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Friday 16 December 2022
Cortland Man Sentenced to 9 Years in Prison for Distributing, Receiving and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Jon Burns, age 58, of Cortland, New York, was sentenced today to serve 9 years in federal prison for distributing, receiving, and possessing child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Acting Superintendent Steven A. Nigrelli.
As part of his guilty plea, Burns admitted that he actively traded child pornography images and videos using a social media messaging application located on his electronic devices and that on January 4, 2022, he distributed a video file depicting sexual conduct with a child who was between 8 and 10 years old. Burns further admitted that on February 24, 2022, he received a video file depicting sexual conduct with a child who was approximately 6 years old. Finally, Burns admitted that on March 8, 2022, he knowingly possessed over 2000 image files and over 750 video files depicting child pornography on his cellular telephone, iPad, and two tablet computers.
Chief United States District Judge Brenda K. Sannes also imposed a 15-year term of supervised release, which will start after Burns is released from prison, and ordered him to pay $15,000 in restitution and a $600 special assessment. Burns will also be required to register as a sex offender.
Burns’ case was investigated by U.S. Homeland Security Investigations (HSI), and Investigators of the New York State Police, Computer Crimes Unit (NYSP-CCU). The case was prosecuted by Assistant U.S. Attorney Geoffrey J.L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Convicted Felon Who Forcibly Resisted Arrest Sentenced to over Six Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Cleate Wilson (40, Tampa) to six years and six months in federal prison for forcibly resisting, opposing, impeding, and interfering with two Deputy United States Marshals (DUSMs) and possessing a firearm and ammunition as a convicted felon. Today’s sentence will run consecutive to an 18-month sentence that Wilson is currently serving for violating the terms of his supervised release on a prior federal conviction. The court also ordered Wilson to forfeit an H&K 9mm firearm and 14 rounds of 9mm ammunition. Wilson had pleaded guilty on October 4, 2022.
According to court documents, on May 5, 2022, four DUSMs went to the vicinity of East Bank Drive in Tampa to arrest Wilson, a convicted felon, on an active federal arrest warrant for violating his supervised release. The DUSMs identified themselves and Wilson attempted to flee, and a struggle ensued. Wilson resisted efforts to arrest him for approximately four minutes. Specifically, Wilson used force in his arms, legs, and torso, pushing against the DUSMS, in an attempt to escape. The deputies repeated commands during the struggle, including, “Stop resisting,” “Calm down,” and “Give me your hands,” all of which Wilson ignored. Wilson eventually stopped resisting and the DUSMs handcuffed him. Inside Wilson’s waistband, the DUSMs found an H&K 9mm handgun loaded with 14 rounds of ammunition. As a previously convicted felon, Wilson is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the United States Marshals Service, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
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.
Co-Founder of Multi-Billion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” pled guilty today in Manhattan federal court to wire fraud and money laundering charges in connection with his participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, victims invested over four billion dollars worldwide in the fraudulent cryptocurrency. Today, District Judge Edgardo Ramos accepted GREENWOOD’s guilty plea. IGNATOVA, who was added to the Federal Bureau of Investigation’s Top Ten Most Wanted List in June 2022, remains at large.
U.S. Attorney Damian Williams said: “As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest international fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars, claiming that OneCoin would be the ‘Bitcoin killer.’ In fact, OneCoins were entirely worthless. Greenwood’s lies were designed with one goal, to get everyday people all over the world to part with their hard-earned money — real money — and to line his own pockets to the tune of hundreds of millions of dollars. This guilty plea by the co-founder of OneCoin caps a week at SDNY that sends a clear message that we are coming after all those who seek to exploit the cryptocurrency ecosystem through fraud, no matter how big or sophisticated you are.”
According to the allegations in the Superseding Information and other filings and statements made in court:
In 2014, GREENWOOD and IGNATOVA co-founded OneCoin,[1] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme. OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages. This MLM structure influenced rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that, between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion.
IGNATOVA served as OneCoin’s top leader until her disappearance from public view, in October 2017. GREENWOOD was OneCoin’s “global master distributor” and the leader of the MLM network through which the fraudulent cryptocurrency was marketed and sold. In a video posted online, IGNATOVA attributed to GREENWOOD the idea of marketing and selling OneCoin through an MLM network structure. GREENWOOD earned approximately €20 million a month in his role as the top MLM distributor of OneCoin.
GREENWOOD and IGNATOVA conceived of and built the OneCoin business fully intending to use it to defraud investors. For example, in the summer of 2014, when GREENWOOD and IGNATOVA were developing the concept for OneCoin, they referred to the cryptocurrency in email correspondence as “trashy coin.” On June 11, 2014, IGNATOVA wrote to GREENWOOD concerning the OneCoin business plan, stating in part:
It might not be [something] really clean or that I normally work on or even can be proud of (except with you in private when we make the money) – but . . . I am especially good in this very borderline cases [sic], where the things become gray - and you as the magic sales machine - and me as someone who really can work with numbers, legal and back you up in a good and professional way - we could really make it big - like MLM meets bitch of wall street ;-)
In an August 9, 2014, email between GREENWOOD and IGNATOVA, IGNATOVA described her thoughts on the “exit strategy” for OneCoin. The first option that IGNATOVA listed was, “Take the money and run and blame someone else for this . . . .” And in a September 11, 2016, exchange with IGNATOVA’s brother, Konstantin Ignatov, GREENWOOD referred to OneCoin investors stating, “These ppl are idiots,” to which Ignatov responded, “as you told me, the network would not work with intelligent people ;)”
As a result of misrepresentations made by GREENWOOD, IGNATOVA, and other OneCoin representatives, victims throughout the world wired investment funds to OneCoin-controlled bank accounts in order to purchase OneCoin packages. OneCoin falsely claimed that the value of OneCoin was based on market supply and demand, when in fact, the value of the cryptocurrency was simply set by OneCoin itself. For example, on June 9, 2014, in an email sent by IGNATOVA to a representative of a blockchain development company, copying GREENWOOD, IGNATOVA stated, “we are building our own cryptocurrency - and would like to set up an internal exchange service for them. We would like to be able to set the price manually and automatically and also control the traded volume.” On March 21, 2015, IGNATOVA wrote an email to GREENWOOD, in which IGNATOVA stated, “We can manipulate the exchange by simulating some volatility and intraday pricing.” (bold in original). And in an August 1, 2015, email, IGNATOVA wrote to GREENWOOD, and included as part of a section of the email entitled “Goals”: “6. Trading coin, stable exchange, always close on a high price end of day open day with high price, build confidence - better manipulation so they are happy.” The purported value of a OneCoin grew steadily from €0.50 to approximately €29.95 per coin. The purported price of OneCoins never decreased in value.
GREENWOOD and other OneCoin leaders also claimed that the OneCoin cryptocurrency was “mined” using mining servers maintained and operated by the company. In fact, OneCoins were never mined using computer resources. For example, in an email to IGNATOVA dated August 11, 2014, GREENWOOD proposed, “Get members to think that they are mining their OneCoin via crunching (exchanging) tokens for OneCoin. This storey [sic] is good as ppl will then not go super crazy and just try and sell tokens all the time.” GREENWOOD emailed IGNATOVA the following day, writing, “The concept of converting tokens into OneCoin is an important phase for validity and truth behind the OneCoin. The so called ‘mining’ of coins is a concept that is very familiar in the industry and a story we can sell to the members.” IGNATOVA then wrote to GREENWOOD, “We are not mining actually - but telling people shit,” to which GREENWOOD responded, “how can this be investigated and found out?” and “Can any member (trying to be clever) find out that we actually are not investing in machines to mine but it is merely a piece of software doing this for us?”
GREENWOOD and other OneCoin leaders further claimed that OneCoin maintained a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions. But OneCoin lacked a true blockchain, that is, a public and verifiable blockchain. Indeed, by approximately March 2015, IGNATOVA and GREENWOOD had started allocating to OneCoin members coins that did not even exist in OneCoin’s purported private blockchain, referring to those coins as “fake coins.”
GREENWOOD and IGNATOVA promoted OneCoin, including at official OneCoin events all over the globe. One such event, called “Coin Rush,” was held at Wembley Arena in London on June 11, 2016. Thousands of OneCoin members attended Coin Rush. During the event, GREENWOOD introduced IGNATOVA to the crowd, stating in part: “This is the creator, the mastermind, the founder of cryptocurrency, of OneCoin . . . Now, this will be the biggest welcoming on stage that we’ve ever done in history.” Then, to the tune of Alicia Keys’s “Girl on Fire,” and surrounded by actual onstage fireworks, IGNATOVA strode onto the Wembley Arena stage wearing a red ball gown. She proceeded to repeatedly and favorably compare her fraudulent cryptocurrency to Bitcoin, stating, among other things, “OneCoin . . . is supposed to be the Bitcoin killer” and “In two years, nobody will speak about Bitcoin anymore.”
On July 4, 2015, a federal holiday commemorating the independence of the United States, IGNATOVA announced the official opening of the United States market for OneCoin. In early July 2015, GREENWOOD sent IGNATOVA an email stating in part, “I thought this could go out tonight, problem is I don’t have the access to send out to the members,” and attaching a document which announced a July 4, 2015, online webinar hosted by IGNATOVA and others to mark the official opening of the United States market for OneCoin. Thereafter, on July 4, 2015, IGNATOVA participated in an online webinar, later posted to YouTube.com, in which IGNATOVA announced the official opening of the United States market for OneCoin. During the webinar, IGNATOVA said, among other things, “[I]f we want to go and catch Bitcoin, we never can do this without being strong in the U.S. and without being part of the community. So, um, this is actually why I am so excited about the U.S. as the market. It’s something that is about prestige. It’s a huge market. And, um, it is, I think, a place of innovation, of Wall Street, a place where we have to be if we want to be big.” Many victims in the United States invested in fraudulent OneCoin cryptocurrency packages, including residents of the Southern District of New York.
GREENWOOD was arrested at his residence on the island of Koh Samui, Thailand, in July 2018, and was extradited to the United States to face fraud and money laundering charges in October 2018. GREENWOOD has been detained since his arrest in July 2018.
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the United States District Court for the Southern District of New York and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen publicly since. IGNATOVA was added to the FBI’s Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
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GREENWOOD, 45, a citizen of Sweden and the United Kingdom, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison, one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Sentencing before Judge Ramos is scheduled for April 5, 2023.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office. Mr. Williams also thanked the Royal Thai Police for their assistance in the arrest of GREENWOOD.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Christopher J. DiMase, Nicholas Folly, Juliana N. Murray, and Kevin Mead, and Special Assistant U.S. Attorney Julieta V. Lozano of the New York County District Attorney’s Office, are in charge of the prosecution.
