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2 February 2023
District Man Found Guilty of Bias-Related Assault on African-American WomanRead the Press Release
WASHINGTON – Gueorgui Iskrenov, 33, of Washington, DC, has been found guilty on charges stemming from a hate crime in which he spit in the face of a female neighbor in Southwest Washington.
The announcement was made by United States Attorney Matthew M. Graves and Chief Robert J. Contee, III, of the Metropolitan Police Department.
Iskrenov was found guilty on February 1, 2023, of bias-related assault. The verdict followed a three-day trial in the Superior Court of the District of Columbia in front of Judge Andrea Hertzfeld, who scheduled a sentencing hearing for February 9, 2023.
According to the government’s evidence, on July 20, 2020, at approximately 2 p.m., the victim, an African-American female, was walking her service dog and crossing the exit ramp of her apartment complex by the Wharf in Southwest, Washington. Iskrenov drove his SUV up the exit ramp at a high rate of speed, almost hitting the victim and her dog. After the victim told him to be careful, Iskrenov began screaming racist and sexist epithets. Iskrenov then intentionally spit into the victim’s face, with the spit landing on her glasses and in her hair. Iskrenov drove away and was arrested 23 days later after he was positively identified. The government’s evidence at trial showed that Iskrenov had a history of racist tirades against African-American neighbors.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the efforts of Assistant U.S. Attorneys Erica Rudolf and Katie Sessa, who prosecuted the case, and Assistant U.S. Attorneys Emily Kubo and Travis Wolf who investigated the case.
Des Moines Man Sentenced to 30 Years in Federal Prison for Exploiting Minors on SnapchatRead the Press Release
DES MOINES, IA – Shaun Taylor Solem, age 27, of Des Moines, was sentenced on February 1, 2023, to a total of 360 months in prison for multiple child exploitation offenses. Following his prison term, Solem will be on supervised release for ten years and required to register as a sex offender. There is no parole in the federal system.
In 2019 and 2020, Solem communicated with multiple minor females on Snapchat, including victims he knew were as young as twelve years old. During his communications, Solem falsely stated that he was a similar age. Solem requested and received sexually explicit images from many of the victims. He directed several of the minor victims to take explicit photos or videos of themselves and multiple victims did. After receiving the images, Solem threatened to disseminate their images to family, friends, or publicly if the victims did not continue to send sexual images to him. The minor victims ranged in age from 12 to 16 years old and were located across the United States, including at least three minor victims who lived near Des Moines.
“Parents, please continue to be aware of who your children and teenagers are interacting with on social media sites. Relentless predators like Solem have no reservation in attempting to exploit their way into any home via the internet. In this case, the combined efforts of a vigilant parent and dedicated law enforcement officers brought a dangerous predator out from behind his keyboard and into incarceration for a lengthy period of time. Child exploitation of any kind will not be tolerated, and predators will be brought to justice,” United States Attorney Richard D. Westphal said. The case was investigated by the Urbandale Police Department, Iowa Division of Criminal Investigation (DCI)’s Internet Crimes Against Children Task Force, and the FBI Child Exploitation Task Force.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Parents and guardians are encouraged to have open and ongoing conversations about internet safety with children. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the Publications & Resources tab.
Des Moines Man Sentenced on Firearm OffensesRead the Press Release
Des Moines, IA – Kenneth Quinton Crosby, age 24, of Des Moines, was sentenced today to 12 months and 1 day in prison following his guilty plea to four counts of False Statement During Purchase of a Firearm and one count of Unlawful Drug User in Possession of Firearms. Following his prison term, Crosby also will have to serve three years of supervised release. There is no parole in the federal system.
According to court documents, Crosby purchased at least five firearms in 2020 and 2021. Each time he did, Crosby knowingly made several false misrepresentations on a required form, the Bureau of Alcohol, Tobacco, Firearms, and Explosive (ATF) Form 4473. This Form requires firearm buyers to answer several questions, including those about the buyer’s competency, criminal history, drug use, immigration status, and history with domestic violence. On February 9, 2022, Crosby knowingly possessed four pistols while being an unlawful user of marijuana.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorney Kyle Essley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. 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.
Council Bluffs Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Christopher Logan Meadows, age 24, of Council Bluffs, was sentenced on January 31, 2023, to 37 months in prison following his plea of guilty to being a prohibited person in possession of a firearm. After he is released from prison, Meadows will serve three years of supervised release.
On January 17, 2022, law enforcement was called to Harrah’s Casino and encountered Meadows. Meadows ran from officers and threw something on the roof of a car wash, which was later located and identified as a Glock .45 caliber handgun. Meadows was prohibited from possessing firearms because he is a felon and was a drug user.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department 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.
Convicted Murderer Indicted for Possession of Firearm and AmmunitionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Cody Richard Hawk (51, Ocklawaha) with possession of firearm and ammunition by a convicted felon. If convicted, Hawk faces up to 15 years in federal prison.
According to the indictment, on October 9, 2022, Hawk possessed a Savage Arms rifle and Winchester ammunition. At that time, Hawk had five previous felony convictions, including second-degree murder with a firearm, statutory rape, felon in possession of a handgun, failure to comply with registration law, and possession of methamphetamine. As a convicted felon, he is prohibited from possessing firearms and ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted Felon from Worcester Pleads Guilty to Cocaine and Firearm OffensesRead the Press Release
BOSTON – A Worcester man pleaded guilty today to drug and firearm offenses.
Rodney Hall, 38, pleaded guilty to possession with intent to distribute more than 500 grams of cocaine and being a felon in possession of a firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 17, 2023. Hall was originally indicted by a federal grand jury in January 2021 and charged in a superseding indictment in September 2022.
On Sept. 30, 2020, Hall’s apartment was searched, where approximately 634 grams of crack cocaine, a loaded .25 caliber Beretta handgun, plastic baggies, $7,000 in cash and a digital scale were found. Hall is prohibited from possessing a firearm due to his criminal history, which includes previous convictions for possession of a large capacity weapon and trafficking cocaine.
For the drug charge, Hall faces a minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Evan D. Panich of Rollins’ Criminal Division 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.
Columbus Tax Preparer Pleads Guilty to Federal Charges for Filing Fraudulent Tax Returns, Not Paying Personal TaxesRead the Press Release
COLUMBUS, Ga. – A Columbus-based tax preparer pleaded guilty in federal court this morning to charges that she submitted false claims for tax credits for her clients and also failed to pay her own personal taxes.
Nadine Word, 35, pleaded guilty to one count of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns and one count of willful failure to file return, supply information, or pay tax before U.S. District Judge Clay Land today, Feb. 2. Word faces a maximum of three years imprisonment to be followed by one year of supervised release and a $100,000 fine for the first count and a maximum sentence of one year imprisonment to be followed by one year of supervised release and a fine of $25,000 for the second count. Sentencing is scheduled for June 13. There is no parole in the federal system.
“Tax preparers have an ethical and legal obligation to file correct tax returns for their clients, and should—of course—be paying their own taxes,” said U.S. Attorney Peter D. Leary. “This kind of fraud greatly harms the public trust; individuals in the Middle District of Georgia caught illegally gaming the system by making up false claims to reap larger refunds or pay less taxes than everybody else will be held accountable at the federal level.”
“Nadine Word pleaded guilty to preparing and submitting false tax returns and failing to file her personal tax returns. As tax season is currently underway, citizens should be reminded that committing tax fraud will lead to criminal prosecution,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office.
According to court documents, between at least 2014 and 2018, Word prepared and submitted fraudulent tax returns out of her tax preparation business, Superior Taxes. These fraudulent returns resulted in greater tax refunds for Word’s clients and greater fees for Word, amounting to a total loss of $586,565. Word would submit fraudulent claims for earned income credits, education credits and business losses. She also failed to file her own tax returns during that time period.
The most common fraudulent claim Word submitted was for education credits for individuals who did not attend the school listed on the Form 8863 submitted with the Form 1040 tax return. An analysis of tax returns claiming education credits revealed that 408 of 494 claims filed by Word had no supporting education records at the documented educational institution. The falsely submitted education credits from these 408 claims resulted in a tax loss of $556,145. Additionally, the IRS evaluated 31 individual returns finding false education credits, false earned income credits and false business expenses. Every return included at least one false item. The tax loss for those 31 returns is $64,767. The total tax loss from the false education credits and the 31 individual returns, discounting duplications from the false education credits, is $586,565.
The case was investigated by IRS.
Assistant U.S. Attorney Amy Helmick is prosecuting the case for the Government.
Chula Vista Man Sentenced for Blowing up ATMsRead the Press Release
For Further Information, Contact: Assistant U. S. Attorney Shital H. Thakkar (619) 546-8785 and Andrew Sherwood (619) 546-9690
SAN DIEGO – Chad Lee Engel was sentenced in federal court today to 138 months in prison for blowing up ATM machines to steal the money contained inside.
Engel pleaded guilty in July 2022, admitting that he participated in conduct outlined in the original indictment, including his part in causing the explosion that damaged a California Coast Credit Union ATM, located at 4285 Ruffin Road in San Diego, on July 4, 2017; and an ATM located at a Chevron gas station, located at 9650 Miramar Road in San Diego on August 13, 2017.
In the first incident, Engel admitted that he and a coconspirator made and detonated a pipe bomb on a metal shelf underneath the ATM, which caused significant damage to the ATM’s structure, but did not expose the money contained inside. After a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Diego Fire-Rescue Department’s Metro Arson Strike Team and the FBI, bomb technicians identified the post-blast debris as a destructive device.
Engel admitted that in the second incident, in the early morning hours of August 13, 2017, he and an accomplice approached an outdoor ATM located at a Chevron gas station. They worked together to drill a hole in its housing, and dispersed an unknown gas (such as acetylene or propane) into the ATM. Engel then placed and ignited a hobby fuse inside the drilled hole, which resulted in an explosion that destroyed the ATM. After the explosion, Engel retrieved a cash box from the post-blast debris that contained approximately $7,000, and both he and the coconspirator fled. Later that day, bomb technicians identified the use of the gas to blow up the ATM as a destructive device.
