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2 February 2023
Pine Ridge Man Convicted of Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on January 25, 2023.
Charles Schrader, 56, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Charles Schrader was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in June of 2022. He pleaded guilty on September 23, 2022.
During his involvement in the conspiracy, Schrader obtained distributable quantities of methamphetamine from his sources and then would sell the methamphetamine, primarily on the Pine Ridge Reservation. He did so knowing that the methamphetamine he sold would be further distributed by others. During the sentencing, evidence was presented that at times Schrader possessed firearms in relation to his methamphetamine distribution.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, Oglala Sioux Tribe Department of Public Safety, and the Rapid City Police Department. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Schrader was immediately remanded to the custody of the U.S. Marshals Service.
Personal injury attorney convicted of obstructing justiceRead the Press Release
HOUSTON – A 56-year-old Houston resident has been found guilty on multiple counts related to a complicated tax fraud scheme, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Richard J. Plezia for conspiracy as well as two counts of making false statements and falsification of a record following a month-long trial and approximately eight hours of deliberation.
“We are a nation of laws, where lawyers swear to uphold those laws” said Hamdani. “When lawyers, like Plezia, corrupt their oath for their own gain, such actions can corrode the public’s confidence in our legal system. It is important to deter such conduct, and we are pleased with the jury’s verdict holding Plezia accountable for his crimes.”
“I can tell you that justice was served and the professionalism of our special agents from the start of the case to the testimony during the trial is a testament to the outstanding work IRS-Criminal Investigation (CI) does to bring conspiracies like this to finality,” said Special Agent-in-Charge Ramsey E. Covington of IRS-CI’s Houston Field Office. “We are here to serve our community by working with the United States Attorney’s Office to bring criminal activities, specifically those with tax and financial ties, to an end.”
The evidence detailed a complex tax fraud scheme in which Plezia funneled approximately $500,000 through his business account from attorney Jeffrey Stern. The money was given to case runner Marcus Esquivel, from whom Stern was illegally purchasing personal injury cases.
Separately, Plezia himself was illegally buying cases from Esquivel and another case runner. On his tax returns, Stern took illegal tax deductions for his payments to various runners including Esquivel. This caused approximately $4.3 million in tax loss to the IRS. Plezia filed false returns, incorrectly claiming the pass-through payments from Stern through Plezia to Esquivel as income and taking corresponding incorrect deductions for marketing and advertising.
In 2016, Plezia lied to authorities, claiming he had not paid Esquivel for case referrals. Two years later, he again lied. He claimed the approximately three years of pass-through payments were the result of Stern financing a large toxic tort case Plezia was handling. To back up his false story about the money flow, Plezia produced falsified documents in response to a federal grand jury subpoena. These included an alleged 2010 letter from Plezia to Stern proposing the financing arrangement and invoices allegedly from Esquivel that purported to bill Plezia for services on the tort case.
Both Stern and Esquivel previously pleaded guilty and provided testimony that the payments through Plezia had nothing to do with the tort case. The jury heard corroborating evidence from multiple attorneys and medical providers who were involved in the matter.
U.S. District Judge Lee H. Rosenthal presided over the trial and set sentencing for May 31. At that time, Plezia faces up to 20 years for the falsification of records and five years on each of the other convictions.
Plezia was permitted to remain on bond pending that hearing.
Stern and Esquivel, both of Houston, are also pending sentencing.
IRS-CI conducted the investigation. Assistant U.S. Attorneys Robert S. Johnson and Richard Bennett are prosecuting the case.
Pennsylvania Woman Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Dawn Emanuel, 48, of Easton, Pennsylvania, pleaded guilty to conspiracy to commit wire before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Emanuel conspired with others to apply for and obtain Economic Injury Disaster Loans (EIDL) during the COVID pandemic, to which she and her co-conspirators were not entitled. Emanuel completed and filed EIDL applications that contained false representations in order to obtain loan proceeds for others who were not qualified to receive such loans. In return for her role in the conspiracy, Emanuel received a percentage of the loan proceeds, totaling approximately $127,348. The total loss amount to the government was approximately $900,000.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso, and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox.
Sentencing is scheduled for June 7, 2023, before Judge Skretny.
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Parkersburg Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Shawn David White, 41, of Parkersburg, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 8, 2018, law enforcement officers visited White’s residence while investigating a firearm theft and found a Winchester Model 12, 12-gauge shotgun, in White’s bedroom. White admitted to the officers that he possessed the shotgun.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. White is prohibited from possessing a firearm because of his convictions for grand larceny and driving while license suspended or revoked for DUI-third offense in Wood County Circuit Court on February 10, 2017.
White is scheduled to be sentenced on May, 9, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Joshua Hanks is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-150.
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One Leader of a Violent Sex Trafficking Gang Sentenced to Life and a Consecutive Ten Years Imprisonment, and a Gang Associate Sentenced to 37 years ImprisonmentRead the Press Release
PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero and announced that Karvarise Person, 33, of Reading, Pennsylvania, a member of the Gangster Disciples who “tied flags” with a gang called the “Sevens” in Reading and became one of its leaders, was sentenced to life imprisonment plus ten consecutive years’ imprisonment and ten years of supervised release. James Goode, 47, also of Reading, a drug supplier and associate the “Sevens” in Reading, was sentenced to 37 years’ imprisonment and 10 years of supervised release.
If either is ever released from prison, they will also be required to register pursuant to the Sexual Offender Registration and Notification Act.
Both Person and Goode were convicted along with Shaquile Newson, 29 and Alexander Malave, 31, by a jury on June 2, 2022, of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion, and of a minor; various violent crimes in aid of racketeering offenses including kidnapping and assaults with dangerous weapons; sex trafficking including of minors; and firearms offenses; all arising from their membership and association in a violent gang called “The Sevens,” which took control and operated out of a 50-room boarding house on South 4th Street in the City of Reading.
Person was a “general” in the Sevens gang, and trial evidence established that he was one of its most ruthless leaders. The Sevens operated primarily out of the boarding house. Person was one of 14 defendants charged with various offenses involving the violent acts of the gang, whose members represented other gangs such as the Gangster Disciples, Bloods, and Crips. One trial witness testified that when the Sevens gang took over the boarding house, it was “like Russia invading Ukraine.”
Person is the first of the gang members to be sentenced. In the course of his racketeering enterprise, he raped, robbed, caged, shot, violently beat, and caused others to do the same, under his command and leadership. Trial testimony described a shocking series of dehumanizing and violent acts. For example, victims were shot, assaulted with a baton, stabbed with a knife, and beaten with a hammer. A minor was forced to engage in a commercial sexual encounter while Person held a gun to her head; at other times, he also assaulted her with a baton and hammer and locked her naked in a dog kennel while he poked her with a knife through its bars.
Goode is the second member of the conspiracy to be sentenced. In the course of his racketeering enterprise, he distributed drugs, possessed multiple firearms, menaced a man and a woman with firearms, and raped a minor female and a woman at the boarding house. Trial testimony described Goode’s attempts to recruit women for commercial sexual encounters by raping and then paying them, and then withholding drugs from them, all in an attempt to groom and coerce the victims into sex trafficking. In addition, Goode held a close relationship with Sevens members by working alongside them to sell drugs, participating in meetings led by the Sevens leadership, and recruiting women for commercial sex at the boarding house.
“The demise of the Sevens gang was the result of the successful collaboration among local and federal authorities to dismantle a violent gang that terrorized the City of Reading,” said U.S. Attorney Romero. “We will continue to partner with our local counterparts to bring the resources necessary to dismantle violent gangs and restore peace and safety to the communities upon which they prey.”
“The Sevens gang inflicted depraved and unprecedented violence on its victims and on the communities of Reading. I hope today’s sentencing provides some solace and justice to those brutally victimized and exploited by the Sevens gang,” said HSI Philadelphia Special Agent in Charge William S. Walker. “It has been HSI Philadelphia’s privilege to partner with the Reading Police Department and the United States Attorney’s Office to rid the community of this predatory gang and to make our communities safer in the process.”
“The acts of this gang were despicable,” said John T. Adams, Berks County District Attorney. “Thanks to the collaborative efforts of local and federal law enforcement authorities, this gang and its leader will most likely never be released from prison, nor should they be. Hopefully this investigation and the penalties imposed will serve as a deterrent to rid our community of this type of criminal activity from occurring again. For those who continue to engage in this insidious behavior we will continue to investigate and prosecute them to the fullest extent of the law. I want to thank our federal partners for a job well done and we look forward to our continuing partnership to make our community a safe place to live.”
“The sentencing of Karvarise Person and James Goode was the result of a collaborative effort between the Reading Police Department and our partners in federal law enforcement,” said Reading Police Chief Torineilli. “The crimes committed by the Sevens gang, both directed and perpetrated by Karvarise Person, are some of the most violent, horrific, and inhumane acts we have ever witnessed in our community. While any sentence cannot undue the horrors the victims of this gang were forced to endure, they and our community can be assured that Person and his gang will no longer be able to terrorize our community.”
Sevens associates Shaquile Newson and Alexander Malave are scheduled for sentencing in Spring 2023.
The case was investigated by Homeland Security Investigations and the Reading Police Department and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.
Omaha Woman Convicted for Unlawful Firearm PossessionRead the Press Release
United States Attorney Steven Russell announced that Kristen M. Patterson, 40, of Omaha, Nebraska, was found guilty today, following a two-day jury trial in federal court for being a felon in possession of a firearm. United States District Judge Brian C. Buescher scheduled Patterson’s sentencing for May 3, 2023, at 10:00 a.m. Patterson faces up to ten years in prison on the firearm charge. There is no parole in the federal system.
On April 7, 2021, at around 2 a.m., Omaha Police officers saw a black GMC Sierra with an attached trailer at the Extra Space Storage facility. The GMC was not running and the lights were off. Officers completed a records check on the trailer and learned it had been reported stolen on February 27, 2021.
The driver did not respond to the commands on the PA system. Upon approach, Patterson, the driver, was taken into custody without incident. The trailer and GMC were towed and an inventory search conducted. During the inventory, officers located a Bersa Thunder 380 CC firearm in a storage pocket on the driver side center console.
Patterson was prohibited from possessing a firearm because of prior felony convictions for: unlawful possession with intent to deliver a controlled substance, theft by receiving stolen property, possession of a controlled substance, and possession of a firearm or money during a drug trafficking offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department.
Omaha Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Ryan Daniel Linehan, age 42, of Omaha, Nebraska, was sentenced on January 31, 2023, to 100 months in prison following his plea of guilty to being a felon in possession of a firearm. After he is released from prison, Linehan will serve three years of supervised release.
