied ever using any prepaid cellphone to communicate with an MCC inmate or inmate’s associate.
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In addition to his prison sentence, MCKENZIE, 35, of Danbury, Connecticut, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the Department of Justice – Office of the Inspector General, Special Agents from the U.S. Attorney’s Office for the Southern District of New York, and the U.S. Customs and Border Protection in New York.
The prosecution of this case is being handled by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Aline R. Flodr, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution, with assistance from Assistant U.S. Attorney Juliana N. Murray.
Former CEO of dental device company indicted for fraudulent stock solicitationsRead the Press Release
Seattle – Stephen Baird, the former CEO of S-Ray, Inc., was indicted today by a federal grand jury for ten counts of wire fraud, announced U.S. Attorney Nick Brown. Between 2012 and 2021, Baird, 67, formerly of Bainbridge Island, Washington, allegedly defrauded over 200 investors of more than $10.7 million by making false statements to investors. Baird is scheduled to be arraigned on the indictment on February 16, 2023.
“Mr. Baird is charged with defrauding investors for over a decade, falsely claiming that his company was on the cusp of making millions of dollars by selling a product that, in fact, never existed,” said United States Attorney Nick Brown. “Instead of developing the device, he is charged with secretly diverting investor funds to his own personal use, such as a private residence and a luxury car. It’s time to hold Mr. Baird accountable.”
Over many years, Baird claimed S-Ray had developed an innovative ultrasound device that would take the place of X-rays, allowing dentists to quickly and safely image patients’ mouths. Baird told investors the device delivered “astonishing results” and that the FDA had granted the company “market clearance” to sell the device. In fact, S-Ray never developed any ultrasound product capable of producing usable dental images; was never close to offering any product for sale; and never received FDA authorization to market any products.
By December 2017, Baird had terminated almost all of S-Ray’s employees. By April 2019, the Chief Technology Officer, the last remaining employee, left the company. Despite the fact that the company was essentially shut down, Baird told investors as late as 2020 that the company was worth $400 million. Baird continued to solicit investments – primarily from dentists and orthodontists – until March 2021.
Despite his representations that the investor money would be used to bring a product to market, at least 62% of the money – some $6.7 million – was used for Baird’s personal expenses or that of his family.
By the end of 2021, S-Ray had only $13,000 in its corporate account. Baird’s investors lost all of their investments.
Five of the counts of wire fraud are for emails sent or approved by Baird that were sent to investors. The other five wire fraud counts relate to deposits of investment funds.
The Securities and Exchange Commission filed a civil securities fraud action against Baird and S-Ray in March, 2022. On January 6, 2023, the Honorable John Chun issued an order that imposed civil penalties against Baird and S-Ray, held them liable for disgorgement of investment funds, and enjoined Baird from serving as an officer or director of certain companies, or from participating in certain types of securities transactions.
Wire fraud is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
indictment_baird.pdfForeign Nationals Charged with International Methamphetamine and Precursor Chemical Trafficking ConspiraciesRead the Press Release
An indictment was unsealed today in the District of Columbia charging two foreign nationals with international methamphetamine and precursor chemical trafficking conspiracies.
According to allegations in court documents, beginning in 2011, Carlos Algredo Vazquez, 57, and Francisco Pulido Coracero, 65, both of Michoacan, Mexico, allegedly used seemingly legitimate companies in Mexico and the United States to acquire listed chemicals – including methylamine, nitroethane, phenylacetic acid, toluene, and acetone – from companies in China, India, and elsewhere. They allegedly imported the chemicals into Mexico and provided them to the Cartel de Jalisco Nueva Generacion (CJNG) and other Mexican drug-trafficking organizations to manufacture methamphetamine ultimately destined for importation into the United States.
Algredo Vazquez and Pulido Coracero are both charged with conspiracy to manufacture and distribute 500 grams or more of methamphetamine for importation into the United States and conspiracy to distribute listed chemicals for the purpose of manufacturing methamphetamine for importation into the United States. If convicted, Algredo Vazquez and Pulido Coracero each face a mandatory minimum of 10 years in prison and up to life in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and DEA Administrator Anne Milgram made the announcement.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Los Angeles Division is investigating the case with assistance from the Homeland Security Investigations Houston Field Office.
Trial Attorneys Kate Naseef and Nhan Nguyen and Acting Assistant Deputy Chief Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced for His Role in Ponzi SchemeRead 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 Paul LaRocco, 60, of Ocala, Florida, who was convicted of mail fraud, was sentenced to serve 60 months in prison by U.S. District Judge Frank P. Geraci, Jr. LaRocco was also ordered to pay restitution totaling approximately $688,000.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that beginning in 2011, LaRocco was employed as a financial advisor by KE Smith Tax Advisory Group, Inc. d/b/a USA Tax & Financial Consultants, offering various financial planning services. In 2012, the business was purchased by Christopher Parris and reincorporated as Ocala Investment Services LLC d/b/a USA Tax & Financial Consultants (USA Tax). LaRocco continued to work for USA Tax through 2018, selling investments in various entities. LaRocco falsely represented to victims that they were investing in companies that sold medical devices and/or offered laboratory series. In actuality, these entities were not bona fide businesses. Victims invested approximately $688,000.
Between March 28, 2016, and May 31, 2018, LaRocco transferred and/or withdrew all of the funds and used them to pay himself and his own personal expenses. None of the funds were actually invested in a legitimate business and none of the funds were ever returned to any of the victims. LaRocco specifically targeted victims who were of an advanced age and were therefore unusually vulnerable to investment fraud crimes.
Christopher Parris, who was previously convicted of conspiracy to commit mail fraud related to a Ponzi scheme, as well as to wire fraud involving the fraudulent sale of purported N95 masks during the pandemic, was recently sentenced to serve 244 months in prison.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division; the FBI, Buffalo Division, under the direction of Acting Special Agent-in-Charge Darren Cox, the IRS, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Special Agent-in-Charge, New York Region, and the New York State Department of Financial Services, under the direction of Superintendent Adrienne A. Harris.
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Fentanyl Trafficker Arrested in ManhattanRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), and Steven A. Nigrelli, the Acting Superintendent of the New York State Police (“NYSP”), announced that AGARI REYES-SILLERO was arrested while attempting to sell approximately 50,000 multicolored fentanyl pills to a cooperating witness in exchange for $400,000. REYES-SILLERO was arrested on Monday and was presented today before Magistrate Judge Ona T. Wang.
U.S. Attorney Damian Williams said: “The pills the defendant allegedly attempted to sell were bright and colorful, which obscured their true danger. The 50,000 pills seized by law enforcement contained fentanyl, one of the deadliest drugs on the planet. Thanks to the work of our law enforcement partners, these lethal drugs have now been taken off the street.”
DEA Special Agent-in-Charge Frank A. Tarentino III said: “Fake counterfeit prescription pills are flooding this city. Fentanyl is the deadliest drug to ever hit the streets and traffickers are masking the threat by selling lethal doses in colorful pill forms mimicking prescription medication. DEA analysis indicates that 60% of trafficked fentanyl pills on the street contain lethal doses; therefore, 30,000 deadly doses were removed from circulation by the hardworking members of the New York Drug Enforcement Task Force. I commend our law enforcement partners for their hard work on this investigation.”
NYPD Commissioner Keechant L. Sewell said: “The NYPD and our law enforcement partners will never waver in our commitment to rid New York of fentanyl. Anyone who displays the negligent depravity to sell this deadly poison on our streets – to put lives at risk for a profit – will be held fully accountable. I commend and thank for their exceptional work the Office of the U.S. Attorney for the Southern District, the DEA, the New York State Police, and every member of the NYDETF involved in this important case.”
NYSP Acting Superintendent Steven A. Nigrelli said: “I commend the vital collaborative work of our law enforcement partners in the relentless efforts to keep illegal drugs off our streets. The arrest of Ms. Reyes-Sillero reinforces that we will continue to be vigilant in stopping the flow of these dangerous drugs into our neighborhoods. Each arrest, each seizure is saving lives and decreases the additional crime that surrounds these illegal and dangerous operations.”
As alleged in the Complaint:[1]
On or about February 5, 2023, REYES-SILLERO met with a witness who was cooperating with law enforcement (“CW-1”) to sell CW-1 approximately 50,000 fentanyl pills. After entering CW-1’s car with the pills, REYES-SILLERO confirmed that CW-1 was to pay $400,000. Law enforcement agents arrested REYES-SILLERO and seized the fentanyl pills, which were packaged inside four protein powder containers, as pictured below:
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REYES-SILLERO, 34, of Mexico, is charged with one count of possession with intent to distribute 400 grams and more of fentanyl. This offense carries a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the DEA, the NYPD, and the New York State Police.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Patrick R. Moroney and Andrew W. Jones are 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 constitutes only allegations, and every fact described herein should be treated as an allegation.
Felon Sentenced to 65 Months for Federal Gun ChargeRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that QUINCY JACKSON, age 31, of New Orleans, Louisiana, was sentenced on February 1, 2023 for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922(g)(1) and 924(a)(2). JACKSON was sentenced to 65 months of imprisonment, three years of supervised release, and a mandatory $100.00 special assessment fee.
The sentence is pursuant to his federal conviction for possessing a Glock semi-automatic handgun at a Shell gas station on North Broad Street in New Orleans on July 5, 2021. JACKSON is prohibited from possessing a firearm due to his criminal history. According to court documents, JACKSON was previously convicted of manslaughter, possession of heroin, and possession with intent to distribute cocaine.