After Engel and his coconspirator were charged in 2017, additional investigation by the U.S. Attorney’s Office and ATF investigators revealed that Engel and the accomplice attempted to locate and break into other ATM machines before their activities on July 4 and August 13 of 2017 were discovered. Through his plea of guilty, Engel admitted that on June 18, 2017, they broke into a Super Laundry in National City where they hoped to burglarize an ATM machine located inside. Although they were unsuccessful in breaking into that ATM machine, they stole approximately $140 from within the Super Laundry.
One week later, on June 25, 2017, Engel and his coconspirator broke into another ATM machine located at a 76 Gas Station located at 12860 Rancho Peñasquitos Boulevard in San Diego. They loaded the ATM into their vehicle, took the ATM to an area near Fiesta Island, and used a grinder and cutting torch to break into the ATM, which allowed them to steal the money located inside. Eventually, a subsequent indictment incorporated these actions into Engel’s charges, and he admitted to them in his plea agreement.
“This is a just sentence for a defendant whose dangerous actions caused significant damage,” said U.S. Attorney Randy Grossman. “If you use explosives to break the law, you are going to prison for a long time.” Grossman thanked the prosecution team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Metro Arson Strike Team, the Federal Bureau of Investigation and the National City Police Department for their excellent work on this case.
“ATF is dedicated to preventing and reducing violent crime involving the criminal misuse of explosives, and protecting the public by enforcing laws and regulations governing the explosives industries,” said ATF Los Angeles Field Division Acting Special Agent in Charge Jennifer Cicolani. “ATF remains vigilant about working with its partners to keep the public safe by investigating and perfecting charges against those who misuse explosives for greed and public destruction.”
DEFENDANT Case Number 17-cr-03401-JLS
Chad Lee Engel Age: 50 Chula Vista, CA
SUMMARY OF CHARGES
Use of an Explosive to Commit a Felony in violation of 18 U.S.C § 844(h)
Maximum Penalty: Mandatory minimum 10 years in prison, consecutive to any other sentence;
Conspiracy to Commit Bank Burglary in violation of 18 U.S.C §§ 2113(b) and 371
Maximum Penalty: Ten years in prison
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego Fire Department
San Diego Police Department
Federal Bureau of Investigation
National City Police Department
"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 is also the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Cecil County Woman Pleads Guilty to Federal Charges Related to Her Sexual Abuse of a Four Month ChildRead the Press Release
Baltimore, Maryland - Summer Nichole McCroskey, age 25, of Elkton, Maryland, pleaded guilty today to federal charges related to her participation in a conspiracy to sexually abuse a child, from the age of approximately four months to two years old, to producing and distributing images documenting the sexual abuse of the child, and to possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Cecil County State’s Attorney James Dellmyer; and Cecil County Sheriff Scott Adams.
At today’s plea hearing, McCroskey admitted that she and her co-conspirator sexually abused a child, starting at the time the victim was approximately four months of age through at least October 2021, when the victim was two years old, and produced videos and images of the abuse. The abuse included oral, vaginal, and anal penetration, as well as bondage, and both McCroskey and her co-conspirator participated in the abuse. Additionally, McCroskey distributed the files documenting the sexual abuse of the child to her co-conspirator and others using an encrypted messaging application.
McCroskey faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison for conspiracy to sexually exploit a child and for each of seven counts of sexual exploitation of a child; a mandatory minimum of five years and a maximum of 20 years in federal prison for each of five counts of distribution of child pornography; and a maximum of 20 years in federal prison for each of three counts of possession of child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for McCroskey on May 18, 2023, at 11:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI, the Cecil County State’s Attorney’s Office and the Cecil County Sheriff’s Office for their work in the investigation and thanked Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Camden County Man Admits Hiring Hitman via InternetRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted paying $20,000 in bitcoin to have a 14-year old child murdered, U.S. Attorney Philip R. Sellinger announced.
John Michael Musbach, 31, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed.
According to documents filed in this case and statements made in court:
In the summer of 2015, Musbach exchanged via the internet sexually explicit photographs and videos with the victim, a 13-year-old living in New York. The victim’s parents found out about the inappropriate contact and contacted the local police. Upon identifying Musbach, then a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO). In March 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey.
Musbach decided to have the victim killed so that the victim could not testify against him in the pending criminal case. During the period from May 7, 2016, through May 20, 2016, Musbach repeatedly communicated with the administrator of a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency, and arranged for a murder-for-hire. Musbach asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000 at the time) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense. Sentencing is scheduled for June 13, 2023.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Tracy Cormier in St. Paul, Minnesota, with the investigation leading to today’s guilty plea. He also thanks the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
Buffalo Man Pleads Guilty to Assaulting an FBI AgentRead 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 Tyler Collins, 27, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to assaulting a federal officer and causing a bodily injury. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Franz M. Wright and Douglas A. C. Penrose, who are handling the case, stated that on July 12, 2022, at approximately 4:00 p.m., Collins attempted to enter the FBI-Buffalo Division main office but was denied entry by the security guards inside of the front door. At the time, three federal agents were walking back to the main office and encountered Collins, who they observed was yelling into the intercom system. Collins was heard yelling expletives while physically banging on the FBI building’s door demanding entry. One of the federal agents attempted to calm Collins, at which time Collins punched the federal agent, physically assaulting him. One of the other federal agents discharged pepper spray, in an attempt to subdue Collins, who then fled on Elmwood Avenue. Collins was later taken into custody that evening after he was found walking on Delaware Avenue.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Darren Cox, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for June 7, 2023, at 10:30 a.m. before Judge Skretny.
British Nationals Plead Guilty to Interference with Flight Crew, Assault on Flight Diverted to BGRRead the Press Release
BANGOR, Maine: Two men from Manchester, England pleaded guilty in U.S. District Court in Bangor today to interference with a flight crew and assault. The charges stem from an incident on a TUI Airways flight that diverted to Bangor International Airport (BGR) last month.
According to court records, Anthony Joseph James Kirby, 36, and Damien Jake Murphy, 36, were passengers aboard a TUI Airways flight traveling from Cancun, Mexico to Manchester, England on January 2, 2023. While the flight was in U.S. airspace, the FAA received a report that two passengers had repeatedly interfered with members of the flight crew and flight attendants. After repeated warnings from the captain, the flight diverted to BGR with agents and officers from the FBI, Federal Air Marshal Service, U.S. Customs and Border Protection, and Bangor Police Department responding.
The investigation revealed that Kirby and Murphy had become upset after being told they would not be served any more alcohol. The pair then acquired a large bottle of alcohol from their carry-on luggage and continued to drink, becoming increasingly intoxicated. Despite repeated warnings, the two men continued to be belligerent, including using racial slurs. At one point Murphy assaulted a flight attendant, and Kirby assaulted a passenger. TUI Airways LTD incurred $26,589 in costs and expenses due to the unscheduled landing at BGR.
Kirby and Murphy each face up to 20 years in prison, a fine of up to $250,000 and three years of supervised release for the interference charge. For the assault charges, they face up to one year in prison, a $100,000 fine, and one year of supervised release. The men will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The FBI, Federal Air Marshal Service, U.S. Customs and Border Protection, and the Bangor Police Department investigated the case.
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Edited 03/15/23 to correct Bangor International Airport IATA code to BGR
Boston Tax Preparer Pleads Guilty to $2 Million Tax FraudRead the Press Release
BOSTON – The owner of a tax preparation business in Jamaica Plain pleaded guilty today in federal court in Boston to preparing false tax returns for his clients.
Joseph Rodriguez, 72, pleaded guilty to one count of aiding or assisting in filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 12, 2023. Rodriguez was charged on Dec. 9, 2022.
On numerous occasions between 2014 and 2017, Rodriguez prepared and filed federal income tax returns for clients that contained false, inflated and incorrect information. Rodriguez added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses, charitable contributions and unreimbursed employee business expenses. By inflating Schedule A deductions, Rodriguez decreased his clients’ taxable income and effectively increased the clients’ tax refunds. As a result, Rodriguez caused more than $2 million in tax loss to the IRS.
The charge of aiding or assisting in filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Bogalusa Man Pleads Guilty to Violating the Federal Gun Control and the Federal Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – CARLOS WALKER, age 33, a resident of Bogalusa, Louisiana, pled guilty on January 31, 2023 to one count of felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), one count of possession with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), and one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, on September 24, 2021, officers with the Bogalusa Police Department observed a black Nissan Altima with a non-functioning headlight traveling east on Derbigny Street in Bogalusa, Louisiana. The officers conducted a traffic stop on the vehicle. As the officers approached the vehicle, they observed WALKER in the front passenger seat kicking his legs as if he were shoving something under the seat. One of the officers recognized WALKER and remembered that a warrant had been issued for his arrest.
After the confirming the warrant, the officers arrested WALKER. In a search incident to arrest, officers located approximately $4,000.00 in WALKER’S pocket. Officers then observed a Taurus Model G2C, nine-millimeter handgun under the passenger seat. Officers also located a small clear wrap containing seventeen (17) grams of methamphetamine in the front passenger door pocket.
A review of WALKER’S criminal record revealed that he had a prior felony drug convictions.
For the felon in possession count, WALKER faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, and a term of supervised release of up to three (3) years. For the possession with intent to distribute count, WALKER faces a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000.00, and a term of supervised release of at least three (3) years. For the possession of a firearm in furtherance of a drug trafficking crime count, WALKER faces a mandatory minimum term of imprisonment of five (5) years and a maximum of life imprisonment to run consecutive to any other sentence imposed, a fine of up to $250,000.00, and a term of supervised release of up to five (5) years. At sentencing, WALKER must pay a $100 mandatory special assessment fee for each count of conviction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bogalusa Police Department, and the St. Tammany Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Behavioral Health Provider Pays $384K to Settle Allegations it Overbilled Connecticut MedicaidRead the Press Release
United States Attorney Vanessa Roberts Avery and Connecticut Attorney General William Tong today announced that COMMUNITY MENTAL HEALTH AFFILIATES, INC. (“CMHA”), has entered into a civil settlement agreement with the federal and state governments in which it will pay $384,322 to resolve allegations it overbilled the Connecticut Medicaid program for certain behavioral health services.