On February 5, 2021, law enforcement encountered Linehan at work, operating an excavator. When notified officers were there to arrest him on an outstanding warrant, Linehan barricaded himself in the excavator, in possession of a loaded Ruger handgun, which led to a nine-hour standoff. In Linehan’s truck, officers also located a loaded Hi-Point handgun.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, United States Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
North Charleston Man Sentenced to 30 Years in Federal Prison for Production of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Jonathan Reece Scarborough, 36, of North Charleston, was sentenced to 30 years in federal prison after pleading guilty to production of child pornography.
Evidence presented to the Court showed that on September 25, 2019, the North Charleston Police Department was contacted regarding a 10-year-old prepubescent female victim who had reported being sexually abused by Jonathan Reece Scarborough.
During the investigation, law enforcement officers obtained and executed search warrants at Scarborough’s residence in North Charleston, his cell phone, and his laptop. Computer forensics examiners searched Scarborough’s cell phone and laptop and found images and a video of him sexually abusing the minor female victim. The examiners also found hundreds of child pornography images Scarborough obtained from the internet, including images of prepubescent and pubescent minors being sexually assaulted by adults.
United States District Judge Bruce Howe Hendricks sentenced Jonathan Reece Scarborough to 360 months in prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation (FBI) and the North Charleston Police Department. Assistant U.S. Attorney Dean H. Secor is prosecuting the case.
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North Carolina Man Sentenced for Making A False Statement to Federal RepresentativeRead the Press Release
CHARLESTON, W.Va. – Michael James Peters, 42, of Concord, North Carolina, was sentenced today to one year in prison, to be followed by three years of supervised release, for lying to the United States Department of Agriculture regarding the Nicholas County coal he pledged as collateral for a $9 million USDA-backed business loan. Peters must also pay $1,375,000 in restitution and a $25,000 fine.
According to court documents and statements made in court, Peters was part owner, president, and operator of Taylor Rose Energy (TRE). On July 24, 2014, TRE obtained a $9,065,165 loan from a Georgia bank to buy out investors’ interest in approximately 146,954 tons of cannel coal in Dixie, Nicholas County. In support of the loan, TRE represented that it intended to convert the coal into “smokeless” coal briquettes for consumer coal-burning home heating systems in Ireland. The USDA Rural Development Business and Industry loan program guaranteed 90 percent of the loan.
By January 2015, Peters owed more than $1.3 million to the owner and operator of another coal company, Aces High Coal Sales Inc. of London, Kentucky. From February 2015 to April 2015, Peters allowed Aces High to remove more than 80,000 tons of the collateralized coal from the Dixie site to settle this debt. Peters was unable to repay the USDA-backed loan, and did not inform the Georgia bank that coal pledged as the loan’s collateral was being taken to address the debt to Aces High.
Peters told the Georgia bank that 90 percent of the coal was “missing” from the Dixie site. On May 8, 2015, representatives from the bank and the USDA visited the Dixie site to investigate the removal of the collateralized coal. Peters falsely told USDA and bank representatives that Aces High had removed the coal from the site without his permission. At the plea hearing, Peters admitted that he lied to the USDA representative during this site visit in order to redirect the focus of the investigation away from his own conduct.
Peters pleaded guilty to making a false statement to a representative of the United States Department of Agriculture. United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Agriculture-Office of Inspector General (USDA OIG).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-159.
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Nine Arrested for Illegally Distributing 1.5 Million Opioid PillsRead the Press Release
Nine Texas individuals were arrested this week in Houston on criminal charges related to their alleged involvement in the unlawful distribution of 1.5 million opioid pills and other controlled substances.
According to court documents, Kent Lyons, 52, of Houston; Roquel Turner, 47, of Manvel; and Traunce Alfred, 43, of Baytown, are charged with illegally distributing controlled substances, including oxycodone and hydrocodone. From August 2017 until late 2022, Lyons and Turner allegedly operated pill-mill pharmacies as fronts to obtain opioids in their highest-strength and immediate-release pill form. They then allegedly sold the drugs on the black market – without the involvement of patients, prescriptions, or doctors – to drug traffickers like Alfred. Lyons and Turner allegedly concealed the drug proceeds using numerous bank accounts and real estate transactions. Lyons also allegedly used some of the proceeds to purchase luxury items, including a Rolls Royce, a Ford F-250, and a Mercedes Maybach.
According to court documents, starting around December 2020, Dwain Ross, 52, and Delores Mackey-Ross, 43, both of Pearland, along with licensed pharmacist Ann Nguyen, 30, of Stafford, allegedly used pharmacies to illegally distribute and dispense nearly half a million pills of oxycodone and hydrocodone. Dwain Ross and Mackey-Ross, along with David Ross, 53, of Houston; Kevin Peterson, 56, of Pearland; and Eleanor Marsh, 56, of Fulshear, also allegedly illegally ordered the opioid potentiators alprazolam, carisoprodol, promethazine with codeine – which are reported to enhance the high from opioids – from a pharmaceutical wholesaler and a pharmaceutical sales representative then allegedly illegally distributed the opioid potentiators in bulk. Dwain Ross and Mackey-Ross allegedly used numerous bank accounts and real estate transactions to conceal their ill-gotten gains. Dwain Ross also allegedly used some of the drug proceeds to purchase a Lamborghini.
The pharmacies alleged in the indictments to have been controlled by the defendants’ drug trafficking organizations are K Med Pharmacy, Nex Gen Pharmacy, TX United Pharmacy, Power Center Pharmacy #2, DR Pharmacy, and Nu Care Pharmacy. Several other pharmacies, including P&A Pharmacy and Pearland Holistic Pharmacy, voluntarily surrendered their DEA Registration numbers, which a pharmacy needs to legally purchase pharmaceutical opioids and other controlled substances.
Lyons, Turner, Alfred, Dwain Ross, Mackey-Ross, and Nguyen are each charged with illegal distribution of Schedule II opioids. Dwain Ross, Mackey-Ross, David Ross, Peterson, and Marsh are each charged with the illegal distribution of Schedule IV drugs. Lyons, Turner, Dwain Ross, and Mackey-Ross are also charged with money laundering crimes. If convicted, Lyons, Turner, Alfred, Dwain Ross, Mackey-Ross, and Nguyen face up to 20 years on the top counts. David Ross and Peterson each face up to five years. Marsh faces up to 10 years if convicted. Court documents allege that over 15 bank accounts, four real properties, and several luxury vehicles – including a Rolls Royce, a Bentley, and a Lamborghini – were involved in, or acquired with proceeds from, the scheme, and are subject to forfeiture if the defendants are convicted. 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, DEA Administrator Anne Milgram, Special Agent in Charge James H. Smith III of the FBI Houston Field Office, Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Acting Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General (USPS-OIG), and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service (USPIS) Houston Division made the announcement.
The DEA, FBI, MFCU, USPS-OIG, and USPIS are investigating the cases.
Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section is prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Faces up to 10 Years Following Guilty Plea for Illegal Possession of a FirearmRead the Press Release
BANGOR, Maine: A New York man pleaded guilty today in U.S. District Court in Bangor to being a felon in possession of a firearm.
According to court records, Camby Wilson, 22, knowingly possessed a firearm during a March 2022 traffic stop in Augusta. The firearm was loaded with four rounds of ammunition. A 2019 conviction in New York precludes Wilson from possessing a firearm.
Wilson faces up to 10 years in prison and a $250,000 fine. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Augusta Police Department investigated the case.
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New Orleans Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – WAYNE HANDY, age 29, a resident of New Orleans, Louisiana, pleaded guilty today before United States District Judge Carl J. Barbier to violations of the Federal Gun Control Act and the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, HANDY made a series of sales of heroin/fentanyl to an FBI confidential source. Those controlled purchases, along with other evidence, led to a federal complaint charging HANDY, as well as a search of residences and vehicles associated with HANDY in the spring of 2021. During the searches, agents located about $120,000 in cash, two guns, and approximately a kilogram of fentanyl. HANDY pleaded guilty to possession with intent to distribute 400 grams or more of a substance containing a detectable amount of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A) and to possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
Judge Barbier set sentencing for May 25, 2023. On the drug count, HANDY faces a mandatory minimum sentence of 10 years imprisonment up to life, up to a $10,000,000 fine, and at least five years of supervised release. On the gun count, HANDY faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. For both counts, HANDY will have to pay a mandatory special assessment fee of $100.
The case was investigated by the Federal Bureau of Investigations. It is being prosecuted by Assistant United States Attorney David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
New Orleans Man Pleads Guilty to Federal Drug OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that SOLOMON BURKE, age 36, a resident of New Orleans, Louisiana, pled guilty on February 1, 2023 before U.S. District Court Judge Jane Triche Milazzo to a violation of the Federal Controlled Substances Act.
Specifically, SOLOMON BURKE pled guilty to count one of a superseding bill of information, charging him with possession with the intent to distribute a mixture or substance containing a detectable amount of heroin and marijuana, in violation of Title 21 U.S.C. §§ 841(a)(1), (b)(1)(C), (b)(1)(D), and 18 U.S.C. § 2.
As to count one, BURKE faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000.00, and at least three years supervised release, as to the heroin, and a maximum sentence of 5 years imprisonment, a fine up to $250,000.00, and at least two years supervised release, as to the marijuana. BURKE also faces a $100 mandatory special assessment fee. BURKE’S sentencing is scheduled for April 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.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Unit Chief Elizabeth Privitera of the Violent Crime/Gang Unit and Assistant Unit States Attorney Maurice E. Landrieu Jr. of the Narcotics Unit.
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New Orleans Man Pleads Guilty to Being a Felon in Possession of a GunRead the Press Release
NEW ORLEANS, LOUISIANA – MORRIS SUMMERS, age 31, a resident of New Orleans, pleaded guilty on January 31, 2023 before United States District Judge Susie Morgan to a one count indictment charging him with being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, SUMMERS was previously convicted in another federal case before Judge Morgan for conspiring to distribute crack and conspiring to possess firearms in furtherance of drug trafficking. On June 26, 2022, SUMMERS possessed a Springfield Armory Model Hellcat, nine-millimeter caliber semi-automatic pistol.
Judge Morgan set sentencing for April 27, 2023. SUMMERS faces up to 15 years imprisonment, a fine of up to $250,000 up to three years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the New Orleans Police Department, the Louisiana State Police, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney David Haller.
New Jersey Man and Company Operating Nursing Homes and Assisted Living Facilities in Wisconsin Charged with Health Care FraudRead the Press Release
A federal grand jury in the Western District of Wisconsin returned an indictment yesterday charging Kevin Breslin, 56, of Hoboken, New Jersey, and KBWB Operations, LLC, doing business as Atrium Health and Senior Living (Atrium) in Park Ridge, New Jersey, with a scheme to defraud Medicare and Medicaid in connection with the delivery of or payment for health care benefits, items, or services.
The indictment alleges that the scheme operated from January 2015 to September 2018. The indictment charges the defendants with health care fraud, six counts of wire fraud, three counts of mail fraud, conspiracy to commit tax fraud, and conspiracy to commit money laundering.