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 New Orleans Police Department. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss of the Violent Crimes Unit.
Federal Jury Finds Man Guilty of Procuring U.S. Citizenship Illegally During Execution of Multi-Million Dollar Covid-19 Fraud SchemeRead the Press Release
MIAMI – Following a trial in Fort Lauderdale federal court, a jury has found Joff Stenn Wroy Philossaint, 32, guilty of illegally obtaining his U.S. citizenship by lying about fraud that he committed while his citizenship application was pending.
According to evidence presented at trial, prior to April 2020, Philossaint – a Haitian national – had applied to become a U.S. citizen. While his U.S. citizenship application was pending, Philossaint engaged in a sophisticated Covid-19 fraud scheme. Specifically, from April 2020 through May 2021, Philossaint submitted fraudulent applications on behalf of 11 businesses seeking a total of about $3 million from Covid-19 relief programs. On December 15, 2020, while Philossaint’s wire fraud scheme was ongoing, a U.S. Citizenship and Immigration Services officer interviewed Philossaint in connection with his citizenship application. During the sworn interview, Philossaint falsely stated that he had never committed a crime for which he had not been arrested and that he had never made misrepresentations to receive a public benefit in the United States. Philossaint was naturalized as a U.S. citizen based on these false representations.
An indictment charged Philossaint with conspiracy to commit wire fraud and conspiracy to launder money in connection with the Covid-19 relief application and with procuring naturalization contrary to law. Philossaint pled guilty to the wire fraud and money laundering conspiracy charges and proceeded to trial on the immigration charge. The jury found him guilty on the immigration charge.
Philossaint is scheduled to be sentenced on March 29 at 9:00 a.m. in Ft. Lauderdale before U.S. District Judge Rodney Smith. In addition to any prison sentence that the judge imposes, Philossaint is subject to mandatory denaturalization after sentencing.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI), Miami Field Office, and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the conviction.
SBA OIG, USSS, FBI, IRS CI, and HSI investigated this case. Assistant U.S. Attorneys Marc Osborne and Shannon O’Shea Darsch prosecuted it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80144.
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Federal Court Approves Settlements Totaling Nearly $5 Million in Civil Lawsuit Enjoining Transnational Bank Fraud SchemeRead the Press Release
A federal district court yesterday entered an order approving the last in a series of four settlements that collectively recovered nearly $5 million stolen from consumers by a transnational network of fraudsters.
The settlement represents the culmination of a civil action pursued by the United States to disrupt a bank fraud scheme and recover stolen victim funds. In a civil complaint filed on Aug. 13, 2021, the United States alleged that Guy Benoit, Edward Courdy, Harold Sobel, and more than 25 other individuals and corporations defrauded American consumers out of millions of dollars by charging unauthorized debits against their bank accounts. According to the complaint, the defendants posted unauthorized debit transactions in the name of sham corporate entities against the bank accounts of unsuspecting consumers. The defendants also used thousands of sham “micro transactions” to attempt to prevent banks from detecting the defendants’ unauthorized debits.
On Aug. 20, 2021, U.S. District Judge John F. Walter granted a temporary restraining order enjoining the fraud scheme, freezing fraud scheme assets, and appointing a receiver over corporate entities used in the scheme. In the following months, the United States obtained permanent injunctions against 28 defendants. In parallel, the receiver seized over $1 million in assets stolen as part of the fraud scheme and further recovered nearly $5 million through settlements with third parties the receiver identified as having received stolen victim funds.
“The scheme described in the government’s filings involved an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the the Justice Department’s Civil Division. “The Department of Justice will use all of the tools at its disposal to halt practices like these, recover funds stolen from victims, and bring offenders to justice.”
“This action showcases the U.S. Postal Inspection Service’s relentlessness in pursuing justice and holding individuals and corporations, both domestically and internationally, accountable for their unlawful actions,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group. “We will continue to work with our law enforcement partners to investigate and stop sophisticated fraud schemes targeting U.S. consumers.”
The USPIS conducted the investigation in this matter. The government is represented in the civil action by Trial Attorney Michael Wadden and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch and its enforcement efforts, visit https://www.justice.gov/civil/consumer-protection-branch.
Falmouth Man Sentenced to Five Years for Federal Program Fraud, Wire FraudRead the Press Release
PORTLAND, Maine: A Falmouth man was sentenced today in U.S. District Court in Portland for federal program fraud and wire fraud.
U.S. District Judge Nancy Torresen sentenced Joshua Cory Frances, 46, to five years in prison and two years of supervised release. He was also ordered to pay $87,351 in restitution and to forfeit a 27-foot Boston Whaler boat, two marine outboard engines and a trailer. Frances pleaded guilty on October 27, 2021.
According to court records, Frances was the Commander of Maine Task Force One (MTF1), which was overseen by the Maine Emergency Management Agency (MEMA) and funded from grants from the Federal Emergency Management Agency (FEMA) and through Maine Medical Center (MMC). Comprised primarily of physician assistants and emergency medical technicians, MTF1 augmented emergency medical service personnel for specific events in Maine and northern New England.
In 2015 and 2016, Frances converted to his own use property under the care of MTF1 and MMC, including a 44-foot sailing vessel, a 27-foot Boston Whaler boat and two marine outboard engines. Frances also falsely represented himself to be an employee of the U.S. Department of Homeland Security (DHS) and a member of law enforcement to the Defense Logistics Agency and other victims to improperly obtain over $150,000 worth of property, some of which he later converted to his own use.
“The DHS Office of Inspector General (DHS-OIG) will continue to work with our law enforcement partners to investigate and bring to justice individuals who fraudulently claim affiliation with DHS for personal gain. This sentence should send a clear message that these fraudsters will be held accountable,” said Dr. Joseph V. Cuffari, Inspector General of DHS.
“The sentencing announced today is the result of a joint investigative effort to seek justice against an individual who defrauded government programs,” stated Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, the investigative arm of the Department of Defense (DoD), Office of Inspector General. “The fraudulent conduct in this case undermined the integrity of the DoD’s disposition services program, which is designed to transfer excess DoD property to federal, state and local law enforcement agencies that make honest representations to the United States.”
DHS-OIG investigated the case with assistance from the Defense Criminal Investigative Service, Maine Attorney General’s Office, Maine Department of Health and Human Services, Maine Bureau of Motor Vehicles, and the Falmouth Police Department. Valuable support was provided by the FBI, MEMA, the Towns of Falmouth and Brunswick, FEMA and MMC.
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Fairfield Woman Sentenced to 2 Years in Federal Prison for Embezzling $1.5 MillionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CAROLINA GUERRENO, 50, of Fairfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by two years of supervised release, for embezzling approximately $1.5 million from her employer.
According to court documents and statements made in court, Guerreno served as the Chief Financial Officer of a financial services company located in Shelton. As part of her job responsibilities, she had access to her employer’s bank accounts and was allowed to initiate financial transactions, including wiring company funds to other bank accounts. From January 2019 and continuing until her fraud was detected by the company in February 2021, Guerreno stole $1,532,207.24 by altering company financial transactions and directing electronic payments from her employer’s bank account to her credit card accounts, her personal bank accounts, and to pay her home equity line of credit. Guerreno used the stolen funds for home improvements, furniture, a luxury automobile, European vacations, a time-share condominium at a Vermont ski resort, jewelry, to pay off her home mortgage, and to fund her children’s college savings accounts.
Judge Shea ordered Guerreno to make full restitution. To date, Guerreno has repaid her employer approximately $400,000.
On August 30, 2022, Guerreno pleaded guilty to one count of wire fraud.
This matter was investigated by the U.S. Secret Service, the Wallingford Police Department and the Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Enfield Man Sentenced to 72 Months for Methamphetamine Distribution ConspiracyRead the Press Release
CONCORD, N.H. –United States Attorney Jane E. Young announced that Gary Sewell, 41, previously of Enfield, was sentenced to 72 months in prison for participating in a methamphetamine distribution conspiracy.
According to court documents and statements made in court, the defendants 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 Sewell and co-defendant Heather Dubeau 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.
All of Sewell’s co-defendants previously pleaded guilty. Andrew Hutchins pleaded guilty on May 5, 2022, and was sentenced on August 30, 2022. Dubeau pleaded guilty on May 4, 2022, and is scheduled to be sentenced on February 16, 2023. Eli Margolis pleaded guilty on May 27, 2022, and is scheduled to be sentenced on February 16, 2023. Chad Rombow pleaded guilty on January 26, 2022, and is scheduled to be sentenced on February 21, 2023. Dylan Miles pleaded guilty on February 15, 2022, and is scheduled to be sentenced on February 27, 2023.
“The distribution of methamphetamine is a major concern in the Granite State,” said U.S. Attorney Young. “We will be aggressive in our efforts to address the public safety issues presented by this dangerous drug.”
U.S. Attorney Jane Young stated after the conviction: “The defendant actively engaged in a conspiracy to ship methamphetamine from Arizona to New Hampshire, such conduct will be vigorously investigated and prosecuted.”
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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Drug Dealer Sentenced to 130 Months in Prison for Selling the Fentanyl that Resulted in Death of Young WomanRead the Press Release
SAN DIEGO – Jaimee Ashley Koryn was sentenced in federal court today to 130 months in prison for selling the fentanyl pills that resulted in the fatal overdose of 23-year-old Sherie Gil on September 30, 2021. Koryn pleaded guilty in October 2022, admitting that she sold Gil the fentanyl pills that caused her death.
