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3 February 2023
Quantico, Virginia Man Pleads Guilty to 2019 Murder in Upper NorthwestRead the Press Release
WASHINGTON – Collin Potter, 30, of Quantico, VA, pled guilty to second-degree murder while armed for stabbing Vongell Lugo, of Washington, DC, to death in Mr. Lugo’s apartment in the Upper Northwest neighborhood of Washington, DC, announced U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Potter pled guilty in the Superior Court of the District of Columbia. He is scheduled to be sentenced by the Honorable Marisa J. Demeo on April 14, 2023 and faces a sentence of between 14 and 16 years of imprisonment.
According to the government’s evidence, on Sunday January 6, 2019, at approximately 4:00 a.m., the defendant and the decedent, Vongell Lugo, were alone together in Mr. Lugo’s apartment at #206, Garfield House, 2844 Wisconsin Ave., N.W., Washington, D.C. Mr. Lugo stood approximately 5’6” tall, weighed about 167 pounds, and was unarmed. The defendant, unprovoked, attacked Mr. Lugo. The defendant grabbed one of Mr. Lugo’s kitchen knives from Mr. Lugo’s kitchen and stabbed Mr. Lugo 42 times in the head, neck, and torso, killing Mr. Lugo. According to the autopsy, the defendant, at some point, also punched Mr. Lugo in the face. Mr. Lugo never fought back, beyond yelling for help. Mr. Lugo’s cries for help woke two of his neighbors, both of whom independently called 911 around 4:14 a.m. The defendant then attempted to clean the knife in the kitchen sink. Around 4:20 a.m., the defendant pulled Mr. Lugo’s naked body out into the hallway, where Mr. Lugo’s body was found and the defendant was discovered by MPD officers, standing naked, uninjured, and covered in Mr. Lugo’s blood.
Potter was arrested at the scene on that same day. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorneys Nebiyu Feleke, Christian Natiello, and Peter V. Roman, and Deputy Chief Laura Bach, who investigated and prosecuted the case.
Pueblo Felon Sentenced to 190 Months in Federal Prison for Drugs and Weapons ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Kenneth Lawrence Baca, age 44, of Pueblo, was sentenced to 190 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and felon in possession of a firearm.
According to the plea agreement, on October 12, 2021, Pueblo police detectives were investigating Baca after receiving an anonymous tip that the defendant was selling a large amount of narcotics. A detective messaged Baca, in an undercover capacity, via Facebook messenger. Baca agreed to sell heroin and methamphetamines. On October 13, 2021, the conversation continued and they agreed to meet at Baca’s hotel room in Pueblo. Officers set-up surveillance in the parking lot of the motel and observed Baca pull into the parking lot in a truck with no front license plate and an expired registration. Officers also knew that Baca didn’t have a valid driver’s license. Officers conducted a traffic stop. Given his history, an officer informed Baca that he would be patted down for weapons. Baca replied that he had a pistol in his right pants pocket. Baca was immediately placed into custody and the firearm was retrieved from his pants. A search of the truck found a backpack containing methamphetamine, fentanyl, heroin, a digital scale, $1,746 in U.S. currency, a notebook that appeared to be a drug ledger, and a wallet containing Baca’s identification cards. In the motel room registered to Baca, officers recovered fentanyl, methamphetamine, drug paraphernalia, a suspected drug ledger, and $1,018 in U.S. currency. At the time Baca possessed the firearm and ammunition, he was on supervised release after serving time in prison for a previous felon in possession conviction.
Judge Regina M. Rodriguez sentenced the defendant on February 1, 2023.
“This defendant repeatedly committed crimes with no regard for the law. The fact that the defendant was on supervised release when he committed these crimes exemplifies this solemn reality. This sentence achieves the goals of deterring such criminal conduct, while simultaneously protecting our community from drugs and weapons,” said United States Attorney Cole Finegan.
"This sentencing highlights the collaboration and teamwork between the FBI and our law enforcement partners like the Pueblo Police Department, whose efforts were instrumental in this case," said FBI Denver Special Agent in Charge Mark Michalek. "FBI Denver remains committed to working closely with the Pueblo Police Department to ensure that dangerous criminals are no longer menacing the public. The FBI prioritizes keeping our communities safe by finding, investigating, and dismantling criminal operations one person at a time, as we did with this repeat offender peddling illegal drugs."
The investigation was conducted by the Federal Bureau of Investigations (FBI) Denver Division and the Pueblo Police Department. Prosecution was handled by Assistant United States Attorney Daniel Warhola and the Transnational Organized Crime and Money Laundering Section of the U.S. Attorney’s Office.
CASE NUMBER: 21-cr-00387
Podiatrist Pleads Guilty to Foot Bath Fraud SchemeRead the Press Release
WASHINGTON – A Mississippi man pleaded guilty today for his role in a scheme to defraud Medicare and TRICARE by prescribing and dispensing medically unnecessary foot bath medications and ordering medically unnecessary testing of toenails in exchange for kickbacks and bribes.
According to court documents, Marion Shaun Lund, D.P.M., 53, of Taylor, owned and operated a podiatry clinic, as well as an in-house pharmacy. Lund routinely wrote prescriptions for, and his pharmacy dispensed, antibiotic and antifungal drugs to be mixed into a tub of warm water for patients to soak their feet. Rather than prescribe drugs based on the individualized needs of patients, Lund prescribed foot bath medications in order to maximize reimbursements from Medicare, TRICARE, and other health care benefit programs, regardless of medical necessity. In addition, Lund took toenail clippings and wound cultures from patients and sent them to a lab for diagnostic testing, even though such testing was not medically necessary. From April 2020 through March 2022, Lund caused the submission of over $1.4 million in claims to Medicare and TRICARE for unnecessary prescriptions of foot bath medications and diagnostic testing of toenails, resulting in over $700,000 in reimbursements. In exchange for his prescriptions and orders, Lund was paid cash kickbacks by a purported marketer.
Lund pleaded guilty to one count of conspiracy to commit health care fraud. He is scheduled to be sentenced on May 15, 2023, and faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Lund is the fourth defendant, including three medical professionals, to plead guilty for his role in the scheme. In October 2021, Logan Hunter Power pled guilty to one count of conspiracy to defraud the United States and to pay and receive kickbacks, and in October 2022, Power was sentenced to 25 months in prison. In August 2022, Jared Lee Spicer, D.P.M., pled guilty to one count of conspiracy to commit health care fraud and is awaiting sentencing. In September 2022, Carey “Craig” Williams, D.P.M., pled guilty to one count of conspiracy to commit health care fraud and is awaiting sentencing.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Clay Joyner for the Northern District of Mississippi; Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services-Office of Inspector General (HHS-OIG); and Acting Assistant Director Jay Greenberg of the FBI Criminal Investigative Division made the announcement.
The HHS-OIG and FBI are investigating the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clayton A. Dabbs of the Northern District of Mississippi are 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 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Philadelphia Man Pleads Guilty to Tax Fraud and Commercial Bribery OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Sing, age 59, of Philadelphia, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion to various federal tax offenses and commercial bribery.
According to United States Attorney Gerard M. Karam, Sing pleaded guilty to conspiring with other individuals to evade federal income taxes on approximately $1,600,000 in personal wages paid by Global Staffing Services, Inc. (Global Staffing), a temporary staffing company that he and his coconspirators owned and operated. Global Staffing leased temporary employees to a manufacturing business in northeastern Pennsylvania. Sing also failed to report over $8,800,000 in wages paid to Global Staffing employees, and withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Coconspirator Den Lam, age 48, of Philadelphia, and Sing paid Global Staffing employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing’s client, to conceal the income and wages from the IRS. The criminal activities occurred between 2013 and 2020. Sing also provided in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing’s client, to obtain business for Global Staffing.
Four other individuals were prosecuted in this investigation:
- Den Lam, age 48, was charged in a criminal information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in personal wages paid by Global Staffing Services, Inc. Den Lam also was charged with failing to report over $8,800,000 in wages paid to Global Staffing employees, and withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing to the IRS. Lam awaits his initial appearance currently scheduled for February 16, 2023.
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC, a temporary staffing company that he and his coconspirators owned and operated. Encore leased temporary employees to manufacturing businesses throughout Pennsylvania. Holmes also pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from two temporary staffing companies, Global Staffing and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $16,000,000 from Holmes’s employer. Holmes awaits sentencing.
- Nari Lam, age 29, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, the owner of Pennsylvania-based temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam awaits sentencing.
- Madeline Nieves, age 48, of Plains, Pennsylvania, was indicted by a federal grand jury on tax fraud and conspiracy offenses. Nieves allegedly conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with Encore Staffing, that she and her coconspirators owned and operated. Nieves also was charged with failing to report Encore employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves further was charged with three counts of tax evasion, for failing to report her own personal income from Encore. Nieves awaits trial.
The cases were investigated by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the cases.
The maximum penalty under federal law for the tax offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for the commercial bribery offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Orinda Man Sentenced to 40 Months for Bank Fraud, Wire Fraud, Money LaunderingRead the Press Release
SAN FRANCISCO – Alan Safahi was sentenced today to 40 months in federal prison following fraud and money laundering convictions arising from a fraudulent prepaid debit card scheme which created $2.7 million in unfunded liabilities, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian.
Safahi, 62, of Orinda, was convicted on June 30, 2022, following a four week bench trial before Senior United States District Judge Susan Illston. In a 39-page order, Senior U.S. District Judge Illston found Safahi guilty of one count of bank fraud, four counts of wire fraud, and one count of money laundering. As detailed in the court order, Safahi developed an elaborate fraud scheme in which he collected money from clients to buy prepaid debit cards and, while accurately reporting the cards’ balances to his clients, he in turn used a “funding on demand” scheme to defraud the bank that supported his cards. In Safahi’s scheme, legitimate clients paid Safahi’s company CardEx in full for prepaid debit cards, but Safahi reported to the bank only the amount that the clients had spent on the card as the card’s “balance.” He fraudulently diverted to himself the remaining balance of the card’s value. As an example, a client of Safahi’s company CardEx would buy a prepaid debit card for $100 and then spend $10 of that $100 balance. Safahi’s fraudulent “funding on demand” system would report to the bank the “balance” of that card as $10 instead of $100. In this example, Safahi’s fraud scheme allowed him access to the additional $90. Using the scheme, Safahi fraudulently appropriated unspent funds for scores of such pre-paid cards.
Safahi’s fraud scheme unraveled on September 25, 2014. On that day, as Safahi was shutting down his CardEx business, he directed an employee to provide the accurate balances of the prepaid debit cards to the bank. According to the evidence, Safahi had earlier reported to the bank a false total balance of $93,734 on the cards that he had sold. The true total balance on the cards reported to the bank that day was $2,774,953. The difference was nearly $2.7 million in unfunded liability.
Evidence showed that Safahi had appropriated the fraud scheme’s proceeds for, among other things, purchasing an Orinda home. Just two days before reporting the true total balance of all the cards to the bank, Safahi issued an $80,000 cashier’s check to himself from his company’s account that, along with other fraudulently obtained funds, he used to purchase the Orinda house. The transaction provided the basis for his money laundering conviction.
In a sentencing memo filed for today’s hearing, the government described that Safahi tricked both his bank and his clients. His clients entrusted their customers’ money to him, having been misled to believe it was protected and secure. Through lies and his fraudulent “funding on demand” scheme, Safahi also misled his bank. Safahi then profligately spent the fraud proceeds to fund a lavish lifestyle, to pay previous debts, and to purchase the expensive Orinda home.
In addition to the 40 months imprisonment, Senior U.S. District Judge Illston imposed a $100,000 fine on Sahafi and ordered three years of supervision of him following his release from prison. Safahi was ordered to surrender on May 4, 2023, to begin serving his prison sentence. A hearing to determine the amount of Safahi’s restitution obligation is set for March 31.