CMHA is a behavioral health provider with a headquarters in New Britain and has 10 locations in northwestern and central Connecticut. At one of its locations, Harvest House in New Britain, CMHA runs a group home for clients with serious and persistent mental illness.
CMHA provides Medicaid Rehabilitation Option (MRO) services to its clients residing at Harvest House. MRO services are designed to help clients who have functional disabilities secondary to serious and persistent mental illness achieve maximum functioning in self-care and independent living. In order to receive monthly MRO payments, a behavioral health provider, such as CMHA, must furnish clients with at least 40 hours of MRO services per month and document such services in accordance with Medicaid requirements.
The government alleges that CMHA submitted claims for MRO services to Connecticut Medicaid for certain clients for certain months at Harvest House and were paid the monthly fee for those services, but failed to document at least 40 hours of covered MRO services per month for the clients in question.
To resolve the governments’ common law claims, CMHA agreed to pay $384,322, which covers the time-period from January 2015 through December 2019.
The investigation of CMHA was initiated through the filing of a complaint under the whistleblower provisions of the federal and state False Claims Acts. The relator (whistleblower) will receive 15 percent of the settlement, in the amount of $57,648.
The case related to this settlement is captioned United States and State of Connecticut ex rel. Lugli v. Community Mental Health Affiliates, Inc. (Docket No. 20-cv-1483).
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case was prosecuted by Assistant United States Attorney Richard M. Molot, and by Assistant Attorney General Rick Porter of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Bangor Man Pleads Guilty to Theft of a Firearm from Main Street Pawn in LincolnRead the Press Release
BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor to theft of a firearm from a licensed firearms dealer.
According to court records, in July 2021, Jonathan Birtz, 39, stole a .380 caliber pistol from Main Street Pawn in Lincoln. Security footage showed Birtz reaching over the counter to take the pistol and then concealing it in a folded blanket he was carrying.
Birtz faces up to 10 years in prison followed by 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.
The Lincoln Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Bakersfield Man Indicted for Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Lance Jakell Henderson, 26, of Bakersfield, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 2, 2022, officers were called to the Marriott Courtyard hotel in Bakersfield regarding a domestic violence disturbance in progress. When officers arrived, they contacted Henderson after the victim identified him as the perpetrator. A search of a diaper bag held by a companion revealed a ghost gun (a gun with no serial number) loaded with eight rounds of 9 mm ammunition. Henderson told the officers that he took the gun from the room and put it in the diaper bag.
This case is the product of an investigation by the Bakersfield Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Henderson faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Attempted Pipeline Bomber Sentenced to Five Years in Federal PrisonRead the Press Release
AUSTIN, Texas – A Fort Worth man was sentenced in federal court in Austin today to 60 months in prison for attempting to damage or destroy a portion of the Permian Highway Pipeline in Hays County.
According to court documents, Ryan Blake McKinney, 22, attempted to detonate a device near a section of the Permian Highway Pipeline on Jan. 26, 2022. He had conducted extensive planning for the attack and deliberately chose the Permian Highway Pipeline as part of his ideological fight against capitalism and climate change. McKinney intended to weaken Texas energy independence and ensure significant economic consequences. He turned himself in after his device failed to damage the pipeline due to a design flaw.
“Despite this defendant’s failed attempt to cause destruction, his intent, as shown in his thorough planning, posed an irresponsible and very dangerous risk,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Our prosecution and the sentencing in this case make it clear that attacks on our nation’s critical infrastructure are unacceptable and will be met with the full force of the law.”
“This sentencing demonstrates the FBI's and our Joint Terrorism Task Force partners' commitment to protecting our communities from violent extremists who seek to advance their ideology through acts of terrorism,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “We would like to thank the Austin Police Department and the Hays County Sheriff's Office for their assistance on this case.”
The FBI investigated the case.
Assistant U.S. Attorneys G. Karthik Srinivasan and Michael C. Galdo prosecuted the case.
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Atlanta Man Pleads Guilty to Role in Methamphetamine Distribution Conspiracy Using Laundry Detergent BoxesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jose Javier Galvan (52, Atlanta, GA) has pleaded guilty to conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine. Galvan faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in July and August 2021, Galvan and others conspired to distribute kilogram quantities of high-purity methamphetamine from Guadalajara, Mexico to Atlanta and Tampa.
Galvan drove from Atlanta to Tampa to plan for the distribution of the methamphetamine. He agreed to sell several kilograms of methamphetamine for approximately $5,700, with more quantities of the drug to follow by deliveries from his drug courier.
The drug courier drove from Atlanta to Plant City and delivered 1.89 kilograms of high-purity methamphetamine imported from Mexico. The methamphetamine was transported in a bright green laundry detergent box.
On or about July 22, 2021, Galvan again traveled from Atlanta to Temple Terrace, Florida to collect more than $11,000 in drug proceeds owed to him for the methamphetamine delivery. The following week, Galvan and a coconspirator agreed to deliver another multi-kilogram package of methamphetamine into the Middle District of Florida from the Atlanta area. The drug courier drove from Atlanta with methamphetamine contained in two bright orange laundry detergent boxes. Law enforcement stopped the vehicle in Lowndes County, Georgia. During the traffic stop, the officers discovered the laundry detergent boxes containing an aggregate amount of approximately 4.9 kilograms of methamphetamine.
This case was investigated by the Drug Enforcement Administration, the Winter Haven Police Department, the Plant City Police Department, and the Lowndes County (Georgia) Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
Armed Drug Trafficker with Multiple Criminal Convictions Is Sentenced to 26 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Benjamin Dann Owens, 36, of Hayesville, N.C., was sentenced to 312 months in prison followed by five years of supervised release for conspiracy to distribute and to possess with intent to distribute fentanyl, methamphetamine, Oxycodone, and other narcotics as well as conspiracy to manufacture marijuana, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and court proceedings, on December 20, 2020, at approximately 2:55 a.m., a deputy with the Clay County Sheriff’s Office attempted to conduct a traffic stop of Owens’s vehicle for multiple traffic violations. Owens failed to obey and instead began to drive recklessly at high speed. Owens evaded law enforcement and proceeded to abandon his vehicle. When law enforcement located and searched Owens’s vehicle, they found multiple firearms and ammunition, knives, as well as methamphetamine, Oxycodone pills, and marijuana. Later the same day, Owens was observed walking around Hayesville carrying a bag. When law enforcement attempted to stop Owens, he ignored the officers, threw the bag he was carrying in the nearby woods, and fled on foot. Law enforcement recovered the bag, and inside they found more firearms and ammunition, over 1,100 pills containing fentanyl, methamphetamine, marijuana and other narcotics.
According to court documents, on December 21, 2020, law enforcement executed search warrants at Owens’s residence and outbuildings on the property. Law enforcement seized from the residence more drugs, firearms, and ammunition. Law enforcement also discovered a marijuana grow operation and removed more than 135 marijuana plants from a shed on the property.
On January 7, 2021, law enforcement spotted Owens driving in Hayesville. Owens fled at high speed. Law enforcement followed Owens who eventually crashed his vehicle and fled on foot in the Nantahala National Forest. Owens was arrested shortly thereafter. Law enforcement recovered several loaded firearms, knives, and thousands of rounds of ammunition from the crash scene. Owens has multiple prior convictions in Georgia and North Carolina for drug trafficking, illegal gun possession, and other criminal offenses.
On August 19, 2022, Owens pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, fentanyl, Oxycodone, marijuana, MDA, and Suboxone, and conspiracy to manufacture 100 or more marijuana plants. 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, the Clay County Sheriff’s Office, the Macon County Sheriff’s Office, the Swain County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of the case.
Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Andrews Man Pleads Guilty to Robbing Postal Carrier, Drug ConspiracyRead the Press Release
Florence, South Carolina ---- Jerome Terrell Davis, 30, of Andrews, pleaded guilty to his involvement in the robbery of a United States Postal Service mail carrier and his role in a marijuana trafficking conspiracy.
Evidence presented by the Government at the change-of-plea hearing established that on September 23, 2019, Davis and his co-defendant Trevor Raekwon Seward were anticipating the delivery of two pounds of marijuana that had been shipped from California through the United States Postal Service. Rather than deliver the package to Seward’s residence in Andrews, mail carrier Irene Pressley placed a form in Seward’s mailbox stating that the authorized recipient would need to come to the post office to claim the package.
Shortly thereafter, Seward left home armed with an AR-15. Davis then picked Seward up and they began searching for Pressley. Davis ultimately dropped Seward off on Senate Road in Andrews, where Seward fired approximately twenty rounds from his AR-15 into the back of Pressley’s vehicle, striking her multiple times. Seward then got into Pressley’s vehicle and drove approximately three miles away, where he left Pressley and her vehicle in a ditch on an access road to a hunt club. While on the access road, Seward removed mail from Pressley’s vehicle and searched through packages for the package intended for his residence or any other items of value. The package of marijuana that had been shipped to Seward’s residence was later found on Senate Road, where Pressley had been shot by Seward.
A jury in United States District Court previously convicted Seward of first degree murder, use of a firearm in furtherance of a crime of violence, robbery, possession of a firearm by a convicted felon, and conspiracy to traffic marijuana for his role in the murder and robbery of Pressley.
United States District Judge Donald C. Coggins accepted Davis’ plea and will sentence Davis after receiving and reviewing a pre-sentence report that will be prepared by the United States Probation Office. Davis faces up to twenty years in prison for the robbery of Pressley and up to five years in prison for the marijuana conspiracy conviction.
“Our office is committed to holding violent criminals accountable for their actions,” said U.S. Attorney Adair F. Boroughs. “Our mail carriers are increasingly becoming targets around the country, and we are grateful for the work done by our federal and local partners, particularly the United States Postal Inspection Service and the Williamsburg County Sheriff’s Office, in their efforts to bring justice to the individuals responsible for the robbery and murder of Irene Pressley.”