[1] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names ar ereferred to collectively here as “OneCoin.”
Cleveland Man Charged with Carjacking, Illegally Entering Airport Runway, and Damaging Radar FacilityRead the Press Release
CLEVELAND – A Cleveland man was charged today in a six-count indictment with intentionally damaging a Cleveland Hopkins International Airport (CLE) radar facility, carjacking two vehicles, and using one to breach a gate and illegally enter the Hopkins airport runway.
Isaac Woolley, 26, was officially charged in the indictment with one count of entering aircraft or an airport area in violation of security requirements, one count of violence at international airports, two counts of destruction of aircraft or aircraft facilities, and two counts of carjacking.
According to court documents, on Nov 23. 2022, the defendant unlawfully entered a secure area maintained by the Federal Aviation Administration (FAA) and caused damage to the main CLE radar antenna tower. As a result, court documents state that the primary radar system utilized by the FAA to monitor civilian and commercial air traffic for CLE was inoperable for a period of time.
Later that day, the defendant is accused of stealing a vehicle from a victim in Fairview Park, Ohio, and using it to breach the gate at CLE. Law enforcement authorities responded to the incident and then arrested the defendant. Court documents state that due to the defendant’s alleged actions, a decision was made by airport personnel to shut down the airport runway and temporarily suspend operations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Division of the FBI, Fairview Park Police Department, Cleveland Division of Police, and the Brookpark Police Department. This case is being prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Daniel J. Riedl.
Claremore Man Sentenced to 120 Months in Prison for Child Pornography CrimesRead the Press Release
A Claremore man found to be downloading, distributing and viewing child pornography by law enforcement was sentenced in federal court, announced U.S. Attorney Clint Johnson.
Jeremy Aaron Mills, 28, was sentenced to 120 months in prison for possession of child pornography and receipt and distribution of child pornography. Following his prison term, he will spend ten years on supervised release.
As required by the Amy, Vicky, and Andy Child Pornography Victim Assistant Act of 2018, Mills was further ordered to pay restitution in the total amount of $23,000 to seven identified victims depicted in the child sexual abuse material.
“The producers of child pornography are sexually assaulting and abusing children, and individuals, like Mills, further traumatize and exploit these victims every time they download, view, and share this horrific material,” said U.S. Attorney Clint Johnson. “It takes dedicated men and women in the law enforcement community to seek out, investigate and bring these criminals to justice. It is difficult but necessary work. I want to thank them for protecting the most vulnerable members of our society.”
“The conclusion of this investigation and subsequent sentence should send a stern message to all child predators. HSI will not relent in catching the predators who produce, distribute and view child sexual abuse materials and hold them accountable for their actions," said Robert Melton, Assistant Special in Charge of the HSI Dallas - Oklahoma and Texas Panhandle Division. "We will use every resource available to ensure those involved in the sexual exploitation of children will not go unpunished while also providing victim services to those abused by these crimes."
From June 6, 2021, to Oct. 1, 2021, Tulsa Police Cyber Crimes detectives found that an IP address connected to Mills had downloaded multiple files of child sexual abuse material using peer-to-peer software.
On Oct. 1, 2021, the Tulsa Police Cyber Crimes Unit, HSI Tulsa, Oklahoma State Bureau of Investigation, Oklahoma Attorney General’s Office, Claremore Police Department, and Tulsa County Sheriff’s Office executed a federal search warrant at Mill’s Claremore residence.
During the search, investigators located a Samsung cellphone in Mill’s bedroom, which Mills confirmed was his own. On the phone, investigators located numerous images of child sexual abuse material, with at least ten videos depicting toddlers and prepubescent females and males being sexually abused.
Mills was interviewed at the scene and admitted to downloading child pornography as recently as the previous night. Further, he admitted that he conducted searches using terms associated with child pornography. He also stated that he watched hundreds of videos of children between the ages of 14 and 18 and approximately 50 of children younger than 14 years old engaging in sexually explicit conduct.
In his plea agreement, Mills again admitted to possessing and viewing the child sexual abuse material and to receiving and distributing the visual depictions using internet file sharing programs, which caused the depictions to travel in interstate and foreign commerce.
Homeland Security Investigations and the Tulsa Police Department investigated the case with assistance from the Oklahoma State Bureau of Investigation, Oklahoma Attorney General’s Office, Claremore Police Department, and Tulsa County Sheriff’s Office. Assistant U.S. Attorney Leah Paisner prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Central Valley Optometrist Pleads Guilty to over $500,000 in Health Care FraudRead the Press Release
FRESNO, Calif. — Carole Sachs, 78, an optometrist in Modesto and Turlock, pleaded guilty today to committing over $550,000 in health care fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, from November 2016 through February 2021, Sachs billed Medicare for over $550,000 in optometry services that she did not actually provide to her patients, including the insertion of amniotic membranes, and received more than $295,000. Amniotic membranes are round discs machide from a combination of tissue and cells that are inserted into patients’ eyes to treat dry eyes and other medical conditions. Sachs paid the money back in restitution prior to entering her guilty plea.
This case is the product of an investigation by the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the California Department of Health Care Services. Assistant United States Attorney Joseph Barton is prosecuting the case.
Sachs is scheduled to be sentenced by United States District Judge Jennifer L. Thurston on March 6, 2023. She faces a maximum penalty of 10 years in prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cedar Rapids Meth Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who worked with others to distribute over four pounds of methamphetamine was sentenced December 13, 2022, to more than 14 years in federal prison.
Mathew Shepherd, age 37, from Cedar Rapids, Iowa, received the prison term after a May 31, 2022, guilty plea to one count of possession with intent to distribute a controlled substance.
Information disclosed at sentencing showed that, in May 2020, Shepherd was paroled from state custody related to a 2018 state conviction for possession with intent to deliver methamphetamine. Almost immediately after he was paroled, Shepherd began working with others to distribute methamphetamine in the Cedar Rapids, Iowa, area. On September 11, 2020, law enforcement executed a search warrant at Shepherd’s residence and recovered over 62 grams of methamphetamine, $273 in cash, a digital scale, and a drug ledger. Law enforcement also executed a search warrant on Shepherd’s cell phone, which revealed numerous messages related to Shepherd’s distribution of methamphetamine. At the time of sentencing, Shepherd had been convicted 29 times as an adult, including two arson convictions and several assault‑related convictions.
Shepherd was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Shepherd was sentenced to 176 months’ imprisonment, and he must also serve a 5‑year term of supervised release after the prison term. There is no parole in the federal system.
Shepherd is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Sixth Judicial District Department of Correctional Services.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-00030.
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California Attorney Pleads Guilty to Selling Unregistered SecuritiesRead the Press Release
BOSTON – A California attorney pleaded guilty yesterday in federal court in Boston in connection with the illegal sale of over $1.3 million worth of unregistered shares of a Massachusetts-based health care company.
Daniel V. Martinez, 63, of Yuba City, Calif., pleaded guilty to one count of sale of unregistered securities. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 13, 2023. Martinez was charged by an Information on Sept. 30, 2022.
Between 2013 and 2016, Martinez served as a real-estate attorney for Avtar Singh Dhillon, who was then chairman of the Massachusetts-based biotechnology company, Arch Therapeutics, Inc. Dhillon and Martinez placed 2.75 million Arch Therapeutics shares that Dhillon beneficially owned into a limited liability company that Martinez created and for which Martinez was the sole manager. At Dhillon’s direction, Martinez then sold the shares in the open market without a valid exemption under the relevant securities laws and distributed the approximately $1.34 million in proceeds. Martinez distributed the proceeds primarily to third parties for Dhillon’s benefit, taking a small portion directly for himself.
On Dec. 8, 2022, Dhillon pleaded guilty to one count of willful failure to disclose stock sales, one count of aiding and abetting the sale of unregistered securities, and one count of touting compensation nondisclosure conspiracy before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for April 18, 2023.
The charge of sale of unregistered securities provides for a sentence up to five years in prison, three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement. Valuable assistance was provided by SEC’s headquarters and Boston regional office. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Brooklyn Center Man Sentenced to 124 Months in Prison for Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A Brooklyn Center man was sentenced to 124 months in prison, followed by five years of supervised release for methamphetamine trafficking, announced United States Attorney Andrew M. Luger.
According to court documents, in May 2020, law enforcement began investigating Matthew Hines, 37, of Brooklyn Center and his co-defendant Chue Xiong, 39, of St. Paul. As part of a drug trafficking conspiracy, Hines and Xiong coordinated and facilitated the distribution of methamphetamine, as well as collected drug proceeds to send back to their supplier. On May 11, 2020, law enforcement observed Xiong leave Hines’s residence with a brown bag in his hand. Law enforcement conducted a traffic stop of Xiong’s vehicle and found approximately 1.4 kilograms of methamphetamine inside the brown bag, 614 grams of methamphetamine in the driver’s side door pocket and a 9mm handgun underneath the floor mat on the driver’s side. Xiong was also wearing a holster. On May 12, 2020, law enforcement executed a search warrant at Hines’s residence and vehicle. Inside Hines’s garbage they found a total of 419 grams of methamphetamine. Law enforcement also found an additional 2.6 kilograms of methamphetamine in the back seat of Hines’s vehicle, $24,434 in cash and several cell phones.
Hines pleaded guilty on May 6, 2021, to conspiracy to distribute methamphetamine. He was sentenced yesterday in U.S. Court by Senior Judge Donovan W. Frank.
On March 30, 2021, co-defendant Xiong pleaded guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute methamphetamine. On May 26, 2022, Xiong was sentenced in U.S. District Court by Senior Judge Donovan W. Frank to 156 months in prison, followed by five years of supervised release.
This case was the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Brookhaven Man Re-Tried and Convicted of Possessing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Javier Perez, 44, of Brookhaven, PA, was convicted at trial of possessing child pornography arising from the recovery of videos of child pornography from his personal computer.
In 2014, the FBI executed a search warrant at Perez’s residence and seized Perez’s desktop computer, which contained several videos of child pornography that he downloaded using an online peer-to-peer network. The defendant was arrested and charged, and the case was tried in 2016 after which the defendant was convicted of possession of child pornography and sentenced to four years in prison. Earlier this year, the defendant’s conviction was vacated pursuant to a petition which found that his previous trial counsel was ineffective. Perez was retried on the possession charge this week, and was once again convicted.