Robert David Rees and Benjamin Kurtis Kleinman are the Assistant U.S. Attorneys who prosecuted the case, with the assistance of Llessica Chan Fierro, Veronica Hernandez, Olivia Hawkins, Leeya Kekona, and Karina Ruiz. The prosecution is the result of an investigation by IRS-CI.
Ohio Man Sentenced to 65 Months for Vehicular Homicide and AssaultRead the Press Release
KNOXVILLE Tenn. – On February 2, 2023, Bryce Allen Axline, 21, of Columbus, Ohio, was sentenced to 65 months in federal prison for vehicular homicide and vehicular assault by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville. Axline was ordered to pay $5,000 in restitution and, upon his release from prison, he will be on federal supervised release for three years.
According to filed court documents, Axline's convictions resulted from a single-vehicle accident in the Great Smoky Mountains National Park on the night of June, 7, 2021. Axline was intoxicated and driving recklessly when he crashed his car into an embankment on the Spur. His two female passengers, both 19 years of age, were seriously injured during the crash. One victim suffered life-altering injuries, and the other victim died shortly after the accident. Axline was released from the hospital the following day after being treated for minor injuries. He was interviewed by the National Park Service as his home and admitted that he was driving the vehicle when the accident occurred. Based on an analysis of the vehicle's air bag module, the National Park Service determined that the vehicle was fully accelerated and traveling at 90 miles per hour just seconds before the accident occurred.
The surviving victim provided a victim impact statement to the court explaining how the accident has affected her life. The deceased victim’s family members also provided victim impact statements and were present in court for the sentencing hearing. The deceased victim’s father addressed the court on behalf of the family.
The investigation was led by the National Park Service, Investigative Service Branch.
Assistant United States Attorney LaToyia T. Carpenter represented the United States.
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Ocoee Man Convicted of Firearm and Drug Trafficking ChargesRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Sean Secada Scott, 30, of Ocoee, Florida, of possession of a controlled substance with intent to distribute and carrying a firearm during and in relation to a drug-trafficking crime. The guilty verdict, returned yesterday at the conclusion of a three-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The Tallahassee Police Department (TPD) and the Drug Enforcement Administration (DEA) learned that the defendant would be delivering 20 pounds of marijuana on February 26, 2022, to Tallahassee. DEA and TPD conducted surveillance of the defendant and observed him loading a suitcase into the trunk of his SUV. A subsequent traffic stop by the Florida Highway Patrol revealed that the suitcase contained approximately 20 pounds of marijuana in 20 individually vacuum sealed bags, and that the defendant had a Glock 9 millimeter pistol in the center console of his vehicle.
Scott’s sentencing hearing is scheduled for April 12, 2023, at 10:00 a.m., at the United States Courthouse in Tallahassee before United States Chief District Judge Mark E. Walker. Scott faces between five years and life imprisonment, followed by at least two years of supervised release, and a fine of up to $500,000.
This conviction was the result of a joint investigation conducted by the Tallahassee Police Department, the Drug Enforcement Administration, the Florida Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Leon County Sheriff’s Office. Assistant United States Attorney James A. McCain prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Dakota Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jonathan A. Kobes, sitting in federal district court in Rapid City, has sentenced a Bismarck, North Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on February 1, 2023.
Dorian Lester, age 26, was sentenced to two years and four months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lester was indicted by a federal grand jury in July of 2022. He pleaded guilty on October 7, 2022.
The conviction stems from Lester failing to register as a sex offender as required by federal law between May 20, 2022 and July 6, 2022. Lester had previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Lester was immediately remanded to the custody of the U.S. Marshals Service.
North Carolina Man Sentenced to 10 Years in Prison for Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – David William McConnell, 39, of Charlotte, North Carolina, was sentenced today to 10 years in prison, to be followed by 25 years of supervised release, for traveling in interstate commerce to engage in illicit sexual conduct with a minor. McConnell must also register as a sex offender.
According to court documents and statements made in court, from May 15, 2022, until May 30, 2022, McConnell used the Kik messaging app, exchanged text messages and communicated by phone with a woman he believed to be a single mother of 11-year-old and 13-year-old daughters in Beckley, West Virginia. During these conversations, McConnell expressed interest in engaging in sexual activity with the two minor females and teaching the woman to engage in sexual acts with her daughters.
McConnell admitted to telling the woman that he planned to travel from his Charlotte residence to a Beckley hotel to meet her and the two minor females on May 30, 2022. McConnell further admitted to telling the woman that he planned to shower with each of the minor children and engage in sexual acts with both of them. On May 30, 2022, McConnell was arrested in Beckley.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) West Virginia Human Trafficking and Child Exploitation Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-124.
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Ninth Defendant Sentenced to Prison for Involvement in Large-Scale Methamphetamine Trafficking ConspiracyRead the Press Release
LAS VEGAS – A Henderson resident was sentenced Wednesday by U.S. District Judge Andrew P. Gordon to 65 months in prison followed by five years of supervised release.
Brian Scarborough (47) pleaded guilty in September 2022 to conspiracy to distribute a controlled substance – methamphetamine. Scarborough was the ninth defendant to plead guilty for his role in a large-scale conspiracy to distribute methamphetamine in Las Vegas.
According to court documents, from a date unknown to April 17, 2019, Scarborough conspired with others – including Miriam Elizabeth Suarez-Contreras, aka “Ella” and “Liz,” who was an organizer of the criminal conspiracy – to distribute methamphetamine in the Las Vegas area. As part of the conspiracy, Suarez-Contreras, a Mexican national, received methamphetamine orders via telephone while she was living in California, and dispatched different drug couriers to deliver the methamphetamine in Las Vegas. On April 3, 2019, the FBI executed a search warrant of Scarborough’s hotel room after he had ordered methamphetamine from Suarez-Contreras via telephone and discovered about 130 grams of methamphetamine and a 9mm handgun.
Co-defendants Suarez-Contreras was sentenced to 135 months in prison; Roberto Blancas-Mata, aka “Carlos Delgado,” of Las Vegas, was sentenced to 12 months and one day in prison; Rahdsma Henderson, aka “Weezy,” of Las Vegas, was sentenced to 41 months in prison; Stephen Lloyd, of Las Vegas, was sentenced to time served; Doug Stumpf, of Henderson, was sentenced to 46 months in prison; Renea Barnes, aka “Renea Valdez,” of Las Vegas, was sentenced to 48 months in prison; Quentin Armstrong, of Sandy Valley, Nevada, was sentenced to 90 months in prison; and Jose Guillermo Tello-Albarran, of Las Vegas, was sentenced to time served. Charles Parr, aka “Charles Magnuson,” of Salt Lake City, Utah, awaits sentencing.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the Safe Streets Gang Task Force, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. Assistant United States Attorney Melanee Smith is prosecuting this case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Nigerian Nationals Victimize U.S. Persons Through Cyber-Enabled Fraud SchemesRead the Press Release
PHOENIX, Ariz. – In December 2022, Solomon Ekunke Okpe and Johnson Uke Obogo, both Nigerian nationals, each pleaded guilty to conspiracy to commit wire, bank, and mail fraud. Okpe and Obogo were involved in a variety of cyber-enabled fraud schemes between December 2011 and January 2017. Okpe also pleaded guilty to one count of aggravated identity theft.
At the request of the United States, Okpe and Obogo were previously arrested in Malaysia and the United Kingdom, respectively, and were extradited to the District of Arizona in 2022.
According to court documents, Okpe and his co-conspirators’ fraud scheme included business email compromise (BEC), work-from-home, romance, check-fraud, and credit-card scams that targeted unsuspecting victims around the world, and attempted to cause more than a million dollars in losses. The victims of the scheme included individuals and local businesses in the District of Arizona, including a regional branch of First American Bank.
In the BEC schemes, Okpe and co-conspirators hacked into victims’ email accounts. After gaining access to a victim’s account, they would send emails to employees of companies doing business with the victim, directing those employees to transfer money to conspirator-controlled bank accounts. These emails looked like they were coming from the victim, but they were actually unauthorized wiring instructions from Okpe and co-conspirators. To get access to victims’ accounts, Okpe and co-conspirators launched email phishing attacks over the Internet that collected thousands of email addresses, passwords, credit card information, and personal identifiable information of unsuspecting individuals.
In the “work-from-home” scams, Okpe, Obogo, and others falsely posed as online employers on job websites and forums under fictitious online personas, and pretended to “hire” large numbers of individuals around the United States to the positions, including in Arizona. Although the positions were marketed as legitimate, work-from-home jobs, "employees" were actually directed to perform tasks that facilitated other fraud scams, including creating bank and payment processing accounts, transferring or withdrawing money from accounts, and cashing or depositing counterfeit checks.
U.S. Attorney for the District of Arizona, Gary M. Restaino, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Joseph E. Carrico, Special Agent in Charge at the Federal Bureau of Investigation (FBI) made the announcement.
Assistant U.S. Attorney Seth Goertz of the District of Arizona and Senior Counsel Aarash Haghighat of the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the cases against Okpe and Obogo. The Justice Department's Office of International Affairs provided significant assistance throughout the criminal investigation.
A number of victims have been identified by the FBI. However, there is evidence of many more victims that remain unidentified. Anyone who believes they were defrauded by the defendants in this case should contact the Victim Witness Section at the United States Attorney’s Office, District of Arizona at [email protected]
CASE NUMBER: CR-19-0146-PHX-GMS
RELEASE NUMBER: 2023-011_Okpe# # #
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.New York Man and Alabama Woman Sentenced for Attempting to Provide Material Support to ISISRead the Press Release
James Bradley, aka Abdullah, 21, of the Bronx, New York, and Arwa Muthana, 30, of Hoover, Alabama, were sentenced to 11 years in prison followed by 10 years of supervised release and nine years in prison followed by 10 years of supervised release, respectively, for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).
In September 2022, Bradley and Muthana pleaded guilty to attempting to provide material support to ISIS before U.S. District Judge Paul A. Engelmayer. According to court documents, Bradley and Muthana are ISIS supporters who sought to travel to the Middle East to join and fight for ISIS. Bradley expressed violent extremist views since at least 2019, including his desire to support ISIS by traveling overseas to join the group or committing a terrorist attack in the United States. In May 2020, Bradley stated to an undercover law enforcement officer (UC-1) a belief that ISIS may be good for Muslims because ISIS was establishing a caliphate. Bradley also expressed his desire to conduct a terrorist attack in the United States and discussed potentially attacking the United States Military Academy in West Point, New York. Bradley explained that if he could not leave the United States, he would do “something” in the United States instead, referring to carrying out an attack.
In June 2020, Bradley reaffirmed his interest to UC-1 in attacking a military base and that doing so would be his contribution to the cause of jihad. In January 2021, Bradley mentioned to UC-1 another university in New York State where he frequently saw Reserve Officer Training Corps (ROTC) cadets training. Bradley stated that he could use his truck in an attack along with Muthana, take “out” all of the ROTC cadets.
In late January 2021, Bradley married Muthana in an Islamic marriage ceremony. Beginning before and continuing after their marriage, Bradley and Muthana discussed, planned, and ultimately attempted to travel to the Middle East together to join ISIS. In or about early March 2021, Bradley traveled from New York to Alabama to visit Muthana. They returned to New York together to travel from New York to join ISIS in the Middle East. Thereafter, Bradley raised the possibility of UC-1 helping the couple board a cargo ship to travel to the Middle East or Africa. UC-1 subsequently put Bradley in contact with a purported associate who could assist in making travel arrangements via cargo ship. In reality, the purported facilitator was a law enforcement officer acting in an undercover capacity (UC-2).
Later in March 2021, Bradley met with UC-2 and expressed his desire to travel via cargo ship and to “fight among the rank[s] of the Islamic State.” Bradley subsequently provided UC-2 $1,000 in cash as travel costs. Bradley told UC-2 that he and Muthana both planned to be “fighting” after arriving in the Middle East. Bradley also told UC-2 that he had a dream that he had given “bay’ah,” an Arabic term meaning the oath of allegiance, to Abu Ibrahim al-Hashimi al-Qurashi, the former leader of ISIS.