According to the government’s sentencing memo, on the morning of September 30, 2021, law enforcement officials and paramedics responded to a 911 call from a commercial office building in San Diego, California. Law enforcement found Gil deceased in a bathroom along with drug paraphernalia, Gil’s cell phone, and “blues,” or counterfeit oxycodone pills containing fentanyl. The Medical Examiner’s Office later determined that Gil had died as the result of the “toxic effects of fentanyl, cocaine, and alprazolam.”
During a search of Gil’s cell phone, agents discovered that Gil had exchanged text messages with another phone number asking if she could “pick up” blues on a number of occasions in the days leading up to Gil’s death. During the investigation that followed, law enforcement discovered that the other phone number was registered to Koryn. The text messages also indicated that, on September 29, 2021, Gil again messaged Koryn requesting blues; Koryn sent Gil her address and Gil then responded that she was seven minutes away.
On October 8, 2021, during the execution of a search warrant at Koryn’s residence, law enforcement located and arrested Koryn.
Per the plea agreement, Koryn and the government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury would apply.
“The loss of yet another young life serves as a reminder of the ongoing devastation inflicted by fentanyl counterfeit pills,” said U.S. Attorney Randy Grossman. “This office remains dedicated to pursuing individuals who seek to profit from the trade of fentanyl in all its deadly forms. Those who contribute to the tragic loss of life caused by overdose will held accountable to the full extent of federal prosecution.” Grossman thanked the federal prosecutors and Overdose Response Team agents who diligently pursued this case.
“Fentanyl continues to destroy lives in San Diego,” said Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to vigorously pursue the people that deal this poison and bring them to justice.”
“Homeland Security Investigations (HSI) will continue to work with our law enforcement partners to prioritize our efforts and resources toward combatting this fentanyl crisis,” said Special Agent in Charge, Chad Plantz, HSI San Diego. “Today’s sentencing demonstrates that those who deliberately push deadly fentanyl into our communities will be held responsible.”
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Gil’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. In 2018, the Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 22-CR-0214-LL
Jaimee Ashley Koryn Age: 34 San Diego
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Life in Prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
San Diego County District Attorney’s Office
Convicted Felon Pleads Guilty to Lying to Probation OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Joseph Stevens, 58, of Olean, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to making a materially false statement to a probation officer, which carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Stevens was convicted in Federal Court of bank fraud and tax evasion and sentenced to serve 33 months in prison in August 2018. In April 2020, Stevens began a period of supervised release, during which he was required to meet monthly with a U.S. Probation Officer and complete a monthly supervision report. Making a false statement on the monthly supervision report can result in the revocation of supervised release as well as additional prison time. In December 2020, and January and February 2021, Stevens failed to disclose the existence of a Wells Fargo checking account that he had opened in his name in October 2020. This account was subsequently used to receive fraudulently obtain unemployment insurance benefits.
The plea is the result of an investigation by the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent-in-Charge John Pias and the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Special Agent-in-Charge Jonathan Mellone, New York Region.
Sentencing is scheduled for June 27, 2023, at 11:30 a.m. before Judge Wolford.
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Columbia Couple Sentenced for Selling Counterfeit Disney Movies on eBayRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., couple was sentenced in federal court today for a scheme to smuggle counterfeit Disney DVDs into the United States and sell them on eBay.
Tabitha Nicole Rodgers, 43, and her husband, Clint Travis Rodgers, 49, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Tabitha Rodgers was sentenced to four years in federal prison without parole. Clint Rodgers was sentenced to one year in federal prison without parole.
The court also ordered Tabitha Rodgers to pay $26,573 in restitution to the government for Supplemental Nutrition Assistance Program (SNAP) benefits she was not entitled to receive. The court ordered Clint Rodgers to pay a $10,000 fine.
On Oct. 12, 2021, Tabitha Rodgers pleaded guilty to one felony count of criminal copyright infringement for profit. Clint Rodgers pleaded guilty the same day to a misdemeanor count of criminal infringement of a copyright.
In July 2014, Homeland Security Investigations (HSI) received information from the National Intellectual Property Rights Coordination Center indicating that Clint Rodgers had received more than 443 shipments of counterfeit DVDs from companies in Hong Kong known to sell and export counterfeit goods. HSI agents identified two shipments that had been seized prior to delivery to the Rodgers’ home in Columbia. One shipment contained 200 counterfeit “Beauty and the Beast” DVDs and another shipment contained 260 counterfeit “Aladdin” DVDs. On Feb. 4, 2015, Customs and Border Protection agents seized a parcel addressed to Clint Rodgers that contained 200 counterfeit Disney DVDs.
Undercover federal agents purchased several counterfeit Disney DVDs from the Rodgers on eBay in February and March 2015. The Rodgers represented that the DVDs were genuine and authentic Disney products, when in reality, they were aware the products were counterfeit. During the investigation, agents contacted two persons who assisted the Rodgers in selling counterfeit DVDs on eBay. They told agents they were aware of numerous complaints from customers, including complaints that the DVDs didn’t work.
On Aug. 25, 2015, HSI agents executed a search warrant at the Rodgers’ residence. Agents seized an assortment of counterfeit goods, including numerous counterfeit Disney DVDs. Tabitha Rodgers admitted that she conducted the day-to-day operation of the business. She corresponded via email with the counterfeit DVD supplier in Hong Kong and placed orders for the DVDs. She also packaged and sent the DVDs to customers and processed customer complaints when DVDs were inoperable. Clint Rodgers assisted by helping recruit third parties to use their eBay accounts to sell the DVDs for them.
According to court documents, the majority, if not all, of the Rodgers’ income was derived from this criminal activity. They had been notified by Beachbody and Otter Products to cease and desist from selling counterfeit products yet continued to sell counterfeit goods. eBay cancelled a number of the Rodgers’s accounts due to counterfeit merchandise being sold, but they recruited others to sell the products.
Although they derived substantial income from selling counterfeit goods, Tabitha Rodgers sought and obtained SNAP benefits from the government to which she was not entitled. Her fraudulent conduct in obtaining benefits was considered by the court in determining an appropriate sentence and in ordering restitution.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by Homeland Security Investigation and the U.S. Department of Agriculture.
Christian County Man Sentenced to 33 Months in Federal Prison for Possession of a Firearm After Having Been Convicted of Felony OffensesRead the Press Release
Paducah, KY – A Christian County, Kentucky man was sentenced today to 33 months in federal prison, followed by a 3-year term of supervised release, for possessing a firearm after having previously been convicted of felony offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division, and Chief Clayton Summers of the Hopkinsville Police Department made the announcement.
According to court documents, on September 23, 2020, Zachary Dean Evans, 28, possessed a pistol after having been previously convicted of multiple felony offenses. These felony offenses include fraudulent use of a credit card over $10,000, receiving stolen property over $500, receiving stolen property – firearm, second degree escape, first degree fleeing or evading police, theft by unlawful taking over $500, and second degree unlawful imprisonment.
The case was investigated by the ATF Paducah Satellite Office and the Hopkinsville Police Department, with the assistance of the Christian County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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California Man Sentenced to Prison for Child PornRead the Press Release
WICHITA, KAN. – A California man was sentenced today to 210 months in prison for child pornography distribution.
According to court documents, in August 2022, Bradley Wiley, 29, of Chico, California, pleaded guilty to one count of distribution of child pornography.
In August 2021, while Wiley was a member of U.S. Air Force stationed at McConnell Air Force Base in Kansas, he used a Whatsapp account to send another user images of prepubescent children made to engage in sexual acts.
The Department of the Air Force Office of Special Investigations and the Kansas Internet Crimes Against Children Task Force (ICAC) investigated the case.
Assistant U.S. Attorney Jason Hart prosecuted the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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California Man Pleads Guilty to Methamphetamine Trafficking in California and New HampshireRead the Press Release
CONCORD –Robert Perez, Jr., 33, of Perris, California pleaded guilty in federal court to conspiring to distribute methamphetamine in California and New Hampshire, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, beginning in late-2020 or early 2021, Perez conspired with individuals in California and New Hampshire to ship a total of approximately 30 pounds of methamphetamine through the U.S. Postal Service from California to several individuals in New Hampshire for distribution. In August 2022, United States Drug Enforcement agents from New Hampshire travelled to Riverside, California, and arrested Perez, Jr. Thereafter, Perez, Jr. appeared before a federal magistrate judge in the Central District of California and was ordered detained pending his transfer to New Hampshire.
Perez, Jr. is scheduled to be sentenced on May 24, 2023.
This matter was investigated by the United States Drug Enforcement Administration, the United States Postal Inspection Service, the New Hampshire State Police, and the Nashua, New Hampshire Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer C. Davis.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Brother and Sister Plead Guilty to Drug Conspiracy Involving Fentanyl SalesRead the Press Release
Government Alleges Fake Oxycodone (M-30) Pills Containing Fentanyl Caused Overdose and Death to 20-year old Woman
WASHINGTON – Larry Jerome Eastman, 22, of Temple Hills, Maryland, pleaded guilty today to conspiracy to distribute and possession with intent to distribute Fentanyl. His sister, Justice Michelle Eastman, 26, of Washington, D.C., pleaded guilty on January 31st. The pleas were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Jarod Forget, of the Washington Division Office of the U.S. Drug Enforcement Administration (DEA), and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Sentencing hearings for both defendants are scheduled for June 15, 2023.