“This verdict sends a strong message that those who victimize our most vulnerable will be held accountable,” said U.S. Attorney Romero. “Thank you to the prosecutors and agency partners who remained determined to identify, prosecute and convict this defendant.”
“Those who seek out images of child sexual abuse help drive a demand for such depraved material, resulting in the continued exploitation of young children,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “This conviction holds Javier Perez accountable for his actions and underscores the solid work of the FBI's Child Exploitation Task Force, committed to its mission of protecting vulnerable children from harm.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Veronica J. Finkelstein.
Bookkeeper from Pollock Sentenced for Committing Wire FraudRead the Press Release
ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that Deonne Drawdy, 50, of Pollock, Louisiana, was sentenced today by United States District Judge David C. Joseph to 24 months in prison, followed by 3 years of supervised release, for committing wire fraud. Drawdy was also ordered to pay restitution in the amount of $374,331.30.
According to evidence presented to the court, Drawdy was employed at the architectural firm of Barron, Heinberg, and Brocato (BH&B) in Alexandria, Louisiana from approximately 2007 to 2020 as the bookkeeper and financial director. Some of her duties as an employee there included issuing checks to vendors.
In 2020, BH&B noticed suspicious activity in the firm’s accounts and an audit was conducted. Law enforcement agents with the United States Secret Service joined in the investigation. Their investigation revealed that on or about January 7, 2019, Drawdy issued a check on the firm’s bank account made payable to Meyer, Meyer, Lacroix & Hixson. Drawdy fraudulently endorsed the check and deposited it into her personal bank account on January 10, 2019 and converted those funds for her own personal use.
The case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
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Big Pine Key Resident Charged with Killing Endangered Key DeerRead the Press Release
MIAMI – South Florida federal prosecutors have charged Big Pine Key resident Wendy C. Kilheffer, 77, with violating the Endangered Species Act (ESA) by shooting and killing a key deer in November.
Congress enacted the ESA to conserve threatened and endangered species, as well as the ecosystems upon which they depend. “Endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range. The Florida Key deer (Odocoileus viginianus clavium) is included within the list of designated endangered species set forth in federal regulations.
The defendant faces a possible term of imprisonment of up to one year if convicted and would also be subject to a fine of up to $100,000 and a period of supervised release of up to one year.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Resident Agent in Charge David Pharo, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, Miami Field Office, made the announcement.
FWS and officers of the Florida Fish & Wildlife Conservation Commission investigated this case with support from the National Fish & Wildlife Service Forensics Laboratory in Ashland, Ore., and the Monroe County State Attorney’s Office. Assistant U.S. Attorney Thomas Watts-FitzGerald is prosecuting the case.
An information is an accusation and a defendant is innocent unless and until found guilty in a court of law.
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.
Baton Rouge Man Sentenced to 170 Months for Attempted Coercion and Enticement of a Minor and Possession of Child PornographyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Robert James Lowry, age 41, of Baton Rouge, Louisiana, to 170 months in federal prison following his convictions for attempted coercion and enticement of a minor and possession of child pornography. Following his term of imprisonment, Lowry will have to serve 8 years of supervised release and register as a sex offender for life.
According to admissions made during his plea, on June 21, 2021, Lowry began communicating with an FBI undercover agent (UC) who was posing as a stepdad of a 10-year-old female through a social media application's direct messenger feature. Lowry expressed an interest in engaging in sexual activity with the minor. From June 22, 2021, through June 30, 2021, Lowry began communicating with the UC over a second social media application. During these communications, Lowry again expressed interest in engaging in sexual activity with the minor and asked the UC to send a picture of her. On June 30, 2021, Lowry asked if he could meet the stepdaughter that evening and arranged to meet at a location designated by UC in Baton Rouge. Lowry was arrested when he showed up at the designated location. After being contacted by law enforcement and ordered to show his hands, Lowry put his hands outside the vehicle and stated, "I wasn't going to do it." During an interview after being arrested, Lowry admitted that he intended to have sex with the minor on the evening of June 30, 2021.
This matter was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, the East Baton Rouge Sheriff’s Office, Louisiana Bureau of Investigation, and the Louisiana State Police. It was prosecuted by Assistant United States Attorney Eli J. Abad.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Baltimore Man Sentenced to 15 Years in Federal Prison for Two Armed Carjackings and an Attempted Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Daquan Murphy, age 20, of Baltimore, Maryland, today to 15 years in federal prison, followed by five years of supervised release, for carjacking and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Interim Chief Dennis J. Delp of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from February 3 to February 10, 2021, Murphy committed two armed jackings and the attempted armed robbery of a convenience store. In all three instances, Murphy pointed a firearm at the victims. Specifically, early in the morning on February 3, 2021, Murphy approached Victim 1 at a Randallstown, Maryland gas station and asked the victim for a ride to his mother’s house. The victim agreed to give Murphy a ride and followed Murphy’s directions, purportedly to his mother’s house.
During the drive, Murphy told the victim to go to a specific intersection and when they arrived there, Murphy pulled a firearm from his waistband, pointed it at Victim 1, and ordered Victim 1 to get out of the car. Fearing for his life, the victim complied with Murphy’s demands. Murphy also ordered the victim to empty his pockets and surrender his valuables, including a smartphone. Murphy then fled in Victim 1’s car.
Hours later, law enforcement located the stolen car on Brune Street in Baltimore and found a CashApp card bearing Murphy’s username in the car and located a latent fingerprint belonging to Murphy in the car’s center console. Additionally, a search of the car’s telematics system revealed that Murphy connected a cell phone to the car’s system.
As detailed in the guilty plea, on February 10, 2021, Murphy approached Victim 2, who was sitting in his car in the 2900 block of Stranden Road in Baltimore, pointed a gun at Victim 2, then ordered Victim 2 to get out of the car and get on the ground. Fearing for his safety, Victim 2 complied with Murphy’s demands. Murphy fled in Victim 2’s car, which contained Victim 2’s valuables, including a cell phone.
Later that day, Murphy attempted to rob a convenience store in Dundalk, Maryland. During the robbery attempt, Murphy pointed his firearm at the store clerk (Victim 3) and demanded money. Victim 3 told Murphy to “come get the money” and that he also had a gun. Murphy ran to the front of the store, again pointing his firearm in the direction of Victim 3. Murphy fled in the vehicle that he had carjacked from Victim 2 earlier that day and did not obtain any money from the convenience store.
That same day, law enforcement saw Murphy operating Victim 2’s stolen car and pursued Murphy. Murphy eventually stopped the vehicle and attempted to run away. He was ultimately apprehended by officers.
United States Attorney Erek L. Barron commended the FBI, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Bakersfield Man Charged with Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment yesterday against Myron Raphael Tucker, 33, of Bakersfield, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 10, 2022, members of the Pacific Southwest Regional Fugitive Task Force were attempting to take Tucker into custody for outstanding charges when he fled on foot to evade capture. As Tucker ran, officers saw him throw a loaded firearm into a pile of furniture in the backyard of a residence. The firearm was loaded with five rounds of Winchester ammunition that was not manufactured in California and an unidentified round of ammunition. Tucker has prior felony convictions for second degree robbery, assault with a firearm, and recklessly evading arrest.
This case is the product of an investigation by the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force, Bakersfield Division. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Tucker faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Assistant Dean of Students at Local College Sentenced for Child PornographyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to 6 years in prison for receiving images of child sexual abuse material (CSAM).
According to court documents, Robert Morris, 37, used a file-sharing program to provide more than 500 files depicting the sexual abuse of minors—including children as young as infants—to detectives in the Virginia Beach Police Department in December 2021. Detectives obtained a search warrant for his home, where they seized a laptop computer containing additional files depicting the sexual abuse of minors, which had been obtained from social messaging applications. At the time of his arrest, Morris was an assistant dean of students and systems administrator at Wave Leadership College, a religious institution in Virginia Beach. He was previously administratively separated from the U.S. Navy for misconduct, including sexual harassment.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI); and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Elizabeth Wilson Hanes.
Assistant U.S. Attorney Rebecca Gantt 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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-81.
Another Defendant from New Orleans Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that TROYLYNN BROWN (“BROWN”), age 35, agreed to plead guilty on December 14, 2022 to count one (1) of her indictment, charging Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In pleading guilty, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to forty-four (44).
As part of her plea, BROWN admitted to conspiring to commit mail fraud in connection with a staged automobile collision. The government’s evidence showed that the defendant conspired with Roderick Hickman (“Hickman”), Herbert Allen (“Allen”), and others to intentionally collide Allen’s Chevrolet Impala with a tractor-trailer in the area of Tchoupitoulas Street and Calliope in New Orleans on June 28, 2017. BROWN later lied in her civil deposition. She falsely claimed that Allen drove the car that collided with the tractor-trailer, when in fact Hickman drove the car and intentionally hit the tractor-trailer.
Sentencing in this matter is set for March 29, 2022 before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward J. Rivera.
Addict in Possession of a Firearm SentencedRead the Press Release
Acting United States Attorney Steven Russell announced that Anthony L. Taylor, 34, was sentenced today in federal court in Omaha, Nebraska, as an addict in possession of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Taylor to 30 months’ imprisonment. There is no parole in the federal system. After his release from federal prison, he will begin a 3-year term of supervised release.
On April 10, 2020, at the 40th block of Curtis Ave, Omaha, a confidential source working for the Bureau of Alcohol, Tobacco, Firearms and Explosive, purchased a Taurus handgun and THC vape cartridges from Taylor. During this time period, Taylor was a regular user of illegal drugs including marijuana, which prohibited him from being in possession of a firearm or ammunition.
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. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the Omaha Police Department.
Thursday 15 December 2022
Utica Man Admits to Possessing Cocaine for Distribution and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
SYRACUSE, NEW YORK – Edgar Tejada, age 35, of Utica, New York, pled guilty today to possession with the intent to distribute cocaine, and to possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
As part of his guilty plea, Tejada admitted to possessing over 500 grams of cocaine at his residence in Utica, as well as a loaded Ruger handgun. Tejada admitted that he possessed the firearm to protect himself and the cocaine he kept at his residence.