“The guilty plea by the defendant sends a strong message that the U.S. Postal Inspection Service (USPIS) and our partners will work tirelessly to bring justice against individuals responsible for causing harm to our Postal employees,” said Tommy D. Coke, Postal Inspector in Charge of the Atlanta Division. “Irene Pressley was a dedicated public servant in her community. I want to sincerely thank our partners for their support and commitment in identifying and holding accountable the individuals involved in this case to the full extent of the law.”
“The robbery and murder of Irene Pressley was a truly senseless act of violence,” said Williamsburg County Sheriff Stephen R. Gardner. “With the guilty plea entered by Mr. Davis and the jury’s conviction of Mr. Seward, we are pleased that the individuals who committed such a malicious crime will be held accountable for their actions.”
The case was investigated by agents of the United States Postal Inspection Service (USPIS), the Williamsburg County Sheriff’s Office, the Federal Bureau of Investigation (FBI), the South Carolina Law Enforcement Division (SLED), and the Charleston County Sheriff’s Office. Assistant United States Attorneys Nick Bianchi, Katherine Flynn and Elle E. Klein are prosecuting the case.
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Alleged Perpetrator of $100 Million Crypto Market Manipulation Scheme to Make Initial Appearance in the Southern District of New YorkRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that AVRAHAM EISENBERG will make his initial appearance in the Southern District of New York later today in connection with an Indictment charging him with commodities fraud, commodities market manipulation, and wire fraud in connection with EISENBERG’s manipulation of the Mango Markets decentralized cryptocurrency exchange. As alleged in the Indictment filed on January 9, 2023, EISENBERG 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. EISENBERG was previously arrested on December 26, 2022, in San Juan, Puerto Rico, pursuant to a criminal Complaint. EISENBERG will appear in federal court in Manhattan today and will be presented on the charges before United States Magistrate Judge Jennifer E. Willis. The case has been assigned to United States District Judge Richard Berman.
U.S. Attorney Damian Williams said: “As alleged, Avraham Eisenberg manipulated the Mango Markets cryptocurrency exchange in order to obtain over $100 million in illicit profits for himself. 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 in the cryptocurrency markets.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “Exploiting decentralized finance platforms is the new frontier of old school financial crimes in which criminals abuse emerging technologies for their own personal gain. 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.”
FBI Assistant Director Michael J. Driscoll said: “The defendant is alleged to have executed a scheme through which he fraudulently acquired over $100 million worth of cryptocurrency. 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.”
As alleged in the Indictment and the Complaint:[1]
Background on Mango Markets
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 called MNGO, which investors could buy and sell. Holders of the MNGO token are allowed to vote on changes to Mango Markets and issues related to the governance of the Mango DAO.
Investors on Mango Markets can, among other things, buy and sell perpetual futures contracts (“Perpetuals”). When an investor buys or sells a Perpetual for a particular cryptocurrency, the investor is not buying or selling that cryptocurrency but is, instead, buying or selling exposure to future movements in the value of that cryptocurrency relative to another cryptocurrency. An investor who buys a Perpetual based on the relative value of the stablecoin USDC and MNGO (a “MNGO Perpetual,” for short) at a price of 0.02 USDC/MNGO is “long” on MNGO, and the value of that position will rise if the value of MNGO rises above 0.02 USDC/MNGO. Conversely, the investor who sold that Perpetual is “short” on MNGO, and the value of that position will rise if the value of MNGO falls relative to USDC. Either party to a Perpetual can settle the Perpetual at any time and realize their gain or loss.
To determine the settlement price of Perpetuals, Mango Markets uses an “oracle,” which is a computer program that calculates the relative value of two cryptocurrencies by looking at the exchange rate of those cryptocurrencies on various cryptocurrency exchanges (the “Oracle”). When the Oracle price changes for a particular cryptocurrency pairing, the settlement price of Perpetuals based on that cryptocurrency pairing also changes on Mango Markets. Each party to a Perpetual on Mango Markets also regularly makes or receives payments known as “funding” payments. Funding payments are calculated based on the midprice of bids and asks for that Perpetual compared to the Oracle price for that Perpetual. Funding payments are designed to ensure the purchase price for Perpetuals stays close to settlement prices.
Investors can also engage in “spot” trades on Mango Markets. In a spot trade, an investor exchanges one cryptocurrency for another, at whatever the prevailing exchange rate between those two cryptocurrencies is at the time of the transaction.
Mango Markets also allows investors to use their deposits and positions as collateral for borrowing and withdrawing cryptocurrency from the Mango Markets exchange. To borrow through Mango Markets, an investor accesses the Mango Markets website and clicks a button labeled “borrow” that allows the investor to borrow cryptocurrency. The investor can then withdraw the borrowed cryptocurrency by clicking another button labeled “withdraw.” The borrowed cryptocurrency comes from cryptocurrency that other investors have deposited in Mango Markets accounts. The amount that an investor on Mango Markets can withdraw is determined by a formula that looks at, among other things, the value of the cryptocurrency deposited in the investor’s account, the value of the investor’s positions on Mango Markets, and the amount of cryptocurrency that the investor has already borrowed through Mango Markets. Mango Markets uses a formula to track the relationship between these assets and liabilities, which Mango Markets labels the “health” of the account. If the “health” of a Mango Markets account falls below a certain threshold, the investor’s positions on Mango Markets can be liquidated
EISENBERG’s Market Manipulation Scheme
EISENBERG engaged in a scheme to steal approximately $110 million by artificially manipulating the price of MNGO Perpetuals on Mango Markets. To achieve this objective, EISENBERG took a number of steps. First, EISENBERG used an account that he controlled on Mango Markets to sell a large amount of MNGO Perpetuals and used a separate account on Mango Markets to purchase those same MNGO Perpetuals. One account that EISENBERG controlled held a “long” position, the value of which would rise if the value of MNGO relative to USDC rose above the threshold of 0.0382 USDC/MNGO (the “Long MNGO Perpetual Position”). The second account that EISENBERG controlled held a “short” position, the value of which would rise if the value of MNGO relative to USDC fell below 0.0382 USDC/MNGO (the “Short MNGO Perpetual Position”). EISENBERG was the owner of both positions and had sold to himself, from himself, the MNGO Perpetuals.
Second, EISENBERG made a series of large purchases of MNGO using the stablecoins USDC and USDT on multiple cryptocurrency exchanges with the objective of artificially increasing the price of MNGO relative to USDC and, in turn, the price of MNGO Perpetuals on Mango Markets. EISENBERG’s manipulative trading caused the price of MNGO Perpetuals on Mango Markets to rise approximately 1300% in a period of approximately 20 minutes.
Finally, as the price of MNGO Perpetuals on Mango Markets rose due to the manipulative purchasing by EISENBERG, the apparent value of the MNGO Perpetuals that EISENBERG had purchased for himself also rose. Because Mango Markets allows investors to borrow and withdraw cryptocurrency based on the value of their assets on the platform, the artificial increase in the value of the MNGO Perpetuals EISENBERG had purchased from himself allowed him to borrow, and then withdraw, approximately $110 million worth of various cryptocurrencies from Mango Markets, which came from deposits of other investors in the Mango Markets exchange. EISENBERG withdrew nearly all then-available funds from Mango Markets. When Eisenberg borrowed and withdrew this cryptocurrency, he had no intention of repaying the borrowed funds but rather intended to steal those funds.
After EISENBERG stopped purchasing MNGO with USDC in connection with his fraudulent scheme, the price of MNGO Perpetuals on Mango Markets – which was no longer being artificially propped up by EISENBERG – collapsed.
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AVRAHAM EISENBERG, 27, of San Juan, Puerto Rico, is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison; one count of commodities manipulation, which carries a maximum sentence of 10 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI and further thanked the Department of Homeland Security’s Homeland Security Investigations and the Internal Revenue Service-Criminal Investigation for their assistance with the investigation. Mr. Williams further thanked the Commodity Futures Trading Commission and the Securities and Exchange Commission, both of which have initiated civil proceedings against EISENBERG, for their cooperation and assistance in the investigation.
This case is being handled by Assistant U.S. Attorneys Thomas Burnett and Noah Solowiejczyk of the Office’s Securities and Commodities Fraud Task Force and Jessica Peck of the National Cryptocurrency Enforcement Team (NCET).
The NCET was created by the Criminal Division to combat the growing illicit use of cryptocurrencies and digital assets. Under the supervision of the Criminal Division, the NCET conducts and supports investigations into individuals and entities that are enabling 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 allegations in the Indictment and the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaint, and the description of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Additional Charges Brought Against Four Boston Police Officers Involved in Overtime Fraud SchemeRead the Press Release
BOSTON – Four Boston Police Officers have been charged in a superseding indictment in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Lieutenant Timothy Torigian, 57, of Walpole; Sergeant Robert Twitchell (retired), 61, of Norton; Officer Henry Doherty (retired), 64, of Dorchester; and Officer Kendra Conway, 52, of Boston, were charged in a superseding indictment with one additional count each of conspiracy to commit wire fraud. The original indictment returned in September 2020 charged the defendants and five others with one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. Four of the co-defendants charged in original September 2020 indictment have since pleaded guilty and are awaiting sentencing. Charges against the remaining co-defendant were dismissed.
According to the charging documents, the defendants were assigned to BPD’s Evidence Control Unit (ECU), where they were responsible for, among other things, storing, cataloging and retrieving evidence at the warehouse. ECU officers were eligible to earn overtime pay of 1.5 times their regular hourly pay rate for overtime assignments. It is alleged that beginning in at least May 2016, the defendants routinely departed overtime shifts two or more hours early but submitted false and fraudulent overtime slips claiming to have worked the entirety of each shift.One overtime shift, called “purge” overtime, was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4:00 to 8:00 p.m. on weekdays. It is alleged that on days which the defendants claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often by 6:00 p.m. or before. Despite this, it is alleged that the defendants routinely submitted false and fraudulent overtime slips claiming to have worked from 4:00 to 8:00 p.m. Supervisors, who also left early from this shift, allegedly submitted their own false and fraudulent slips and knowingly endorsed the fraudulent overtime slips of their subordinates.