According to the indictment, Breslin was the Chief Executive Officer of Atrium, which operated 24 skilled nursing facilities and nine assisted living facilities in Wisconsin and Michigan. These facilities included:
- Atrium Post Acute Care of Appleton, Wisconsin;
- Atrium Post Acute Care of Black River Falls, Wisconsin;
- Atrium Post Acute Care of Bloomer, Wisconsin;
- Atrium Post Acute Care of Chetek, Wisconsin;
- Atrium Post Acute Care of Chilton, Wisconsin;
- Atrium Post Acute Care of Ellsworth, Wisconsin;
- Atrium Post Acute Care of Kewaunee, Wisconsin;
- Atrium Post Acute Care of Lancaster, Wisconsin;
- Atrium Post Acute Care of Little Chute, Wisconsin;
- Atrium Post Acute Care of Marshfield, Wisconsin;
- Atrium Post Acute Care of Menominee, Michigan;
- Atrium Post Acute Care of Mineral Point, Wisconsin;
- Atrium Post Acute Care of Neenah, Wisconsin;
- Atrium Post Acute Care of New Holstein, Wisconsin;
- Atrium Post Acute Care of Oconto Falls, Wisconsin;
- Atrium Post Acute Care of Plymouth, Wisconsin;
- Atrium Post Acute Care of Shawano, Wisconsin, at Birch Hill,
- Atrium Post Acute Care of Shawano, Wisconsin, at Evergreen,
- Atrium Post Acute Care of Shawano, Wisconsin, at Maple Lane,
- Atrium Post Acute Care of Stevens Point, Wisconsin;
- Atrium Post Acute Care of Two Rivers, Wisconsin;
- Atrium Post Acute Care of Weston, Wisconsin;
- Atrium Post Acute Care of Williams Bay, Wisconsin; and
- Atrium Post Acute Care of Wisconsin Rapids, Wisconsin.
The indictment alleges that from January 2015 through September 2018, Atrium billed Medicare for over $189,000,000 and received over $49,000,000 and that they billed Medicaid for over $218,000,000 and received over $93,000,000. The indictment alleges that when the defendants obtained money from Medicare and Medicaid, they certified that they would follow all required quality of care standards, but they did not do so, and that they would operate their facilities with adequate staffing, supplies, and services, but they did not do so.
The indictment alleges that as part of the scheme to defraud, Breslin and Atrium diverted funds from the Wisconsin facilities through guaranteed payments to Atrium owners, guaranteed monthly return-on-investment payments to investors that were financing the construction of skilled nursing facilities in New Jersey, and construction costs for the New Jersey facilities. The indictment further alleges that the diversion of funds caused inadequate care of residents, including a shortage of clean diapers, inadequate wound care supplies, inadequate cleaning supplies, and a lack of durable medical equipment and respiratory supplies. In addition, the diversion of funds caused non-payment to vendors, which caused numerous services to be cut off, including physical therapy for residents, fire alarm monitoring services, phone and internet services preventing staff from obtaining prescription orders and accessing electronic medical records systems, and necessary repairs and maintenance of the physical plant facilities.
In addition, the indictment alleges that Breslin and Atrium withheld insurance premiums from employees’ paychecks but failed to pay those monies over to the third-party administrator for use in paying health claims, causing payment of employees’ health claims to be stopped. The indictment further alleges that the defendants withheld 401(k) retirement savings account contributions from employees’ paychecks but failed to pay those monies over to the third-party pension administrator.
The indictment also alleges that Breslin and Atrium evaded payment to the Wisconsin Department of Revenue and the Internal Revenue Service of state and federal income taxes and employment taxes withheld from employees’ paychecks.
If convicted, Breslin and Atrium face penalties of five years in federal prison on the conspiracy to commit tax fraud charge, and 20 years on each health care fraud, wire fraud, mail fraud, and conspiracy to commit money laundering charge. The conspiracy to commit tax fraud charge and each of the health care, wire and mail fraud charges carry a $250,000 fine; the money laundering charge carries a $500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division and U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin made the announcement.
The U.S. Department of Health and Human Services, Office of Inspector General; IRS Criminal Investigation; the U.S. Department of Labor, Employee Benefits Security Administration; the Wisconsin Department of Justice, Medicare Fraud Control and Elder Abuse Unit; and the FBI investigated this case.
Assistant U.S. Attorney Daniel Graber for the Western District of Wisconsin and Trial Attorney Karla-Dee Clark of the Consumer Protection Branch of the Justice Department’s Civil Division 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.
New Jersey Man & Company Operating Nursing Homes and Assisted Living Facilities in Wisconsin Charged with Health Care FraudRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin returned an indictment yesterday charging Kevin Breslin, 56, Hoboken, New Jersey, and KBWB Operations, LLC, doing business as Atrium Health and Senior Living (Atrium), in Park Ridge, New Jersey, with a scheme to defraud Medicare and Medicaid in connection with the delivery of or payment for health care benefits, items, or services.
The indictment alleges that the scheme operated from January 2015 to September 2018. The indictment charges the defendants with health care fraud, six counts of wire fraud, three counts of mail fraud, conspiracy to commit tax fraud, and conspiracy to commit money laundering.
According to the indictment, Breslin was the Chief Executive Officer of Atrium, which operated 24 skilled nursing facilities and nine assisted living facilities in Wisconsin and Michigan. These facilities included:
1. Atrium Post Acute Care of Appleton, Wisconsin;
2. Atrium Post Acute Care of Black River Falls, Wisconsin;
3. Atrium Post Acute Care of Bloomer, Wisconsin;
4. Atrium Post Acute Care of Chetek, Wisconsin;
5. Atrium Post Acute Care of Chilton, Wisconsin;
6. Atrium Post Acute Care of Ellsworth; Wisconsin;
7. Atrium Post Acute Care of Kewaunee, Wisconsin;
8. Atrium Post Acute Care of Lancaster, Wisconsin;
9. Atrium Post Acute Care of Little Chute, Wisconsin;
10. Atrium Post Acute Care of Marshfield, Wisconsin;
11. Atrium Post Acute Care of Menominee, Michigan;
12. Atrium Post Acute Care of Mineral Point, Wisconsin;
13. Atrium Post Acute Care of Neenah, Wisconsin;
14. Atrium Post Acute Care of New Holstein, Wisconsin;
15. Atrium Post Acute Care of Oconto Falls, Wisconsin;
16. Atrium Post Acute Care of Plymouth, Wisconsin;
17. Atrium Post Acute Care of Shawano, Wisconsin, at Birch Hill,
18. Atrium Post Acute Care of Shawano, Wisconsin, at Evergreen,
19. Atrium Post Acute Care of Shawano, Wisconsin, at Maple Lane,
20. Atrium Post Acute Care of Stevens Point, Wisconsin;
21. Atrium Post Acute Care of Two Rivers, Wisconsin;
22. Atrium Post Acute Care of Weston, Wisconsin;
23. Atrium Post Acute Care of Williams Bay, Wisconsin; and
24. Atrium Post Acute Care of Wisconsin Rapids, Wisconsin.
The indictment alleges that from January 2015 through September 2018, Atrium billed Medicare for over $189,000,000 and received over $49,000,000 and that they billed Medicaid for over $218,000,000 and received over $93,000,000. The indictment alleges that when the defendants obtained money from Medicare and Medicaid, they certified that they would follow all required quality of care standards, but they did not do so, and that they would operate their facilities with adequate staffing, supplies, and services, but they did not do so.
The indictment alleges that as part of the scheme to defraud, Breslin and Atrium diverted funds from the Wisconsin facilities through guaranteed payments to Atrium owners, guaranteed monthly return-on-investment payments to investors that were financing the construction of skilled nursing facilities in New Jersey, and construction costs for the New Jersey facilities. The indictment further alleges that the diversion of funds caused inadequate care of residents, including a shortage of clean diapers, inadequate wound care supplies, inadequate cleaning supplies, and a lack of durable medical equipment and respiratory supplies. In addition, the diversion of funds caused non-payment to vendors, which caused numerous services to be cut off, including physical therapy for residents, fire alarm monitoring services, phone and internet services preventing staff from obtaining prescription orders and accessing electronic medical records systems, and necessary repairs and maintenance of the physical plant facilities.
In addition, the indictment alleges that Breslin and Atrium withheld insurance premiums from employees’ paychecks but failed to pay those monies over to the third-party administrator for use in paying health claims, causing payment of employees’ health claims to be stopped. The indictment further alleges that the defendants withheld 401(k) retirement savings account contributions from employees’ paychecks but failed to pay those monies over to the third-party pension administrator.
The indictment also alleges that Breslin and Atrium evaded payment to the Wisconsin Department of Revenue and the Internal Revenue Service of state and federal income taxes and employment taxes withheld from employees’ paychecks.
If convicted, Breslin and Atrium face penalties of five years in federal prison on the conspiracy to commit tax fraud charge, and 20 years on each health care fraud, wire fraud, mail fraud, and conspiracy to commit money laundering charge. The conspiracy to commit tax fraud charge and each of the health care, wire and mail fraud charges carry a $250,000 fine; the money laundering charge carries a $500,000 fine.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division and U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin made the announcement.
The charges against Breslin and Atrium are the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General; IRS Criminal Investigation; the U.S. Department of Labor, Employee Benefits Security Administration; the Wisconsin Department of Justice, Medicare Fraud Control and Elder Abuse Unit; and the Federal Bureau of Investigation. Assistant U.S. Attorney Daniel Graber and Trial Attorney Karla-Dee Clark of the Consumer Protection Branch of the Justice Department’s Civil Division are handling the prosecution.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Municipal Employee Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
A Metropolitan Transportation Authority (MTA) employee pleaded guilty on Jan. 30 to conspiring with other individuals to engage in wire fraud in connection with MTA excess vehicle auctions.
According to a plea agreement, in the U.S. District Court for the Southern District of New York in New York City, MTA employee Timour Abramov engaged in a conspiracy with other individuals to thwart the competitive bidding process on numerous excess vehicle auctions conducted by the MTA to ensure that a company controlled by him and a co-conspirator submitted the winning bid and would be awarded the contract. As part of the conspiracy, an MTA sales specialist and co-conspirator provided Abramov confidential pricing information in violation of MTA rules.
“New Yorkers rely on the MTA and this criminal scheme boils down to stealing from the public,” said Assistant Attorney General Jonathan Kanter of the Department of Justice’s Antitrust Division. “We will continue to detect and punish those that abuse the public trust.”
“Abusing access to confidential MTA information to interfere with a fair and competitive process undermines the public trust in that process and unfairly reflects on tens of thousands of honest, hardworking MTA employees," said Acting MTA Inspector General Elizabeth Keating. “Our office is grateful for the diligence and commitment from our law enforcement partners at the Department of Justice, who work to ensure that individuals attempting to defraud the MTA are held fully responsible for their actions.”