Tejeda faces at least five years and up to life in prison, a fine of up to $1,000,000.00 and a term of post-imprisonment supervised release of at least three years and up to life, when he is sentenced on April 19, 2022, by United States District Judge David N. Hurd. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the City of Utica Police Department, the City of Syracuse Police Department, the City of Rome Police Department, U.S. Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement and Removal Operations (ICE-ERO), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Village of Yorkville Police Department, and the Village of Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Upshur County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Bo D. Beckner, of Buckhannon, West Virginia, was sentenced today to 46 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Beckner, 42, pleaded guilty in June 2022 to one count of “Unlawful Possession of a Firearm.” Beckner, a person prohibited from having firearms because of prior convictions, admitted to having a 12-guage shotgun in April 2021 in Upshur County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Underboss of Philadelphia Mafia Sentenced to Five Years After Pleading Guilty to Leading Racketeering, Loan-Sharking and Extortion ConspiraciesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Steven Mazzone, 59, of Philadelphia, PA, was sentenced to five years in prison, three years of supervised release by United States District Judge R. Barclay Surrick, for his role in several conspiracies to commit racketeering, making extortionate extensions of credit, and conducting an illegal gambling business, all while serving as the underboss of the Philadelphia La Cosa Nostra (“LCN”), also known as the Philadelphia “mafia” or “the mob.”
In June 2022, Mazzone pled guilty to five counts in a Superseding Indictment, thereby admitting his guilt as a leader of the Philadelphia mafia who directed a vast network of criminal activity that spanned Philadelphia and parts of New Jersey. His conduct involved conspiracies to commit crimes involving extortion, illegal gambling, drug dealing, and loansharking. As the underboss, the defendant set rules for LCN members and associates and collected profits from illegal activity that was siphoned upward through the LCN command structure to ensure the enterprise continued to exist. Mazzone also organized the composition of smaller groups of members and associates, or “crews,” which reported to management, or “capos,” who in turn reported to Mazzone.
The investigation into the organization, conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Philadelphia Police Department, utilized wiretap interceptions of cellular phones used by LCN members and associates to conduct illegal sports betting and loansharking in the Philadelphia area. The wiretap evidence established that Mazzone financed high-interest loans to customers of the sportsbook who were unable to pay their debts, resulting in the collection of interest rates on loans of as much as 264%. Members of the LCN made several threats of violence to debtors who did not pay, including one threat to make a victim “disappear” for nonpayment on a loan.
The defendant’s command and control over the LCN was made apparent in a recorded conversation at a “making ceremony” to induct new members into the mob in South Philadelphia in 2015, at which time an LCN member announced that “We’re all in the family now,” to which Mazzone added, “Nobody break this chain . . . I know you were explained the rules already.” Mazzone also discussed his co-conspirators’ efforts to extort bookmakers and loan sharks in and around Atlantic City, New Jersey, while he coached his underlings in their methods of intimidation and collection of gambling proceeds. At that same meeting, the defendant declared, “We got to get a hold back on Atlantic City, buddy! That’s what I want. That’s what I want. We have to get that back. I mean we have a few guys out there, you know, right now. You’re going to have a couple more guys out there with you. . . . I want you, I want you to do something.”
This case represents Mazzone’s second federal conviction for criminal activity in connection with the LCN. He had previously committed similar offenses in Philadelphia over 20 years ago as a member of the organization. In 2000, when he was in his early 30s, Mazzone was convicted in this District for conspiracy to commit racketeering and illegal sports bookmaking. In that case, Mazzone was captured on intercepted wiretap conversations discussing the extortion. One of the victims was shot and seriously injured during the course of the extortion. Mazzone was ultimately sentenced to nine years in prison for that conviction.
“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement efforts, the LCN and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Romero. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a memory that lives on in movies.”
“The Department of Justice has long been committed to dismantling LCN across the country and reducing its reach and influence,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this case, the defendant used his role as the underboss of the Philadelphia organized crime family to try to revive its fortunes, extorting victims in Pennsylvania and New Jersey. As this prosecution demonstrates, the department remains steadfast in its commitment to eradicating organized crime from our communities.”
“Steven Mazzone has been here before, previously convicted in an LCN case and sentenced to federal prison,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When he got out, he went right back to the same streets and same old rackets — overseeing loansharking, illegal gambling, and extortion. Mazzone and co. need to accept that the FBI is just as committed to shutting down organized crime here as ‘the family’ has been to sustaining it.”
The case was investigated by the Federal Bureau of Investigation the Pennsylvania State Police, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Justin Ashenfelter, and U.S. Department of Justice Trial Attorney Alexander Gottfried, Organized Crime and Gang Section.
Underboss of Philadelphia Mafia Sentenced for Leading Racketeering Conspiracy Engaged in Loansharking, Gambling, and ExtortionRead the Press Release
A Pennsylvania man was sentenced today to five years in prison for conspiring to participate in the affairs of a racketeering enterprise, including making extortionate extensions of credit and conducting an illegal gambling business, all while serving as the underboss of the Philadelphia mafia family.
According to court documents, Steven Mazzone, 59, of Philadelphia, was the underboss of the Philadelphia organized crime family of La Cosa Nostra (LCN), aka the “mafia,” and directed a vast network of criminal activity that spanned Philadelphia and parts of New Jersey. As the underboss, Mazzone set rules for LCN members and associates in the Philadelphia mafia and collected profits from illegal activity that was siphoned upward through the LCN command structure. Mazzone also organized the composition of smaller groups of members and associates, or “crews,” which reported to middle managers, or “capos,” who in turn reported to Mazzone.
“The Department of Justice has long been committed to dismantling LCN across the country and reducing its reach and influence,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this case, the defendant used his role as the underboss of the Philadelphia organized crime family to try to revive its fortunes, extorting victims in Pennsylvania and New Jersey. As this prosecution demonstrates, the department remains steadfast in its commitment to eradicating organized crime from our communities.”
The investigation utilized court-ordered wiretap interceptions of cell phones used by LCN members and associates to conduct illegal sports betting and loansharking in the Philadelphia area. The wiretap evidence established that Mazzone financed high-interest loans to customers of the sportsbook who were unable to pay their debts, resulting in the collection of loans with interest rates as high as 264%. LCN members and associates made threatened debtors who did not pay with violence, including one threat to make a victim “disappear” for nonpayment on a loan.
“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement, the LCN and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a memory that lives on in movies.”
“The FBI is dedicated to eliminating transnational organized crime groups like La Cosa Nostra who continue to threaten our national and economic security,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We will continue to work with our law enforcement partners to seek justice against organized criminal threats and alliances and protect our communities.”
This case represents Mazzone’s second federal conviction for criminal activity in connection with the LCN. He had previously committed similar offenses in Philadelphia over 20 years ago as a inducted member in the Philadelphia mafia. In 2000, Mazzone was convicted of conspiracy to commit racketeering and illegal sports bookmaking. In that case, Mazzone was captured on intercepted wiretap conversations discussing an extortion. One of the victims was shot and seriously injured during the course of the extortion. Mazzone was ultimately sentenced to nine years in prison for that conviction.
The FBI, Pennsylvania State Police, and Philadelphia Police Department investigated the case.
Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Jonathan Ortiz and Justin Ashenfelter for the Eastern District of Pennsylvania prosecuted the case.
Two Men Plead Guilty to Lying About A Murder as Jury Selection in Their Trial Was About to Get UnderwayRead 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 Dartwon Brooks, 29, and Jaemer Smith a/k/a Glizz a/k/a Jack Glizz, 20, both of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. as jury selection was set to begin in their federal trial. Brooks pleaded guilty to criminal contempt and faces a maximum penalty of life in prison. Smith pleaded guilty to obstructing a federal proceeding, obstruction of justice, and making false declarations before a grand jury, which carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Misha A. Coulson, who are handling the case, stated that the defendants provided false information to law enforcement as part of an ongoing investigation into the murder of Renecameren Tucker a/k/a CJ. This false information specifically involved who was responsible for Tucker’s murder. Brooks and Smith pleaded guilty as jury selection was set to begin in their trial.
The pleas are the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury.
Sentencing for Brooks and Smith is scheduled for April 18, 2023, before Judge Sinatra.
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Two Accused of St. Louis CarjackingRead the Press Release
ST. LOUIS – Two men from East St. Louis, Illinois have been accused of a St. Louis carjacking last month, using a vehicle that had been carjacked a week earlier.
Quinn Turner, 20, and Jaylen Mays, 25, were indicted Wednesday in U.S. District Court in St. Louis on one count of carjacking and one count of possession and brandishing of a firearm in furtherance of a crime of violence. Mays was also indicted on one count of being a felon in possession of a firearm.
The indictment says they aided and abetted each other and others known and unknown to the grand jury to steal a 2017 GMC Terrain on November 13. On that same date, Mays was in possession of a firearm despite being a convicted felon, the indictment says.
A detention motion says the GMC was stolen from a gas station at the northwest corner of Russell Boulevard and South 7th Street in the Soulard neighborhood by men in a Nissan Rogue and a Chevrolet Malibu.
Three men, including two armed men, rushed the driver of the GMC, ordered him to the ground and took his wallet and keys. All three vehicles were then driven away.
Detectives assigned to the St. Louis Metropolitan Police Department's Anti-Crime Task Force utilized spike strips to stop the Malibu. Quinn, Mays and a juvenile that matched the description of one of the armed men were inside the car with a Glock .40 caliber semiautomatic pistol, the motion says. The juvenile was in possession of the victim’s wallet and the Malibu had been taken in a carjacking in the downtown business district just a week earlier, the motion says.
The carjacking and felon in possession charges carry a potential penalty of up to 15 years in prison. The firearm charge carries a mandatory minimum sentence of seven years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
Tucson Man Sentenced to 24 Months for Assault by StrangulationRead the Press Release
TUCSON, Ariz. – Andrew Barthalomew Trujillo, 38, of Tucson, Arizona, was sentenced December 5, 2022, by United States District Judge John C. Hinderaker to 24 months in prison. Trujillo previously pleaded guilty to Assault by Strangulation.
Evidence presented at trial disclosed that Trujillo strangled the victim by placing his hands around her throat and applied enough pressure that the victim lost consciousness. Both Trujillo and the victim are enrolled members of the Pascua Yaqui Tribe.
The Federal Bureau of Investigation and Pascua Yaqui Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-1602-TUC-JCH-DTF
RELEASE NUMBER: 2022-222_Trujillo# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Topeka Man Indicted for Child PornRead the Press Release
TOPEKA, KAN.– A federal grand jury returned an indictment charging a Kansas man with producing, receiving, and distributing child pornography.
According to court documents, Andrew Joseph Greeve, 20, of Topeka was indicted on three counts of sexual exploitation of a child – production of child pornography, one count of sexual exploitation of a minor – distribution of child pornography, one count of sexual exploitation of a minor – receipt of child pornography, one count of sexual exploitation of a mnor – possession of child pornography, and two counts of commission of sex offense by registered offender.