The defendants were arrested approximately one year ago, on January 26, 2022, following an investigation into the April 6, 2021 Fentanyl overdose death of a woman in Southeast Washington, D.C.
According to the government’s evidence, the 20-year-old Southeast Washington, D.C. woman survived an earlier overdose in November of 2020, and was revived when paramedics administered Narcan. At the time of her fatal overdose in April 2021, white powder was discovered on a coffee table at the woman’s apartment. The DEA analyzed the powder and determined it to be Fentanyl. An autopsy determined the Victim’s cause of death was acute Fentanyl intoxication.
A review of the female victim’s phone found text messages from the previous evening with Larry Eastman where the victim asked for “jammers” (a street term that often refers to counterfeit blue Oxycodone pills that contain Fentanyl). Eastman directed the victim to his address in Washington D.C., and requested that she make payment to a Cashapp account registered to Justice Eastman. Additional communications between the Defendant and the victim went as far back as September 2020, the start of the conspiracy. When the two defendants were arrested in January 2022, law enforcement seized additional fake Oxycodone (M30) pills, which contained Fentanyl, and match the pills that the defendants were working together to sell.
As noted by the DEA, because of its potency and low cost, Fentanyl is increasingly being mixed with other drugs including heroin, methamphetamine, and cocaine, increasing the likelihood of a fatal interaction. Particularly dangerous are fake prescription pills like the fake oxycodone M30 tablets seized in this case, which contain Fentanyl. The DEA Laboratory has found that, of the Fentanyl-laced fake prescription pills analyzed in 2022, six out of ten now contain a potentially lethal dose of Fentanyl (see One Pill Can Kill).
The charge of conspiracy to distribute and possess with intent to distribute Fentanyl carries a statutory maximum of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Washington Division Office of the DEA and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys David T. Henek, Andy T. Wang, and Matthew W. Kinskey, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
Billings man sentenced to 70 months in prison for trafficking methRead the Press Release
BILLINGS — A Billings man who admitted to trafficking methamphetamine after he was arrested in Rosebud County was sentenced today to 70 months in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Stefan Shane Hickel, 34, pleaded guilty on August 11, 2022, to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in September 2021, a drug task force in Billings was investigating Hickel for drug trafficking. Hickel had absconded from state supervision on a distribution charge. Law enforcement received information that Hickel was at a motel in Forsyth. Officers executed a search warrant and found Hickel with meth and drug paraphernalia in the room. Hickel admitted to being both a user and distributor of meth.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Baltimore Man Sentenced to 25 Years in Federal Prison for a Carjacking and Armed Robbery Conspiracy During Which Two People Were Shot and KilledRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced David Banks, age 29, of Baltimore, Maryland, yesterday to 25 years in federal prison, followed by five years of supervised release, for a carjacking and armed robbery conspiracy, including six armed robberies and a carjacking, during which three people were shot and two were killed.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Acting Chief Dennis J. Delp of the Baltimore County Police Department.
According to his guilty plea, Banks personally participated in a conspiracy to commit a series of carjackings and armed robberies. In each of the robberies and carjackings a member of the conspiracy brandished a gun to threaten and intimidate the victims. Two victims were shot and killed during a carjacking and robbery, respectively. The conspirators would often use the stolen vehicles to commit additional criminal acts and they shared the proceeds of their exploits, with certain conspirators responsible for pawning any items recovered from the victims and the stolen vehicles.
Banks admitted that he personally participated in a carjacking on June 12, 2019, in which a victim was shot and killed, and that he intended to cause death or serious bodily injury to the victim. Banks also participated in five armed robberies and an attempted robbery committed from July 7, 2019 to August 12, 2019. As detailed in the plea agreement, a victim was shot during the attempted robbery on July 24, 2019, and another victim was shot and killed during an armed robbery committed four days later.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon K. Moore, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Armed Drug Trafficker Sentenced to 144 Months in Prison After Investigation Spurred by Community ComplaintsRead the Press Release
RALEIGH, N.C. – Joseph Bernard White, 46, of Jacksonville, NC, was sentenced today to 144 months in prison for distribution of fentanyl and methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. On October 4, 2022, White pled guilty to the charges.
“Residents of Jacksonville were courageous in reporting suspected drug trafficking to law enforcement,” said U.S. Attorney Michael Easley. “Thanks to their tips, an armed drug trafficker is off the streets and behind bars for the next twelve years.”
"The arrest and prosecution of White was a direct result of the cooperation between the community, law enforcement and prosecutors,” commented Onslow County Sheriff Chris Thomas. “Cooperation with community and our fellow law enforcement partners along with education are key to combating the drug epidemic."
According to court documents and other information presented in court, community complaints about suspected drug trafficking at a home in Jacksonville led to an investigation resulting in the seizure of drugs, drug proceeds, and multiple firearms. Between November 2020 and March 2021, White repeatedly distributed fentanyl and methamphetamine from his home. On March 5, 2021, officers searched the home and found methamphetamine, fentanyl, six guns, and nearly $4,000 in cash.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Onslow County Sheriff’s Office and the Drug Enforcement Administration (DEA) investigated the case and Assistant U.S. Attorneys Caroline Webb and Nicholas Hartigan 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. 7:22-CR-73.
American Citizen Convicted of Providing Material Support to ISIS that Resulted in Death and Related OffensesRead the Press Release
A federal jury yesterday convicted Ruslan Maratovich Asainov, 46, a U.S. citizen and former resident of Bay Ridge, New York, of all five counts of an indictment charging him with conspiracy to provide material support to ISIS; providing material support to ISIS in the form of personnel, training, expert advice and assistance; receipt of military-type training from ISIS; and obstruction of justice. The jury also found that the defendant’s provision of material support to ISIS resulted in the death of one or more persons. The verdict followed a two-week trial before U.S. District Judge Nicholas G. Garaufis.
“Mr. Asainov, a US citizen, traveled abroad to kill and train others to kill on behalf of ISIS. Now, he is being held accountable,” said Assistant Attorney General for National Security Matthew G. Olsen. “Part of the National Security Division’s core mission is to protect Americans from terrorist organizations who would do them harm and we will bring to justice all those who would try.”
“As proven at trial, Asainov was a member of ISIS who was so committed to the terrorist organization’s evil cause that he abandoned his young family here in Brooklyn, New York, to make an extraordinary journey to the battlefield in Syria where he became a lethal sniper and trained many others to kill their adversaries, and even after being captured still pledged his allegiance to ISIS’ murderous path,” said U.S. Attorney Breon Peace for the Eastern District of New York. “There is no place in a civilized world for the defendant’s bloody campaign of death and destruction. Today’s verdict in an American courtroom is a victory for our system of justice, and against ISIS and those like the defendant who are committed to murdering innocent people here in the United States and abroad.”
“The defendant in this case fought for ISIS and also trained many others how to kill for that terrorist organization,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “This verdict demonstrates the FBI and our partners will use all of our legally available tools to hold accountable anyone who assists ISIS or other terrorist groups.”
As proven at trial, between December 2013 and March 2019, Asainov provided and conspired to provide material support and resources in the form of personnel, including himself and others, training, and expert advice and assistance, to a foreign terrorist organization, namely ISIS, knowing that ISIS was a designated foreign terrorist organization that had engaged in terrorist activity and terrorism. Asainov also received military-type training from ISIS, in violation of federal law.
Asainov converted to Islam in 2009 and subsequently became increasingly interested in Islamic extremism. By the fall of 2013, he was consuming radical Islamic content online. He abruptly dropped out of classes at the Borough of Manhattan Community College in September 2013 and began making preparations to travel to Syria to wage violent jihad.
On Dec. 24, 2013, Asainov abandoned his wife and daughter in Brooklyn, and traveled on a one-way ticket from New York to Istanbul, Turkey, to obtain entry into Syria.
Over the course of approximately five years fighting on behalf of ISIS, Asainov fought in numerous battles against ISIS enemies, including engagements at Kobani; Tabqa; Raqqa; Dayr Az Zawr; up to and including ISIS’s last stand in Syria at Baghouz in March 2019. Asainov received training in how to use automatic rifles, machine guns and rocket propelled grenades. In Tabqa, in mid-2014, he volunteered to train as a sniper. Over time, Asainov became a sniper trainer or “emir” on behalf of ISIS, estimating that he taught nearly 100 students. A former U.S. Navy SEAL scout sniper testified that the defendant’s self-described sniper training course was consistent with what the former SEAL would expect to be taught in a sniper training program.
From Syria, the defendant attempted to recruit another individual to travel from the United States to Syria to fight for ISIS, and sought to obtain funds to purchase a scope for his rifle from the same person. The defendant also told his estranged spouse that he was fighting on behalf of ISIS, described by him in a recorded January 2015 voicemail as “the most atrocious terrorist organization in the world that ever existed.” Asainov’s wife testified that he sent her a photograph of three dead fighters, one of whom was wearing a patch that stated “Islamic State of Iraq and al-Sham,” i.e., ISIS, in Arabic script.
Asainov was captured in Syria after ISIS’s last stand at Baghouz, near the Syria-Iraq border. Just before his capture, Asainov discarded his rifle and destroyed his cell phone.