“The public loses faith in governmental systems when members of an agency don't adhere to policies and procedures created to promote transparency and fairness,” said Special Agent-in-Charge James E. Dennehy of the FBI Newark Division. “This investigation demonstrates our commitment to holding accountable those who abuse their positions for their own financial gain.”
Abramov pleaded guilty to one count of wire fraud conspiracy that carries a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victim of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine the defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s New York Office, the Office of the MTA Inspector General, and the FBI Newark's Atlantic City Resident Agency investigated this case.
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Moreno Valley Woman Sentenced to 4½ Years in Federal Prison for Conspiracy that Stole over $1.1 Million in Unemployment BenefitsRead the Press Release
LOS ANGELES – A Riverside County woman was sentenced today to 54 months in federal prison for her role as an organizer and leader of an extensive conspiracy that defrauded California’s unemployment insurance benefit program out of more than $1.1 million.
Catrina Gipson, 47, of Moreno Valley, was sentenced by United States District Judge John A. Kronstadt, who also ordered her to pay $1,106,282 in restitution.
Gipson pleaded guilty in June 2022 to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Beginning as early as February 2013 and continuing to at least July 2016, Gipson’s co-conspirators used fake businesses registered with the California Employment Development Department (EDD), the administrator of the federal unemployment insurance benefit program for the state, to defraud EDD. The names of the fictitious companies included Super Cleaning Service and Angel Clothing Store, according to court documents.
Sometimes, Gipson’s co-conspirators filed claims for unemployment insurance in their own names, claiming unemployment from fake businesses created by co-conspirators, the indictment alleges. Other times, co-conspirators filed unemployment insurance claims using the names of other people, including prison inmates.
After EDD funded debit cards pursuant to false unemployment claims, Gipson and her co-conspirators withdrew funds from the cards, some of which were in the name of other claimants. In total, the conspirators fraudulently obtained over $1,1 million in unemployment insurance benefits.
For example, in May 2016, Gipson withdrew $880 from a Bank of America branch in Moreno Valley, using a debit that EDD funded pursuant to a false unemployment claim made in the name of someone who purportedly had been laid off earlier that year, but in reality, had been a prison inmate since 2000.
Gipson is the lead defendant in this case. Vernisha Jolivet, 30, of Indianapolis, pleaded guilty in February 2022 to one count of conspiracy to commit wire fraud and was sentenced to six months in federal prison. Six other defendants are scheduled to go on trial in this matter on May 2.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Department of Labor Office of Inspector General and California EDD Investigation Division investigated this matter with assistance from the United States Postal Inspection Service and the United States Marshals Service.
Assistant United States Attorney Skyler F. Cho of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Missouri Man Sentenced to 5 ½ Years in Prison for Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Thursday sentenced a man from St. Peters, Missouri to five and one-half years in prison on a charge of possessing of child pornography.
Martin D. Smith, 58, possessed 2,561 images and 13 videos containing child pornography on his OnePlus cellular telephone, a Samsung cellular telephone and an Alcatel tablet, his plea agreement says. Smith pleaded guilty in November.
The investigation began with an August 21, 2020 tip to the National Center for Missing and Exploited Children that Smith was uploading of multiple files containing child pornography. Smith later admitted viewing and downloading child pornography from the internet, and said he had been doing so for a year and half.
The case was investigated by the St. Charles County Cyber Crime Task Force and the FBI. Assistant U.S. Attorney Jillian Anderson 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 the Department of Justice 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 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.
Minneapolis Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to illegally possessing a firearm as a felon, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on July 18, 2022, Javier Juan Valtierra, 31, possessed a Smith & Wesson, M&P Bodyguard 380, .380 caliber semi-automatic pistol. Officers of the Minneapolis Police Department were called to the scene of the vehicle following calls that Valtierra and another individual were unconscious inside the vehicle. Officers found the firearm in Valtierra’s pocket. Officers also found baggies of cocaine and methamphetamine on Valtierra and in the car.
Valtierra pleaded guilty yesterday in U.S. District Court before Senior Judge Michael J. Davis to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Milton Man Indicted for Possession with Intent to Distribute Cocaine and FentanylRead the Press Release
BOSTON – A Milton man has been indicted by a federal grand jury in Boston on drug trafficking charges.
Brandy Soto-Lara, 25, was indicted on one count of possession with intent to distribute cocaine and 40 grams or more of fentanyl. Soto-Lara was previously arrested on Jan. 11, 2023 and has remained in custody since.
According to the charging documents, during a search of Soto-Lara’s apartment in November 2018, over 400 grams of cocaine and over 40 grams of fentanyl was seized. Additionally, $6,000, a loaded firearm with an obliterated serial number, firearm parts and ammunition were recovered also from Soto-Lara’s apartment.
The charging statute provides for a mandatory minimum sentence of five years in prison up to 40 years in prison, at least four years and up to a lifetime supervised release and a fine of up to $5 million. 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of Rollins’ Organized Crime & Gang Unit are prosecuting 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.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mills County Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Garret Allen Horgdal, age 39, of Henderson, was sentenced on Tuesday, January 31, 2023, to 84 months in prison following his plea of guilty to being a prohibited person in possession of a firearm. After he is released from prison, Horgdal will serve three years of supervised release.
On March 8, 2022, a Montgomery County Sheriff’s deputy stopped Horgdal and found him in possession of three loaded firearms. Horgdal was prohibited from possessing any firearms because of his prior felony convictions and his drug use.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Montgomery County Sheriff’s Department, Mills County Sheriff’s Department, and Iowa Division of Narcotics Enforcement investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Mifflin County Man Pleads Guilty to Wire FraudRead the Press Release
WILLIAMSPORT – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Daniel P. Sickels, age 48, of Lewistown, Pennsylvania, pleaded guilty before U.S. District Court Chief Judge Matthew W. Brann to wire fraud.
According to United States Attorney Gerard M. Karam, Sickels previously worked as a Network and Systems Manager at Pennsylvania State University (PSU) Office of Development and Alumni Relations (ODA), located in State College, PA. Sickels fraudulently acquired equipment through false representations to PSU ODA that the equipment was necessary to upgrade, replace, or maintain PSU ODA servers, when, in fact, Sickels knew that the equipment was not necessary. Sickels subsequently sold the equipment for his personal benefit to third parties. The scheme lasted from approximately 2005 to 2017, in Centre and Mifflin Counties.
The matter was investigated by investigators at PSU and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Sickels faces maximum penalties of 20 years’ imprisonment, a fine of twice the gross gain or loss, and 3 years of supervised release when he is sentenced. Sickels also agreed to pay $267,264.87 in restitution.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Miami Woman Charged for Using Fraudulent COVID-19 Relief Funds to Finance Lavish LifestyleRead the Press Release
MIAMI — Daniela Rendon, 31, of Miami made her appearance in federal magistrate court today and was charged with fraudulently obtaining COVID-19 relief loans and grants under the Paycheck Protection Program (PPP) and the Economic Injury Disaster Relief Program.
According to the indictment, Rendon submitted fraudulent applications seeking COVID-19 relief funds from the Small Business Administration and PPP. She is alleged to have falsified her revenue and payroll and submitted fraudulent IRS tax forms. According to the charges, Rendon received approximately $381,000 in fraudulent funds. To disburse the funds, she is alleged to have enrolled with a payroll processor to issue fraudulent payroll checks to herself, family members, and friends. She is alleged to have used the fraudulently obtained funds to lease a 2021 Bentley Bentayga, rent a luxury Biscayne Bay apartment, pay for cosmetic dermatology procedures, and refinish her designer shoes.
The indictment charges Rendon with seven counts of wire fraud, two counts of money laundering, and one count of aggravated identity theft. If convicted, she faces up to 20 years in prison. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI) Miami, made the announcement.
HSI Miami investigated the case and Assistant U.S. Attorney Jonathan Bailyn is prosecuting it.
An indictment is a mere allegation. A defendant is presumed innocent until found guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case no. 23-cr-20036.
Media Advisory – Press ConferenceRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley, along with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh Police Department, will hold a press conference TOMMOROW, Friday, February 3 at 11:00 a.m. to announce the sentence of Christopher Lamar Baker, a national leader of the Pagan Motorcycle Club (PMC) who was convicted last year of drug trafficking, firearm, and money laundering charges. The PMC is recognized by law enforcement as an Outlaw Motorcycle Gang.
WHERE: U.S. District Courthouse, 310 New Bern Avenue, Raleigh, NC 27601
WHEN: Friday, February 3 at 11:00 a.m.
Media: please arrive at the courthouse by 10:30 for set up.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected].
Please RSVP your intentions to attend the event.
Man Sentenced to Eight Years in Prison for Illegally Possessing Gun and Drugs in Chicago SuburbRead the Press Release
CHICAGO — A man has been sentenced to eight years in federal prison for illegally possessing a loaded semiautomatic handgun, cocaine, and heroin in a Chicago suburb.
QUINCY J. ARNOLD illegally possessed the gun and drugs on Oct. 17, 2020, in Bellwood, Ill. Bellwood Police officers pulled over Arnold’s vehicle for a traffic infraction near a mall parking lot. The officers discovered the loaded gun concealed under the floor mat of the driver’s seat, within reaching distance of Arnold. Officers further discovered in Arnold’s possession the cocaine and heroin, which were packaged for sale in more than 360 individual baggies. Arnold admitted in a plea agreement that he intended to distribute the narcotics to others.
Arnold had previously been convicted of multiple felonies in state court and was not legally allowed to possess a firearm.
Arnold, 49, of Bellwood, Ill., pleaded guilty last year to federal firearm and drug charges. U.S. District Judge Jorge L. Alonso imposed the sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Jiminez Allen, Chief of the Bellwood Police Department. Assistant U.S. Attorney Charles W. Mulaney represented the government.
Holding illegal firearm possessors and drug traffickers accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm and drug offenses.
Man Charged in $110 Million Cryptocurrency SchemeRead the Press Release
A Puerto Rico man is scheduled to make his initial appearance this afternoon at the federal courthouse in Manhattan to face commodities fraud, commodities market manipulation, and wire fraud charges in connection with the manipulation of the Mango Markets decentralized cryptocurrency exchange.
According to court documents, Avraham Eisenberg, 27, engaged in a scheme to fraudulently obtain approximately $110 million worth of cryptocurrency from the cryptocurrency exchange Mango Markets and its customers and achieved this objective by artificially manipulating the price of certain perpetual futures contracts. He was previously arrested on Dec. 26, 2022, in San Juan, Puerto Rico, pursuant to a criminal complaint and ordered detained.
“Exploiting decentralized finance platforms is the new frontier of old school financial crimes in which criminals abuse emerging technologies for their own personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “With this prosecution, the Criminal Division is sending the message that no matter the mechanism used to commit market manipulation and fraud, we will work to hold those responsible to account.”