The Federal Bureau of Investigation (FBI) and the Kansas Bureau of Investigation (KBI) are investigating the case.
Assistant U.S. Attorney Sara Walton is prosecuting the case.
Anyone with additional information related to this investigation please contact the FBI Topeka Office at 785-231-1700 or tips.fbi.gov.
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."An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Three Rivers, Michigan Woman Ordered to Pay $801,128.23 in Restitution and $233,854 in TaxesRead the Press Release
SOUTH BEND – Kristina M. Harshberger, 45 years old, of Three Rivers, Michigan, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to one count of wire fraud and three counts of filing false tax returns, announced United States Attorney Clifford D. Johnson.
Harshberger was sentenced to 18 months in prison followed by 1 year of supervised release, and was ordered to pay $801,128.23 in restitution to the victims of the offense as well as $233,854.00 to the Internal Revenue Service.
According to documents in the case, starting in 2015, Harshberger used her position as a controller and general manager of a business in Elkhart, Indiana, to make unauthorized, personal charges to a business credit card. Harshberger continued the fraud for three years through 2018. She embezzled over $800,000.00 in total and did not report the income on her taxes for the years 2015, 2016, and 2017.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division with the assistance of the Elkhart Police Department. This case was prosecuted by Assistant United States Attorney Jerome W. McKeever and former AUSA Geovanny E. Martinez.
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Texas Man Indicted for Threatening Doctor Affiliated with the National LGBTQIA+ Health Education CenterRead the Press Release
BOSTON – A federal grand jury returned an indictment today charging a Texas man with threatening a Boston doctor because the doctor provided care for members of the transgender community.
Matthew Jordan Lindner, 38, of Comfort, Texas, was charged with interstate transmission of threatening communication, and selecting the victim because of the gender identity of persons for whom the victim provided medical care. Lindner was arrested on Dec. 2 and subsequently released on bond by a U.S. Magistrate Judge in San Antonio. He will appear in federal court in Boston on Dec. 22 before U.S. District Court Magistrate Judge Donald L. Cabell.
According to the indictment, in August 2022, inaccurate information spread online regarding procedures at Boston Children’s Hospital for gender nonconforming children. It is alleged that on Aug. 31, 2022, Lindner called the Boston-based National LGBTQIA+ Health Education Center and left a threatening voicemail targeting one of the Center’s affiliated doctors. In that voicemail, Lindner allegedly said: “You sick motherf*****s, you’re all gonna burn. There’s a group of people on their way to handle [victim]. You signed your own warrant, [victim]. Castrating our children. You’ve woken up enough people. And upset enough of us. And you signed your own ticket. Sleep well, you f******, c***.”
In August 2022, U.S. Attorney Rollins announced the creation of the “End Hate Now” hotline – 1-83-END-H8-NOW (1-833-634-8669) – for reporting hate-based incidents or potential criminal activity. Massachusetts residents and visitors are encouraged to call the hotline to report concerning or troubling incidents of hate, potential hate crimes, or concerns regarding individuals believed to be espousing the hate-filled views or actions we learn of far too often in the wake of mass shootings and/or acts of hate-based violent extremism. Callers are encouraged to leave their contact information but may remain anonymous. At this time, the hotline is available in English, Spanish, Cantonese and French.
The charge of interstate transmission of threatening communication provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rachael A. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Brian A. Fogerty of Rollins’ Human Trafficking & Civil Rights Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. John the Baptist Resident Sentenced for Failure to Report International Travel as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that GENE MURRAY, age 49, was sentenced on December 14, 2022 for failing to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA) 18 U.S.C. § 2250(b).
United States District Judge Jane Triche Millazo imposed a sentence of 24 months imprisonment. Following his term of imprisonment, MURRAY will be placed on supervised release for a period of three years. MURRAY must also pay a $100 mandatory special assessment fee. A fine was not imposed.
U.S. Attorney Evans praised the work of the United States Marshals Service. Assistant United States Attorneys Spiro G. Latsis and Rachal Cassagne are in charge of the prosecution.
Social Security Administration Employee Accused of Fraud and Money LaunderingRead the Press Release
DENVER - The U.S. Attorney’s Office for the District of Colorado announces Justin Skiff, age 36, of Castle Pines, appeared in U.S District Court today to face one count each of wire fraud, social security fraud, and money laundering.
According to the information filed in this case, beginning in August 2019 and continuing through September 2021, it is alleged Skiff used his position as a claims specialist with the Social Security Administration (SSA), to fraudulently obtain money from the SSA. Skiff is alleged to have filed fictious claims for benefits using false identities and the identity of an actual individual to collect proceeds from these claims. According to court documents, Skiff’s actions ultimately led to the theft of approximately $310,601.44 from the SSA.
Skiff made his initial appearance before Magistrate Judge Kristen L. Mix on December 15, 2022. Wire fraud carries a penalty of up to 20 years in prison and a fine of $250,000. Social Security fraud carries a penalty of up to 5 years in prison and a fine of $250,000. Money laundering carries a penalty of up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction. If convicted, Skiff must also forfeit any property derived from proceeds traceable to the scheme.
This case was investigated by the Social Security Administration, Office of the Inspector General and the Internal Revenue Service, Criminal Investigation. This case is being prosecuted by Special Assistant U.S. Attorney Sonia J. Dave.
The charges contained in the information are allegations, and the defendant is presumed innocent until proven guilty.
Six Suspected Niagara Falls Crips Members Indicted on Firearms and Drug ChargesRead 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 a federal grand jury has returned an 18-count indictment charging defendants Cameron Lee, Michael Pryor, Shawn Pryor a/k/a Ghost, Melanie Pryor, Thomas Pryor, and Ahmadja Green with conspiracy to possess with intent to distribute, and distribute, 40 grams or more of fentanyl, heroin, cocaine, and crack cocaine. This charge carries a minimum penalty of five years in prison and a maximum of 40 years, and a $5,000,000 fine. In addition:
• Michael Pryor is charged with four counts of distributing cocaine and/or fentanyl within 1,000 feet of a school or a public housing facility, which carry a maximum penalty of 40 years in prison and a fine of $2,000,000.
• Cameron Lee is charged with possession with intent to distribute 50 grams or more of methamphetamine, fentanyl, and marijuana, being a felon in possession of a firearm and possessing a firearm in furtherance of drug trafficking, which carry a maximum penalty of life in prison, and a $5,000,000 fine.
• Defendant Lee, Melanie Pryor, and Ahmadja Green are also charged with possession of more than 40 grams of fentanyl, heroin, and buprenorphine, which carries a maximum penalty of 40 years in prison and a $5,000,000.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment, in January 2022, the FBI Safe Streets Task Force, Niagara Falls Police Department, and Niagara County Sheriff's Office began investigating a criminal street gang known as the “Crips,” operating in and around Niagara Falls and Rochester, NY. Lee, Michael Pryor, Shawn Pryor, and Greene were identified as members/associates of the Crips, who conspired to sell crack cocaine, fentanyl, and heroin. Between March and July 2022, investigators conducted seven controlled purchases from the defendants. In addition, between August and October 2022, investigators conducted six controlled purchases from Michael Pryor and between August and September 2022, they conducted three controlled purchases from Shawn Pryor. The investigation also determined that during the conspiracy, Michael Pryor and Shawn Pryor pistol whipped and beat a person believed to be involved in narcotics trafficking.
On October 13, 2022, a search warrant was executed Cameron Lee’s Orleans Avenue residence, during which investigators seized more than 70 grams of heroin and fentanyl, a quantity of buprenorphine, jewelry, three cellular telephones, and approximately $19,000 in United States currency.
The indictment is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the Niagara Falls Police Department, under the direction of Chief John Faso, and the Niagara County Sheriff's Office, under the direction of Sheriff Michael Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Several Houston men arrested for drug and firearm violationsRead the Press Release
HOUSTON – A total of 14 people are now in custody for various violations to include drug trafficking, possessing a “Glock switch” and being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Those taken into custody yesterday include Houston residents Anthony Ketchum, 35, Anthony Yezeno-Hopkins, 38, Brandon Milson, 32, Hassani Mills, 34, Jaylyn Pinson, 29, Josue Rodriguez, 32, Keith Moore, 34, Michael Henry, 32, Myles Smith, 23, Robert Thomas, 29, Sterling Brumant, 26, Titus Baisey, 35 and Toree White, 27.
Henry, Baisey and Smith are expected to make their initial appearances at 2 p.m. today before U.S. Magistrate Judge Christina Bryan. Brumant was arrested in California and ordered detained pending further criminal proceedings.
Also charged is Julian Herrera, 26, was previously in custody on related charges. He made his appearance yesterday in Houston along with the other nine men.
Detention hearings are set to begin Dec. 19 at 9 a.m.
A federal grand jury returned the 11-count indictment Dec. 7.
With the exception of Thomas and Rodriguez, the remaining men are charged with possession with intent to deliver meth. They face up to life in prison and could be ordered to pay fines up to $10 million. Moore faces an additional charge of possession with intent to deliver heroin which carries a maximum of 40 years in prison.
The indictment also alleges Thomas unlawfully possessed a firearm - a device made and intended to convert a semi-automatic pistol to being fully automatic aka Glock auto switch. If convicted, he faces a 10-year possible sentence.
Rodriguez is alleged to have been in possession of a firearm - Ruger 5.7 mm. As a convicted felon, he is prohibited from federal law of such and could also be sentenced to a maximum of 10 years if found guilty.
The arrests come on the heels of another case involving violent crime as well as a joint announcement on the surge of resources to fight violent crime in Houston.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorney Lisa Collins is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Serial Fraudster Sentenced to 9 Years in Prison for Identity Theft and Bank FraudRead the Press Release
FLINT – A 37-year-old Flint Man was sentenced today to 9 years in federal prison for using the stolen identities of dozens of victims to commit identity theft and bank fraud, United States Attorney Dawn N. Ison announced.
Joining in the announcement was Special Agent in Charge John Marengo, U.S. Secret Service and Rodney M. Hopkins, Inspector in Charge, U.S. Postal Inspection Service Detroit Division. of the U.S. Postal Inspection Service.
U.S. District Judge Shalina D. Kumar sentenced Michael Johnson-Brown today to 9 years in prison following his guilty pleas to bank fraud, committed while on pretrial release, and aggravated identity theft charges.