Asainov admitted to agents from the FBI’s Joint Terrorism Task Force that he had fought in numerous battles on behalf of ISIS as a warrior and sniper, serving in several different katibas or ISIS fighting brigades. In recorded phone calls to his mother from facilities operated by the Bureau of Prisons (BOP), the defendant told her that he was carrying out Allah’s orders when he waged jihad and killed for ISIS, that he intended to return to waging jihad if released and that he would fight until he “meet[s] Allah,” i.e., until his death. In September 2020, staff at a BOP facility confiscated a makeshift ISIS flag affixed to Asainov’s cell wall. The defendant had filled in an 8.5” x 11” sheet of paper with black ink and Arabic writing in the design of the ISIS flag.
When sentenced, Asainov faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries on multiple continents provided critical assistance in this case. The Bosnian and Herzegovinian authorities, and the FBI Legal Attaché Office in Sarajevo provided extraordinary assistance in the investigation and prosecution. The Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the Prosecutor General’s Office in Ukraine, and the FBI’s Legal Attaché Offices in or responsible for those countries provided valuable assistance in the investigation.
Assistant U.S. Attorneys Douglas M. Pravda, Saritha Komatireddy, J. Matthew Haggans, Nicholas J. Moscow and Nina C. Gupta for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section and Paralegal Specialists Mary Clare McMahon and Wayne Colon.
Albany Man Pleads Guilty to Distribution of Heroin and FentanylRead the Press Release
ALBANY, NEW YORK – Carlos Hernandez, age 53, of Albany, pled guilty today to two counts of distribution of a controlled substance, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
Hernandez admitted that between April and May 2021, he sold a total of 68 grams of fentanyl and 71 grams of heroin in Albany.
Hernandez is scheduled to be sentenced on June 21, 2023 before Senior United States District Judge Lawrence E. Kahn. He faces a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of supervised release between 3 years and life.
The DEA investigated this case. Assistant U.S. Attorney Benjamin S. Clark is prosecuting this case.
Albany Felon Indicted for Possessing a FirearmRead the Press Release
ALBANY, NEW YORK – Charles E. Williams, age 34, of Albany, was arraigned today on an indictment charging him with possessing a firearm while a prohibited person.
United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.
The indictment alleges Williams possessed a Smith & Wesson .357 caliber revolver in Albany County on November 18, 2021. Federal law prohibits Williams from possessing the firearm as a result of a prior felony conviction. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-release supervision of up to 3 years. A judge imposes a defendant’s sentence based on the particular statute a defendant violated, the U.S. Sentencing Guidelines, and other factors.
United States Magistrate Judge Daniel J. Stewart arraigned Williams arraigned today in Albany, and ordered Williams detained pending trial.
The U.S. Marshals Service is investigating the case, with assistance from the North Greenbush Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
7 February 2023
Woman Sentenced to 6+ Years in Prison for Embezzling $800,000 from IT CompanyRead the Press Release
An Irving woman was sentenced Tuesday to more than six years in federal prison for embezzling more than $800,000 from her employer, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
She-Daria Latisha Owens-Sharp, 42, pleaded guilty in April 2022 to one count of wire fraud. She was sentenced Tuesday to 77 months in prison by U.S. District Judge Sam A. Lindsay, who ordered her to pay $1.1 million in restitution – the amount she embezzled from the company plus the amount of extra payroll taxes the company incurred as a result of her fraud.
According to court documents, Ms. Owens-Sharp, who served as operations manager for an IT staffing service company from April 2012 to March 2019, admitted that she requested paper paychecks for employees in addition to those employees’ direct deposit checks. She then altered the paper checks, removing the employees’ names and replacing them with her own, and deposited the checks into her own bank account.
She further admitted that she informed the company’s payroll vendor that her salary had been increased from $17 to $25 per hour (a nearly 50 percent increase), causing the company to increase her direct deposit, without authorization. She concealed her lie from the company by making false entries in their records reflecting payroll and expenses for employees that had left the company.
Ms. Owens-Sharp admitted that she deposited approximately 376 altered checks totaling more than $818,000. The company paid an additional $224,000 in payroll taxes on the fraudulently obtained checks, resulting in a loss to the company of more than $1 million.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Douglas Brasher prosecuted the case.
Wilmington ‘Gangster Disciple’ Felon with Stolen Guns and High-Capacity Magazines Receives 54 Months for Gun OffenseRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 54 months in prison for felon in possession of a firearm. On October 31, 2022, Michael Tyron Bridges, age 27, pled guilty to the charge.
According to court documents and other information presented in court, on July 28, 2020, Michael Bridges was a passenger in a vehicle stopped by the Wilmington Police Department. During a search of the vehicle, officers located a Glock 45 with a 24-round magazine in a cupholder, a .380 pistol in the other cupholder, and a stolen Sig Sauer rifle in the backseat with Mr. Bridges. Mr. Bridges was arrested and charged with possession of a firearm by a convicted felon and was released on bond on July 29, 2020.
On March 16, 2021, while out on bond for the July 28, 2020 arrest, the Wilmington Police Department conducted a traffic stop on the vehicle Mr. Bridges was driving. After Mr. Bridges told officer he had marijuana on his person, officers conducted a search and located a Smith and Wesson .357 Magnum pistol in his pocket. Mr. Bridges was arrested and charged with possession of a firearm by a convicted felon and was released on bond on March 18, 2021.
August 16, 2021, while out on bond for the July 28, 2020 arrest and the March 16, 2021 arrest, officers with the Wilmington Police Department became aware that Mr. Bridges had an outstanding warrant for his arrest and conducted a traffic stop on the vehicle to serve him with the process. When Mr. Bridges stepped out of the vehicle, a 9mm live round of ammunition fell from his lap and, in a subsequent search of the vehicle, officers located a stolen 9mm Taurus G2 pistol. Mr. Bridges was arrested and charged with possession of a firearm by a convicted felon and was released on bond on September 3, 2021.
On March 23, 2022, officers with the Wilmington Police Department received a call from a store clerk regarding a firearm that was found in the parking lot of the business. When officers arrived, they located a Smith and Wesson handgun with a high-capacity magazine in the parking lot. Subsequent testing of the firearm revealed the presence of Mr. Bridges DNA on the firearm.
On August 31, 2022, Mr. Bridges was arrested on federal charges and was ordered to be detained pending the resolution of his case.
During sentencing, the Court found Mr. Bridges, a convicted felon, responsible for possessing at leave five firearms and ammunition between July 28, 2020, and March 23, 2022. Additionally, multiple firearms were reported stolen and had large capacity magazines.
Mr. Bridges was a named defendant in the 2018 New Hanover County Permanent Injunction declaring the 720 Gangster Disciple street gang a public nuisance in New Hanover County.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department’s Gun Crime Task Force, the Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
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. 7:22-cr-00080-BO.
U.S. Attorney’s Office Resolves ADA Complaint with WalMart, Inc.Read the Press Release
DETROIT – The United States Attorney’s Office for the Eastern District of Michigan settled a complaint regarding an allegation that a Walmart store located in Mt. Pleasant, Michigan failed to make reasonable modifications to its policies so that an individual with a mobility disorder had an equal opportunity to access the goods or services that Walmart offered for sale. The settlement agreement resolves the Office’s investigation, prompted by the complaint of an individual with quadriplegia that he was not allowed to purchase alcohol at the Mt. Pleasant Walmart because his aide who was assisting him with shopping was not over 21 years old.
Civil rights enforcement is a priority of my office, which includes ensuring that all public accommodations are fully available to all of our residents.” U.S. Attorney Dawn N. Ison said. “I commend Walmart for agreeing to take these steps to make its stores more accessible to everyone in the Eastern District of Michigan and across the United States.”
Walmart has fully cooperated with the investigation and has agreed to update its corporate ADA policies to clarify its ongoing responsibilities to make reasonable modifications provide live training on its updated ADA policies for store management and Front End Associates at the Mt. Pleasant Walmart store, assign training on its updated ADA policies for store management and front end associate across the United States, and pay damages to the complainant.
The investigation was led by Executive Assistant United States Attorney Luttrell Levingston. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
U.S. Attorney Announces $1 Million Settlement of Civil Fraud Lawsuit Against Trading Company for Underpaying Customs Duties on Imported FootwearRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, AnnMarie R. Highsmith, the Executive Assistant Commissioner for U.S. Customs and Border Protection’s (“CBP”) Office of Trade, Francis J. Russo, the Director of CBP Field Operations New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that the United States has filed and settled a civil lawsuit against Samsung C&T America, Inc. (“SCTA”), a global trading and investment company that is a U.S. subsidiary of the Korean conglomerate Samsung C&T Corporation. Among other things, SCTA imports and sells footwear manufactured overseas in partnership with other companies. SCTA performs services in connection with the importation and sale of footwear, including financing, transportation, warehousing, and distribution. The settlement resolves claims brought by the United States that between May 2016 and December 2018, SCTA violated the False Claims Act by misclassifying imported footwear under the Harmonized Tariff Schedule (“HTS”) and by not paying the full amount of customs duties owed.
Under the settlement agreement approved by U.S. District Judge Paul G. Gardephe, SCTA will pay a total of $1 million to the United States. As a part of the settlement agreement, SCTA also made admissions regarding certain conduct alleged in the Government’s Complaint. Specifically, SCTA admitted that it misclassified certain imported footwear on entry documents filed with CBP and, in some instances, underpaid customs duties on the footwear. SCTA further admitted that it had reason to know that certain documents provided to its customs brokers inaccurately described the construction and materials of the imported footwear and that SCTA failed to verify the accuracy of this information before providing it to its customs brokers.