Mango Markets is a decentralized cryptocurrency exchange that allows investors to, among other things, purchase and borrow cryptocurrencies and cryptocurrency-related financial products. Mango Markets is run by the Mango Decentralized Autonomous Organization (the Mango DAO). The Mango DAO has its own crypto token named MNGO, which investors can buy and sell. Holders of the MNGO token are allowed to vote on changes to the Mango Markets platform and issues related to the governance of the Mango DAO.
“As alleged, Avraham Eisenberg manipulated the Mango Markets cryptocurrency exchange in order to obtain over $100 million in illicit profits for himself,” said U.S. Attorney Damian Williams for the Southern District of New York. “Through his scheme, Eisenberg left others holding the bag. Market manipulation is illegal in all of its forms, and this office is committed to prosecuting such schemes wherever they occur – including the cryptocurrency markets.”
“The defendant is alleged to have executed a scheme through which he fraudulently acquired over $100 million worth of cryptocurrency,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “The FBI is dedicated to safeguarding the integrity of all financial markets and will ensure any individual willing to exploit one be held responsible in the criminal justice system.”
Eisenberg is charged in the Southern District of New York with one count of commodities fraud, one count of commodities manipulation, and one count of wire fraud. If convicted, he faces a maximum penalty of 10 years in prison for the commodities fraud count, maximum penalty of 10 years in prison for the commodities manipulation count, and maximum penalty of 20 years in prison for the wire fraud count.
The FBI is investigating the case with assistance from Homeland Security Investigations and IRS Criminal Investigation. The Commodity Futures Trading Commission and the Securities and Exchange Commission initiated parallel civil proceedings.
National Cryptocurrency Enforcement Team (NCET) Trial Attorney Jessica Peck and Assistant U.S. Attorneys Thomas Burnett and Noah Solowiejczyk for the Southern District of New York are prosecuting the case.
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Under the Criminal Division, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Sentenced to Thirteen Years in Prison for Child ExploitationRead the Press Release
BOSTON – A Maine man was sentenced today in federal court in Boston for travelling to have sex with a minor and possessing child sexual abuse material (CSAM).
Patrick Plummer, 31, of Parsonsfield, Maine, was sentenced by U.S. District Court Judge Casper to 13 years in prison and five years of supervised release. In September 2022, Plummer pleaded guilty to one count of attempted enticement of a minor, one count of intent to engage in illicit sexual conduct with a person under 18 years of age and one count of transportation of child pornography. He has remained in custody since his arrest on related state charges in September 2020.
“This case is another terrifying reminder of the real-life dangers of the internet and the predators that lurk online with the sole intent of targeting, exploiting and sexualizing our children. Mr. Plummer, a grown man, admitted that he was also targeting 10 other young girls. Extensive amounts of CSAM – including two-year-old’s being sexualized and tortured – was discovered on his electronic devices. This is every parent’s nightmare,” said United States Attorney Rachael S. Rollins. “Protecting the safety, innocence and wellbeing of our children is some of the most important work we do. Today’s sentence results in one less predator able to harm our children.”
“It is not uncommon for child predators like Patrick Plummer to cast a wide net online to see who responds and whom they can victimize. In this case, that’s how the FBI uncovered Mr. Plummer’s heinous conduct. Today’s sentence demonstrates our commitment to ensuring that sexual predators like him are held accountable for their crimes and removes a dangerous threat from our community,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “There are very few situations more urgent than when a child is physically at risk. Those who sexually exploit children do serious lasting harm and possessing and trading child sexual abuse material only perpetuates the abuse.”
In September 2020, Plummer sent a private message to an undercover officer posing as a 13-year-old girl in an online chatroom. Plummer indicated that he was 24 years old and lived in Maine. After confirming the purported minor was 13 years old, Plummer devised a plan to meet her in Georgetown, Mass. to have sex and discussed specific sexual conduct he wanted to engage in with her and directed the purported minor not to wear undergarments.
On Sept. 26, 2020, Plummer drove from Maine to a predetermined location in Georgetown. Plummer was arrested on scene, at which time four cell phones, a computer and a spring-release knife were found in his possession. Forensic analysis of the electronic evidence seized from Plummer’s car revealed over 7,000 images and approximately 74 videos of CSAM on at least three of the devices. The CSAM included multiple images of children as young as two years old being tortured.
Plummer admitted that he had traveled from Maine to meet the purported 13-year-old girl; that he was talking to approximately 10 underaged girls; and that CSAM would be found on his devices. Plummer further admitted that he shared these images with other individuals through Kik Messenger. The investigation also revealed that, prior to this case, Plummer had posed as a 19-year-old female on Kik Messenger to solicit photos from underaged girls for distribution to other users – in some instances using graphic threats such as, “I’ll chop you up into a million pieces,” to compel minors to share images with him.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Georgetown Police Chief Donald C. Cudmore made the announcement. The Essex County District Attorney’s Office and the Salisbury and Newbury Police Departments provided assistance with the investigation. Assistant U.S. Attorneys Meghan C. Cleary and J. Mackenzie Duane of Rollins’ Major Crimes Unit 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.
Louisville Business Owner Sentenced to Federal Prison for Failure to Pay Payroll TaxesRead the Press Release
Louisville, KY – A Louisville man was sentenced to a 15-month term of imprisonment today for willful failure to pay over the federal income taxes and Federal Insurance Contributions Act (FICA) taxes withheld from his employees’ paychecks.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, made the announcement.
According to court documents, Christopher S. Moyer, 69, was the owner and sole operator of TT Repairs, LLC. Moyer functioned as the general manager of TT Repairs, LLC, and was responsible for payroll. From the third quarter of 2015 through the fourth quarter of 2018, Moyer withheld income taxes and FICA taxes from his employees’ paychecks but failed to turn the money over to the Internal Revenue Service.
Moyer was also sentenced to a $10,000 fine and a two-year period of supervised release upon his release from prison. There is no parole in the federal system. Moyer has also entered into an agreement to pay the taxes he owes, in addition to penalties and interest. Prior to sentencing, Moyer made a $1 million payment on the amount due.
The IRS Criminal Investigation investigated the case.
Assistant U.S. Attorney Amanda E. Gregory prosecuted the case.
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Long Island Woman Sentenced for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Briana Garland, age 30, of Uniondale, New York, was sentenced today to 2 years of probation for conspiring with a New York State prisoner to obtain unemployment insurance benefits by fraud. Garland is the fourth and final defendant to be sentenced in related cases stemming from pandemic-related schemes involving prisoners at the Bare Hill Correctional Facility in Malone, New York.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of the New York State Department of Labor (NYSDOL).
Garland previously pled guilty to conspiracy to commit mail fraud. She admitted to submitting a false unemployment insurance claim to NYSDOL in the name of Bare Hill inmate Reginald Thornton. Prisoners were not eligible to receive unemployment insurance benefits. United States District Judge Glenn T. Suddaby also ordered her to pay $19,580 in restitution to the State of New York.
Thornton previously pled guilty to participating in two prison-based unemployment insurance fraud conspiracies and was sentenced to 51 months in federal prison, to be served after his state prison term ends. Thornton’s co-defendants in a related case, Lord Paulin and Rhasha Wright, were previously sentenced to 19 months and 24 months and one day in federal prison, respectively.
USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL investigated the cases. Assistant U.S. Attorney Joshua R. Rosenthal prosecuted the cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Local Pimp Admits Sex Trafficking Women to Multiple StatesRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Alicia Williams (619) 546-8917 or Assistant U.S. Attorney Joseph Orabona (619) 546-7951
SAN DIEGO, CA – A local man who engaged in sex trafficking of women in California, Nevada, Massachusetts and Virginia from November 2019 through January 2021 pleaded guilty in federal court today to sex trafficking charges.
In November 2022, a federal grand jury returned an indictment charging Davon Dunn, aka “Lil Kant,” with sex trafficking women by fraud, force and coercion and transporting women in interstate commerce for the purpose of engaging in commercial sex acts. Dunn was arrested in December 2022 and ordered detained without bail by the Court.
Today, Dunn entered his guilty plea before U.S. Magistrate Judge Mitchell D. Dembin. According to the plea agreement, Dunn admitted to knowingly recruiting, enticing, harboring, transporting, providing, obtaining, and maintaining an adult female (“AF1”), knowing and in reckless disregard of the fact that means of force, threats of force, fraud, coercion, and any combination of such means would be used to cause AF1 to engage in commercial sex acts. Dunn admitted that these sex acts occurred in the Southern District of California and elsewhere.
More specifically, between April 2020 and January 2021, within the Southern District of California, and elsewhere, Dunn admitted he used a combination of force, fraud, and coercion to cause AF1 to engage in commercial sex acts. In particular, Dunn harbored AF1 in an apartment in Riverside County, where he provided transportation for AF1 to travel to and from “dates” (which is the meeting between the customer and commercial sex worker for the activity of prostitution), including “dates” in San Diego County, where AF1 engaged in commercial sex acts. Dunn maintained AF1 by providing her with food and supplies needed to engage in commercial sex acts. Dunn also admitted that AF1 shared the proceeds of her commercial sex acts with him. Dunn used his cellular phone to post, repost, and “bump” (which means to push to the top of the webpage) commercial sex advertisements featuring AF1.
As provided in the plea agreement, Dunn admitted on or about October 1, 2020, while AF1 was working as a commercial sex worker, Dunn struck AF1 in her face, ribs, and back to cause her to resume engaging in commercial sex acts after AF1 indicated she no longer wished to engage in commercial sex acts. Dunn’s use of force against AF1 resulted in injuries to her face and caused her to experience multiple fainting episodes. Dunn also admitted to posting commercial advertisements, and booking hotel and airline travel all related to his commercial sex trafficking of AF1.
In addition to trafficking AF1, Dunn admitted in his plea agreement to causing the transportation of two other adult women (AF2 and AF3) from San Diego to Massachusetts, Virginia, and Nevada for the purpose of engaging in commercial sex acts and prostitution between November 2019 and June 2020. Dunn also admitted to using force against AF3 in connection with the commercial sex acts. In particular, Dunn slapped AF3 and used force to make her continue engaging in commercial sex acts.
“These are crimes that haunt victims for a very long time,” said U.S. Attorney Randy Grossman. “We will seek justice for them in hopes that it will ease their suffering.” Grossman commended the prosecution team as well as FBI agents and members of the San Diego Human Trafficking Task Force for their continuing effort to investigate and prosecute this important case.
A sentencing hearing is scheduled for April 21, 2023, at 9 a.m. before the U.S. District Robert S. Huie. Dunn has been in custody since his arrest in December 2022.