On March 25, 2021, UC-2 told Bradley that the cargo ship would be leaving on March 31 from a seaport in Newark, New Jersey. Bradley praised Allah and confirmed he and Muthana planned to travel on the ship. On March 31, 2021, Bradley and Muthana met with UC-2 en route to the seaport. During this meeting, Muthana confirmed to UC-2 that she was traveling to the Middle East to fight for ISIS. Bradley and Muthana were arrested as they walked on a gangplank to board the cargo ship. After Muthana was arrested, she waived her Miranda rights and stated during an interview that she was willing to fight and kill Americans if it was for Allah. Also on March 31, 2021, in connection with court-authorized searches, the FBI seized from a bedroom previously used by Bradley a hand-drawn image of a jihadi flag commonly used by ISIS and a hand-drawn map of the Pakistan region. The FBI also recovered a machete from a truck used by Bradley.
In the months and years prior to their arrests, Bradley and Muthana also accessed, posted, and distributed extremist online content, including materials indicative of their support for ISIS. Such material included Bradley’s postings of images of ISIS fighters, Usama Bin Laden, and terrorist attacks. Bradley also distributed to UC-1 videos of ISIS fighters, a 2020 stabbing attack against a New York City Police Department (NYPD) officer, and extremists shooting a uniformed soldier. Content on Muthana’s cellphone, which was searched pursuant to a court-authorized search warrant, included images of an ISIS flag with Arabic writing, ISIS propaganda, firearms, quotations of the deceased former al Qaeda in the Arabian Peninsula member Anwar al-Awlaki, and a video showing an individual in prisoner garb being chained and then burned alive.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state and local agencies, investigated the case.
Assistant U.S. Attorneys Kaylan E. Lasky and Jason A. Richman for the Southern District of New York are prosecuting the case with valuable assistance provided by Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section.
New York Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes has sentenced a Wolcott, New York, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on January 31, 2023.
Christopher Thomas Dahl, 29, was sentenced to 10 years in federal prison, followed by 5 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and a $5,000 special assessment to the Victims of Trafficking Fund. Dahl will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Dahl was indicted for Attempted Commercial Sex Trafficking of a Minor and Attempted Enticement of a Minor Using the Internet by a federal grand jury in August of 2021. He pleaded guilty on August 19, 2022.
Dahl was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2021 Sturgis Motorcycle Rally, targeting internet predators. Following multiple text messages with an undercover persona, Dahl negotiated a time and place he would meet a 14-year-old girl to have sex. Additionally, Dahl agreed to pay the undercover persona $250 for the unlawful sex acts with the minor. When Dahl went to the pre-determined location to meet the undercover persona, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Dahl was immediately remanded to the custody of the U.S. Marshals Service.
New York City Man and Alabama Woman Sentenced to 11 and Nine Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES BRADLEY, a/k/a “Abdullah,” and ARWA MUTHANA were sentenced to 11 and nine years in prison, respectively, for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”). BRADLEY pled guilty on September 9, 2022, and MUTHANA pled guilty on September 12, 2022, before United States District Judge Paul A. Engelmayer in Manhattan federal court. Judge Engelmayer sentenced BRADLEY on February 2, 2023, and sentenced MUTHANA earlier today.
U.S. Attorney Damian Williams said: “James Bradley and Arwa Muthana were determined to travel to the Middle East to fight in the name of hate and terror. Even worse, if they failed in making it to the Middle East, Bradley was prepared to carry out an attack on American soil. I commend the FBI New York Joint Terrorism Task Force for investigating and arresting these two individuals before they had the opportunity to wage violence on behalf of a brutal terrorist organization. Bradley and Muthana’s sentences reemphasize this Office’s determination to thwart those who wish to cause suffering and create destruction through terror.”
According to the Complaint, Indictment, and other public documents in the case, as well as statements made during court proceedings:[1]
BRADLEY and MUTHANA are ISIS supporters who attempted to travel to the Middle East to join and fight for ISIS. BRADLEY expressed violent extremist views since at least 2019, including his desire to support ISIS by traveling overseas to join the group or committing a terrorist attack in the United States. In May 2020, BRADLEY stated to an undercover law enforcement officer (“UC-1”) that he believed that ISIS may be good for Muslims because ISIS was establishing a caliphate. BRADLEY further expressed his desire to conduct a terrorist attack in the United States and discussed potentially attacking the United States Military Academy in West Point, New York. BRADLEY explained that if he could not leave the United States, he would do “something” in the United States instead, referring to carrying out an attack.
In June 2020, BRADLEY reaffirmed his interest to UC-1 in attacking a military base and that doing so would be his contribution to the cause of jihad. In January 2021, BRADLEY mentioned to UC-1 another university in New York State where he frequently saw Reserve Officer Training Corps (“ROTC”) cadets training. BRADLEY stated that he could use his truck in an attack and that he, along with MUTHANA, could take all of the ROTC cadets “out.”
In late January 2021, BRADLEY married MUTHANA in an Islamic marriage ceremony. Beginning before and continuing after their marriage, BRADLEY and MUTHANA discussed, planned, and ultimately attempted to travel to the Middle East together in order to join and fight with ISIS. In or about early March 2021, BRADLEY traveled from New York to Alabama to visit MUTHANA, and BRADLEY and MUTHANA traveled back to New York together in order to travel from New York to join ISIS in the Middle East. Thereafter, BRADLEY raised the possibility of UC-1 helping BRADLEY and MUTHANA get on a cargo ship to travel to the Middle East or Africa for the purpose of ultimately joining and fighting for ISIS. UC-1 subsequently put BRADLEY in contact with a purported associate who could assist BRADLEY in making arrangements for BRADLEY and MUTHANA to travel to the Middle East via cargo ship. In reality, the purported facilitator was a law enforcement officer acting in an undercover capacity (“UC-2”).
Later in March 2021, BRADLEY met with UC-2 and expressed his desire to travel via cargo ship and to “fight among the rank[s] of the Islamic State.” BRADLEY subsequently provided UC-2 $1,000 in cash as travel costs for BRADLEY and MUTHANA to take a cargo ship to Yemen. BRADLEY told UC-2 that he and MUTHANA both planned to be “fighting” after arriving in the Middle East. BRADLEY also told UC-2 that he had a dream that he had given “bay’ah,” an Arabic term meaning the oath of allegiance, to Abu Ibrahim al-Hashimi al-Qurashi, the former leader of ISIS.
On March 25, 2021, UC-2 told BRADLEY that the cargo ship would be leaving on March 31 from a seaport in Newark, New Jersey. BRADLEY praised Allah and confirmed he and MUTHANA planned to travel on the ship. On March 31, 2021, BRADLEY and MUTHANA met with UC-2 en route to the seaport. During this meeting, MUTHANA confirmed to UC-2 that she was traveling to the Middle East to fight for ISIS. BRADLEY and MUTHANA were arrested as they walked on a gangplank to board the cargo ship. After MUTHANA was arrested, she waived her Miranda rights and stated during an interview that she was willing to fight and kill Americans if it was for Allah. Also on March 31, 2021, in connection with court-authorized searches, the Federal Bureau of Investigation (“FBI”) seized from a bedroom previously used by BRADLEY a hand-drawn image of a jihadi flag commonly used by ISIS and a hand-drawn map of the Pakistan region, and the FBI also recovered a machete from a truck used by BRADLEY.
In the months and years prior to their arrests, BRADLEY and MUTHANA also accessed, posted, and distributed extremist online content, including materials indicative of their support for ISIS. Such material included BRADLEY’s postings of images of ISIS fighters, Usama Bin Laden, and terrorist attacks, and his distribution to UC-1 of videos of ISIS fighters, a 2020 stabbing attack against a New York City Police Department (“NYPD”) officer, and extremists shooting a uniformed soldier. Content on MUTHANA’s cellphone, which was searched pursuant to a court-authorized search warrant, included images of an ISIS flag with Arabic writing, ISIS propaganda, firearms, quotations of the deceased extremist preacher and former al Qaeda in the Arabian Peninsula member Anwar al-Awlaki, including, for example, a copy of the cover of a book authored by al-Awlaki, titled “44 Ways to Support Jihad,” and a video showing an individual in prisoner garb being chained and then burned alive.
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In addition to the prison term, BRADLEY, 21, of the Bronx, New York, and MUTHANA, 30, of Hoover, Alabama, were each sentenced to 10 years of supervised release.
Mr. Williams praised the outstanding efforts of the FBI New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part.
New Orleans Woman Charged with Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that DEDRA BRIGHT (“BRIGHT”), age 64, of New Orleans, Louisiana, was charged on February 2, 2023 by an indictment for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, from November 2008 to November 2020, BRIGHT knowingly accessed and converted approximately $194,127.80 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas Moses and Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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New Orleans Man Sentenced for Federal Weapons ChargeRead the Press Release
NEW ORLEANS, LOUISIANA –NELSON RAYMOND, a resident of New Orleans, was sentenced on January 31, 2023 by U.S. District Court Judge Wendy B. Vitter to seventy (70) months of incarceration after pleading guilty to a one-count indictment. Judge B. Vitter ordered that RAYMOND shall be on supervised release for a term of three (3) years following his release from imprisonment. RAYMOND was also ordered to pay a $100 mandatory special assessment fee.
According to public records, Judge Vitter’s sentence was above the United State Sentencing Guidelines.
Count 1 charged RAYMOND with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
On October 15, 2021, RAYMOND was at the intersection of Olive Street and Hamilton Street in New Orleans, sitting inside his vehicle. At some point, an unknown man walked to the vehicle, opened the rear driver side door, and placed a rifle in RAYMOND’s vehicle. Later, police observed RAYMOND with a firearm in his waistband. RAYMOND’s vehicle was later searched, and three firearms were recovered.
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 male our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principals: 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.
U.S. Attorney Evans praised the work of Federal Bureau of Investigation and the New Orleans Police Department in this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit of the U.S. Attorney's Office.
New Orleans Man Pleads Guilty to Federal Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA –Yesterday, defendant QUENDRICK BAILEY, age 27, resident of New Orleans, LA, pled guilty before U.S. District Court Judge Carl J. Barbier to a federal weapons violation of being a felon in possession of a firearm announced U.S. Attorney Duane A. Evans.
According to court records, BAILEY was previously convicted for a felony in 2017. BAILEY possessed a firearm on June 12, 2022, as a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
BAILEY faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years supervised release, and a mandatory special assessment fee of $100.00. Sentencing is scheduled for March 25, 2023.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
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Missouri Doctor Admits Diluting Clinic’s MethadoneRead the Press Release
ST. LOUIS – A doctor admitted on Friday that he diluted methadone that was dispensed in a St. Francois County, Missouri methadone clinic in 2021.
Dr. Sunil G. Chand, 59, pleaded guilty in front of U.S. District Judge Sarah E. Pitlyk to one count of adulterating a drug with the intent to defraud or mislead. He admitted that while the owner of Best Medical LLC, a family medicine clinic in Leadington, Missouri, he added saline and water to bottles of methadone to conceal a shortage of the drug from the Drug Enforcement Administration.
Dr. Chand decided in 2020 to open a methadone clinic to treat patients with narcotic use disorders, his plea agreement says. Dr. Chand caused Best Medical to obtain a DEA registration authorizing it to operate as a narcotic treatment program and to store and dispense Schedule II controlled substances, including methadone, to treat patients with narcotic use disorders.
On April 6, 2021, the clinic received twelve 1,000 milliliter bottles of methadone oral concentrate. Best Medical's methadone clinic opened the next day, treating patients who came in to receive an oral, liquid dose of methadone.