According to court records, from 2017 to 2021, Johnson-Brown used stolen social security numbers and other personal information to open lines of credit, provided by banks for retail stores, in his victims’ names. Over four years, Johnson-Brown used the fraudulent credit accounts at retail stores to steal more than $422,000 worth of merchandise. He launched his scheme while on parole for identity theft and even continued doing it after he was arraigned on federal charges and released on bond. Johnson-Brown had a long history of cheating and deceiving people, having previously been convicted of eight fraud crimes between 2008 and 2016. He has three prior federal convictions for bank fraud and two state-court convictions for identity theft.
The case was investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and prosecuted by Assistant United States Attorney Blaine Longsworth.
Seattle man sentenced to ten years in prison for third sex offense involving childrenRead the Press Release
Seattle – A 44-year-old Seattle man was sentenced today in U.S. District Court in Seattle to ten years in prison for possession of images of child rape and abuse, announced U.S. Attorney Nick Brown. Jason Alan Legg was on probation for the rapes of two 13-year-olds when a Washington State Department of Corrections investigation determined he had electronic devices containing images of child rape and abuse. This was Legg’s third sentencing for sex crimes related to children. At the sentencing hearing U.S. District Judge James L. Robart said, “This is not a victimless crime. These are real people and it has tremendous impact on their lives… It is a pervasive destruction of their lives taking place at an early age.”
According to records filed in the case, in 1998 Legg was first convicted in the Middle District Georgia of shipping and transporting child pornography. He was sentenced to 41 months in prison. In 2004, he was convicted in King County, Washington, of two counts of rape of a child and possession of images of minors engaged in sexually explicit conduct. Legg admitted he used community chat lines to find minors who he could groom for sexual activity. Legg was sentenced to ten years in prison. He was ordered to be on probation for the rest of his life.
In December 2018, Legg’s Community Corrections Officer learned he had unapproved electronic devices. Legg had been ordered to have monitoring software on all his devices. A search of his apartment in Seattle turned up a cell phone that did not have monitoring software. Legg had also hidden a flash drive in a hockey mask in his apartment. On the phone and the flash drive were some 44 images of child rape and sex abuse.
Legg pleaded guilty in July 2022. Both the prosecution and defense recommended the mandatory minimum sentenced of ten years in prison. Legg will be on federal supervision for 15 years following his prison term.
Judge Robart ordered Legg to pay $6,000 in restitution to the victims in the images he possessed.
The case was investigated by the Washington State Department of Corrections and Homeland Security Investigations.
The case was prosecuted by Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Schenectady County Felon Admits Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Jason Seminary, age 44, of Duanesburg, New York, pled guilty today to unlawfully possessing a firearm and ammunition.
The announcement was made by United States Attorney Carla B. Freedman and Guilderland Police Chief Daniel P. McNally.
Seminary admitted that on December 26, 2021, in Schenectady County, he possessed a loaded Ruger .22 caliber rifle. Guilderland Police Detectives located the rifle while executing a search warrant on a pickup truck Seminary had been driving. Seminary’s prior felony conviction, for burglary-second degree: causes physical injury, prevented him from legally possessing the rifle and ammunition.
Senior United States District Judge Frederick J. Scullin Jr. will sentence Seminary on April 15, 2023, at which time Seminary will face up to 10 years in prison and up to 3 years of post-imprisonment supervised release. Seminary also faces sentencing in Albany County Court on an unrelated charge of criminally negligent homicide; he has agreed that his state term of imprisonment, of 2 to 4 years, will run consecutive to his federal term of imprisonment.
This case was investigated by the Town of Guilderland Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Town of Rotterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Savage Man Arrested, Charged with Possession of Machine Gun and Attempted Possession of Hand GrenadesRead the Press Release
MINNEAPOLIS – A Savage man has been arrested and charged in a federal criminal complaint for possession of a machine gun and for attempting to receive and possess unregistered destructive devices, specifically hand grenades, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on September 27, 2022, the FBI received a tip from a concerned citizen reporting disturbing behavior of a 20-year-old man, later identified as River William Smith.
The FBI Joint Terrorism Task Force investigation revealed evidence that Smith was preparing for a violent exchange with police. Smith stated he is “pro mass shooting,” sympathized with the Parkland school shooter, and expressed admiration for the individual charged with the recent shooting at a Colorado Springs LGBTQ nightclub. The FBI also discovered Smith had access to fully automatic rifles, handguns, suppressors, body armor and a Kevlar helmet. Smith stated that he was preparing to fight the police and was dedicated to dying in that fight. Smith asked a government informant for grenades and an illegal part to convert his AR-15 style rifle into a fully automatic machine gun. On December 14, 2022, under supervision of law enforcement, a meeting between Smith and a government informant was arranged. At the meeting, Smith purchased three hand grenades and four auto sears. Smith was arrested by law enforcement.
Smith is charged with one count of possession of a machine gun and one count of attempt to receive and possess destructive devices. He appeared today in U.S. District Court before Magistrate Judge David T. Schultz. Smith was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Manda Sertich and Andrew Winter, and Department of Justice Trial Attorney Justin Sher.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Saugus Woman Sentenced for Trafficking Counterfeit Percocet Pills Containing FentanylRead the Press Release
BOSTON – A Saugus woman was sentenced today in federal court in Boston for her role in a large-scale drug trafficking organization that manufactured and distributed hundreds of thousands of counterfeit Percocet pills containing fentanyl.
Nicole Benton, 46, was sentenced by U.S. District Court Judge Allison Burroughs to two years in prison and three years of supervised. In September 2021, Benton pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances and possessing a firearm in furtherance of a drug trafficking conspiracy.
Benton was arrested and charged by criminal complaint in June 2021 along with co-conspirators Vincent Caruso, Laurie Caruso and Ernest Johnson, as part of an investigation that began in 2020 in response to an increased number of shootings in communities north of Boston by street gangs whose violence was fueled by drug distribution.
Benton was a lower-level runner of a large drug trafficking organization (DTO) operated by Vincent Caruso, a self-admitted Crip gang member, that included Johnson and Vincent Caruso’s mother, Laurie Caruso, among others. The DTO sold counterfeit prescription pills containing fentanyl – produced using multiple large pill presses capable of generating thousands of pills per hour – to street gangs for further distribution on the North Shore of Massachusetts. A single counterfeit fentanyl pill allegedly retails between $10-$20, thereby generating millions of dollars in retails sales.
Benton distributed more than 100,000 pressed fentanyl pills on behalf of the organization. Based upon pills seized during the investigation, 100,000 pills would equate to more than 10 kilograms of fentanyl. During a search of Benton’s residence on June 30, 2021, approximately 40 grams of fentanyl pills and a firearm were seized.
In June 2022, Vincent Caruso was sentenced to 250 months (more than 20 years) in prison and five years of supervised release. Laurie Caruso was sentenced in June 2022 to nine years in prison and four years of supervised release. On May 20, 2022, Johnson pleaded guilty to one count of being a felon in possession of firearm and ammunition and is scheduled to be sentenced on Feb. 27, 2023.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Rhode Island Man Sentenced to Prison for Stealing and Selling Luxury Car Tires and RimsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL FARIAS, 57, of Providence, Rhode Island, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for stealing tires and rims from new vehicles at car dealerships in northeastern states and then selling the stolen items to individuals across the country.
According to court documents and statement made in court, between May 2015 and August 2018, Farias and others stole thousands of dollars’ worth of tires and rims from numerous luxury vehicles at car dealerships in Connecticut, Rhode Island, New York and Maine. The co-conspirators then sold the stolen goods to others around the U.S.
Farias was arrested on November 17, 2020. On November 10, 2021, he pleaded guilty to one count of interstate transportation of stolen property.
Farias, who is released on a $100,000 bond, is required to report to prison on April 14.
This matter was investigated by the Federal Bureau of Investigation, the Shelton, Milford, Waterbury, Stonington, Vernon, Darien, Westchester County (N.Y.), Bedford (N.Y.) and Portland (Maine) Police Departments, and the York County (Maine) Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
Readout of U.S.-EU Justice and Home Affairs MinisterialRead the Press Release
U.S. Attorney General Merrick B. Garland today attended the U.S.-EU Justice and Home Affairs Ministerial co-hosted by Secretary of Homeland Security Alejandro N. Mayorkas at the Department of Homeland Security’s St. Elizabeths Campus. European Union participants included Commissioner for Home Affairs Ylva Johansson, Commissioner for Justice Didier Reynders, Deputy Prime Minister and Minister of Interior of the Czech Republic Vit Rakusšan, and Minister of Justice of the Czech Republic Pavel Blažek.
The participants discussed Russia’s unprovoked and unjustified invasion of Ukraine, commended the Ukrainian people’s determination to fight for their country, and underscored the horrifying human suffering and economic devastation caused by the invasion. They agreed to continue their close cooperation in response to Russia’s aggression.
The officials shared perspectives on current and emerging threats, including international and domestic terrorism, violent extremism, ransomware and other forms of cybercrime, organized crime, and the harm from illegal narcotics, including synthetic drugs such as fentanyl and methamphetamine. To counter these threats, they affirmed their intent to share additional information and leverage their law enforcement authorities collectively and individually.
The Ministers issued a communiqué at the end of the Ministerial and plan to meet again in Stockholm in June.
Providence Man Sentenced in Scheme to Defraud Home DepotRead the Press Release
PROVIDENCE – A Providence man who admitted to participating in a conspiracy that defrauded Home Depot out of more than one half-million dollars in tools and building supplies was sentenced today to one year and a day in federal prison, announced United States Attorney Zachary A. Cunha.
According to charging documents, Luiyi Taveras-Garcia, 35, participated in a wide-ranging scheme that used stolen or fraudulently created business credit accounts to defraud Home Depot of $600,000 in building, roofing, electrical, plumbing and other contractor supplies at stores in Rhode Island, Massachusetts, and New Hampshire.
Additionally, at the time of his guilty plea to conspiracy to commit wire fraud, Tavares admitted to a federal judge that he also purchased construction materials for use in his roofing business from another member of the conspiracy who allegedly obtained those materials from Home Depot with the use of stolen credit information.
At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Tavares-Garcia to 12 months and one day of incarceration; three years of federal supervised release; and he was ordered to pay restitution in the amount of $46,749 to Citibank, who provided lines of customers to Home Depot customers.
A second defendant charged in this matter, Abel Bier Romero, 29, of Cranston, is awaiting trial on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by the United States Secret Service New England Cyber Fraud Task Force, with the assistance of the Smithfield Police Department.