DEFENDANT Case Number: 22CR2727-RSH
Davon Dunn Age: 30 San Diego, CA
SUMMARY OF CHARGES
Sex trafficking by Fraud, Force, and Coercion – Title 18, U.S.C., Section 1591(a)(1)
Maximum penalty: Life in Prison and $250,000 fine
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force, which consists of:
- Federal Bureau of Investigation
- California Department of Justice
- California Department of Corrections & Rehabilitation – Parole
- California Highway Patrol
- ICE/Homeland Security Investigations
- National City Police Department
- San Diego City Attorney’s Office
- San Diego County District Attorney’s Office
- San Diego County Probation Department
- San Diego County Sheriff’s Department
- San Diego Police Department
- The United States Attorney’s Office, Southern District of California
Lexington Man Sentenced to 9 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Rudy Ortega Raymundo, 35, of Lexington, Nebraska, was sentenced today in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Raymundo to 108 months in prison for possession with intent to distribute 500 grams or more of methamphetamine mixture and 50 grams or more actual methamphetamine. After serving his sentence, Raymundo will be placed on supervised release for 2 years. There is no parole in the federal system.
On October 3, 2021, law enforcement in Frontier County, Nebraska received information that a vehicle on Old Highway 23 was failing to maintain speed. A Frontier County Sheriff’s Office deputy saw the vehicle and followed it to a nearby gas station. The officer contacted the driver, later identified as Raymundo, and his vehicle at a gas pump regarding traffic violations. Raymundo failed to comply with the deputy’s requests, and he was arrested. Law enforcement searched Raymundo’s vehicle and found a black trash bag in the back seat containing four bags of methamphetamine. The deputies also found a methamphetamine pipe with residue and a scale in the center console. In total, about three and a half pounds of lab confirmed methamphetamine were seized from Raymundo’s vehicle. Some of that methamphetamine was tested for purity and determined to be at least 98% pure.
This case was investigated by the Cooperation Operation for Drug Enforcement (CODE) Task Force, Nebraska State Patrol, and the Frontier County Sheriff’s Office.
Leominster Man Sentenced for Illegal Reentry and Interfering with a Federal AgentRead the Press Release
BOSTON – A Mexican man residing in Leominster was sentenced today in federal court in Worcester for illegally reentering the United States and forcibly interfering with an Immigration and Customs Enforcement (ICE) agent in an effort to evade arrest.
Eduardo Alvarez, 32, was sentenced by U.S. District Court Magistrate Judge Mark G. Mastroianni to one year in prison and one year of supervised release. In September 2022, Alvarez pleaded guilty to one count of illegal reentry after deportation and one count of forcibly assaulting, resisting, or impeding a federal officer engaged in the performance of official duties.
On the morning of Feb. 16, 2022, ICE officers travelled to a residence in Leominster where Alvarez was reportedly located, and observed Alvarez driving away from in a white Audi. They followed the vehicle and attempted to pull Alvarez over by activating lights and sirens. Officers then attempted to stop Alvarez by positioning their vehicles in front and behind the Audi. Alvarez accelerated and struck the front vehicle, with the ICE officer still in the driver’s seat. Alvarez then drove off traveling through a red-light into oncoming traffic, forcing other vehicles including law enforcement onto the side of the road before stopping at his own residence, where he attempted to hide from officers for approximately 90 minutes before surrendering.
Alvarez was previously removed from the United States in 2009 and 2011. In 2010, he was convicted of illegal reentry into the United States.
United States Attorney Rachael S. Rollins; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston; and Leominster Police Chief Aaron Kennedy made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.Laurens County man will pay restitution, face possible federal prison time for disability fraudRead the Press Release
AUGUSTA, GA: A Laurens County man admitted working several years as a truck driver while claiming federal disability benefits.
Douglas Adam West, 41, of Dexter, Ga., faces a statutory sentence of up to 10 years in prison after pleading guilty to Theft of Government Property, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea requires West to pay $49,863 in restitution, and to serve a period of supervised release following any prison term. There is no parole in the federal system.
“Disability fraud is a plague on the system designed to provide a safety net for those truly unable to hold down employment,” said U.S. Attorney Estes. “Those who abuse that system for their own selfish purposes only make it more difficult for deserving recipients.”
As described in court documents and testimony, West began receiving Social Security Disability Insurance Benefits in September 2004. The Social Security Administration’s Fraud Unit initiated an investigation in August 2018, determining that West had been employed since at least 2015 as a truck driver while continuing to receive disability benefits.
“I am proud of the coordination between our two agencies that led to this guilty plea,” said Georgia Insurance and Safety Fire Commissioner John F. King. “We are committed to ensuring that public benefits go to those truly in need and will continue to crack down on those who abuse the system.”
West faces sentencing before U.S. District Court Judge Dudley H. Bowen after completion of a pre-sentencing investigation by U.S. Probation Services.
The case was investigated by the Social Security Administration Office of Inspector General and the Office of the Georgia Commissioner of Insurance and Fire Safety, and prosecuted for the United States by Assistant U.S. Attorney Jennifer A. Stanley.
Kanawha County Woman Pleads Guilty to Federal Fraud CrimesRead the Press Release
CHARLESTON, W.Va. – Karen L. Hodges, also known as “Karen Igo,” “Karen Clay,” “Karen Richmond,” and “Karen Gessel,” 49, of St. Albans, pleaded guilty today to three counts of securities fraud.
According to court documents and statements made in court, Hodges admitted to having counterfeit checks created so they appeared to be payroll checks issued by Kroger. Between October 20, 2018, and December 19, 2018, Hodges presented and cashed three counterfeit payroll checks totaling $2,461.96 at Kroger locations within the Southern District of West Virginia. Hodges admitted that she has never worked for Kroger, and knew that she was deceiving them into giving her cash based on these counterfeit payroll checks.
Hodges further admitted to presenting and uttering numerous other counterfeit checks totaling $37,587.66 during the same time period at Kroger locations within the Southern District of West Virginia, as well as the Northern District of West Virginia, Indiana, Kentucky, Ohio and Virginia. Hodges also admitted to cashing two legitimate checks in her father’s name totaling $983.12 at Kroger locations within the Southern District of West Virginia.
Hodges is scheduled to be sentenced on May 3, 2023, and faces a maximum penalty of 30 years in prison, three years of supervised release, and a $750,000 fine. Hodges also owes $38,570.78 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorneys Kristin F. Scott and Ryan A. Keefe are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-223.
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Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Austin Joseph Griffith, 22, of Hernshaw, was sentenced today to five years in prison, to be followed by five years of supervised release, for distributing 50 grams or more or methamphetamine.
According to court documents and statements made in court, Griffith admitted that he sold approximately 560 grams of methamphetamine for $4,000 to a confidential informant at his Hernshaw residence on December 13, 2021. Griffith sold quantities of fentanyl to a confidential informant at the same location on two separate occasions in March 2022. Following those transactions, officers executed a search warrant at Griffith’s residence on March 25, 2022, and recovered additional quantities of methamphetamine and fentanyl.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Kanawha County Sheriff’s Office.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-147.
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Kanawha County Man Pleads Guilty to Federal Fraud and Theft CrimesRead the Press Release
CHARLESTON, W.Va. – Ernest Lee Alexander III, 33, of St. Albans, pleaded guilty today to bank fraud and possession of stolen mail matter.
According to court documents and statements made in court, on December 13, 2021, Alexander led law enforcement officers on a high-speed chase throughout western Kanawha County after they attempted a traffic stop of his vehicle in South Charleston. The chase ended when Alexander exited Interstate 77 at Tuppers Creek, lost control of his vehicle and crashed. Officers arrested Alexander and found stolen mail and a bank receipt in the vehicle. Alexander admitted that earlier that same day, he had used the identification information of the owner of the stolen mail to deposit a fraudulent check into the individual’s bank account and then withdraw $450 from the account.
Alexander is scheduled to be sentenced on May 9, 2023, and faces a maximum penalty of 30 years in prison, five years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service and the South Charleston Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-201.
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Jamaican Nationals Sentenced to Federal Prison for Their Roles in Lottery Scam Targeting Elderly VictimsRead the Press Release
Charleston, South Carolina --- Two Jamaican nationals – Rojay Lawson, 24, and Theresa Lawson, 53 – were each sentenced to more than five years in federal prison after pleading guilty to their roles in a fraudulent lottery scam that targeted elderly victims around the country.
Evidence presented to the Court showed that, as part of the scheme, the defendants, or their co-conspirators, would contact elderly victims and falsely inform the victims that they had won a sweepstakes. The supposed prizes in these sweepstakes usually consisted of millions of dollars, a new vehicle, or other valuable items. The defendants and their co-conspirators would tell the victims that they needed to pay bogus fees and/or taxes in order to collect their purported winnings.
The defendants and their co-conspirators would direct the elderly victims where to send the bogus fees and/or taxes. Evidence showed victims purchased prepaid cards, USPS money orders, or bank money orders; mailed cash or personal checks; or made wire deposits into the defendants’ bank accounts. The defendants in turn wired the fraudulent funds to co-conspirators in Jamaica. The defendants received more than $700,000 from the victims they targeted. At least 175 victims suffered a loss as part of the scheme. Approximately 70 victims were over the age of 80. The oldest victim was 96 years old.
United States District Judge Bruce Howe Hendricks sentenced both Rojay Lawson and Theresa Lawson to 78 months in federal prison, to be followed by a three-year term of court-ordered supervision, in the event they are not deported upon release. There is no parole in the federal system. The defendants were also ordered to pay $405,401.00 in restitution.
This case was investigated by the United States Postal Inspection Service (USPIS) and Homeland Security Investigations (HSI). Assistant United States Attorneys Emily Limehouse and Amy Bower prosecuted the case.
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Hartford Man Sentenced to More Than 7 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ELVIN GONZALEZ, also known as Peewee,” 45, of Hartford, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to 87 months of imprisonment, followed by four years of supervised release, for narcotics and firearm offenses.
According to court documents and statements made in court, in June 2021, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department made controlled purchases of distribution quantities of fentanyl and crack cocaine from Gonzalez and his associate, Jose Rivera, also known as “Chepo.”
Gonzalez and Rivera were arrested on June 25, 2021. On that date, a search of Gonzalez’s Wethersfield Avenue residence revealed approximately 4,000 dose bags of fentanyl, approximately 139 grams of crack, approximately 18 grams of cocaine, two loaded handguns, a loaded rifle, and additional rounds of ammunition. The rifle and one of the handguns had been reported stolen. A search of Rivera’s East Hartford revealed approximately 162 grams of loose fentanyl, 300 dose bags of fentanyl, items used to process and package narcotics for street sale, a handgun and a loaded magazine, and more than $19,000 in cash.
Gonzalez’s lengthy criminal history includes convictions in Connecticut, Massachusetts and Vermont for narcotics, robbery and other offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On November 10, 2021, Gonzalez pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, and one count of possession of a firearm by a felon. Gonzalez, who is released on bond, is required to report to prison on June 7.
Rivera, 43, pleaded guilty to the same offenses on January 5, 2023, and is detained while awaiting sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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.