U.S. Attorney Damian Williams said: “SCTA improperly avoided paying the full customs duties owed to the United States by misclassifying certain footwear that it imported and thereby reducing the duty rate applied. This Office is committed to combatting customs fraud by holding companies accountable when they misclassify goods and evade paying their legally required duties.”
CBP Executive Assistant Commissioner AnnMarie R. Highsmith said: “Misclassification and avoiding the payment of lawful duties on imported goods is a serious matter. This practice allows entities to import goods without paying the U.S. Government the lawful amount of duties owed, creating an unfair advantage over law-abiding American businesses. I am glad that we were able to work with our federal partners to reach a satisfactory settlement to recover these funds.”
CBP Director of Field Operations Francis J. Russo said: “U.S. Customs and Border Protection demonstrated its tenacity once again in preventing the circumvention of the payment of proper duties. This was a total team effort by CBP import specialists and regulatory auditors, HSI investigators, and the U.S. Attorney’s Office for the Southern District of New York to uncover SCTA’s misclassification of goods, which shortchanged the United States government of the proper amount of customs duties owed.”
HSI Special Agent in Charge Ivan J. Arvelo said: “For two and a half years, Samsung C&T America, Inc. submitted false information to the United States Government, misclassified imported goods, and underpaid customs duties. As this settlement proves, HSI, along with our law enforcement partners, will hold accountable organizations that engage in improper trade practices and deny our government of vital revenues.”
As alleged in the Complaint filed in Manhattan federal court:
From May 2016 through December 2018 (the “Relevant Period”), SCTA, in conjunction with a business partner, imported footwear manufactured overseas, including from manufacturers in China and Vietnam, into the United States. The tariff classifications for footwear depend on the characteristics of the footwear, including the footwear’s materials, its construction, and its intended use. Depending on the classification of the footwear, the duties owed vary significantly.
During the Relevant Period, SCTA, as the importer of record for certain customs entries referenced in the Government’s Complaint, violated the False Claims Act by misclassifying certain footwear under the HTS and by causing entry summary forms to be presented to CBP that SCTA knew or had reason to know contained false classifications. SCTA provided its customs brokers with documentation and information, including invoices, that (i) misclassified the footwear under the HTS, and/or (ii) contained inaccurate information concerning the materials and construction of the footwear. Accordingly, in many instances, the footwear was entered at a lower duty rate than would have been applicable had the footwear been properly classified. As a result of the misclassifications, SCTA avoided paying the full amount of the customs duties owed.
In the settlement agreement, SCTA admitted, acknowledged, and accepted responsibility for the following conduct:
- As the United States importer of record, SCTA was responsible for paying the customs duties owed on the footwear at issue and providing accurate documents to CBP to allow CBP to assess customs duties applicable to the footwear.
- SCTA and its business partner provided SCTA’s customs brokers with invoices and other documents and information that purportedly reflected the tariff classification of the footwear under the HTS, as well as the corresponding materials and construction of the footwear. SCTA knew that its customs brokers would rely on the documents and information to prepare the entry summaries submitted to CBP, which required classifying the footwear under the HTS, determining the applicable duty rates, and calculating the amount of the customs duties owed on the footwear.
- SCTA had reason to know that certain documents provided to its customs brokers, including invoices, inaccurately stated the materials and construction of the footwear at issue. SCTA failed to verify the accuracy of this information before providing it to its customs brokers. As a result, SCTA materially misreported the classification of the footwear under the HTS and misrepresented the true materials and construction of the footwear.
- SCTA, through its customs brokers, misclassified the footwear at issue on the associated entry documents filed with CBP and, in many instances, underpaid customs duties on the footwear.
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In connection with the filing of the lawsuit and settlement, the Government intervened in a whistleblower lawsuit that had been previously filed under seal pursuant to the False Claims Act.
Mr. Williams thanked CBP and HSI for their assistance and support with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Samuel Dolinger is in charge of the case.
Two Men Charged in Wire Fraud and Money Laundering SchemeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Department of the Interior (DOI) Office of Inspector General announced today that James I. Matison, 57, of Boulder, CO, and Jeffrey Ham, 46, of El Prado, NM, made initial appearances in federal court on a indictment charging them with conspiracy to commit wire fraud and money laundering.
According to court documents, from February 2015 through April 2019, Matison and Ham conspired to inflate hours billed to Matison’s employer, WildEarth Guardians, by using the company Ham owned, Timberline Environmental, LLC. All told, Matison and Ham diverted more than $250,000 from WildEarth Guardians.
“The Environmental Protection Agency Office of Inspector General is committed to providing strong oversight for grants and contracts,” said Special Agent in Charge Garrett J. Westfall of the EPA OIG’s Western Division. “With our law enforcement partners, we will hold recipients accountable for ensuring that they use taxpayer funds for their intended purposes in accordance with federal regulations.”
“The Department of the Interior (DOI) Office of Inspector General is committed to working with our law enforcement partners in protecting the integrity of taxpayer funds and aggressively investigating allegations of theft within DOI and other federal programs,” said Jamie DePaepe, Special Agent in Charge, Department of the Interior Office of Inspector General’s Western Region.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Matison and Ham both face 20 years in prison.
Environmental Protection Agency Office of Inspector General investigated this case with assistance from Department of the Interior Office of Inspector General. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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23-23
Twenty-Three Individuals Charged in $61.5 Million Medicare Fraud SchemesRead the Press Release
Court documents were unsealed this week charging 23 Michigan residents for their alleged involvement in two illegal schemes to defraud Medicare of more than $61.5 million by paying kickbacks and bribes and billing Medicare for unnecessary medical services that were never provided.
“As alleged, the defendants and their co-conspirators repeatedly paid illegal bribes and kickbacks so they could submit claims for medically unnecessary home health services throughout the Detroit metropolitan area, exposing patients to needless physician services and drug testing and costing Medicare tens of millions of dollars,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these actions demonstrate, we will work tirelessly to tackle complex, illegal schemes that take advantage of vulnerable populations and defraud federal programs of taxpayer dollars meant to provide health care to millions of Americans.”
United States v. Jamil, et al.
According to court documents, Walid Jamil, 62, and Jalal Jamil, 69, both of Oakland County, owned and operated several home health agencies in the Detroit metropolitan area. They allegedly concealed their ownership interest in these agencies using straw owners – including family members and other associates – and submitted approximately $50 million in fraudulent home health care claims to Medicare. Specifically, Walid and Jalal Jamil allegedly paid bribes to other co-conspirators to recruit patients in violation of the Federal Anti-Kickback Statute. These patients did not need home health care, did not qualify for home health care under Medicare rules, and in many instances were not actually provided the care for which Medicare was billed. Walid and Jalal Jamil allegedly entered into quid pro quo relationships with physician clinics to receive the necessary information to fraudulently bill Medicare. Based on their fraudulent claims, Walid and Jalal Jamil received more than $43 million from Medicare, which they misappropriated for their personal benefit.
“The alleged actions of these defendants is an astonishing abuse of our health care system,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “By allegedly submitting fraudulent claims and paying illegal kickbacks, these defendants looted Medicare in order to line their own pockets at great cost to taxpayers. My office is grateful for the continued work of the Health Care Fraud Strike Force to root out corrupt medical professionals.”
Carol Ibrahim, 45, of Oakland County, and Delaine Jackson, 48, of Wayne County, were employed by one or more of the Jamil home health agencies and operated these agencies at the direction of Walid Jamil. They each allegedly made illegal payments to patient recruiters and submitted false claims to Medicare. Ibrahim was also allegedly a straw owner of one of the Jamil home health agencies.
Ibrahim Sammour, 62, of Wayne County, was a registered nurse employed by the Jamil home health agencies. Sammour is alleged to have fraudulently billed Medicare for home health services he never provided and falsely certified patients as “homebound.”
Mary Smelter-Bolton, 69, of Oakland County, and Cass Hawkins, 52, of Wayne County, were allegedly recruiters paid by various Jamil home health agencies to refer them Medicare beneficiaries for home health services that were then billed to Medicare, even though the claims were not eligible for reimbursement.
United States v. Malas, et al.
According to court documents, beginning in at least February 2015, Radwan Malas, 43, of Oakland County, operated Infinity Visiting Physician Services PLC (Infinity) as a home visiting physician company and allegedly ordered the physicians he employed to certify patients referred by Walid Jamil and Jalal Jamil for medically unnecessary home health services. He then allegedly billed Medicare for services that were never actually provided to these patients – including 60-minute complex patient visits – and for services that were not medically necessary – including B-12 and Toradol injections. Malas also allegedly demanded that physicians in his office order the highest-reimbursing urine drug test for patients, which was medically unnecessary, but for which Malas allegedly received a referral fee from the laboratory that processed the samples.
As part of this scheme, the defendants billed Medicare over $11.5 million in fraudulent claims for which they were paid nearly $4 million, which they misappropriated for their personal benefit. Malas is also alleged to have laundered the misappropriated funds by conducting illegal financial transactions.
“At the FBI, we swear an oath to protect the American people,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Fraudsters look to orchestrate their schemes at the cost of our health care systems, patients, and taxpayers. The FBI and our law enforcement partners remains dedicated to investigating and bringing to justice those who seek to exploit our U.S. healthcare system at the expense of its patients.”