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Pittsburgh Man Sentenced to 25 Years for Trafficking Cocaine and Shooting an ATF Special Response Team MemberRead the Press Release
PITTSBURGH, PA – United States Attorney Cindy K. Chung announced today that Dion Williams has been sentenced in federal court to 20 years (240 months) on his conviction of violating the federal narcotics and firearms laws and for assaulting a federal agent with a dangerous weapon, and to an additional five years (60 month) for violating the terms of his supervised release for a previous drug crime conviction.
United States District Judge Stephanie L. Haines imposed the sentence on Williams, 46, formerly of Pittsburgh, Pennsylvania.
The court was previously advised that beginning in 2019, agents with the FBI and other agencies investigated drug trafficking activity in Pittsburgh’s Hill District neighborhood, and elsewhere. As part of that investigation, agents conducted court-authorized interceptions of telephonic communications over two telephones used by a co-defendant between February 2020 through May 2020. During this period, agents intercepted Williams communicating regarding the purchase and redistribution of cocaine. In connection with his guilty plea, Williams admitted that the amount of cocaine that was attributable to him, through his conduct and through the foreseeable conduct of co-conspirators, was between 500 grams and two kilograms.
The court was also previously informed that on June 18, 2020, an ATF Special Response Team (SRT) arrived at Williams’ residence to execute search warrants on the building and to arrest Williams on the indictment charging Williams with conspiracy to distribute cocaine. After the SRT operators loudly and repeatedly announced themselves, including through the PA system of an ATF SRT vehicle, one of the ATF agents on the SRT team rammed open a door to the structure. The door swung back shut, and the agent had to try breach it again. After the agent breached the door the second time, Williams, who was inside the building, shot the SRT operator one time through the shoulder. Fortunately, the operator was quickly taken to a hospital and was not fatally injured. After Williams shot the agent, he apparently disassembled the firearm and hid different components of it in the residence; the disassembled firearm was later found underneath the basement steps of the residence, while the magazine and ammunition were recovered hidden in a false ceiling on the second floor. Williams did not immediately surrender but rather, was taken into custody, without further incident, several minutes after the shooting.
“Convicted felon Dion Williams will spend the next 25 years in prison for shooting an ATF agent, for conspiring to traffic cocaine, and for violating the terms of his supervised release for a previous federal drug conviction,” said U.S Attorney Chung. “Removing violent criminals from the community is a top priority of this office.”
“This attack on one of our agents illustrates the direct correlation between drug trafficking and firearms violence,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Division. “By working with our local, state, and federal partners, we strive to maintain public safety and make sure these types of violent individuals are taken off our streets.”
“Today, Mr. Williams will finally face the consequences for his blatant disregard for our ATF partner and the community,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Williams’ actions that day further demonstrate the connection between violence and drug trafficking. Mr. Williams is a career criminal who thrived on selling dangerous drugs. The FBI is committed to working with our law enforcement partners to pursuing the worst and most violent offenders who continue to terrorize our neighborhoods.”
Assistant United States Attorneys Jerome Moschetta and Doug Maloney prosecuted this case on behalf of the government.
The narcotics investigation was conducted by the Federal Bureau of Investigation’s Greater Pittsburgh Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, which led the multi-agency investigation that included the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations), the Allegheny County Sheriff’s Office, and the Pennsylvania Office of the Attorney General. That 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.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation that led to the prosecution of Williams for his involvement in the shooting of the ATF agent.
Pittsburgh Man Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH, PA. A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh for violating various federal child exploitation laws, United States Attorney Cindy K. Chung announced.
The six-count Indictment, returned on Dec. 6, 2022, and unsealed today, named Jacob Lexso, 41, as the sole defendant.
According to the Indictment, Lexso is alleged to have distributed material depicting the sexual exploitation of a minor on or about Sept. 22, 2020, and on or about Sept. 24, 2020. Lexso is also alleged to have received material depicting the sexual exploitation of a minor on or about Sept. 22, and Sept. 24, 2020. On or about June 24, 2022, Lexso is alleged to have possessed material depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses 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 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 www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physician and Office Manager Agree to Pay over $420,000 to Settle Kickback Allegations Involving New Jersey, Texas and South Carolina LaboratoriesRead the Press Release
WASHINGTON – Vijesh Patel, M.D. and his office manager and wife Laju Patel, both of Port Neches, Texas, have agreed to pay $422,789 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing, and both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
“Kickbacks can undermine a physician’s medical judgment, result in unnecessary testing, and increase health care costs borne by taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue physicians, laboratories, and others responsible for schemes that violate rules intended to safeguard the integrity of federal health care programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Dr. and Mrs. Patel received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Patel’s referrals to three laboratories:
- Texas Laboratory. From December 2016 to July 2018, Dr. Patel allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Indus MG LLC (Indus) in return for ordering laboratory tests from True Health Diagnostics LLC (True Health), a clinical laboratory in Frisco, Texas. The Indus MSO’s payments to Dr. Patel allegedly were disguised as investment returns but in fact were based on, and offered in exchange for, his referrals to True Health.
- New Jersey Laboratory. From August 2018 to August 2021, Dr. Patel allegedly received thousands of dollars in kickbacks disguised as investment returns from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from RDx Bioscience, Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey. RDx allegedly funded remuneration to Dr. Patel in the form of volume-based commissions paid to an independent contractor recruiter, Corum Group LLC, which used an associated company, Avior, to pay kickbacks to Dr. Patel and other physicians in return for their referrals. In addition, fom December 2018 to August 2022, Mrs. Patel allegedly received kickbacks from RDx in the form of commercially unreasonable fees to purportedly collect urine specimens for testing that Dr. Patel referred to RDx.
- South Carolina Laboratory. From August 2019 to December 2021, Dr. Patel allegedly received hundreds of dollars per month in inflated space rental payments in return for ordering laboratory tests from Labtech Diagnostics LLC (Labtech), a clinical laboratory in Anderson, South Carolina. Labtech’s rental payments allegedly were for a commercially unreasonable amount of space and excessive days and time.
“Patients deserve to know that the decisions their health care providers are making are based solely on their medical needs, not on some profit-making scheme,” said U.S Attorney Philip R. Sellinger for the District of New Jersey. “Our office will continue to pursue anyone responsible for actions that have the potential to corrupt the medical decision-making process.”
“This settlement demonstrates the Eastern District of Texas’s firm and continued commitment to pursuing all persons responsible for engaging in kickback schemes that inevitably harm the taxpayers, increase costs to care, and decrease access to health care,” said U.S Attorney Brit Featherston for the Eastern District of Texas. “We remain vigilant in our pursuit to put a stop to those who partake in kickback schemes of this kind and to hold them accountable for the collective harm they caused.”
“Patients should be able to trust that their doctor’s medical recommendation is in their best interest and not influenced by the doctor’s financial gain,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Our office has and will continue to hold accountable those that give and receive illegal kickbacks, both to maintain the public’s trust in the healthcare system and to ensure taxpayer money is properly spent.”
“Health care providers engaging in kickback schemes corrupt the provider-patient relationship and impose hidden costs on the health care system,” said Assistant Special Agent in Charge Susan A. Frisco with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Alongside our law enforcement partners, our agency is committed to safeguarding the integrity of federal health care programs by holding individuals who unlawfully bill the programs accountable for their actions.”
“Today’s outcome demonstrates the steadfast determination of the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our investigative partners to root out fraud perpetrated against TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling for the DCIS Southwest Field Office. “DCIS remains focused on protecting and preserving valuable taxpayer dollars by holding those accountable who attempt to defraud the DoD.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Eastern District of Texas, District of New Jersey, and District of South Carolina, with assistance from HHS-OIG and DCIS. To date, the United States has recovered over $32 million relating to conduct involving True Health or MSO kickbacks to physicians in Texas, including False Claims Act settlements with 34 physicians, two health care executives, one office manager, and one laboratory. In addition, the United States has filed a lawsuit under the False Claims Act against former True Health CEO Christopher Grottenthaler and others, which is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). A defendant who violates the act is liable for three times the amount of the government’s losses plus applicable penalties.
The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Kruti Dharia for the District of New Jersey, Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas, and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Parkersburg Man Sentenced to Prison for Federal Tax CrimeRead the Press Release
CHARLESTON, W.Va. – Christopher Daniels, 52, of Parkersburg, was sentenced today to one year in prison, to be followed by one year of supervised release, for filing a false federal income tax return. Daniels previously paid the $280,088 in ordered restitution. He was also ordered to pay a $75,000 fine.
According to court documents and statements made in court, from at least 2013 through at least 2020, Daniels owned and operated Accedia Moving Services LLC. Daniels admitted that he falsely claimed or inflated business expenses to report a taxable income loss of $18,898 on his 2017 U.S. Individual Income Tax Return. Daniels admitted his business should have reported a profit of $187,771 for tax year 2017.
Daniels further admitted that he reported false information on his U.S. Individual Income Tax Return forms for tax years 2016 through 2019. Daniels reported taxable income losses totaling $164,491 for those tax years when he should have reported income totaling $410,459. The income taxes owed and due total $148,653.
Daniels admitted to failing to properly withhold $119,417.46 in employment taxes, including federal taxes and the employer-due portion of Social Security and Medicare taxes. Daniels also admitted to failing to pay $12,018 in West Virginia Workers’ Compensation premiums on those unreported wages.
Daniels admitted that the total amount of tax liability that he wrongly withheld from state and federal entities is approximately $280,088.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Internal Revenue Service-Criminal Investigation.
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Kathleen Robeson prosecuted the case. Assistant United States Attorney Jessica Nathan of the U.S. Attorney Office’s Financial Litigation Unit coordinated restitution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-126.
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Owner of Durable Medical Equipment Companies Arrested for $17 Million Kickback ConspiracyRead the Press Release
A New York woman was arrested today for allegedly offering and paying illegal health care kickbacks and money laundering.
According to court documents, Alexandra Stchastlivtseva, 52, of New York, owned several durable medical equipment companies. Stchastlivtseva allegedly offered and paid kickbacks and bribes to several purported telemedicine companies and marketing companies in exchange for completed doctors’ orders of medically unnecessary orthotic braces and continuous glucose monitors for Medicare beneficiaries. Stchastlivtseva and her co-conspirators allegedly concealed the fraud by entering into sham contracts and producing false invoices characterizing the kickbacks and bribes as payments for “marketing.” In total, Medicare paid more than $17.3 million based on false and fraudulent claims that Stchastlivtseva allegedly submitted and caused to be submitted to Medicare. Stchastlivtseva and others then laundered the proceeds of the kickback scheme.