By April 22, Dr. Chand became aware that methadone was missing. Instead of reporting the methadone loss to the DEA within one business day of its discovery, as required, he instructed Best Medical's clinical director several days later to complete and submit a DEA Form 106 to report the loss.
Dr. Chand admitted that the form, submitted April 28, inaccurately reported that 1,075 milliliters of methadone had been lost. Dr. Chand then came in on a Sunday, when the clinic was closed, to dilute the methadone, his plea agreement says.
As part of the plea agreement, Dr. Chand has also agreed to surrender his DEA registration, which authorized him to prescribe certain controlled substances.
Dr. Chand is scheduled to be sentenced May 30. The charge carries a maximum penalty of three years in prison, a $250,000 fine or both.
"As part of our mission, DEA is dedicated to patient safety and oversight of all medical professionals registered with DEA,” said Diversion Program Manager Inez Davis, DEA’s lead for the Diversion program in Missouri, Kansas and southern Illinois. “Dr. Chand abused his authority and public trust by altering controlled substance medications intended for those seeking treatment for substance use disorders. With this acknowledgement of wrongdoing, his patients will no longer be subjected to substandard care."
“The Food and Drug Administration oversees the U.S. drug supply to ensure that they are safe and effective; those who distribute adulterated drugs may place American consumers at risk,” said Special Agent in Charge Charles L. Grinstead of the FDA Office of Criminal Investigations Kansas City Field Office. “Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health.”
The Drug Enforcement Administration and the Food and Drug Administration, Office of Criminal Investigations investigated this case. Assistant U.S. Attorney Amy Sestric is prosecuting the case.
Middleboro Financial Adviser Pleads Guilty to Investment Adviser FraudRead the Press Release
BOSTON – A Middleboro financial adviser pleaded guilty today in federal court in Boston for defrauding his elderly and otherwise vulnerable clients and stealing the victims’ retirement assets.
Paul R. McGonigle, 67, pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 22, 2023. McGonigle was initially charged in June 2021 and later charged in a superseding indictment in February 2022.
McGonigle served as a financial adviser for the victims, many of whom were elderly, one of whom had dementia, and another who suffered a traumatic brain injury. Beginning no later than February 2015, McGonigle caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses. To carry out his scheme, McGonigle posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
The charge of investment adviser fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of money laundering provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Massachusetts Insurance Fraud Bureau provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Methamphetamine Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Margaret Catherine Lynch (36, Bradenton) to 5 years and 10 months in federal prison for conspiracy to distribute 50 grams or more of methamphetamine. Lynch had pleaded guilty on October 13, 2022.
According to court documents, on October 27, 2020, Lynch and a co-conspirator sold 28 grams of methamphetamine to a confidential informant. On November 5, 2020, Lynch and her co-conspirator sold an additional 56 grams of methamphetamine to a confidential informant.
On July 22, 2021, law enforcement officers served a search warrant at Lynch’s residence. The officers seized more than 70 grams of methamphetamine and drug packaging materials during the search of the home.
This case was investigated by Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Hardee County Sheriff’s Office, and the DeSoto County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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 www.justice.gov/OCDETF.
Mailbox Raider Is Sentenced to Prison for Bank FraudRead the Press Release
ASHEVILLE, N.C. – Phyllis Ann Garcia, 31, of Hudson, N.C., was sentenced yesterday to 54 months in prison for bank fraud and related charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Garcia was also ordered to serve three years of supervised release after she completes her prison term and to pay $18,418.16 in restitution.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and court hearings, between 2020 and 2021, Garcia and her co-conspirators stole checks, money orders, credit cards, and other financial and personal identifying information (PII) of victims in Caldwell and Catawba Counties and used it to defraud banks and other financial institutions. Garcia obtained the victims’ PII, debit cards, credit cards, checks or money orders from the homes of acquaintances or stole them from residential and business mailboxes, an activity Garcia and her co-conspirators referred to as “mailboxing.” Garcia and her co-conspirators forged the victims’ signatures or altered the names on the stolen checks and money orders, cashed them, and split the proceeds. Court records show that Garcia and the co-conspirators also used victims’ debit cards and credit cards to make purchases or used the victims’ stolen PII to obtain credit cards in their names. According to court records, at least 247 individuals were victims of Garcia’s mail theft scheme. Law enforcement also determined that Garcia and her co-conspirators were responsible for the theft of at least 495 pieces of mail from residential and business mailboxes.
On August 31, 2022, Garcia pleaded guilty to conspiracy to commit bank fraud, access device fraud, and bank fraud. She is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI, USPIS, the Catawba County Sheriff’s Office, the Caldwell County Sheriff’s Office and the Hickory Police Department for their investigation of the case.
The U.S. Attorney’s Office in Asheville prosecuted the case.
Leader of the Pagans Motorcycle Club Sentenced to 75 Years in Prison for Methamphetamine Distribution, Firearm Distribution and Money Laundering ConvictionsRead the Press Release
WILMINGTON, N.C. – Christopher Lamar Baker, 49, a Raleigh-based national leader of the Pagans Motorcycle Club – which is recognized by law enforcement as an Outlaw Motorcycle Gang - was sentenced today to 900 months in prison following a conviction by a jury in September for drug trafficking, firearm, and money laundering charges.
Baker was a “13” in the Pagans Motorcycle Club prior to his November 2021 arrest by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). This designation means that he was one of only thirteen national leaders in the United States. This case is part of an ongoing operation that has resulted in the indictment of 20 individuals, including Baker.
“The circumstances of this case highlight the coordinated action that we, as law enforcement, are taking to address organized crime and the growing epidemic of methamphetamine in our community,” said U.S. Attorney Michael Easley. “It should serve as a warning to gangs and other criminal enterprises perpetrating violence. We will prosecute you and seek sentences that fit the crimes.”
According to court documents and other information presented in court, Baker supplied over 268 kilograms of methamphetamine into the Raleigh area and surrounding states on the East Coast. Baker was convicted by a jury of 17 counts, including conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession of firearm in furtherance of drug trafficking crimes—including a machine gun—and conspiracy to commit money laundering.
“The Raleigh Police Department is proud to work alongside our federal partners to investigate and prosecute those who seek to destroy our community with violence and drugs,” said Raleigh Police Chief Estella Patterson. “Removing this very dangerous person from our streets was an extraordinary step in making our community and state safer. By disrupting illegitimate criminal enterprises that seek to traffic guns and drugs into our community, we send a message that we will not tolerate the harm these dangerous organizations cause. Making Raleigh the safest city in the nation remains the top priority of the Raleigh Police Department. We can only do so through collaboration with the community, local and state law enforcement, and our federal partners. We thank the United States Attorney’s Office Eastern District, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Raleigh/Wake City-County Bureau of Identification, and the United States Marshals Service for their strong partnership.”
“ATF has a long history with outlaw motorcycle gangs, recognizing that these groups are often tied closely with a number of criminal acts, including gun violence, firearms trafficking, and drug trafficking.” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “This was a strategic, collaborative effort focused on disrupting a dangerous and violent criminal network.”
Through the course of this investigation, it was determined that Baker was the leader of the Pagan Motorcycle Club (“PMC”) in North Carolina, a wholly illegitimate criminal enterprise. The PMC is recognized internationally by law enforcement as an Outlaw Motorcycle Gang ("OMG") criminal enterprise that has leaders across the United States of America and Puerto Rico. The PMC has a long history of drug trafficking, firearms trafficking, and violence in the areas where it operates.
Baker has been described as the leader of the North Carolina PMC. According to numerous law enforcement intelligence units, he is believed to have previously held the rank of President of the Raleigh chapter of the PMC prior to becoming a “13.” Baker was responsible for the acquisition and distribution of kilogram quantities of methamphetamine for the Drug Trafficking Organization (“DTO”) linked to the PMC. Baker’s DTO is responsible for the distribution of methamphetamine and firearms across multiple states, including North Carolina.
In his Pagan leadership position, Baker directed members of his organization in distributing and selling methamphetamine in Raleigh and surrounding areas. Baker’s sources of supply for methamphetamine and firearms lived in the Atlanta area, and he would have various members of the Pagans drive him from North Carolina to the Atlanta area to pick up methamphetamine and firearms for distribution in North Carolina and surrounding states.
Baker also routinely used and directed violence to promote his narcotics trafficking. Baker was frequently armed; examples of his violence include the directed torture of a Pagan pledge who allegedly stole from another member. In this case, the pledge’s fingers were cut off using a table saw. Baker also directed the murder of an individual who sold him fake drugs. Raleigh Police and ATF had to place that individual into protective custody.
The prosecution of Baker was a part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF) Diamond Ice. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This investigation spanned into the West Virginia, South Carolina, and Georgia areas where kilogram quantities of methamphetamine were distributed into Raleigh utilizing a complex network of Pagans in surrounding states who have also been indicted in this case. Twenty individuals, including Baker have been indicted. Seven defendants have been convicted and sentenced, and nine others are awaiting sentencing.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raleigh Police Department led the investigation with assistance from the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. Assistant U.S. Attorneys Kelly L. Sandling and Robert Dodson prosecuted the case.
Other agencies involved in the investigation include the N.C. Highway Patrol, the Virginia State Police (VSP), the Dekalb County Police Department (GA), the Barrow County Sheriff’s Office (GA), the Georgia State Patrol (GSP), the Gwinnett County Police Department (GA), the Cleveland County Sheriff’s Department (NC), the S.C. Highway Patrol, the Craven County Sheriff’s Office (NC), the Lexington County Sheriff’s Department (SC) and the Reidsville Police Department (NC).
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00434-M-1.
Leader of bulk fentanyl, heroin, cocaine, meth & marijuana distribution operation pleads guiltyRead the Press Release
COLUMBUS, Ohio – The lead of 11 defendants charged as part of a national narcotics distribution operation bringing drugs into Central Ohio from California pleaded guilty in federal court here today.
Isabel Odir Castellanos, of Los Angeles, and the other defendants were arrested in June 2022.
According to court documents, Castellanos transported narcotics from Los Angeles to Columbus via semi-truck. Castellanos is a business owner of a transportation company and a semi-truck driver who frequently travels across the United States.
Castellanos delivered the narcotics to a co-defendant’s residence in Columbus, which served as a stash house. Co-conspirators then allegedly delivered the drugs to mid-level retail distributors. Those mid-level retailers then allegedly sold the drugs in Central Ohio, Youngstown, Ohio, Springfield, Ohio and in West Virginia.
Castellanos would then collect the drug proceeds before returning to California.
This case involves what is believed to be the largest single fentanyl seizure in the Southern District of Ohio, involving millions of dollars’ worth of the drug.
As part of this investigation, law enforcement has seized more than 100 pounds of narcotics, including 115,000 fentanyl-laced pills that make up part of the 76 kilograms of total fentanyl, nearly half a million dollars in cash, 7 firearms and 4 vehicles.
Charges remain pending against 10 individuals from Columbus, Springfield and Youngstown, Ohio, and from West Virginia, and nine of those individuals have pleaded guilty to federal drug trafficking conspiracy crimes.
Many of the individual drug transactions charged involve tens of thousands of dollars. For example, one drug transaction detailed in an affidavit describes a co-defendant transporting 5,000 fentanyl pills to another co-defendant’s home in Columbus in exchange for $36,000.
Conspiring to distribute or possess with intent to distribute 400 grams or more of fentanyl is a federal crime punishable by at least 10 years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Mr. Parker and Mr. Greene commended the cooperative investigation including the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Ohio Narcotics Intelligence Center, Ohio State Highway Patrol and Springfield Police Department. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
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Kingston Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Thomas O’Bryan, age 41, of Kingston, New York, pled guilty yesterday to distribution and possession of child pornography. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
O’Bryan admitted that between March 19 and September 22, 2020, he traded child pornography on a social media application using the screenname “irishbstrdinc.” The defendant also admitted that on September 22, 2020, he possessed child pornography. The child pornography images and videos distributed and possessed by the defendant portrayed sadistic and masochistic conduct, and the sexual abuse and exploitation of toddlers.