Another shift, called “kiosk” overtime, was available to two ECU officers one Saturday per month from 6:00 a.m. to 2:30 p.m. This shift involved collecting materials, such as unused prescription drugs, from kiosks in each police district in the city and then transporting the materials to an incinerator in Saugus. It is alleged that defendants who performed this overtime shift routinely submitted overtime slips claiming to have worked eight and a half hours when in fact the defendants frequently completed the work and left the shift early, often before 10:00 a.m.
Between May 2016 and February 2019 the defendants allegedly collectively embezzled over $200,000 in overtime pay. According to court documents, Torigian received over $42,000 for overtime hours he did not work; Twitchell and Doherty each received over $25,000 for overtime hours they did not work; and Conway received over $16,000 for overtime hours she did not work.
From 2016 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Accountant Pleads Guilty to Misappropriating Funds from New Orleans BandRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ALICE C. “SHANNON” CHABAUD, age 80, of New Orleans, pled guilty on February 1, 2023 to access device fraud in violation of Title 18, United States Code, Sections 1029(a)(2) and (c)(1)(A)(i), in relation to her theft from her former accounting client, a New Orleans-based band named as “Band A.”
According to documents filed in federal court, CHABAUD illegally accessed Band A’s bank accounts after she was terminated as the band’s accountant in 2015. From the time of her firing in September 2015 until May 2020, she misappropriated $207, 607.95 from Band A without band members’ knowledge or permission.
CHABAUD faces a maximum penalty of 10 years imprisonment, a up to a $250,000.00 fine or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, followed by up to three (3) years of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the FBI New Orleans Field Office in investigating this matter. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
30 Year-Old Yakama Man Sentenced to 10 Years Imprisonment for Brandishing a Firearm During and in Relation to a Crime of ViolenceRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that James Skahan-Lowe, age 30, was sentenced today after having pleaded guilty on November 1, 2022, to Brandishing a Firearm During and in Relation to a Crime of Violence. Chief United States District Judge Stanley A. Bastian sentenced Skahan-Lowe to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information in court documents and disclosed during court proceedings, Skahan-Lowe assaulted a male victim in Yakima, Washington on February 26, 2022. The victim had stopped on the side of the road to answer his cell phone. Skahan-Lowe saw the victim parked on the side of the road and confused him for someone else. Skahan-Lowe then parked behind the victim, got out of his car, and began arguing with the victim. Although the victim attempted to calm the situation down, Skahan-Lowe ultimately returned to his car and grabbed a rifle. Skahan-Lowe pointed the rifle at the victim and ordered him to get on the ground. The victim refused and attempted to run away. Skahan-Lowe chased the victim and then began hitting him with the rifle.
After assaulting the victim, Skahan-Lowe drove away from the area. Skahan-Lowe and another person returned to the crime scene a few minutes later. An unknown person then stole the victim’s car. Law enforcement arrived and provided the victim with medical treatment. The victim’s car was recovered a short time later. At the time, Skahan-Lowe was on pretrial release in a separate state criminal case, charging Skahan-Lowe with viciously assaulting another victim and fracturing that victim’s skull with a mallet.
On February 2, 2023, Skahan-Lowe appeared for his sentencing hearing for brandishing a firearm during a crime of violence. The victim courageously spoke at the hearing and described how this violent crime has affected him and his family. Skahan-Lowe also made a statement at the sentencing hearing and apologized to the victim. Skahan-Lowe stated that he is a good person but was filled with rage during that time in his life. Chief Judge Stanley A. Bastian stated that he hoped that Skahan-Lowe was sincerely sorry for his actions. Chief Judge Bastian then advised that he has an obligation to protect the community and imposed a sentence of 120-months imprisonment to be followed by 5-years of court supervision.
U.S. Attorney Waldref commended the bravery of the victim in this case. She stated, “I commend the courage and bravery of the victim to come forward and speak about this horrific crime. My office has an amazing team of prosecutors as well as victim and witness advocates, who work closely and respectfully with victims to ensure their voices are heard and to seek justice. The United States Attorney’s Office will continue to aggressively prosecute those who perpetrate violence within the boundaries of the Yakama Nation. Everyone deserves to feel safe. By removing dangerous individuals from society, our neighborhoods and communities will be safer and stronger.”
“Senseless is the only word describing the crime committed by the defendant” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Mr. Skahan-Lowe violently assaulted the victim after a case of mistaken identity. The FBI and our partners will continue working to reduce violent crime on our state’s reservations and hold those who commit those crimes accountable.”
As set forth in court documents and proceedings, Skahan-Lowe has an extensive criminal history. In 2010, he was convicted of Residential Burglary and Vehicle Prowling. In 2011, he was convicted of Unlawful Possession of a Firearm. In 2014, he was convicted of First-Degree Possession of Stolen Property and Second-Degree Burglary. In 2016, he was convicted of Possession of a Stolen Vehicle. In 2017, he was convicted of Second-Degree Burglary. In 2018, he was convicted of Possession of a Stolen Vehicle. He was later convicted of First-Degree Burglary, Possession of a Stolen Motor Vehicle, and First-Degree Unlawful Possession of a Firearm.
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Yakama County Sheriff’s Office, the Yakama Nation Police Department, and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
1:22-CR-2079-SAB-1
1 February 2023
Wayne County Man Arrested, Charged with Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Frederick Trevitt, 60, of Newark, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, and a maximum of 20 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in August 2022, New York State Police investigators working undercover online, downloaded approximately 36 files of suspected child pornography from an IP address later traced to Trivett. On January 4, 2023, the NYSP executed a search warrant at Trevitt’s residence, seizing multiple electronic devices. A forensic analysis discovered more than 100 child pornography files on a laptop computer.
Trevitt made an initial appearance before U.S. Magistrate Judge Marian W. Payson and is being held.
The criminal complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the New York State Police, under the direction of Major Brian Ratajczak. Additional assistance was provided by the Wayne County District Attorney’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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U.S. Attorney’s Office Hosts Series of High School Hate Crime Education Presentations as Part of DOJ’s United Against Hate InitiativeRead the Press Release
Burlington, Vermont – U.S. Attorney Nikolas P. Kerest announced that the United States Attorney’s Office has launched a series of presentations in Vermont high schools aimed at educating students on identifying, reporting, and preventing hate crimes and other civil rights violations. This effort is part of the Department of Justice’s United Against Hate Program, developed by its Hate Crimes Enforcement and Prevention Initiative. Attorneys from the U.S. Attorney’s Office and special agents from the FBI have conducted a handful of presentations in Vermont high schools and plan to visit additional schools in 2023.
“Civil rights enforcement is a priority of the United States Attorney’s Office,” said U.S. Attorney Nikolas P. Kerest. “And, in the civil rights context, enforcement often begins with regular reporting of potential civil rights violations. Regular reporting requires an understanding of the law. We are reaching out to Vermont youth – tomorrow’s adults – to give them the tools to recognize hate crimes or discrimination when it happens.”
“Hate crimes have a devastating impact not just on the victims, but their families and communities as well,” said Janeen DiGuiseppi, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “That’s why the FBI has been engaged in a nationwide effort to build awareness and encourage individuals to report violations. Our office works closely with our law enforcement partners at all levels to educate and prevent incidents, but we can’t investigate what we don’t know, so we need assistance from the public. We want everyone, including students, to understand that if they encounter what they believe is a hate crime that the FBI is here to investigate.”
If your school is interested in hosting a United Against Hate presentation, contact our office by filling out the form on our website by visiting https://www.justice.gov/usao-vt and clicking on “School Request Form – United Against Hate Presentation” in our Action Center. This interactive presentation is best for audiences under 100 students, though we are happy to discuss your school’s unique needs.
To learn more about the U.S. Attorney’s Office’s Civil Rights Program, or to file a complaint with our office, visit: https://www.justice.gov/usao-vt/civil-rights-program
To report a possible hate crime, call your local law enforcement or 1-800-CALL FBI
U.S. Attorney Hurwit Announces Trio of Child Predators Held Accountable in East IdahoRead the Press Release
POCATELLO – In the past week, two East Idaho men were sentenced, and one man was convicted at trial, in cases involving the sexual exploitation of children, U.S. Attorney Josh Hurwit announced today.
“My office will continue to aggressively prosecute predators who prey upon children,” said U.S. Attorney Hurwit. “Those who harm the most vulnerable members of our society must be held accountable to the full extent of the law.”
On January 25, after a three-day trial, a federal jury sitting in Pocatello found Joseph Hornof, 41, of Blackfoot, guilty of two counts of distribution of child pornography and one count of possession of child pornography. Chief U.S. District Judge David C. Nye presided over the trial. Following the jury’s verdict, Hornof is subject to a sentencing enhancement for committing a prior sex offense against a child in 2009 in Bannock County, Idaho.
On January 26, Shawn Chase Cody, 41, of Pocatello, was sentenced to 80 years in federal prison for production and possession of child pornography. According to court records, in August 2019, law enforcement received an investigative lead that Cody sexually abused multiple children for the past six years. Law enforcement learned from the victims that Cody possessed videos of these acts on his phone and computer. Cody was later arrested after his home was searched and the child pornography he produced was found on his devices. Also found in his possession were 2,259 still images and 53 videos of child pornography that he downloaded on the Internet.
On January 31, Bobby Clee Roberts, 53, of Rupert, was sentenced to nine years in federal prison for possession of child pornography. After law enforcement searched Roberts’ house, they found 19,200 files of child pornography located on his devices.
U.S. Attorney Hurwit thanked Homeland Security Investigations (HSI) in Idaho Falls, the Bannock County Sheriff's Office, Idaho Falls Police Department, Bonneville County Sheriff’s Office, Idaho ICAC Task Force, Boone North Carolina Police Department, Minidoka County Sheriff’s Office, and the Rupert Police Department for their cooperative efforts that led to the charges.