Hamilton County Man Pleads Guilty to COVID Relief Fraud Involving Two Fraudulently Obtained Paycheck Protection Program LoansRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Desmond Dondre Williams (34, Jasper) has pleaded guilty to one count of conspiracy to commit wire fraud and two counts of wire fraud involving COVID Relief Fraud. Williams faces up to 20 years in federal prison on each count and payment of restitution to the United States government. A sentencing date has not yet been set.
According to court documents, in April 2021, Williams submitted two Paycheck Protection Program (PPP) loan applications to two different lenders authorized by the Small Business Administration (SBA) to lend funds for approved PPP loan applications. Both PPP loan applications falsely claimed that Williams operated his own business – “Tastebudz.” Throughout the loan applications Williams made multiple false statements regarding his purported gross income and business expenses associated with operating Tastebudz. In support of his PPP loan applications, Williams submitted a false IRS Form 1040 “Profit or Loss From Business” for Tastebudz. It contained false statements about operating expenses, gross income, and wage expenditures for his purported business. In truth, Tastebudz did not exist. In reliance on the false statements in his two PPP loan applications, the SBA funded a PPP loan for Tastebudz in the amount of $16,386 and a second PPP loan in the amount of $22,941. After receiving the PPP loan proceeds into his bank account, Williams began making withdrawals and spending it on personal expenses.
This case is being prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Mai Tran.
Georgia Methamphetamine Trafficker Is Sentenced to 10 YearsRead the Press Release
ASHEVILLE, N.C. – Brandon Todd O’Dell, 34, of Hiawassee, Georgia, was sentenced today to 120 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to documents filed with the court and today’s sentencing hearing, O’Dell conspired with other individuals to traffic methamphetamine in and around Jackson County and elsewhere in North Carolina. Court records show that on March 9, 2021, deputies with the Jackson County Sheriff’s Office were conducting a welfare check on a female who was a passenger in O’Dell’s vehicle. At the time, the vehicle was parked at the parking lot of a Dollar General Store in Sylva, N.C. Over the course of the service call, law enforcement received conflicting accounts from O’Dell, the female passenger, and another male passenger regarding their travel, the reason for their stop, and their ultimate destination. Subsequently, court records show that law enforcement conducted a search of O’Dell’s vehicle, from which they recovered methamphetamine, digital scales, small plastic bags, and other items commonly used for the repackaging and redistribution of methamphetamine. Over the course of the investigation, law enforcement determined that O’Dell is a Lt. in the Aryan Brotherhood in Georgia, and that he made multiple trips from Georgia to North Carolina to transport substantial quantities of methamphetamine.
On October 7, 2022, O’Dell pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine. He remains 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 Drug Enforcement Administration and the Jackson County Sheriff’s Office for their investigation of the case.
Assistant United States Attorney Tom Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.
General Contractor and Real Estate Developer Plead Guilty in Connection with Worker Death on Construction Site in PoughkeepsieRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ONEKEY, LLC, a New Jersey construction company, and its principal, FINBAR O’NEILL, pled guilty to willfully violating Occupational Safety and Health Administration (“OSHA”) regulations, resulting in the death of a construction worker (“Victim-1”) in Poughkeepsie, New York, on or about August 3, 2017. The defendants pled guilty before U.S. Magistrate Judge Paul E. Davison, to whom the case is assigned. The defendants are scheduled to be sentenced on May 12, 2023.
U.S. Attorney Damian Williams said: “Onekey, a construction company, and its principal, Finbar O’Neill, endangered the safety of their workers by willfully disregarding regulations and taking shortcuts to sidestep their safety obligations. This conduct led to the tragic death of a worker on a construction site. Today’s guilty plea should serve as a reminder to all businesses that failure to comply with safety regulations endangers their workers and unfairly disadvantages business that are following the rules, and this Office will hold you accountable.”
According to statements and filings in federal court:
In 2017, ONEKEY and O’NEILL implemented a soil compaction plan at a construction site at 1 Dutchess Avenue in Poughkeepsie. The soil compaction plan involved piling large quantities of dirt, called “surcharges,” on top of the sites of three future buildings. An engineering firm designed a plan for the use of the surcharges. ONEKEY and O’NEILL did not follow this plan. Instead, they built a wall to hold back one of the surcharges, so workers could get started on the buildings next to it. ONEKEY and O’NEILL did not consult with any qualified person to see if the wall could withstand the weight to be placed on it by the surcharge.
While people were working next to the wall, ONEKEY kept using construction machinery to add dirt to the surcharge pressing up against the wall. The people working near the wall were not warned about the dangers it created. ONEKEY and O’NEILL heard from people working at the site that the wall was not safe. They did not fix the wall.
On August 3, 2017, workers complained that construction machines were driving on top of the surcharge, adding dirt to it. Later that day, the wall collapsed. As it fell, Victim-1 ran away from the wall, but he could not get away in time and was killed.
* * *
ONEKEY, LLC, a New Jersey corporation, pled guilty to one count of willful violation of OSHA regulations resulting in death. The foregoing count carries a maximum fine of $500,000. FINBAR O’NEILL, 57, of Paramus, New Jersey, pled guilty to one of count of willful violation of OSHA regulations resulting in death. The foregoing count carries a maximum sentence of six months in prison and a maximum fine of $250,000.
The maximum potential penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of OSHA and the Department of Labor, Office of the Inspector General (“DOL-OIG”).
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Steven J. Kochevar and Stephanie Simon are in charge of the prosecution.
Former U.S. soldier sentenced to life in prison for murder of Fort Stewart servicemember stabbed to death in installation housingRead the Press Release
SAVANNAH, GA: A former U.S. Army sergeant who admitted he stabbed to death a former fellow soldier in his Fort Stewart barracks room has been sentenced to life in federal prison.
Byron Booker, 29, of Ludowici, Ga., was sentenced to life in prison after previously pleading guilty to Premeditated Murder of a Member of the United States Uniformed Services, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Booker to pay a fine of $2,500 and to serve five years of supervised release upon completion of his prison sentence.
There is no parole in the federal system.
“Byron Booker squandered his own military career by illegally using drugs, and then murdered a former fellow soldier in cold blood in retaliation for that soldier honorably performing his duties,” said U.S. Attorney Estes, a retired U.S. Army Colonel. “The sentence of life in prison with no parole will serve a measure of justice for Austin Hawk’s family, while affirming the outstanding investigative work that led to Booker’s conviction.”
Booker’s co-defendant, Jordan Brown, 21, of St. Marys, Ga., awaits sentencing after entering a plea of guilty in December 2022 to Assault Upon a U.S. Servicemember Involving Bodily Injury or a Deadly Weapon, and Retaliation Against a Witness Involving Bodily Injury.
As described in court testimony and in the plea agreements for the defendants, Booker, a former U.S. Army sergeant, admitted he and Brown discussed “silencing” Specialist Austin J. Hawk, 21, at Fort Stewart Military Reservation in retaliation for Hawk reporting Brown to U.S. Army leadership for marijuana use. After gaining entry to Hawk’s barracks room shortly after midnight on June 17, 2020, Booker “slashed and stabbed Hawk repeatedly with a sharp-edged weapon.” A medical examiner noted that Hawk received 40 separate stab or slash wounds, many of them that individually would have been fatal, and cut his own hand during the assault.
Hawk’s body was found in his Fort Stewart barracks room the next day.
“This sentence holds Booker accountable for his actions and hopefully brings some closure to the victim’s family,” said Rusty Higgason, assistant special agent-in-charge of the Department of the Army Criminal Investigation Division’s Southeast Field Office. “This complex investigation is a great example of the close teamwork among Army CID, the U.S. Army Criminal Investigation Laboratory, FBI, and the U.S. Attorney’s Office in the Southern District of Georgia.”
“This sentence represents a measure of justice for Austin Hawk, a man who was murdered for simply following the rules,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hawk’s family and friends will never be rid of the pain this senseless murder has caused them, but hopefully it gives them some sense of resolve to know that Booker will spend the rest of his life in prison.”
U.S. Attorney Estes also commended the work of CID Forensic Science Technicians from Fort Stewart, Fort Bragg, Fort Gordon, and Fort Jackson, and from the analysts with the U.S. Army Criminal Investigation Laboratory and the FBI Crime Lab.
The Department of the Army Criminal Investigation Division and the FBI are investigating the case, which is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Jennifer G. Solari and Darron J. Hubbard.
Former U.S. Navy Captain Sentenced to 30 Months in Prison in International Navy Bribery ScandalRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714 and Valerie H. Chu (619) 546-6750
SAN DIEGO – U.S. Navy Captain (Retired) David Williams Haas was sentenced today to 30 months in prison by a federal district judge in San Diego on charges that he received more than $90,000 in bribes from foreign defense contractor Leonard Francis, who plied him with luxurious hotel stays, travel, and prostitutes. Haas was also ordered to pay a criminal fine of $30,000 and restitution in the amount of $90,968.82.
“Public corruption erodes the very fabric of our democracy, threatening the reputation and functioning of our institutions and thus the ability of the United States to lead with credibility,” said U.S. Attorney Randy S. Grossman. “Today’s sentencing, in part, replenishes the well of democracy, signaling to all Americans that the business of your public institutions will be conducted in the light, without bias or favor.”
According to court documents, Haas reciprocated by using his influence within the Navy’s Seventh Fleet to steer ships to GDMA-controlled ports and otherwise advance the interests of Francis and GDMA.
According to the court documents, Haas received the following bribes, among others, from Francis:
- On May 11-15, 2012, Francis paid for rooms at the Shangri-La in Jakarta, Indonesia, plus dinner, entertainment at a night club, alcohol and prostitutes for Haas and others.
- On June 29-30, 2012, in Tokyo, Japan, Francis paid for a two-day party for Haas and others including transportation, dinner at Nobu Restaurant and entertainment at several hostess clubs where the services of prostitutes were provided, at a cost of more than $75,000.
“Mr. Haas’ sentencing brings accountability and closure to the willful illegal acts of a former U.S. Navy officer, who abused his position, to illegally enrich himself and others, at the expense of the American taxpayer, as well as the safety and security of our naval forces in the Pacific area of operations,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This outcome, and others associated with it, demonstrate the steadfast commitment of DCIS and our law enforcement partners to expose corruption within the Department.”
“Mr. Haas betrayed his oath to his country by soliciting, receiving, and accepting a stream of lavish gifts from GDMA, including over $90,000 in meals, entertainment, hotel expenses, and the services of prostitutes, in return for doing and omitting to do acts in violation of his official Navy duties,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to fully investigating all allegations of bribery and corruption that threaten the integrity of the Department of the Navy.”
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Valerie Chu, Michelle Wasserman, and David Chu of the U.S. Attorney’s Office for the Southern District of California.