The distribution of child pornography charge carries a mandatory minimum term of 5 years and a maximum term of 20 years in prison. The possession of child pornography charge carries a maximum term of 20 years. O’Bryan also faces a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, forfeiture to the United States of property used to commit his offenses, restitution to identified victims, and he will have register as a sex offender upon his release from prison. 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.
Sentencing is scheduled for July 13, 2023, in Albany, before United States District Judge Glenn T. Suddaby.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police, and the Colonie and Rotterdam Police Departments. Assistant United States Attorney Rachel L. Williams is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Kerry Inc. Pleads Guilty and Agrees to Pay $19.228 Million in Connection with Insanitary Plant Conditions Linked to 2018 Salmonella Poisoning OutbreakRead the Press Release
Food and ingredient manufacturing company Kerry Inc. pleaded guilty today to a charge that it manufactured breakfast cereal under insanitary conditions at a facility in Gridley, Illinois, that was linked to a 2018 salmonellosis outbreak.
Pursuant to a plea agreement filed with a criminal information in federal court in Peoria, Illinois, Kerry pleaded guilty to a misdemeanor count of distributing adulterated cereal marketed as Kellogg’s Honey Smacks. The company also agreed to pay a criminal fine and forfeiture amount totaling $19.228 million. If the guilty plea is accepted by the court, the $19.228 million fine and forfeiture will constitute the largest-ever criminal penalty following a criminal conviction in a food safety case.
“Consumers depend on food manufacturers to take appropriate steps to ensure food safety,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department is committed to holding accountable those who fail to meet this obligation.”
“Today’s announcement should serve as a reminder that food manufacturers have a critical responsibility to produce and sell food that is safe for American consumers to eat,” said Assistant Commissioner Justin D. Green for the Food and Drug Administration’s (FDA) Office of Criminal Investigations. “We will continue to pursue and bring to justice those who put the public health at risk by allowing contaminated foods to enter the U.S. marketplace.”
The criminal information unsealed today alleges that Kerry manufactured Kellogg’s Honey Smacks cereal under insanitary conditions and distributed it in violation of the Food, Drug, and Cosmetic Act. According to the plea agreement, tests performed as part of Kerry’s environmental monitoring program found numerous instances of Salmonella in the environment at the Gridley facility. During the time period June 2016 to June 2018, routine environmental tests detected Salmonella in the plant approximately 81 times, including at least one positive Salmonella sample each month. According to the plea agreement, employees at the Gridley facility routinely failed to implement corrective and preventative actions (CAPAs) to address positive Salmonella tests.
In June 2018, the FDA and the Centers for Disease Control and Prevention (CDC) announced that an ongoing outbreak of salmonellosis cases in the United States could be traced to Kellogg’s Honey Smacks cereal produced at Kerry’s Gridley facility. In response, Kellogg’s voluntarily recalled all Honey Smacks manufactured at the plant since June 2017. The CDC eventually identified more than 130 cases of salmonellosis linked to the outbreak, with illness onset dates beginning in March 2018. The CDC did not identify any deaths related to the outbreak.
Salmonellosis can cause symptoms such as diarrhea, fever, and abdominal cramps that last several days in healthy adults. Absent prompt treatment, salmonellosis can cause severe dehydration and even death in infants, young children, the elderly, transplant recipients, pregnant women, and individuals with weakened immune systems.
In a related case, Ravi K. Chermala, Kerry’s Director of Quality Assurance until September 2018, previously pleaded guilty to three misdemeanor counts of causing the introduction of adulterated food into interstate commerce. Chermala oversaw the sanitation programs at various Kerry manufacturing plants, including the Gridley facility. In pleading guilty, Chermala admitted that between June 2016 and June 2018, he directed subordinates not to report certain information to Kellogg’s about conditions at the Gridley facility. In addition, Chermala admitted that he directed subordinates at the Gridley facility to alter the plant’s program for monitoring for the presence of pathogens in the plant, limiting the facility’s ability to accurately detect insanitary conditions. Chermala is scheduled to be sentenced on Feb. 16.
The court set a March 14 sentencing date for Kerry. Further information about the Kerry and Chermala cases will be posted to the Department’s Information for Victims in Large Cases website at https://www.justice.gov/largecases.
FDA’s Office of Criminal Investigations is investigating the matter.
Senior Trial Attorney James T. Nelson of the Civil Division's Consumer Protection Branch is prosecuting the case. Former Trial Attorney Cody Matthew Herche and Associate Chief Counsel Jason Hadges of FDA’s Office of Chief Counsel provided substantial assistance.
For more information about the enforcement efforts of the Consumer Protection Branch, visit the Branch’s website at http://www.justice.gov/civil/consumer-protection-branch
Justice Department Withdraws Outdated Enforcement Policy StatementsRead the Press Release
The Justice Department's Antitrust Division announced today the withdrawal of three outdated antitrust policy statements related to enforcement in healthcare markets: Department of Justice and FTC Antitrust Enforcement Policy Statements in the Health Care Area (Sept. 15, 1993); Statements of Antitrust Enforcement Policy in Health Care (Aug. 1, 1996); and Statement of Antitrust Enforcement Policy Regarding Accountable Care Organizations Participating in the Medicare Shared Savings Program (Oct. 20, 2011).
After careful review and consideration, the division has determined that the withdrawal of the three statements is the best course of action for promoting competition and transparency. Over the past three decades since this guidance was first released, the healthcare landscape has changed significantly. As a result, the statements are overly permissive on certain subjects, such as information sharing, and no longer serve their intended purposes of providing encompassing guidance to the public on relevant healthcare competition issues in today’s environment. Withdrawal therefore best serves the interest of transparency with respect to the Antitrust Division’s enforcement policy in healthcare markets. Recent enforcement actions and competition advocacy in healthcare provide guidance to the public, and a case-by-case enforcement approach will allow the Division to better evaluate mergers and conduct in healthcare markets that may harm competition.
“The healthcare industry has changed a lot since 1993, and the withdrawal of that era’s out of date guidance is long overdue,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “The Antitrust Division will continue to work to ensure that its enforcement efforts reflect modern market realities.”
Guidance documents are non-binding and do not create legal rights or obligations. Antitrust enforcement and competition advocacy in healthcare remain important parts of the division’s mission, and the division will continue to vigorously enforce the antitrust laws in the healthcare industry.
Jury Convicts Sex Offender of Attempting to Entice a MinorRead the Press Release
UTICA, NEW YORK – Charles Wager, age 55, of Castleton-on-Hudson, New York, was convicted yesterday of attempting to entice a minor into engaging in unlawful sexual activities, following a 4-day trial. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
The trial evidence established that in January and February 2021, Wager exchanged thousands of sexually explicit text messages with people he believed to be a 10-year-old girl and her mother. In these text messages, Wager, among other things, discussed performing different sexual acts with the 10-year-old and sent nude pictures of himself. Wager arranged to meet with the presumed mother and 10-year-old in person. On February 5, 2021, he travelled from Castleton-on-Hudson to Binghamton, New York, for the purpose of having sex with the presumed 10-year-old. The defendant was arrested shortly after his arrival.
In 2002, Wager pled guilty in Rensselaer County Court to rape in the third degree, after admitting to having sex with a then-15-year-old girl. He has been required to register as a sex offender ever since. Following his arrest in February 2021, Wager also admitted to sexually molesting two other minor victims several decades ago.
Sentencing is scheduled for June 8, 2023, before United States District Judge David N. Hurd in Utica, at which time the defendant faces a minimum term of imprisonment of 20 years, a maximum term of life, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. The 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.
The FBI Syracuse Mid-State Child Exploitation Task Force investigated this case. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and the Colonie Police Department. Assistant U.S. Attorneys Benjamin S. Clark and Thomas R. Sutcliffe prosecuted this case.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
Judge Finds Altoona Man Guilty of Distributing Child Sex Assault MaterialsRead the Press Release
JOHNSTOWN, Pa. – A former resident of Altoona, PA, has been found guilty of distribution of child pornography, U.S. Attorney Cindy K. Chung announced today.
Jamie Lee Richardson, 52, of Altoona, PA, was convicted by Senior United States District Judge Kim R. Gibson following a bench trial to Count One of an Information. According to information presented to the Court, from on or about October 30, 2014, Richardson did knowingly distribute a visual depiction of a minor engaged in sexually explicit conduct in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. All computer graphic files were shipped or transported in interstate or foreign commerce.
Richardson is scheduled to be sentenced on June 6, 2023.
The law provides for a minimum of 5 years in prison to a maximum of 20 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed on the defendant would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Richardson.
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 better 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.
Jasper County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A Buna man has been sentenced to 22 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Larry Wayne Free, 40, pleaded guilty on June 30, 2022, to possession with intent to distribute methamphetamine and was sentenced to 264 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 2, 2023.
According to information presented in court, in January 2021, law enforcement officials received information that Free was distributing methamphetamine from a residence in Nome, Texas. Free was located on Highway 90 and a traffic stop was initiated on the vehicle. A narcotics K9 unit alerted on the vehicle and a search revealed 1,948 grams of methamphetamine in the car. Free was indicted by a federal grand jury on April 6, 2022.
This case was investigated by the Drug Enforcement Administration, the Jefferson County Sheriff’s Office, the Beaumont Police Department and the Hardin County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Rachel Grove.
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Jacksonville Contract Postal Carrier Sentenced for Theft of MailRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced former United States Postal Service contract mail carrier Randolph Varbelow (48, Jacksonville) to time served, approximately four months’ imprisonment. Varbelow was also ordered to serve a two-year term of supervised release and pay restitution to the victims. He had pleaded guilty to theft of mail matter on November 15, 2022.
According to court documents, Varbelow worked as a contract mail carrier from November 2021 through January 2022 and was assigned to deliver mail on a route in Duval and St. Johns Counties. In response to complaints about missing mail on his route, the U.S. Postal Service – Office of Inspector General conducted an investigation and linked multiple stolen Target gift cards to Varbelow through transaction records and surveillance video.
This case was investigated by U.S. Postal Service – Office of Inspector General. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto on Feb. 3 for an initial appearance on a criminal complaint was:
Ryan Creighton Doak, 48, of Washington, on charges of prohibited person in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute controlled substances. If convicted of the most serious crime, Doak faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Doak was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and Montana Highway Patrol investigated the case. PACER case reference 23-10.
Appearing in Missoula before U.S. District Judge Dana L. Christensen and pleading not guilty on Feb. 2 was:
Jamey Wayne Charon, Jr., 26, of Manhattan, on charges of possession with intent to distribute methamphetamine, distribution of meth and prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, Charon faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Charon was detained pending further proceedings. The Missouri River Drug Task Force investigated the case. PACER case reference 22-28.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Feb. 2 was:
Anthony Riley Smith, 28, of Missoula, on charges of sexual exploitation of a child, transportation of child pornography and distribution and receipt of child pornography. If convicted of the most serious crime, Smith faces a mandatory minimum 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release. Smith was detained pending further proceedings. The Missoula Police Department investigated the case. PACER case reference. 22-34.
Appearing in Missoula before U.S. District Judge Dana L. Christensen and pleading not guilty on Feb. 1 was:
Sheldon Anfernee Mykal Fisher, 29, of Ronan, on charges of possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Fisher faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Fisher was detained pending further proceedings. The Flathead Tribal Police, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 23-01.