Alejandro Mataverde, 79, of Oakland County, Cornelius Oprisiu, 82, of Livingston County, both physicians, and Shafiq Rehman, 59, of Wayne County, a licensed nurse practitioner, were employed by Infinity. They allegedly provided medically unnecessary services to Medicare beneficiaries or submitted claims to Medicare for medical services that were not provided to the patients.
“Those who attempt to defraud Medicare often do so at the risk of compromising the integrity of federal health care programs and disregarding the health and wellbeing of patients,” said Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to protect federal health care programs and hold bad actors accountable for their actions.”
Michael Molloy, 50, of Wayne County, was co-owner of Integra Lab Management LLC (Integra), which processed the high-reimbursing and allegedly medically unnecessary urine tests submitted by Infinity. Molloy and his co-owners allegedly paid the salary of Infinity employees and made monthly payments to Malas in exchange for the physician orders for the medically unnecessary urine drug testing. As a result of the illegal kickbacks, Integra submitted approximately $2.8 million in fraudulent claims to Medicare and was paid more than $730,000.
Montaha Hogeige, 39, of Wayne County, was a medical assistant employed by Infinity who allegedly agreed to receive her salary from Integra as an illegal kickback to Infinity in exchange for physician orders for high-reimbursing urine drug testing.
“Medicare is designed to provide vital government funded services to our people. It is not a slush fund for thieves and fraudsters,” said Acting Special Agent in Charge Charles Miller of the IRS Criminal Investigation (IRS-CI) Detroit Field Office. “IRS-CI will work tirelessly with our law enforcement partners to investigate those who illegally target our Medicare program for personal financial gain."
The charges alleged in the indictments against these defendants for their alleged participation in these schemes are described in the following table:
Defendant
Charges (and maximum term of imprisonment)
Walid Jamil
Conspiracy to commit health care fraud (10 years)
Specific instances of health care fraud (10 years each)
Conspiracy to defraud the United States through the payment and receipt of illegal health care kickbacks (5 years)
Payment of illegal healthcare kickbacks (10 years)
Jalal Jamil
Conspiracy to commit health care fraud (10 years)
Specific instances of health care fraud (10 years each)
Carol Ibrahim
Conspiracy to commit health care fraud (10 years)
Health care fraud (10 years)
Conspiracy to defraud the United States through the payment of illegal health care kickbacks (5 years)
Payment of illegal health care kickbacks (10 years)
Delaine Jackson
Conspiracy to commit health care fraud (10 years)
Health care fraud (10 years)
Conspiracy to defraud the United States through the payment of illegal health care kickbacks (5 years)
Payment of illegal health care kickbacks (10 years)
Ibrahim Sammour
Conspiracy to commit health care fraud (10 years)
Mary Smelter-Bolton
Conspiracy to defraud the United States through the receipt of illegal health care kickbacks (5 years)
Receipt of illegal health care kickbacks (10 years)
Cass Hawkins
Conspiracy to defraud the United States through the receipt of illegal health care kickbacks (5 years)
Receipt of illegal health care kickbacks (10 years)
Radwan Malas
Conspiracy to commit health care fraud (10 years)
Health care fraud (10 years)
Conspiracy to defraud the United States through the payment and receipt of illegal health care kickbacks (5 years)
Receipt of illegal health care kickbacks (10 years)
Money laundering (10 years)
Alejandro Mataverde
Conspiracy to commit health care fraud (10 years)
Health care fraud (10 years)
Cornelius Oprisiu
Conspiracy to commit health care fraud (10 years)
Health care fraud (10 years)
Shafiq Rehman
Conspiracy to commit health care fraud (10 years)
Health care fraud (10 years)
Michael Molloy
Conspiracy to commit health care fraud (10 years)
Conspiracy to defraud the United States through payment of illegal health care kickbacks (5 years)
Payment of illegal health care kickbacks (10 years)
Montaha Hogeige
Conspiracy to defraud the United States through the payment and receipt of illegal health care kickbacks (5 years)
Ten other individuals were also charged by criminal information for their alleged participation in the fraud schemes.
The FBI Detroit Field Office, HHS-OIG, and IRS-CI are investigating the cases.
Trial Attorney Shankar Ramamurthy of the Criminal Division’s Fraud Section is prosecuting the cases.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Pleads Guilty in Case Involving Plane Crash that Injured Undocumented NoncitizensRead the Press Release
ALPINE, Texas – A Seminole, Texas man pleaded guilty Thursday to transporting undocumented noncitizens causing serious bodily injury.
According to court documents, Tobias Penner Peters, 46, piloted an aircraft carrying five undocumented noncitizens on Dec. 30, 2021 and crashed shortly after taking off from the Presidio Airport. U.S. Border Patrol agents responded to the crash, finding the five injured undocumented individuals. Peters had already fled the crash site on his way to Mexico. He turned himself in at the Presidio Port of Entry three months later. One of the undocumented individuals injured in the crash suffered a back injury, was life-flighted to an El Paso hospital and remains in a wheelchair today.
Peters pleaded guilty to one count of transportation of illegal aliens causing serious bodily injury. He is scheduled to be sentenced on April 25, 2023 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Francisco B. Burrola of the Homeland Security Investigations El Paso Division made the announcement.
HSI, the U.S. Border Patrol and the Presidio County Sheriff’s Department are investigating the case.
Assistant U.S. Attorney Amy Greenbaum is prosecuting the case.
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Stuart Man Pleads Guilty to Producing Child Pornography of 15-year-oldRead the Press Release
MIAMI – A 29-year-old man from Martin County, Florida, German Oliver Jose Martin, has pled guilty before U.S. Magistrate Judge Shaniek M. Maynard, to production of child pornography.
As part of his guilty plea, Martin admitted that on May 26, 2022, he picked up a 15-year-old girl from her school bus stop, drove her to his trailer, and used his cellular telephone to produce several videos of them engaging in sexually explicit conduct. Law enforcement learned of the activity and, in early June 2022, executed a federal search warrant on Martin’s phone. They found two sexually explicit videos involving the minor victim.
Martin has pled guilty to one count of production of visual depictions of sexual exploitation of a minor. He faces up to 30 years in prison followed by a lifetime of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced the guilty plea.
FBI Miami, Fort Pierce Resident Agency, and the Martin County Sheriff’s Office investigated the case. Managing Assistant U.S. Attorney Carmen Lineberger is prosecuting the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14043.
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Statement of United States Attorney Brandon B. Brown in Connection with Shooting in Shreveport on February 3, 2023 Resulting in Death of Alonzo Sentell BagleyRead the Press Release
SHREVEPORT, La. - On Friday Feb. 3, Alonzo Sentell Bagley tragically died following an officer involved shooting that occurred during contact with a member of the Shreveport Police Department. My thoughts are with the family and the Shreveport community, and I pray for healing as they deal with the trauma resulting from this incident. I am encouraged by the fact that the investigative response and the federal and state collaboration pertaining to this incident has been swift and efficient.
I have been in communication with District Attorney James Stewart, State Police Superintendent Lamar Davis, and SPD Chief Wayne Smith regarding this incident. The U.S. Attorney’s Office will continue to communicate with state authorities as they conduct their investigation. I have also contacted the Federal Bureau of Investigation and Department of Justice’s Civil Rights Division in Washington, D.C. about the incident.
I hope that any protests remain peaceful and that the rights of protestors will be respected. As members of the law enforcement community, we will adhere to our role of ensuring that the civil rights of all people in the district are respected and all people are treated fairly.
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Sequoyah County Resident Sentenced for Five Counts of Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Michael Allen Farris, age 50, of Bunch, Oklahoma, was sentenced to 135 months’ imprisonment for being found guilty by jury trial of five counts of Sexual Abuse of a Minor in Indian Country. The jury trial began with testimony on Monday, November 29, 2021, and concluded on Wednesday, December 1, 2021, with the guilty verdicts.
Evidence at trial showed that between June 2019 and August 2019, the defendant sexually assaulted the 13-year-old victim.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant in this case is a member of a federally recognized Indian tribe and the crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The case was the result of an investigation by the Sequoyah County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
“The Defendant, a 46-year-old man at the time, used his position of trust to repeatedly molest and abuse his 13-year-old victim. The sentence imposed will ensure he is held accountable for taking advantage of that trust,” said United States Attorney Christopher J. Wilson. “No child should ever experience the pain and suffering the Defendant brought upon the victim in this case.”
“The FBI and our law enforcement partners will do everything in our power to protect our most vulnerable citizens and get predators like Farris off the street,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “We will continue to combine resources and investigative efforts to ensure the safety of the children in our communities.”
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 sentencing hearing. Farris was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorneys Anthony Marek and Morgan Muzljakovich represented the United States.
Russian Cryptocurrency Money Launderer Pleads GuiltyRead the Press Release
PORTLAND, Ore.—On February 6, 2023, a Russian cryptocurrency money launderer previously extradited from the Netherlands to face charges in the District of Oregon pleaded guilty in federal court.
Denis Mihaqlovic Dubnikov, 30, pleaded guilty to one count of conspiracy to commit money laundering.