“I am proud of the work that our Project Safe Childhood team does every day in conjunction with our law enforcement partners,” said U.S. Attorney Hurwit. “It’s impressive to see the commitment and the long hours that attorneys and investigators put into these complex investigations.”
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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U.S. Attorney Announces Results of Local, State, and Federal Partnerships Combating Violent Crime in Ocala and Marion CountyRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the results of a more than four-year gun violence reduction initiative between local, state, and federal law enforcement in Marion County. Since July 2018, the Ocala Division of the United States Attorney’s Office has partnered with the City of Ocala Police Department, the Marion County Sheriff’s Office, the Fifth Judicial Circuit Office of the State Attorney, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in a joint effort to federally prosecute defendants who illegally possess firearms and ammunition in the Marion County area.
Between July 2018 and December 2022, the U.S. Attorney’s Office (Ocala Division) prosecuted 57 firearms cases involving 60 defendants. Many of the cases were adopted from the state system with the support of the Fifth Judicial Circuit State Attorney’s Office; others were handled jointly between state and federal investigators. As of December 31, 2022, 49 of the 60 defendants have been sentenced in federal court to a combined 388 years in federal prison.
“Combating violent crime requires the commitment and cooperation from everyone in our community,” said U.S. Attorney Roger B. Handberg. “The partnerships displayed here today have existed for many years and we look forward to working with the dedicated men and women of these local, state and federal agencies and our citizens in making this community a safer place to live.”
“Keeping our neighborhoods safe from gun violence is a shared responsibility that requires local law enforcement to collaborate with state and federal authorities,” said Ocala Police Chief Mike Balken. “I am extremely proud of the incredible work these partners are doing to hold violent criminals accountable for their actions. The efforts of this unified partnership should be celebrated as it has been relentless in the pursuit of justice and has made tremendous strides to ensure that citizens feel safe in their community.”
“In a world where criminal activity and violent gun crimes are at the forefront of citizen concerns, I am proud to live here in Marion County. In this county, we have joined forces on a federal, state, and local level to fight against this. We support, protect and defend the Constitution and have a great appreciation for those lawful gun owners that simply wish to live peaceably. But, we will come together bringing all of our available resources to maintain that peace when the violent, evil person tries to disrupt that. We cannot accomplish this on our own. It takes our citizen’s support and the cohesive working relationship with our fellow law enforcement agencies to keep Marion County one of the safest places to live, work, and play,” stated Marion County Sheriff Billy Woods.
We’re proud to help contribute the firepower of the federal government to the horsepower of our state and local partners to protect Central Florida’s communities,” said ATF Tampa Field Division’s Acting Special Agent in Charge Richard Coes. “No agency can tackle the issue of violent crime alone.”
“The FBI is committed to assisting our state and local law enforcement partners and enhancing their ability to impact or mitigate violent crime by providing analytical resources and agents to support their investigations when needed,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “In today’s world, the threats we face are too diverse, too dangerous, and too all-encompassing for any of us to tackle alone. This is a team approach, and the men and women of the FBI are committed to doing their part to help protect our communities across Florida.”
“Our primary mission at the State Attorney’s Office is public safety. In collaboration with the US Attorney’s Office, and all our law enforcement partners throughout Marion County, we strive every day to seek justice on behalf of victims of crime, and I consider it a privilege to work and live in our community,” stated State Attorney Bill Gladson.
This initiative in Marion County is part of the larger 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 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.
Troy Man Sentenced to 10 Years for Attempting to Entice a MinorRead the Press Release
ALBANY, NEW YORK – Brian Botsford, age 26, of Troy, New York, was sentenced today to 120 months in prison for attempting to coerce and entice a 13-year-old child to engage in sexual acts with him. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his guilty plea, Botsford admitted that between July and August 2020, he sent graphic, sexually explicit text messages to an undercover investigator who was posing as the 13-year-old child. In those messages, Botsford repeatedly asked the child for naked photos and sent photos of an erect penis to the presumed child. Botsford further stated that he wanted the child to run away and live with him in an abandoned building and get the child pregnant. On August 10, 2020, Botsford attempted to meet the child in person at a location in Troy in order to engage in sexual acts with the child. Botsford was encountered by law enforcement upon his arrival and arrested.
Senior United States District Judge Gary L. Sharpe also imposed a 25-year term of supervised release to begin after Botsford is released from prison. Botsford will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police, and the Colonie and Rotterdam Police Departments. Assistant United States Attorney Rachel L. Williams is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Three California Companies Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program LoansRead the Press Release
Three California companies have agreed to pay a total of $530,000 to settle allegations that they knowingly violated the False Claims Act when they received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules.
La Baguette, LLC, which operates a bakery in Palo Alto, has agreed to pay $430,000 to settle allegations that it received and retained a duplicate PPP loan in 2020 and then later improperly sought and received forgiveness for the duplicate loan.
Dynamic Integrated Solutions, Inc., an industrial equipment supplier located in Santa Clara, has agreed to pay $50,000 in civil penalties to settle allegations that it received and retained a duplicate loan. The company agreed to repay the loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $985,000 on the duplicate loan.
Priority Acquisitions, Inc., a licensed general contractor located in Castro Valley, has agreed to pay $50,000 in civil damages and penalties to settle allegations that it received and retained a duplicate loan. The company agreed to repay the loan in full to its lender, relieving the SBA of liability for the federal guaranty of approximately $200,625.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020.
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“PPP loans were intended to help qualified businesses retain their employees and pay other bills during the pandemic,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “This Office will continue to pursue any business that misused the program by obtaining PPP loans for which they were not eligible, as the three settlements announced today reflect.”
“Those who violate the False Claim Act by fraudulently receiving and retaining SBA pandemic program funds will be held accountable,” said Special Agent in Charge Weston King of SBA OIG’s Western Region. “This settlement demonstrates that wrongfully obtaining taxpayer dollars will not go unnoticed, and violators will be identified. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The settlements resolve claims brought under the qui tam or whistleblower provisions of the False Claims Act by J. Bryan Quesenberry. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Quesenberry v. Bay Wire, Inc., et al., No. 2:20-cv-712 (N.D. Cal.). Quesenberry will receive a total of approximately $80,000 in connection with the three settlements.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of California, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney Michael T. Pyle for the Northern District of California.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Tewksbury Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Tewksbury man pleaded guilty today in federal court in Boston to bank robbery.
Nicholas O’Neil, 39, pleaded guilty to one count of bank robbery before U.S. Senior District Court Judge Douglas P. Woodlock who scheduled sentencing for June 5, 2023. O’Neil was charged in October 2020.
On Sept. 22, 2020, an individual – later identified as O’Neil – entered a Santander Bank branch in Tewksbury, handed the teller a demand note and a red cloth bag. After obtaining cash from the teller, O’Neill exited the bank and sped away in a white pickup truck which was reported to police by a banking customer who had observed the robbery and followed the vehicle. The pickup truck was located a short time later and O’Neil was arrested without incident. The red cloth bag containing the stolen cash and demand note was found inside the vehicle.
The charge of bank robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Tewksbury Police Chief Ryan M. Columbus made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.
St. Louis Rapper Sentenced to 7+ Years in Prison for Gun ChargeRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a St. Louis gang leader and rapper to seven years and eight months in prison on a gun charge.
Arthur Pressley, a.k.a. 30 Deep Grimeyy or Grimeyy, was not only caught with a gun as a convicted felon, but had fake gun sale documents created to try and escape the charge.
Pressley, now 25, was stopped by St. Louis Metropolitan Police Department officers on Jan. 5, 2021 in a 2008 Pontiac G8. The Pontiac had a taillight out and had license plates registered to a Jeep.
Police found a Beretta 92FS 9mm pistol next to Pressley.
After the traffic stop, Pressley began sending text messages to the original purchaser of the gun, asking him to falsify a bill of sale to one of the other occupants of the Pontiac. He produced another falsified copy of the bill of sale in October, on the first day of his trial on the felony charge of being a felon in possession of a firearm.
Pressley then pleaded guilty rather than continue the trial. He admitted possessing the gun on a number of occasions between Oct. 4, 2021, the day after it was purchased, and the date of the traffic stop.
Investigators also found pictures of Pressley and the gun on the social media accounts of Pressley and others and in Pressley’s phone, including one in which the serial number of the gun can be seen. Pressley also discusses the gun in messages.
U.S. Attorney's office.Pressley, as a convicted felon, is barred from possessing firearms. He was twice convicted of a charge of unlawful use of a weapon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives had been investigating Pressley and his gang, 30 Deep, for over a year at the time of the traffic stop.
“ATF has no more important mission than working with our law enforcement partners to keep firearms out of the hands of criminals,” said Frederic Winston, Special Agent in Charge of the Kansas City Field Division, of the ATF. “In partnership with the Saint Louis Metropolitan Police Department and United States Attorney’s Office, we will continue to work tirelessly to bring those who illegally acquire and possess firearms, to justice.”
The case was investigated by the ATF and the St. Louis Metropolitan Police Department. Assistant U.S. Attorneys Cassandra Wiemken and Jennifer Szczucinski are prosecuting the case.
St. Louis Rapper Arrested on Fentanyl, Gun ChargesRead the Press Release
ST. LOUIS – A St. Louis, Missouri rapper was arrested Wednesday on fentanyl and gun charges.
Antonio Harris, 25, was indicted June 22, 2022 on three charges: possession of fentanyl with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime and possession a firearm as a convicted felon. Harris, who performs as “LA 4SS,” appeared in court Wednesday and pleaded not guilty to the charges.
The indictment alleges that Harris possessed the fentanyl and a firearm on Feb. 16, 2022. A detention motion says when police tried to stop a Toyota Corolla on North Broadway in the Baden neighborhood, Harris sped off. Officers used spike strips, but Harris continued north on Riverview Drive before colliding with the median near the intersection of Riverview and Spring Garden Drive.