Appearing in Missoula before U.S. District Judge Donald W. Molloy and pleading not guilty on Jan. 30 was:
Kenton Alan Shaull, 59, of Auburn, Washington, on charges of attempted coercion and enticement of a minor and travel with the intent to engage in illicit sexual activity. If convicted of the most serious crime, Shaull faces 10 years to life in prison, a $250,000 fine and a lifetime on supervised release. Shaull was detained pending further proceedings. The FBI Child Exploitation and Human Trafficking Task Force and Missoula County Sheriff’s Office investigated the case. PACER case reference. 23-04.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 1 was:
Terrance Travis Aimsback, 34, of Heart Butte, on charges of second degree murder. If convicted of the most serious crime, Aimsback faces life in prison, a $250,000 fine and five years of supervised release. Aimsback was detained pending further proceedings. The FBI investigated the case. PACER case reference. 23-07.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 3 was:
Alexandre Zdenek Davis, 26, of Billings, on charges of false statement during firearms transaction, felon in possession of a firearm, false statement in applying for a passport and aggravated identity theft. If convicted of the most serious crime, Davis faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release and a mandatory minimum two years consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft charge. Davis was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. PACER case reference. 22-106.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Who Portrayed Himself as Experienced Stock Trader Sentenced to 30 Months' Imprisonment for Defrauding InvestorRead the Press Release
Gonzalo Ortiz was sentenced yesterday in federal court in Brooklyn by United States District Judge William F. Kuntz II, to 30 months in prison for defrauding an investor of nearly $600,000 by making false representations about Ortiz’s trading expertise and the profitability of various investments. The Court also ordered Ortiz to pay $224,500 in restitution to the victim and imposed two years of supervised release to follow his custodial sentence. In November 2021, Ortiz pleaded guilty to one count of investment advisor fraud.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance in this case.
Between approximately April 2015 and May 2017, Ortiz falsely represented himself to an investor (the “Victim”) as a successful investment adviser who had made profits for other individuals by trading stocks on their behalf. Ortiz convinced the Victim to allow him to invest the Victim’s money, promising significant returns. Based on those misrepresentations, the Victim made successive investments with Ortiz over a period of years. During this time, Ortiz falsely told the Victim that the investments were profitable and sent the Victim a false account statement to support these claims. In reality, Ortiz made poor trading decisions that resulted in the loss of a portion of the Victim’s money, and also stole some of the Victim’s money for himself, siphoning off portions of the investments to pay for personal expenses, including clothing, food and car payments. Ortiz controlled nearly $600,000 of the Victim’s money, stole approximately $224,500 for himself, and lost a significant amount of the Victim’s money to unprofitable trades.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith and Andrew D. Grubin are in charge of the prosecution.
The Defendant:
Gonzalo Ortiz
Age: 49
Hackensack, New JerseyE.D.N.Y. Docket No. 19-CR-161 (WFK)
Illinois Man Sentenced to 27 Months in PrisonRead the Press Release
HAMMOND – Wendell Burts, 25 years old, of Crete, Illinois, was sentenced by United States District Court Chief Judge Jon E. DeGiulio after pleading guilty to one count of Conspiracy to Commit Bank Fraud, announced United States Attorney Clifford D. Johnson.
Burts was sentenced to 27 months in prison, 2 years of supervised release and ordered to pay $190,178 to the victim bank that incurred the loss
According to documents in the case, between October 2020 and June 2021, Burts participated in a scheme with another individual to steal funds from customer accounts at the bank where the other individual was employed. The bank employee provided Burts with customers’ personal identification information, including names, social security numbers, addresses, dates of birth, driver’s license numbers and recent account transaction details. Burts used this confidential information to make changes to the accounts online and electronically transfer funds. Records show that 11 bank accounts were impacted by the scheme. Burts and his co-conspirator attempted to steal over $480,000 and were successful in stealing $190,178. The bank employee was also charged in this case, has pleaded guilty and is awaiting sentencing.
This case was investigated by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Abizer Zanzi.
Human Smuggler Sentenced to 51 Months in Fatal Christmas Day CrashRead the Press Release
For Further Information, Contact: Assistant U. S. Attorneys Paul Benjamin (619) 546-7579 and Larry Casper (619) 546-6734
SAN DIEGO – Human smuggler Kevin Antonio Quevedo-Moncada, whose attempt to escape Border Patrol agents resulted in a Christmas-Day crash that killed one unauthized immigrant and seriously injured two others, was sentenced in federal court today to more than four years in prison.
When imposing the sentence, U.S. District Judge Cathy Ann Bencivengo said: “Human trafficking is a very serious offense. This case underscores the situation at its worst.” Judge Bencivengo also noted that, despite multiple opportunities to stop before the fatal crash, the defendant’s failure to do so coupled with the “nature and circumstances make this much more aggravated.”
Quevedo-Moncado, 23, pleaded guilty in October 2022, admitting that on December 25, 2021, he picked up three undocumented migrants hiding around Otay Mountain Wilderness, a remote area in San Diego County about 12 miles east of the city of Otay Mesa and just north of the Mexican border. When Border Patrol agents attempted to stop his car, Quevedo-Moncada sped into a nearby campground where he drove erratically, nearly hitting several Border Patrol cars. He escaped the campground by ramming a Border Patrol car positioned at the exit.
Quevedo-Moncado then continued to flee down a winding, dark rural road that was slick from the rain and lost control of the car, launching it off the road and into a tree, killing one of his passengers. The two other passengers, who both survived, were hospitalized in critical condition. One of them suffered, among other injuries, a broken jaw, a collapsed lung, eight rib fractures, and injuries to his spleen and kidneys, and had to be placed into a medically-induced coma before he was stabilized. CHP accident reconstructions showed that Quevedo-Moncado’s car was travelling at speeds of up to 93 miles per hour around a curve with a speed limit of 35 when he crashed. Please see photos below of the crashed vehicle, which were included with the government’s sentencing materials.
Quevedo-Moncada, who was not seriously hurt in the crash, pushed himself out through the windshield of his car and continued his effort to flee from Border Patrol agents. When they caught him, he continued to struggle to avoid being handcuffed. After his arrest, Quevedo-Moncada admitted he was being paid $2,000 to smuggle his passengers to Anaheim. Quevedo-Moncada also admitted that, following the crash, he heard one of his passengers moaning in pain and believed that the passenger was bleeding, but did not stop to help him. Quevedo-Moncado claimed that he did not assist because he did not know the man and because Quevedo-Moncado was also in pain.
“This was an aggravated crime motivated by profit and committed with no regard for human life,” said U.S. Attorney Randy Grossman. “The passengers were treated as disposable cargo with predictably tragic results. We will continue to hold unscrupulous human smugglers responsible for the consequences of their greedy and deadly actions.”
Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“We are grateful for the hard work and tenacity that our Border Patrol agents and partners in the U.S. Attorney’s Office demonstrated in bringing this criminal to justice,” said San Diego Sector Chief Patrol Agent Aaron Heitke. “To prevent further tragedy, it is imperative that we continue holding smugglers and their transportation cells accountable for reckless and life-threatening behavior.”
The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border, from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Homeland Security Investigations, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
DEFENDANTS Case Number 22-CR-0038-CAB
Kevin Antonio Quevedo-Moncada Age: 23 Lake Forest, California
SUMMARY OF CHARGES
Transportation of Certain Aliens Resulting in Death – Title 8 U.S.C. Section 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iv)
Maximum Penalties – Life in prison or death; $250,000 fine
Transportation of Certain Aliens Resulting in Serious Bodily Injury – Title 8 U.S.C. Section 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iii)
Maximum Penalties – Twenty years in prison; $250,000 fine
INVESTIGATING AGENCIES
United States Border Patrol
Federal Bureau of InvestigationHudson Physician Sentenced to Prison and Ordered to Pay $2.1 Million in Restitution for Role in Prescription Drug Kickback ConspiracyRead the Press Release
AKRON – Deepak Raheja, 66, of Hudson, Ohio, was sentenced today to 30 months in prison by U.S. District Judge Sara Lioi after he pleaded guilty to his role in a pharmaceutical kickback conspiracy. In addition to the prison sentence, Raheja was ordered to surrender his medical license, pay $2,163,995 in restitution, and a $50,000 fine.
According to court documents, between February 2011 and July 2016, Raheja and co-defendants Frank Mazzucco, Gregory Hayslette, and Bhupinder Sawhny conspired together to increase the number of prescriptions that Raheja and Sawhny wrote for Nuedexta, a prescription drug, in exchange for the payment of monetary kickbacks and other items of value.
Court records say that Mazzucco and Hayslette were employed as pharmaceutical sales representatives by Avanir Pharmaceuticals in the region where Raheja and Sawhny practiced. Avanir Pharmaceuticals manufactured Nuedexta, a drug approved by the FDA solely to treat pseudobulbar (PBA). PBA is a condition characterized by involuntary, sudden, and frequent episodes of uncontrollable laughing and crying.
According to court records, Avanir promoted Nuedexta through a speaker’s bureau, in which Avanir representatives engaged doctors to speak about and promote Nuedexta to other medical professionals. Typical speaking engagements involved dinner at a high-end restaurant in which the doctor made a presentation with a slide deck provided by Avanir. An Avanir sales representative was responsible for inviting attendees and attending the presentation.
Court documents state that Raheja joined Avanir’s speaker’s bureau in February 2011 and gave approximately 211 speaking presentations at various restaurants and doctor’s offices between October 2011 and April 2016. For each of these purported presentations, court documents claim that Raheja received approximately $1,500.
During this timeframe, court documents say that Raheja received approximately $331,550 in total payments from Avanir and wrote approximately 10,088 Nuedexta prescriptions – the highest in the country.
As part of the conspiracy, Mazzucco and Hayslette incentivized physicians, including Raheja and Sawhny to write Nuedexta prescriptions through various means, such as arranging speaker’s bureau programs, which were mostly social events; honoraria payments; the falsification of sign-in sheets from speaking engagements to maximize payments and providing food and beverages to doctors and their office staff.
Court documents explain that Raheja and Sawhny took steps in return for these things of value, including writing more Nuedexta prescriptions; causing the submission of billings to Medicare and Medicaid for Nuedexta prescriptions for patients that did not have PBA; falsely diagnosing patients with PBA and recording fictitious symptoms in patient records to support a diagnosis of PBA.
Mazzucco and Hayslette are both scheduled to be sentenced in February 2023 for their roles in the scheme. Sawhny was sentenced to serve three years’ probation and pay $40,126.22 in restitution for his role in the scheme.
This case was investigated by the Cleveland FBI, the Office of Inspector General (OIG) for the United States Department of Health and Human Services (HHS), and the Ohio Attorney General’s Healthcare Fraud Section.
This case was prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
Hoover Criminal Gang Member Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A Hoover Criminal Gang member and Portland resident was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Anthony Devion Bagsby, 31, was sentenced to 24 months in federal prison and 3 years’ supervised release.
According to court documents, as part of an ongoing federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos online of Bagsby, a convicted felon, possessing firearms. Further investigation revealed that Bagsby frequented an apartment occupied by known Hoover Criminal Gang members on Halsey Street in northeast Portland.
On April 16, 2021, while executing a federal search warrant on the apartment, investigators arrested Bagsby and several other individuals. They found a loaded Springfield XD-40 handgun in a basket in the kitchen. Three of the rounds found in the handgun were colored blue. In the living room, investigators found several items connected to Bagsby, including prescription medication and mail. In the same area, they found an empty magazine; several dozen 9mm cartridges; four .40 caliber rounds including one blue round matching the bullets found in the loaded handgun, and a plastic bag of methamphetamine. Investigators later located text messages on Bagsby’s phone wherein he bragged about obtaining a “brand new XD 40.”
On July 20, 2021, a federal grand jury indicted Bagsby on two counts of illegally possessing a firearm as a convicted felon. On October 18, 2022, he pleaded guilty.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that MARIO RENE REYES-CARDONA, age 51, pleaded guilty on February 2, 2023 as charged to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to documents filed in court and signed by him, MARIO RENE REYES-CARDONA (“REYES-CARDONA”) admitted to reentering the United States after he was previously deported on December 18, 2013. REYES-CARDONA faces a maximum term of imprisonment of two years, a maximum fine of $250,000.00, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
Honduran National Charged with Transporting Illegal AliensRead the Press Release
TOLEDO – A federal grand jury has returned a three-count indictment charging Nestor Alfredo Figueroa-Murillo, 29, of Honduras, with three counts of transporting illegal aliens unlawfully in the United States.