DEFENDANT Case Number: 18CR3656
Captain (Retired) David Williams Haas Age 54 Kailua, Hawaii
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former Hulbert Public Schools Treasurer Pleads Guilty to Theft of Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Leslie Shannon Mack, age 53, of Hulbert, Oklahoma entered a guilty plea to an Information charging her with Theft or Bribery Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A), punishable by up to 10 years of imprisonment, a fine up to $250,000.00, or both.
The Information alleged that between in and around June 2019 through on or about October 26, 2021, in the Eastern District of Oklahoma, the defendant, Leslie Shannon Mack, the former Treasurer of the Hulbert Public School, did embezzle, steal, obtain by fraud, and otherwise without authority knowingly convert to the use of any person other than the rightful owner and intentionally misapply, property valued at $5,000.00 or more, and that was owned by and was under the care, custody, and control of the Hulbert Public School District.
During the plea hearing, the defendant admitted that she issued excess payroll payments to herself, above and beyond her authorized salary, that she issued payments to another individual, above and beyond that individual’s authorized salary, and that she allowed another individual access to the financial accounting system. The defendant further acknowledged that these actions resulted in a loss to the Hulbert Public School District of more than $550,000, but less than $1,500,00.00.
The charges arose from an investigation by the Oklahoma State Bureau of Investigation and the United States Department of Education – Office of Inspector General.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant was released on a personal recognizance bond pending sentencing.
Assistant United States Attorney Kara Traster represented the United States.
Former Employee of Technology Company Pleads Guilty to Stealing Confidential Data and Extorting Company for RansomRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NICKOLAS SHARP pled guilty today in Manhattan federal court to multiple federal crimes in connection with a scheme he perpetrated to secretly steal gigabytes of confidential files from a public New York-based technology company where he was employed (“Company‑1”). While purportedly working to remediate the security breach for Company-1, SHARP extorted the company for nearly $2 million for the return of the files and the identification of a remaining purported vulnerability. SHARP subsequently re-victimized his employer by causing the publication of misleading news articles about the company’s handling of the breach that he perpetrated, which were followed by the loss of over $4 billion in Company-1’s market capitalization. SHARP pled guilty to intentionally damaging a protected computer, wire fraud, and making false statements to the Federal Bureau of Investigation (“FBI”) before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “Nickolas Sharp’s company entrusted him with confidential information that he exploited and held for ransom. Adding insult to injury, when Sharp wasn’t given his ransom demands, he retaliated by causing false news stories to be published about the company, which resulted in his company’s market capitalization plummeting by over $4 billion. Sharp’s guilty plea today ensures that he will face the consequences of his destructive actions.”
As alleged in the Indictment and based on statements and filings made in court:
At all times relevant to the Indictment, Company-1 was a technology company headquartered in New York that manufactured and sold wireless communications products and whose shares were traded on the New York Stock Exchange. NICKOLAS SHARP was employed by Company-1 from in or about August 2018 through on or about April 1, 2021. SHARP was a senior developer who had access to credentials for Company-1’s Amazon Web Services (“AWS”) and GitHub Inc. (“GitHub”) servers.
In about December 2020, SHARP repeatedly misused his administrative access to download gigabytes of confidential data from his employer. For the majority of this cybersecurity incident (the “Incident”), SHARP used a virtual private network (“VPN”) service that he subscribed to from a company named Surfshark to mask his Internet Protocol (“IP”) address when he accessed Company-1’s AWS and GitHub infrastructure without authorization. At one point during the exfiltration of Company-1 data, SHARP’s home IP address became unmasked following a temporary internet outage at SHARP’s home.
During the course of the Incident, SHARP caused damage to Company-1’s computer systems by altering log retention policies and other files in order to conceal his unauthorized activity on the network. In or about January 2021, while working on a team remediating the effects of the Incident, SHARP sent a ransom note to Company-1, posing as an anonymous attacker who claimed to have obtained unauthorized access to Company-1’s computer networks. The ransom note sought 50 Bitcoin, a cryptocurrency — which was the equivalent of approximately $1.9 million, based on the prevailing exchange rate at the time — in exchange for the return of the stolen data and the identification of a purported “backdoor,” or vulnerability, to Company-1’s computer systems. After Company-1 refused the demand, SHARP published a portion of the stolen files on a publicly accessible online platform.
On or about March 24, 2021, FBI agents executed a search warrant at SHARP’s residence in Portland, Oregon, and seized certain electronic devices belonging to SHARP. During the execution of that search, SHARP made numerous false statements to FBI agents, including, among other things, in substance, that he was not the perpetrator of the Incident and that he had not used Surfshark VPN prior to the discovery of the Incident. When confronted with records demonstrating that SHARP purchased the Surfshark VPN service in July 2020, approximately six months prior to the Incident, SHARP falsely stated, in part and substance, that someone else must have used his PayPal account to make the purchase.
Several days after the FBI executed the search warrant at SHARP’s residence, SHARP caused false news stories to be published about the Incident and Company-1’s response to the Incident and related disclosures. In those stories, SHARP identified himself as an anonymous whistleblower within Company-1 who had worked on remediating the Incident. In particular, SHARP falsely claimed that Company-1 had been hacked by an unidentified perpetrator who maliciously acquired root administrator access to Company-1’s AWS accounts. In fact, as SHARP well knew, SHARP had taken Company-1’s data using credentials to which he had access in his role as Company‑1’s AWS cloud administrator, and SHARP had used that data in a failed attempt to extort Company-1 for millions of dollars.
Following the publication of these articles, between March 30, 2021, and March 31, 2021, Company-1’s stock price fell approximately 20%, losing over $4 billion in market capitalization.
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SHARP, 37, of Portland, Oregon, pled guilty today to one count of transmitting a program to a protected computer that intentionally caused damage, one count of wire fraud, and one count of making false statements to the FBI. These offenses carry a total maximum sentence of 35 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SHARP is scheduled to be sentenced by Judge Failla on May 10, 2023, at 3:00 p.m.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Vladislav Vainberg and Andrew K. Chan are in charge of the prosecution.
Former Columbus police officer sentenced to 9 years in prison for trafficking fentanyl, accepting bribesRead the Press Release
COLUMBUS, Ohio – A former Columbus police officer was sentenced in federal court today to 108 months in prison for conspiring to distribute more than eight kilograms of fentanyl and accepting bribes to protect the transportation of cocaine.
Marco R. Merino, 45, of Columbus, was arrested by federal agents in September 2021 and pleaded guilty in February 2022.
“We cannot allow those who took an oath to uphold law and order to begin violating the law,” said U.S. Attorney Kenneth L. Parker. “This office will hold lawbreakers accountable, no matter their profession.”
From June to September 2021, Merino conspired with another Columbus police officer to traffic fentanyl. Merino distributed fentanyl to another individual on at least three occasions and accepted $32,500 for approximately one of the kilograms of fentanyl.
In March, April, May, August and September 2021, Merino accepted a total of $45,000 in cash in exchange for protecting the safe transport of at least 47 kilograms of cocaine. Merino possessed a firearm in furtherance of the protection of cocaine. Unbeknownst to Merino, there was no actual cocaine and each of the transactions was controlled by federal law enforcement.
Court documents detail that Merino tried to recruit a confidential informant to traffic drugs with him. Merino promised law enforcement protection to the individual and said he could intervene if other law enforcement agencies attempted to investigate the confidential informant.
Fellow former Columbus police officer John J. Kotchkoski, 33, of Marengo, Ohio, awaits sentencing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.
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Florida Man Sentenced for Making Threatening CommunicationsRead the Press Release
BOSTON – A Florida man was sentenced today in federal court in Springfield for sending threatening communications to the Department of Veterans Affairs.
Drummond Neil Smithson, 31, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. In November 2022, Smithson pleaded guilty to one count of use of interstate communications to transmit a threat to injure.
On or about July 19, 2020, Smithson, an Army veteran, mailed a threatening communication from Ayer, Mass., to the Department of Veterans Affairs threatening to injure members of Moms Demand Action, a grassroots organization advocating for the end to gun violence. In the letter, Smithson threatened, among other things, “If you take my pension there is going to be retaliation,” and, “You take my pension and the second I get out of prison I will go to a Moms Demand Action meeting […] Try me.”
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. Valuable assistance was provided by the Department of Veterans Affairs’ Office of Inspector General; Federal Bureau of Investigations, Miami Field Office; and Federal Medical Center, Devens, Special Investigations Section. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.
Federal Prison Escapee Arrested and Sentenced to Additional Prison TimeRead the Press Release
MONROE, La. - United States Attorney Brandon B. Brown announced that Terrell L. Kellum, 35, of Shreveport, Louisiana, has been sentenced by United States District Judge Terry A. Doughty to 24 months in prison, followed by 3 years of supervised release, for escaping from federal custody.
In 2016, Kellum pleaded guilty in U.S. District Court to being a convicted felon in possession of a firearm and was sentenced to 57 months in federal prison. After having served the majority of his time with the Bureau of Prisons, he was transferred in December 2019 to a residential halfway house in Monroe to complete his federal sentence. Kellum signed and agreed to Bureau of Prison’s Community Based Program Agreement subjecting him to certain rules and supervision while at the halfway house.
On March 10, 2020, Kellum left the halfway house at approximately 10:00 a.m. and told the staff that he was going to work. At 10:27 a.m., officers with the Monroe Police Department contacted staff at the halfway house wanting to question Kellum in connection with illegal check cashing activity. Officers determined that Kellum never showed up for work that day, nor did he ever report back to the halfway house, and he was placed on escape status. Deputies with the United States Marshal’s Service searched the area for Kellum to no avail. In August 2022, Kellum was arrested in Tarrant County, Texas and was returned to federal custody status.
The case was investigated by the United States Marshal’s Service and Monroe Police Department and prosecuted by Assistant U.S. Attorney Cytheria D. Jernigan.
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Doniphan Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Stacy Lynn Delamotte, 36, of Doniphan, Nebraska, was sentenced today in federal court in Lincoln for possession with intent to distribute 50 grams or more of methamphetamine. United States District Judge John M. Gerrard sentenced Delamotte to 70 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a 4-year term of supervised release. She will also forfeit to the United States $6,000 in United States currency. The money seized was proceeds from her drug activities.
On March 24, 2021, officers from the Grand Island Police Department responded to a report of shoplifting at Menards in Grand Island. Delamotte tried to conceal items inside of a box in an attempt to avoid paying for them. When confronted, she fled on foot. Officers located her vehicle in the parking lot, a 2013 Chrysler 300. A review of the surveillance video showed Delamotte exit the driver’s seat of the Chrysler 300 upon arriving at Menards.
Officers then towed and obtained a search warrant for the vehicle. The search revealed approximately one ounce of methamphetamine on the floor of the passenger seat. A backpack was removed and searched. Inside the backpack officers found approximately two more ounces of methamphetamine, a digital scale, and a small baggie containing an additional one gram of methamphetamine. Investigators gained access to the locked glove box and recovered $6,000 in United States currency.
This case was investigated by the Grand Island Police Department and the Nebraska State Patrol.