Harris got out of the car and ran, discarding a bag that contained nearly 400 capsules containing fentanyl and plastic baggies containing just under 6 grams of fentanyl in raw form, the motion says. Police found a loaded Glock 9mm pistol in the car. Harris has multiple prior felony convictions and is barred from possessing a firearm.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
Springfield Man Charged with Illegally Possessing FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been charged in federal court with illegally possessing a firearm.
Timothy Zegar, 39, was charged in a criminal complaint filed in the U.S. District Court in Springfield on Tuesday, Jan. 31, with one count of being a felon in possession of a firearm. Zegar, who was arrested today, remains in federal custody pending a detention hearing on Feb. 6, 2023.
The complaint alleges that Zegar was in possession of a Spike’s Tactical .556-caliber rifle between Jan. 18 and 21, 2023.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Zegar has a prior felony conviction for fleeing and eluding law enforcement.
According to an affidavit filed in support of the federal criminal complaint, the FBI began investigating Zegar for illegally trafficking firearms in August 2022. An undercover special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted Zegar about purchasing a firearm on Jan. 18, 2023. The undercover agent met Zegar at his residence and purchased the Spike’s Tactical rifle from Zegar on Jan. 21, 2023.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield, Mo., Police Department and the Greene County, Mo., Sheriff’s Department.
Speakeasy Operator Convicted for Possession of a Firearm by a FelonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Edward Burgess, 45, of Philadelphia, PA, was convicted at trial of a single count of possession of a firearm by a felon, arising from an investigation of an illegal speakeasy by the Pennsylvania State Police, Bureau of Liquor Control Enforcement (BLCE).
In June 2019, BLCE officers conducted undercover surveillance of a local lounge selling alcohol and tobacco products without a license. They witnessed defendant Edward Burgess acting as a manager of the lounge and entering areas designated as "employees only." Philadelphia Police officers then conducted a raid of the lounge premises. When the officers were escorting the defendant away from the crowd, he pulled a loaded firearm from his waistband and threw it behind him, where it struck one of the undercover BLCE officers in the leg. The officer alerted a Philadelphia Police officer, who was able to retrieve the firearm. Defendant Burgess was previously convicted of a felony offense and is prohibited from possessing a firearm.
"Today's conviction at trial is a step forward to a safer Philadelphia," said U.S. Attorney Romero. "This case is an example of our close working relationship with our local and state partners to use federal criminal charges to make the community safer.”
“The outcome of this prosecution sends a positive message to the community on ATF’s commitment to keeping the public safe from firearms violence,” said Eric DeGree, Special Agent in charge of ATF’s Philadelphia Field Division. “Keeping our communities safe from violent felons like this will always be our top priority. This outcome highlights the value of the collaborative effort with our local, state, and federal partners to reduce violent crime.”
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department's renewed focus on targeting violent criminals, directing all U.S. Attorney's Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Anthony Carissimi and Bea Witzleben.
South Florida Man Pleads Guilty to Abusive Sexual Contact with Home Confinement InmateRead the Press Release
MIAMI – Benito Montes de Oca Cruz, 60, of Miami-Dade County, has pled guilty to abusive sexual contact with a woman serving part of her 51-month prison sentence in home confinement under his authority.
Cruz, a site supervisor employed by Riverside House, conducted home visits to monitor compliance of federal inmates on home confinement. Riverside House, pursuant to a contract with the Federal Bureau of Prisons, is responsible for providing custodial, supervisory, and disciplinary oversight to federal inmates on home confinement.
As admitted at the change of plea, on December 28, 2020, Cruz conducted a home confinement supervision visit to the victim’s residence. While there, he engaged in sexual contact with and by the victim, including sexually explicit touching of the victim while they both were naked.
Law enforcement received information regarding this illicit activity and promptly interviewed the victim. Facts also showed that this illegal activity was captured on video and there was DNA evidence left behind by Cruz that conclusively established his involvement.
Cruz is scheduled for sentencing on April 14, 2023, before U.S. District Judge Robert N. Scola. He faces a possible maximum sentence of two years in prison.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe and Special Agent in Charge James Boyersmith of the Department of Justice, Office of Inspector General (DOJ-OIG), made the announcement.
DOJ-OIG investigated this case and Assistant U.S. Attorney Edward N. Stamm is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20459.
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Sioux City Man Pleads Guilty to Illegal Possession of Firearms and AmmunitionRead the Press Release
Chance Rebel Nielsen, 23, from Sioux City, Iowa, pled guilty on January 31, 2023, to being a prohibited person in possession of firearms and ammunition. Nielsen was previously convicted of felony Going Armed with Intent, in the Iowa District Court for Woodbury County, on October 15, 2021. This conviction prohibits a person from possessing a firearm or ammunition.
Evidence at the plea hearing showed that on August 29, 2022, law enforcement conducted a traffic stop of a vehicle in which defendant was a passenger. During the stop, a Glock 9mm Luger, .45 ACP, and ammunition were found. Further investigation showed that, on August 23, 2022, defendant was at Scheels in Sioux City where he was observed with a Glock 9mm in his waistband. Defendant purchased ammunition from Scheels which matched the ammunition found in the vehicle. Present in cell phone evidence seized in the investigation was a video showing defendant shooting a firearm at a gun range, and text messages discussing buying and selling firearms.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Nielsen remains in the custody of the United States Marshal pending sentencing. Nielsen faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Plymouth County Sheriff’s Office, Le Mars Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4077. Follow us on Twitter @USAO_NDIA.
Rock Hill Woman Sentenced to Federal Prison for Involvement in Fentanyl Distribution RingRead the Press Release
COLUMBIA, SOUTH CAROLINA — Patricia Ann Hemphill, 51, of Rock Hill, was sentenced to 3 years in federal prison after pleading guilty relating to a multi-state drug operation out of the Rock Hill and Charlotte, North Carolina area.
Evidence presented to the Court showed that the Federal Bureau of Investigation (FBI) and York County Multi-Jurisdictional Drug Enforcement Unit began to investigate a group of defendants who were obtaining large amounts of cocaine, methamphetamine, heroin, and marijuana from a distributor in Southern California. Based upon the investigation, law enforcement was able to determine that members of the group were flying to California and having the drugs shipped back to the Rock Hill and Charlotte area. After the drugs were shipped back, the group distributed the drugs to local dealers. This group shipped more than 255 packages containing the drugs from California during a one-year period and distributed more than five kilograms of cocaine, 280 grams or more of crack cocaine, 500 grams or more of methamphetamine, 400 grams or more of fentanyl, one kilogram or more of heroin, and more than 1000 grams of marijuana.
The group used the fentanyl to make more than 1 million counterfeit Roxicodone pills, which were sold to users in Rock Hill, Greenville, Myrtle Beach, Charlotte, and Atlanta. Evidence showed that Hemphill allowed her son to use her house in distributing some of these drugs to others in the area.
Nineteen defendants were charged in this case. Sixteen defendants, including Hemphill and her son Darryl Hemphill, pled guilty to their involvement. The remaining three defendants were convicted at trial in August 2022 and will be sentenced at a later date.
United States District Judge Mary Geiger Lewis sentenced Hemphill to 36 months imprisonment, to be followed by a 4-year term of court-ordered supervision. There is no parole in the federal system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI, York County Multi-Jurisdictional Drug Enforcement Unit, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Rock Hill Police Department, York County Sheriff’s Office, and the Richland County Sheriff’s Department.
Assistant U.S. Attorney William K. Witherspoon prosecuted the case.
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Rhode Island Law Enforcement Working Collaboratively to Combat Elder FraudRead the Press Release
PROVIDENCE – “Every day, this Office sees the financial ruin and emotional devastation inflicted on elderly victims by scams and fraud schemes. The most recent FBI statistics are staggering: in 2021 nearly 100,000 American seniors reported being defrauded by scammers of $1.7 billion dollars. That’s more than just a statistic – it’s a life changing event that many never recover from, and we are determined to leverage our resources to bring to justice those who prey on our elderly and vulnerable friends and neighbors.”
That’s the sobering reality United States Attorney Zachary A. Cunha outlined today at the outset of a law enforcement elder fraud investigation and prosecution training program attended by more than sixty members of Rhode Island federal, state, and local law enforcement.
Hosted by the United States Attorney’s Office and the Rhode Island Police Chiefs’ Association, in collaboration with the United States Postal Inspection Service, today’s training program focused on identifying the most common elder fraud scams; utilizing techniques and federal laws to build a case from a one-victim complaint to identifying larger fraud networks; overcoming challenges law enforcement and prosecutors face while investigating and prosecuting elder fraud cases; the importance of collaboration between law enforcement agencies; and support and resources available for victims of crimes against the elderly.
“Elder fraud consists of financial crimes that target older people’s money or property. It includes telephone, internet, and varying mail scams, noted Bristol Police Chief Kevin M. Lynch. “As President of the Rhode Island Police Chiefs’ Association, we know that your local police will be your first call to report an incident. We pledge to work with our partners in State and Federal law enforcement and will be your advocate and champion to ensure that your property, identity, and concerns are investigated and safeguarded to the best of our ability. Do not hesitate to contact your local police department even if you are embarrassed or have questions, as knowledge and timely collaboration are key to successful outcomes.”
“The partnership between the U.S. Postal Inspection Service and the Rhode Island U.S. Attorney’s Office has always been a strong one,” said Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Today’s training on elderly fraud investigation and prosecution highlights our joint effort to combat criminals’ ability to prey on our most vulnerable. The U.S. Postal Inspection Service remains committed to investigating and pursuing criminals to ensure the public’s trust in a safe and secure mail system.”
In addition to significant collaboration across the country between federal and state law enforcement agencies investigating and prosecuting the perpetrators of scams against the elderly, the Department of Justice recently expanded its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas. In the past year, the Justice Department notified over 550,000 individuals that they may be eligible for remission payments.