According to court documents, on Jan. 24, 2023, Border Patrol Agents performing patrol duties near a Service Plaza on the Ohio Turnpike in Sandusky County, Ohio, pulled over a vehicle driven by Figueroa-Murillo and discovered that he was transporting six other people inside the vehicle who were illegally inside the United States without authorization. Court documents state that agents then began an investigation into the matter and determined that the six people found inside the vehicle had been illegally transported into the United States.
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 investigation was conducted by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorneys Robert N. Melching and Frank Spryszak.
Hendersonville Man Extradited from Morocco to Face Bank Fraud & Tax ChargesRead the Press Release
NASHVILLE – A Hendersonville, Tennessee man appeared before a U.S. Magistrate Judge in Nashville earlier today, after being extradited from Morocco to face an array of charges including bank fraud, tax fraud, and money laundering, announced U.S. Attorney Henry C. Leventis.
Scotty Thomas Lumley, 55, arrived in the Middle District of Tennessee last night after being extradited from Morocco to face charges in the U.S. In November 2020, Lumley flew to Morocco after becoming aware of a federal investigation. A federal grand jury in Nashville indicted Lumley in February 2022.
Lumley previously pleaded guilty to federal wire fraud and money laundering charges in 2015 and as alleged in the current indictment, he began committing additional federal crimes later that same year by keeping taxes withheld from his employees’ paychecks, rather than paying those funds over to the IRS.
The indictment also alleges that in 2017, the IRS attempted to recover approximately $119,000.00 which Lumley personally owed the government. In an attempt to settle his tax liability for $10,000, Lumley filed an offer-in-compromise falsely stating that the only vehicle he owned was a GMC 3500 with a negative value. In truth, however, he owned a 2012 Ferrari 458 Spider with significant equity.
In 2017 and 2018, Lumley obtained a series of bank loans after providing lenders with falsified documents showing that his personal net worth was more than $30 million. Lumley did not disclose that he had an outstanding tax liability of more than $119,000 and tricked the lenders into providing more than $3 million in loans.
While in Morocco, Lumley allegedly used a fabricated purchase order to defraud a Utah company of more than $500,000. In December 2021 a grand jury in the District of Utah charged him with wire fraud for this conduct and those charges are currently pending.
If convicted, Lumley faces up to 30 years in prison and a fine of up to $1 million.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case for the Middle District of Tennessee. The extradition was handled by the Justice Department’s Office of International Affairs with the cooperation of the Moroccan government and assistance from the U.S. Embassy in Morocco.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Halibut Cove Woman Indicted on Federal ChargesRead the Press Release
ANCHORAGE – A federal grand jury in Alaska returned an indictment charging a Homer woman with attempted interference with the navigation of a seaplane and negligent operations of a vessel.
According to court documents, Marian Beck, 68, operated her vessel in a reckless manner as she made several close passing maneuvers in front of a seaplane full of passengers while it was taxiing out of the waterway. Beck is a licensed mariner and operates commercially in Halibut Cove and the surrounding area.
The defendant was arraigned on February 3, 2023, before Chief U.S. Magistrate Judge Matthew S.
Scoble. If convicted, she faces a maximum of 21 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Coast Guard Investigative Service (CGIS) with the help of the Alaska State Troopers (AST) are investigating the case.
Assistant U.S. Attorney Jack Schmidt and Special Assistant U.S. Attorney Amanda Gavelek are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S.Read the Press Release
ATLANTA – Following a nine-day trial, Ahamefule Aso Odus has been convicted by a federal jury on 12 counts of money laundering stemming from his role in a massive money laundering operation. Odus fled after testifying during his trial and is currently a fugitive.
“Odus and his co-conspirators laundered millions of dollars stolen from companies and individuals throughout the United States and abroad,” said U.S. Attorney Ryan K. Buchanan. “Although Odus is on the run, he cannot and will not evade justice for his crimes. We will continue to devote our office’s time and resources to uncovering these kinds of complex schemes and holding accountable those individuals who perpetrate them.”
“As the only defendant in “Operation Five Fingers” who refused to take a plea and elected to go to trial, this swift jury conviction proves the massive amount of evidence that law enforcement had of Odus and his coconspirators crimes,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No matter how elaborate or complicated the fraud scheme, the FBI and our federal partners will continue to uncover and unravel them to protect American citizens and businesses.”
“Ahamefule Aso Odus Jr. facilitated the theft of retirement plan assets by knowingly receiving fraudulently obtained funds from an individual’s ERISA covered retirement account into his business bank account. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s, Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ahamefule Aso Odus and his co-conspirators acted as money launderers for unknown fraudsters who scammed unsuspecting individuals and companies out of millions of dollars. Members of the conspiracy, including Odus, created sham companies and registered them with the Georgia Secretary of State. Those companies did not maintain a physical place to conduct business, did not earn legitimate income, and did not pay wages to employees. Instead, the conspirators used these sham companies to open bank accounts and then funnel fraud money through the accounts.
Upon receipt of the fraud proceeds, Odus and his co-conspirators quickly converted the money to their own use, and to the use of their criminal associates, through wire transfers, over-the-counter cash withdrawals, and the purchase of cashier’s checks. This conduct involved monetary transactions of more than $10,000 that were designed to conceal and disguise the nature, location, source, ownership, and control of these fraudulent proceeds.
Odus is one of 41 people originally charged in four related fraud and money laundering cases, known collectively as “Operation Five Fingers.” Together, members of this criminal organization laundered more than $30 million in fraud proceeds from victims of computer-enabled scams, including business email compromise schemes, romance fraud schemes, and retirement account takeover schemes.
To date, 39 of the 41 “Operation Five Fingers” defendants have been convicted. Twenty-five of the defendants have been sentenced, with sentences ranging from six months to eight years of incarceration. Charges against one defendant were dismissed after he died while he was a fugitive, and one defendant is scheduled to enter a guilty plea on March 10, 2023.
On January 30, 2023, a jury convicted Odus on one count of conspiracy to commit money laundering and three counts of concealment money laundering. The jury also convicted him of eight counts of transactional money laundering. In a bifurcated proceeding after the verdict, the jury forfeited $73,896 that had been seized from Odus.
Sentencing for Ahamefule Aso Odus, 30, of Atlanta, Georgia, is scheduled for May 9, 2023, at 9:30 a.m. before U.S. District Judge William M. Ray II.
This case was investigated by the Department of Labor, Office of Inspector General, the Federal Bureau of Investigation, the United States Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice. The investigating agencies received considerable assistance from numerous federal, state, and local law enforcement authorities throughout the investigation.
Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Time Deported Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that SANTOS RAMOS-CASTILLO, a/k/a “Santos Ramos-Castillo”, age 36, plead guilty as charged on February 1, 2023 to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) .
According to documents filed in court and signed by him, SANTOS RAMOS-CASTILLO (“RAMOS-CASTILLO”) admitted to reentering the United States after he was previously deported on November 16, 2015. He also admitted to being deported four other times prior to his November, 2015 deportation . If convicted, RAMOS-CASTILLO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Four Newburg Area Men Sentenced for Federal Drug Trafficking and Firearms ChargesRead the Press Release
Louisville, KY – Four men, originally from Mississippi but most recently living here, have been sentenced for their roles in a drug trafficking ring occurring in apartments located in the Newburg area of Louisville. The men have also been sentenced for illegally possessing numerous firearms after having previously been convicted of felonies.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
On Wednesday, in the United States District Court for the Western District of Kentucky, Seiko Ross, 38, was sentenced to 14 years and 7 months in prison followed by five years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine; possessing with the intent to distribute cocaine, fentanyl, marijuana, and five grams or more of methamphetamine; and being in possession of three firearms after having previously been convicted of the following felonies. On March 20, 2019, in Jefferson Circuit Court, Kentucky, Seiko Ross was convicted of being a felon in possession of a firearm. On November 7, 2016, in Rankin Circuit Court, Mississippi, Seiko Ross was convicted of possession of cocaine. On March 19, 2012, in Hinds Circuit Court, Mississippi, Seiko Ross was convicted of being a felon in possession of a firearm.
Also on Wednesday, Robert Ross, 28, was sentenced to 11 years in prison followed by five years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine; possessing with the intent to distribute cocaine; and being in possession of seven firearms after having previously been convicted of the following felonies. In two separate cases on February 17, 2019, in Jefferson Circuit Court, Kentucky, Robert Ross was convicted of being a felon in possession of a firearm, receiving a stolen firearm, tampering with physical evidence, trafficking in a controlled substance, and tampering with physical evidence. On January 28, 2016, in Hinds Circuit Court, Mississippi, Robert Ross was convicted of conspiracy to commit a crime.
On January 26, 2023, in the United States District Court for the Western District of Kentucky, Cory Ross, 31, was sentenced to 9 years in prison followed by five years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine and possessing with the intent to distribute methamphetamine and cocaine.
On November 21, 2022, Andre Ross, 47, was sentenced to 4 years and 3 months in prison followed by three years of supervised release for committing the following offenses to which he previously pled guilty: conspiring to possess with the intent to distribute cocaine and possessing four firearms after having previously been convicted of the following felonies. On March 23, 2009, in Pike Circuit Court, Mississippi, Andre Ross was convicted of conspiracy to commit a crime. On October 6, 2000, in Hinds Circuit Court, Mississippi, Andre Ross was convicted of possession of cocaine.
There is no parole in the federal system.
“I commend LMPD and the FBI for their excellent work in this case as well as each agency’s ongoing commitment to making our communities safer,” stated U.S. Attorney Bennett. “LMPD’s solid partnerships, with this office and with our local federal law enforcement agencies, are crucial to the continued success of our strategic enforcement efforts.”
“Due to the hard work and coordination between FBI Louisville and our law enforcement partners, members of this drug trafficking organization will spend a significant time behind bars and no longer be a threat to the safety of innocent families throughout the Louisville community,” said Special Agent in Charge Cohen. “The FBI remains committed to identifying and investigating the violent gangs that continue to plague our streets with drugs and guns.”
“LMPD would like to thank the US Attorney’s Office and the FBI for their collaboration in this investigation,” stated Chief Gwinn-Villaroel. “The successful prosecution of individuals who pose a danger to our community is illustrative of the strong partnership between LMPD and our federal law enforcement partners.”
This case was investigated by the Louisville Metro Police Department’s Criminal Interdiction Division and the Federal Bureau of Investigation.
Assistant United States Attorneys Erin McKinzie and Jo E. Lawless prosecuted the case.
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Four Georgia men sentenced for international firearms trafficking schemeRead the Press Release
ATLANTA – Four men have been sentenced to federal prison for their roles in trafficking more than 160 firearms, some of which were smuggled out of the country and recovered from various crime scenes.
“Firearms trafficking is a serious crime that fuels violence,” said U.S. Attorney Ryan K. Buchanan. “By placing firearms in the hands of convicted felons and other prohibited persons, straw purchasers of firearms, like the defendants in this case, play a key role in propagating violence in our community. This case sends a clear message: straw purchases will lead to prosecution.”
“This investigation and sentence is another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners. Through this cooperative effort we were able to apprehend and successfully prosecute violent and dangerous individuals which posed a significant threat to the public,” said ATF Assistant Special Agent in Charge Beau Kolodka.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between May 2021 and continuing through early March 2022, Romeo Swofford directed other individuals, including co-defendants Emmanuel Barden and Cemonte Wade, to obtain upwards of 160 handguns from federally licensed firearms dealers within the Atlanta area. Barden and Wade deceived the licensed dealers by falsely representing that they were buying guns for themselves. In truth, Swofford was the actual purchaser who paid for and took possession of the guns once the transactions were completed.