According to court documents, between at least August 2018 and August 2021, Dubnikov and his co-conspirators laundered the proceeds of Ryuk ransomware attacks on individuals and organizations throughout the United States and abroad. After receiving ransom payments, Ryuk actors, including Dubnikov and his co-conspirators, and others involved in the scheme engaged in various financial transactions, including international financial transactions, to conceal the nature, source, location, ownership, and control of the ransom proceeds.
Specifically, in July 2019, a United States-based company paid a 250 Bitcoin Ryuk ransom after a ransomware attack. On or about July 11, 2019, in Moscow, Russia, Dubnikov accepted 35 Bitcoin from a co-conspirator in exchange for approximately $400,000. The Bitcoin transferred to Dubnikov were directly sourced from the ransom paid by the American company. Dubnikov converted the Bitcoin to Tether and sent it to a second co-conspirator, who eventually exchanged it for Chinese Renminbi. Dubnikov’s co-conspirators laundered additional Bitcoin sourced from the original ransom payment. Dubnikov was compensated financially for his role in the scheme.
On November 2, 2021, Dubnikov was arrested in Amsterdam pursuant to a provisional arrest warrant. On August 16, 2022, he was extradited to the United States and made his initial appearance in federal court in the District of Oregon the next day.
Conspiracy to commit money laundering is punishable by up to 20 years in federal prison, three years’ supervised release, and a fine of $500,000. Dubnikov will be sentenced on April 11, 2023.
This case was investigated by the FBI and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Dubnikov’s extradition was handled by the Justice Department’s Office of International Affairs. He was transferred to the District of Oregon by the FBI.
The Department of Justice thanks Dutch authorities for their assistance in securing the arrest and extradition of Dubnikov.
First identified in August 2018, Ryuk is a type of ransomware software that, when executed on a computer or network, encrypts files and attempts to delete any system backups. Of note, Ryuk can target storage drives contained within or physically connected to a computer, including those accessible remotely via a network connection. Ryuk has been used to target thousands of victims worldwide across a variety of sectors. In October 2020, law enforcement officials specifically identified Ryuk as an imminent and increasing cybercrime threat to hospitals and healthcare providers in the United States.
Robbinsdale Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Robbinsdale man has pleaded guilty to illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on June 22, 2022, Tavaris Michael Dixon, 32, possessed a 9mm Glock semi-automatic pistol, with a Streamlight TLR-6 laser/light attachment. Dixon is prohibited from possessing a firearm because of prior felony convictions in Hennepin County, including a 2008 conviction of aggravated robbery and kidnapping.
Dixon pleaded guilty today in U.S. District Court before Judge Eric C. Tostrud to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Justin A. Wesley are prosecuting the case.
Rapid City Man Sentenced for EscapeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on January 31, 2023, by U.S. Circuit Judge Jonathan A. Kobes, sitting in district court.
Preston White Feather, 26, was sentenced to fifteen months in federal prison and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Preston White Feather was indicted for Escape from Custody by a federal grand jury in April of 2022. He pleaded guilty on October 7, 2022.
White Feather was in the Bureau of Prisons custody serving a sentence of 14 months, with three years of supervised release to follow, for Third Degree Burglary. In June of 2021 his supervised release was revoked and he was sentenced to 14 months’ imprisonment, as well as an additional 22 months’ imprisonment, and three years of supervised release to run concurrently in another criminal file. He was placed at the Community Education Center in Rapid City to finish serving his sentence as part of a re-entry process. He walked away and was found in Rosebud three months later.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
White Feather was immediately remanded to the custody of the U.S. Marshals Service.
Pike County Man Pleads Guilty to Possession of Fentanyl at the Delaware Water Gap National Recreation AreaRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stephen M. Smith, age 42, of Bushkill, Pennsylvania, pleaded guilty on February 3, 2023, before United States Magistrate Judge Joseph F. Saporito, Jr., to possessing fentanyl while at the Delaware Water Gap National Recreation Area.
According to United States Attorney Gerard M. Karam, Smith was stopped in his vehicle on August 29, 2022, by Park Rangers at the Delaware Water Gap National Recreation Area, and was found in possession of packets of fentanyl, multiple syringes, glass smoking pipes containing drug residue, and other items of drug paraphernalia. It is a federal crime to possess illegal controlled substances on federal property.
The case was investigated by Park Rangers from the National Park Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Under federal law, the maximum penalty for possession of controlled substances on federal property is up to one year in prison and a minimum fine of $1000 and a maximum fine of $100,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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North Versailles Felon Indicted on Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – A resident of North Versailles, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
The six-count Superseding Indictment named Raymar McKenzie, age 34, as the sole defendant.
According to the Superseding Indictment, on or about Aug. 12, 2020, Aug. 19, 2020, and Sept. 15, 2020, McKenzie allegedly distributed a quantity of a mixture and substance containing a detectable amount of cocaine. On Sept. 18, 2020, McKenzie possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, and a quantity of a mixture and substance containing detectable amount of fentanyl. Also on Sept. 18, 2020, McKenzie possessed a firearm in furtherance of a drug trafficking crime and possessed a firearm and/or ammunition by a convicted felon. It is prohibited under federal law for a convicted felon to be in possession of a firearm and/or ammunition.
The law provides for a term of imprisonment not more than 20 years, a fine not to exceed $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allegheny County Police Department conducted the investigation leading to the Superseding Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New defendants charged in $50 million Ponzi scheme involving off-the-road tiresRead the Press Release
COLUMBUS, Ohio– A federal grand jury has indicted two Texas men for their roles in one or more alleged conspiracies involving wire fraud, money laundering and tax fraud.
Charges pending against John K. Eckerd, Jr., 58, of Dallas, and Afif Baltagi, 45, of Houston, were unsealed yesterday.
It is alleged that Eckerd is the leader of the multi-state conspiracy.
Conspiring with previously convicted and sentenced defendant Jason E. Adkins, 46, of Jackson, Ohio, Eckerd, Baltagi, and others orchestrated a $50 million Ponzi scheme that defrauded more than 50 investors.
According to the indictment, from 2012 until at least in or around late 2018, Eckerd represented himself to potential investors as an entrepreneur and businessman with expertise in the market for off-the-road tires. Off-the-road tires are over-sized tires that are used on earth moving equipment and/or mining equipment. Eckerd had control of or access to many corporations allegedly used as part of the scheme.
Baltagi worked in logistics for a freight company that had access to a storage yard in Houston where off-the-road tires were stored.
Co-conspirators allegedly solicited millions of dollars from investor-victims under false pretenses. Investors were told their money would be used to buy off-the-road tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate. Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days.
Eckerd, Baltagi, Adkins, and others corresponded with the potential investors face-to-face, as well as through a combination of phone calls, text messages, and, on occasion, emails. It is alleged they used private planes to showcase their inventory and appear wealthy and successful. Defendants also allegedly provided investors with elaborate, fraudulent paperwork regarding the purported deals. The co-conspirators requested large investments and loans, most to be funded through wire transfers.
It is alleged defendants rarely bought or sold tires, and when they did, they used the same tires as the basis for multiple deals, promising multiple investors that they each owned the same tires. Baltagi allegedly used his employer’s tire yard to deceive investors.
Another previously convicted defendant, Todd Wilkin, 60, of Hillsboro, Ohio, posed as a neutral third-party seller of off-the-road tires in deals arranged by Adkins. In actuality, Wilkin was working with Adkins as part of the Ponzi scheme. Wilkin pleaded guilty in January 2022 to participating in the fraud scheme and awaits sentencing.
Eckerd, Adkins and others allegedly conspired to launder the proceeds from their Ponzi scheme by creating numerous corporate entities and associated bank accounts. It is alleged that Eckerd had control of many of the business accounts but that he instructed others to place the accounts in other people’s names.
Eckerd also allegedly lied on his tax forms and conspired with others to avoid paying taxes he owed, resulting in a tax loss of more than $1 million for tax years 2013 and 2014. Eckerd failed to file his taxes for tax years 2016 and 2017. In July 2018, Eckerd filed for bankruptcy on the same day he allegedly transferred $1 million between two bank accounts in his control. Over the next month, it is alleged Eckerd transferred another $715,000 between accounts in his control.
Conspiracy to commit wire fraud is a federal crime punishable by up to 20 years in prison. Conspiracy to commit money laundering carries a potential maximum penalty of 20 years in prison. Conspiracy to defraud the United States and to commit tax fraud is a federal crime punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the case. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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New Castle Felon Sentenced to 10 Years for Illegally Possessing Fentanyl, Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA -- A resident of Lawrence County, Pennsylvania, has been sentenced in federal court to 10 years’ imprisonment and six years of supervised release on his conviction of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Michael Schmidt, age 26, formerly of New Castle, Pennsylvania 16101.
According to information presented to the court, On Oct. 12, 2017, Schmidt possessed with intent to distribute 40 grams or more of fentanyl and possessed a Taurus, Model PT738, .380 caliber pistol and ammunition as a convicted felon. It is prohibited under federal law to possess a firearm and ammunition as a convicted felon. The fentanyl and firearm were found when law enforcement executed a search warrant at the defendant’s residence.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Chung commended the Drug Enforcement Administration, the New Castle Police Department, the Lawrence County District Attorney’s Office, and the Pennsylvania Attorney General’s Office for the investigation leading to the successful prosecution of Schmidt.
Munhall Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH, PA - A resident of Munhall, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms law, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Aaron Harper, age 24, as the sole defendant.
According to the Indictment, on or about June 13, 2022, Harper is alleged to have possessed a firearm as a convicted felon.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.