Stchastlivtseva is charged in an indictment filed in the District of New Jersey with conspiracy to defraud the United States and to offer and pay health care kickbacks, five counts of offering and paying health care kickbacks, and conspiracy to commit money laundering. She is scheduled for her initial court appearance today. If convicted, she faces a maximum penalty of five years in prison on the count of conspiracy to defraud the United States and offer and pay health care kickbacks, ten years in prison on each count of offering and paying health care kickbacks, and ten years in prison on the count of money laundering conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI Criminal Investigative Division, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Acting Special Agent in Charge Susan Frisco of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section is prosecuting the case.
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 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of 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 is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Operator of San Gabriel Valley Employment Staffing Company Pleads Guilty to Criminal Charge for Failing to Pay over Payroll Taxes to IRSRead the Press Release
LOS ANGELES – A Diamond Bar man pleaded guilty today to a federal criminal charge for deliberately failing to pay more than $200,000 for one three-month period’s payroll taxes that were owed by a San Gabriel Valley employment staffing company.
Robinson Rin Yang, 54, a.k.a. “Robert Mora,” a.k.a. “David Lee,” pleaded guilty to one count of willful failure to pay over employment taxes.
According to his plea agreement, from March 2016 to March 2020, Yang operated B&S Staffing, a Covina-based staffing service business. From mid-2017 until the end of 2019, B&S accrued large unpaid employment tax liabilities, failed to make timely employment tax deposits, and repeatedly failed to timely file quarterly employment tax returns with the IRS. Notably, B&S did not file -- until February 2019 – employment tax returns for the periods ending June 30, 2017 through December 31, 2018.
After these tax returns were filed, B&S again fell into non-compliance with its reporting obligations. B&S did not file – until September 2020 – employment tax returns for the quarterly tax periods ending March 31, 2019, through December 31, 2019.
Yang admitted he was aware of B&S’s tax situation, but willfully failed to pay over to the IRS all the employment taxes due and owing, including income taxes and Social Security and Medicare taxes withheld from employee wages. Instead, Yang repeatedly used his control over B&S to direct payments from the corporate bank account, which he controlled, for his personal benefit.
For example, in July 2018, for the quarterly tax period ending on June 30, 2018, Yang willfully failed to account for and pay over approximately $221,108 in B&S payroll taxes.
In total, B&S accrued approximately $2,791,783 in unpaid employment taxes during this 2½-year period. Yang has agreed to pay this amount in restitution to the IRS.
Yang further admitted that from 2017 to 2019, to frustrate IRS collection actions against him regarding his personal income taxes – and to conceal the true extent of how much money he made – he did not pay himself a salary from B&S. Instead, Yang caused weekly checks to be issued from B&S’s corporate bank account to a business named “Advanced Business Konsulting,” and deposited these checks into an account held in the same name and which he controlled.
In addition, Yang used B&S funds for the down payment and monthly mortgage payments on his purchase of a home, but kept the property titled in the name of another person to conceal Yang’s ownership of the property. Yang also directed payments from the corporate bank accounts of B&S to pay for personal expenses, including a portion of his daughter’s college tuition, and funding for Yang’s other business interests, including a failed construction business and a failed restaurant.
Despite the fact Yang earned hundreds of thousands of dollars from his operation of B&S during each of the calendar years 2017 through 2019, he failed to timely file federal income tax returns for those years.
United States District Judge George H. Wu scheduled a February 27, 2023 sentencing hearing, at which time Yang will face a statutory maximum sentence of five years in federal prison.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney James C. Hughes of the Major Frauds Section is prosecuting this case.
Ohio Man Sentenced to 87 Months in Prison for Possessing Carfentanil He Intended to SellRead the Press Release
PITTSBURGH, PA - A resident of Akron, Ohio, was sentenced by a federal judge in Pittsburgh on a charge of drug trafficking, United States Attorney Cindy K. Chung announced today.
On Dec. 14, 2022, U.S. District Judge Nora Barry Fischer sentenced Oshay Love, 30, to 87 months of imprisonment with four years of federal supervised release to follow. Love was also ordered to pay a special assessment of $100 and forfeit property, namely over $700 in U.S. currency and a Chevy Blazer that was derived from or used in the commission of his federal offense.
On August 17, 2022, Love pleaded guilty to One Count of possessing with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of carfentanil, a Schedule II controlled substance. Love’s charge was based upon his conduct on July 23, 2019 whereby he traveled from Ohio to the Western District of Pennsylvania to sell carfentanil, which is a fentanyl analog and considered to be about 100 times more potent than fentanyl and 10,000 more potent than morphine. Love was apprehended by law enforcement before being able to distribute this substance in this district. When being apprehended, Love attempted to evade arrest by fleeing in his vehicle, damaging multiple police vehicles, and jumped off a cliff before he was apprehended, which factored into his sentence.
Assistant United States Attorney Nicole A. Stockey prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Monroeville, Elizabeth, and Wilkinsburg police departments conducted the investigation leading to the Indictment in this case.
Office Manager and Her Son Charged in Federal Financial and Health Care Fraud InvestigationRead the Press Release
PROVIDENCE – The former office manager for a Pawtucket dermatologist’s office and her son are facing federal charges following a joint federal and state law enforcement embezzlement, fraud, and health care fraud investigation, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that Tianna Keller, 66, of South Easton, MA, used her position as office manager, her authority to sign office documents, and her position as benefits manager to orchestrate schemes to enrich herself, her son, and a friend.
According to court documents, Keller allegedly defrauded the practice of approximately $490,000. She allegedly did this by giving herself unauthorized salary increases totaling approximately $185,061; adding family members and a friend to the payroll and providing them with unauthorized gross wages totaling approximately $46,703; failing to deposit nearly $108,000 in patient cash payments; issuing dozens of checks payable to herself and others, signing the name of the medical practice’s owner without his permission; and using company funds and credit cards as payment for her rent, a daughter’s tuition, restaurant, grocery, retail and other personal and travel expenses; and personal services.
Additionally, it is alleged that Keller authorized continued enrollment and payment for family medical insurance coverage for her son, Brandyn Coffman, 30, of New Braunfels, TX, and his family, even after his self-termination as a data clerk at the medical practice, authorizing payment of nearly $40,000 for this coverage. It is alleged that Blue Cross Blue Shield paid more than $14,000 in claims submitted by Coffman and his family. It is further alleged that Coffman made false statements to law enforcement, claiming he was unaware of the coverage and that he “didn’t even think to use the plan.”
The criminal complaint also alleges that Keller, who was receiving temporary disability insurance (TDI) payments at the time of her termination from the medical practice, continued to collect TDI even after she began employment elsewhere; as a result she fraudulently collected $11,847.
Tianna Keller is charged with conspiracy to commit health care fraud, health care fraud, wire fraud, and aggravated identity theft; Brandyn Coffman is charged with conspiracy to commit health care fraud, health care fraud, and making materially false statements to agents.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Ronald R. Gendron.
The matter was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the Rhode Island State Police Financial Crimes Unit.
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Ocenture LLC and Carelumina LLC Settle Allegations of False Claims for Unnecessary Genetic TestingRead the Press Release
Ocenture LLC, a privately held company headquartered in Jacksonville, Florida, and its subsidiary, Carelumina LLC (collectively, “Ocenture”), have agreed to pay $3 million to resolve allegations that they caused the submission of false claims to Medicare by paying and receiving kickbacks in connection with genetic testing samples.
The United States alleged that Ocenture participated in a genetic testing fraud scheme with other marketers and clinical laboratories. As part of the alleged scheme, Ocenture solicited genetic testing samples from Medicare beneficiaries directly and through other marketers. Ocenture then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for the laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture.
“The Anti-Kickback Statute prohibits paying or receiving remuneration for referring services paid for by federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of these programs by knowingly engaging in illegal kickback schemes that distort physician decision-making and waste taxpayer dollars.”
“Kickback schemes corrupt the clinical judgments of providers and may lead to unnecessary medical services paid for by taxpayers,” said U.S. Attorney for the Middle District of Florida Roger Handberg. “The resolution of this civil case confirms our district’s resolve in protecting our federal health programs from these fraudulent practices.”
“Entities involved in kickbacks that bilk Medicare funds threaten the program’s fiscal stability and abuse patients’ trust,” said Special Agent in Charge Omar Pérez-Aybar for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our partners, HHS-OIG without relent investigates providers that allegedly distort the practice of genetic testing to defraud federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Improta and Peter Brandt, two marketers who were approached by Ocenture to participate in the alleged kickback scheme. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Improta, et al. v. Ocenture, et al., Civil Action No. 3:19-cv-358 (M.D. Fla.). As part of today’s resolution, Messrs. Improta and Brandt will receive approximately $570,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Laurie A. Oberembt and Assistant U.S. Attorney Ronnie S. Carter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Ocenture LLC and Carelumina LLC Settle Allegations of False Claims for Unnecessary Genetic TestingRead the Press Release
Jacksonville, FL - Ocenture LLC, a privately held company headquartered in Jacksonville, Florida, and its subsidiary, Carelumina LLC (collectively, “Ocenture”), have agreed to pay $3 million to resolve allegations that they caused the submission of false claims to Medicare by paying and receiving kickbacks in connection with genetic testing samples.
The United States alleged that Ocenture participated in a genetic testing fraud scheme with other marketers and clinical laboratories. As part of the alleged scheme, Ocenture solicited genetic testing samples from Medicare beneficiaries directly and through other marketers. Ocenture then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for the laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture.
“The Anti-Kickback Statute prohibits paying or receiving remuneration for referring services paid for by federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of these programs by knowingly engaging in illegal kickback schemes that distort physician decision-making and waste taxpayer dollars.”
“Kickback schemes corrupt the clinical judgments of providers and may lead to unnecessary medical services paid for by taxpayers,” said U.S. Attorney for the Middle District of Florida Roger Handberg. “The resolution of this civil case confirms our district’s resolve in protecting our federal health programs from these fraudulent practices.”
“Entities involved in kickbacks that bilk Medicare funds threaten the program’s fiscal stability and abuse patients’ trust,” said Special Agent in Charge Omar Pérez-Aybar for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our partners, HHS-OIG without relent investigates providers that allegedly distort the practice of genetic testing to defraud federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Improta and Peter Brandt, two marketers who were approached by Ocenture to participate in the alleged kickback scheme. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Improta, et al. v. Ocenture, et al., Civil Action No. 3:19-cv-358 (M.D. Fla.). As part of today’s resolution, Messrs. Improta and Brandt will receive approximately $570,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Laurie A. Oberembt and Assistant U.S. Attorney Ronnie S. Carter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.