Swofford sought to acquire guns so he could profit from reselling them to convicted criminals and other people who would use, possess, or export them unlawfully. To facilitate these illegal gun sales, Swofford used hand tools to obliterate the serial numbers on dozens of the firearms. But nearly 20 of the guns Swofford sold were recovered from crime scenes in Canada where law enforcement authorities successfully restored the serial numbers Swofford attempted to remove.
On March 9, 2022, federal agents watched Swofford accompany Wade to two different Cobb County gun stores. Wade purchased three Glock semiautomatic pistols before relinquishing them to Swofford. Afterwards, Swofford and Wade met co-defendant Medford Layatte Daniels, Jr. outside a deli in the Edgewood neighborhood of Atlanta. Swofford then moved guns, drugs, and a scale into Daniels’s van. Both Swofford and Daniels were armed with loaded pistols. Daniels was on probation for unrelated gun and drug crimes at the time.
U.S. District Judge Jean-Paul “J.P.” Boulee sentenced the defendants as follows:
- Romeo Swofford, a/k/a “Lil Richie,” 21, of Lithonia, Georgia, was sentenced to 10 years, one month in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer and aiding and abetting false statements to a federally licensed firearms dealer.
- Medford Layatte Daniels, Jr., a/k/a “NFNC Freak,” 26, of Conley, Georgia, was sentenced to nine years, three months in prison to be followed by five years of supervised release after pleading guilty to receipt of a firearm by a person under indictment and carrying a firearm during and in relation to a drug trafficking crime.
- Emmanuel Marquis Barden, 23, of Decatur, Georgia, was sentenced to four years, nine months in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer.
- Cemonte Deshon Wade, 23, of Ellenwood, Georgia, was sentenced to three years, one month in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Theodore S. Hertzberg and Annalise K. Peters prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Media Producer Convicted of Extortion and Obstruction of JusticeRead the Press Release
WASHINGTON – A federal jury convicted a Puerto Rican man today of extortion and obstruction of justice related to his involvement in a scheme to obtain money in exchange for preventing the release of chat messages involving senior officials in the Government of Puerto Rico.
According to court documents and evidence presented at trial, Sixto Jorge Díaz Colón, 54, of San Juan, attempted to extort a public official in the Government of Puerto Rico in June 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram chat messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI in July 2019, Díaz Colón deleted messages containing information about his involvement in the scheme before surrendering his cellular telephone to the authorities.
Díaz Colón was convicted in the District of Puerto Rico of one count of attempted extortion, one count of interstate extortion, and one count of obstruction of justice. He is scheduled to be sentenced on May 5 and faces a maximum penalty of 20 years in prison on the top counts. 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, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Former PIN Trial Attorney James Pearce and Trial Attorney Byron Jones of the Criminal Division’s Computer Crime and Intellectual Property Section also provided assistance.
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Former Media Producer Convicted of Extortion and Obstruction of JusticeRead the Press Release
A federal jury convicted a Puerto Rican man today of extortion and obstruction of justice related to his involvement in a scheme to obtain money in exchange for preventing the release of chat messages involving senior officials in the Government of Puerto Rico.
According to court documents and evidence presented at trial, Sixto Jorge Díaz Colón, 54, of San Juan, attempted to extort a public official in the Government of Puerto Rico in June 2019. Díaz Colón attempted to secure a $300,000 payment and other things of value from the official in exchange for the assurance that certain Telegram chat messages containing damaging information about various public officials in the government would not be disclosed publicly. When approached by the FBI in July 2019, Díaz Colón deleted messages containing information about his involvement in the scheme before surrendering his cellular telephone to the authorities.
Díaz Colón was convicted in the District of Puerto Rico of one count of attempted extortion, one count of interstate extortion, and one count of obstruction of justice. He is scheduled to be sentenced on May 5 and faces a maximum penalty of 20 years in prison on the top counts. 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, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Michael N. Lang of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Former PIN Trial Attorney James Pearce and Trial Attorney Byron Jones of the Criminal Division’s Computer Crime and Intellectual Property Section also provided assistance.
Former Bank Teller Sentenced for Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on February 1, 2023 United States District Judge Sarah S. Vance sentenced KAREN FARRELL TIGLER, age 40, of Marrero, Louisiana, to twenty-seven (27) months imprisonment followed by two (2) years of supervised release for violating Title 18, United States Code, Section 1344 (Bank Fraud), and Making and Subscribing False Tax Returns in violation of Title 26, United States Code, Section 7206(1).
According to documents filed in federal court, from January 1, 2013, to November 14, 2016, TIGLER was employed as a multi-service banker with the Hancock Whitney Bank. TIGLER worked at the Whitney branch, also known as the “Morgan State Branch,” located in New Orleans, LA. Client A was in her mid-80s in 2015 and 2016 and was a banking customer of Whitney.
From February 9, 2015, to October 28, 2016, TIGLER used her position with the bank to embezzle approximately $349,556 from Client A’s account by using 100 counter checks to debit funds from Client A’s account. TIGLER used her position with the bank to access personal information from other legitimate banking transactions to create the fraudulent counter checks. TIGLER forged the signatures of Client A and various others on the counter checks in an effort to conceal her embezzlement scheme. TIGLER accessed or utilized legitimate checks drawn on Client A’s account in order to prepare fraudulent counter checks. TIGLER cashed 21 counter checks totaling $73,924 that were supposedly for “roofing,” “market/garden work,” “light fixtures/cleaning,” “extras plumbing,” “misc. work,” “renovations,” and “maintenance.” TIGLER cashed the other 79 counter checks totaling approximately $275,632 payable to another individual that were supposedly for “house,” “maintenance,” and for “happy birthday.”
In addition, TIGLER failed to report $134,429 on her 2015 tax return and $215,127 on her 2016 return. TIGLER reported W-2 income from the bank of $21,290 for the tax year 2015 and $19,256 for 2016. TIGLER spread the deposits of cash of embezzled funds into her various accounts. TIGLER also failed to report gambling winnings of $32,180 on her 2015 tax return. When confronted by a relative of Client A, TIGLER falsely implicated another individual in an effort to conceal her embezzlement of funds from Client A’s account.
United States District Judge Sarah S. Vance sentenced TIGLER to twenty-seven (27) months imprisonment, followed by two (2) years supervised release. TIGLER must also pay a $200.00 mandatory special assessment fee, restitution in the amount of $80,502.00 to the Internal Revenue Service, and $349,555.72 to Hancock Whitney Bank.
“Karen Tigler used her position at the bank to embezzle from an unsuspecting senior citizen customer,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Tigler’s sentence today sends a message that those who break the public’s trust by engaging in criminal activities will be prosecuted.”
“Karen Tigler’s duplicitous actions constitute Elder Fraud. Her fraudulent schemes unfairly targeted an elderly consumer, causing far reaching consequences and excessive losses. With the continued cooperation of our law enforcement partners, the U.S. Attorney’s Office, EDLA will hold the perpetrators of elder fraud schemes accountable for their crimes. Our office cautions seniors and their caregivers to be vigilant for potential fraud and, if victimized, to contact law enforcement,” said U.S. Attorney Duane A. Evans.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the Hancock Whitney Bank with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit, and Assistant U.S. Attorney Maria Carboni.
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am - 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST.
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Former Arkansas State Senator Sentenced for Bribery and Tax FraudRead the Press Release
WASHINGTON – A former Arkansas State Senator was sentenced today to 46 months in prison in the Eastern District of Arkansas for accepting multiple bribes and tax fraud in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.
Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery.
According to court documents, from 2010 through 2017, Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use and then filed false federal income tax returns from 2011 to 2014 to conceal his conduct. In addition, Hutchinson was hired as outside counsel by Dr. Benjamin Burris, an orthodontist who owned and operated orthodontic clinics throughout the state of Arkansas. In exchange for payments and legal work, Hutchinson pushed legislation beneficial to Burris. Hutchinson was provided legal work to conceal the corrupt nature of his arrangement. Hutchinson stole over $10,000 in state campaign funds for his own personal use and also falsified his 2011 tax returns, including failing to report $20,000-per-month-payments he received from one law firm and other sources of income he knowingly and intentionally concealed from his taxes.
Hutchinson is still pending sentencing in the Western District of Missouri for his role in a separate multimillion-dollar public corruption scheme that involved embezzlement, bribes, and illegal campaign contributions for elected public officials. According to court documents, Hutchinson accepted bribes in the form of monthly legal retainers and other things of value from employees and executives of Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based health care charity. In exchange for the bribes, Hutchinson provided favorable legislative and official action for the charity.
In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the charity admitted the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:
- Former Chief Operating Officer, Bontiea Bernedette Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
- Former Chief Financial Officer, Tommy “Tom” Ray Goss, husband of Bontiea Goss and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles A. Dayoub of the FBI Kansas City Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
The FBI, IRS-CI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the FDIC investigated the cases.
Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorneys Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.
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Former Arkansas State Senator Sentenced for Bribery and Tax FraudRead the Press Release
A former Arkansas State Senator was sentenced today to 46 months in prison in the Eastern District of Arkansas for accepting multiple bribes and tax fraud in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.
Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery.
According to court documents, from 2010 through 2017, Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use and then filed false federal income tax returns from 2011 to 2014 to conceal his conduct. In addition, Hutchinson was hired as outside counsel by Dr. Benjamin Burris, an orthodontist who owned and operated orthodontic clinics throughout the state of Arkansas. In exchange for payments and legal work, Hutchinson pushed legislation beneficial to Burris. Hutchinson was provided legal work to conceal the corrupt nature of his arrangement. Hutchinson stole over $10,000 in state campaign funds for his own personal use and also falsified his 2011 tax returns, including failing to report $20,000-per-month-payments he received from one law firm and other sources of income he knowingly and intentionally concealed from his taxes.
Hutchinson is still pending sentencing in the Western District of Missouri for his role in a separate multimillion-dollar public corruption scheme that involved embezzlement, bribes, and illegal campaign contributions for elected public officials. According to court documents, Hutchinson accepted bribes in the form of monthly legal retainers and other things of value from employees and executives of Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based health care charity. In exchange for the bribes, Hutchinson provided favorable legislative and official action for the charity.
In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the charity admitted the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:
- Former Chief Operating Officer, Bontiea Bernedette Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
- Former Chief Financial Officer, Tommy “Tom” Ray Goss, husband of Bontiea Goss and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles A. Dayoub of the FBI Kansas City Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
The FBI, IRS-CI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the FDIC investigated the cases.
Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorneys Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.
Federal Jury Convicts Palm Beach Resident of Defrauding Cystic Fibrosis NonprofitRead the Press Release
MIAMI – Following a trial in West Palm Beach federal court, a jury found Elizabeth Genna Suarez, formerly known as “Elizabeth Mirson Suit,” 34, guilty of wire fraud.
According to evidence presented by federal prosecutors, from August 2018 to November 2019, Suarez executed a scheme to defraud Piper’s Angels Foundation, Inc., a nonprofit organization dedicated to supporting individuals with cystic fibrosis and their families. During that time, Suarez was married to the foundation’s executive director and used her access to the foundation money to divert it to herself. For example, Suarez used her copy of the foundation’s corporate credit card in July 2019 to make an $8,000 deposit on a cosmetic surgical procedure, pay $1,680 for a cosmetic laser procedure, and spend $800 on a necklace.
Suarez was convicted on three counts of wire fraud and acquitted on one. Suarez is scheduled to be sentenced April 6, at 2:00 p.m. in West Palm Beach before the Honorable Donald M. Middlebrooks.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida, and Maged Behnam, Acting Special Agent in Charge, FBI Miami, announced the conviction.
FBI Miami investigated this case. Assistant U.S. Attorney Alexandra Chase prosecuted it. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 22-cr-80185.
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