United States Attorney Cunha and Chief Lynch thank New England Institute of Technology for the use of their East Greenwich facility for today’s training program, and thank Assistant United States Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office, and United States Postal Inspection Service Inspector Cory P. McManus for their presentations at today’s program.
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Raytown Man Sentenced to 20 Years for $10 Million Meth Conspiracy and Fraud Scheme That Used Stolen Identities of Johnson County EmployeesRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man was sentenced in federal court today in two separate and unrelated criminal cases for a nearly $10 million conspiracy to distribute almost 1,000 kilograms of methamphetamine and for a fraud scheme that utilized the stolen identities of Johnson County, Kansas, government employees to make fraudulent credit card purchases.
Michael B. Becher, 41, was sentenced in two separate hearings before U.S. District Judge Greg Kays to a total of 20 years in federal prison without parole. The court sentenced Belcher to 20 years in federal prison for the drug-trafficking conspiracy and five years in federal prison for the fraud scheme, to be served concurrently.
The court also ordered Becher to pay a money judgment of $1,165,500, which represents the proceeds of the drug-trafficking conspiracy. The forfeiture is based on Becher’s distribution of 185 kilograms of methamphetamine at $6,300 per kilogram. The court also ordered Becher to pay $189,378 in restitution to the victims of the credit card fraud conspiracy and for property Becher admitted stealing in Nebraska.
Conspiracy to Distribute Methamphetamine
On April 13, 2022, Becher pleaded guilty to participating in a conspiracy to distribute methamphetamine from Sept. 1, 2018, to Nov. 5, 2019. Becher was part of the drug-trafficking organization led by Mirza Alihodzic, 37, of Kansas City, Mo.
Becher admitted he was responsible for the distribution of at least 185 kilograms of methamphetamine. Becher also admitted that he purchased multiple pounds of methamphetamine on a daily basis.
Becher was arrested on Nov. 5, 2019, after he met a co-conspirator who was planning to travel on a private plane the same day to purchase 40 to 50 kilograms of methamphetamine in California. Becher paid his co-conspirator $1,000 to purchase methamphetamine. Law enforcement officers were conducting surveillance of the residence when they heard noises that sounded like firearms and people screaming. Officers entered the residence and arrested Becher and others.
Becher admitted that he had purchased 11 kilograms of methamphetamine from his co-conspirator in the prior two weeks and had purchased two kilograms from a second source a week before his arrest. Becher paid Alihodzic $5,000 per kilogram for the methamphetamine and sold it for $6,300 per kilogram. Becher also admitted that in the past he had purchased four to five pounds of methamphetamine daily from a third source and had once stolen 23 to 27 pounds of methamphetamine from that source. On one occasion, Becher said, he had more than 80 pounds of illegal drugs in his car.
Officers searched Becher’s BMW 650i and found approximately a half-pound (205.01 grams) of pure methamphetamine inside a grey backpack between the front seats of the vehicle. Becher told investigators the methamphetamine came from a fourth source, co-defendant Jesus Banuelos, Jr., 24, of Kansas City, Mo. Becher purchased one pound of methamphetamine from Banuelos the night before his arrest. Officers also found two plastic bags that contained a total of 1,547.06 grams of “imitation” methamphetamine, used as a cutting agent.
Officers searched a storage unit Becher rented and found two M20 Super Bazooka rockets, an Anderson Manufacturing AM-15 5.56mm semi-automatic rifle with a magazine that contained 21 rounds of ammunition, a zip-lock bag that contained .1 gram of methamphetamine, and various rounds of ammunition. One rocket was determined to be live with propellant and a live warhead and the other, a training rocket with propellant and training warhead. Becher said he received the rockets from Alihodzic.
Becher is among 12 defendants who have been sentenced in this case. Additionally, six co-defendants have pleaded guilty and await sentencing in two separate indictments that resulted from this investigation. Alihodzic was sentenced to 35 years in federal prison without parole. Banuelos was sentenced to 18 years and nine months in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to illegally possessing a firearm.
This case is being prosecuted by Assistant U.S. Attorneys Bradley K. Kavanaugh and Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Missouri State Highway Patrol, and the Mid-Missouri Drug Task Force.
Conspiracy to Commit Credit Card Fraud
On May 19, 2022, Becher pleaded guilty to participating in a conspiracy to commit credit card fraud from Feb. 1 to June 30, 2019.
Becher admitted that he and his co-conspirators used stolen identity information to make fraudulent purchases. Many of the identity theft victims were current or former employees of Johnson County, Kan. The Johnson County, Kan., government experienced a data breach of employees’ personally identifiable information in 2015.
Becher caused a financial loss to retail stores and vendors where the fraudulent transactions occurred and caused significant problems to the individuals whose identity he stole.
Becher was responsible for making counterfeit driver’s licenses in the names of the identity theft victims. Becher and co-conspirators used the counterfeit licenses to open fraudulent credit accounts. Before making a counterfeit driver’s license, Becher performed a credit check on the identity theft victim to determine the likelihood of establishing a credit account.
Becher made at least seven fraudulent purchases himself, using the stolen identities of three victims, at Lowe’s and Home Depot in transactions ranging from $1,617 to $8,049. Becher then sold the goods and equipment for half of the actual value of the property. Becher kept half of the proceeds that he sold and gave the other half to co-conspirators.
According to court documents, Becher’s criminal history is substantial and filled with various fraud-related convictions. He obtained his first felony conviction in 2005 when he was convicted of forgery in Cass County, Mo., for stealing from his own mother. In that case, Becher forged and used a check for $500 belonging to his mother’s account. Becher has 23 prior felony convictions.
This case was prosecuted by Special Assistant U.S. Attorney Bradley Cooper and Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Olathe, Kan., Police Department and the U.S. Secret Service.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rapid City Woman Sentenced for Illegal Possession of Firearm and AmmunitionRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes has sentenced a Rapid City, South Dakota, woman convicted of Possession of a Firearm and Ammunition by a Prohibited Person. The sentencing took place on January 31, 2023.
Sabione Bettelyoun, 38, was sentenced to three years and one month in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bettelyoun was indicted for Possession of a Firearm and Ammunition by a Prohibited Person by a federal grand jury in March of 2022. She pleaded guilty on October 14, 2022.
In February of 2022, in Rapid City, Bettelyoun, a previously convicted felon who is prohibited from possessing firearms, was found in possession of a SCCY, model CPX-1, 9mm Luger caliber, semi-automatic pistol, ARMSCOR .22 Long Rifle caliber ammunition, and Winchester 9mm Luger caliber ammunition, which was found after Bettelyoun came into contact with law enforcement. Bettelyoun also possessed methamphetamine and other drug paraphernalia.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bettelyoun was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes has sentenced a Rapid City, South Dakota, man convicted of Possession of an Unregistered Firearm. The sentencing took place on January 31, 2023.
Majestic Fairbanks, 28, 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.
Fairbanks was indicted for Possession of an Unregistered Firearm by a federal grand jury in March of 2022. He pleaded guilty on October 14, 2022.
Between December of 2019 and January of 2020, in Rapid City, Fairbanks possessed a destructive device, described as a metal aerosol canister with CO2 cartridges and a commercial grade firework containing explosives. Fairbanks broke out the front door of a local business and threw the canister inside. The firework then went off inside the business causing damage. Fairbanks was later found by law enforcement in possession of another identical device and admitted to manufacturing the destructive devices.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Division of Criminal Investigation, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Fairbanks was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes has sentenced a Rapid City, South Dakota, man convicted of Possession of an Unregistered Firearm. The sentencing took place on January 31, 2023.
Shane McCloskey, 23, was sentenced to 18 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McCloskey was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in February of 2022. He pleaded guilty on October 7, 2022.
In October of 2021, in Rapid City, McCloskey, a previously convicted felon who is prohibited from possessing firearms, was knowingly in possession of a SCCY, model CPX-2, 9mm Luger caliber, semi-automatic pistol, which was found after McCloskey came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
McCloskey was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Rapid City, South Dakota, man for Possession of a Firearm by a Prohibited Person.
Cory Debruyckere, age 31, was indicted in January of 2023. He appeared before U.S. Magistrate Judge Daneta Wollmann on January 27, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from Debruyckere knowingly possessing a semi-automatic pistol in Rapid City in March of 2022. Debruyckere has two prior felony convictions and, as a result, cannot legally possess firearms.
The charge is merely an accusation and Debruyckere is presumed innocent unless and until proven guilty.
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 investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Debruyckere was released on bond pending trial. A trial date has been set for April 4, 2023.
Queens Man Charged with Child Exploitation, Enticement of Minors and Firearm Possession as a FelonRead the Press Release
Angel Almeida will be arraigned this afternoon at the federal courthouse in Brooklyn on a superseding indictment charging him with the sexual exploitation and attempted exploitation of a minor, coercion and enticement and attempted coercion and enticement of a minor, possession of child pornography, and possessing a firearm and ammunition as a felon. Almeida was arrested in November 2021 on a complaint charging him with being a convicted felon in possession of a firearm. He was indicted in December 2021 and has been detained pending trial. Today’s arraignment will be held before United States District Judge Rachel P. Kovner.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the superseding indictment.
“The defendant’s alleged exploitation of minors has been extremely harmful mentally, emotionally and physically to his victims,” stated United States Attorney Peace. “His possession of a firearm despite a prior felony conviction, combined with his crimes against minors, reflect Almeida’s dangerousness and lack of respect for the law. Protecting the community from predators like the defendant will always be a priority of this Office. Additionally, I urge parents and caregivers to have conversations with their children about the dangers of communicating online with strangers and individuals who seek to exploit them.”
“As alleged, Almeida posed multiple threats to our community, not only as a felon in possession of a firearm, but also through targeting children as victims of sexual abuse. Today’s indictment serves as a reminder the FBI and our law enforcement partners will continue to aggressively pursue and hold accountable anyone willing to exploit some of the most vulnerable members of our society. We ask anyone who may have been victimized by Almeida to contact us at 1-800-CALL-FBI or online at tips.fbi.gov,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in court filings, in September 2021 and October 2021, the FBI received tips regarding an individual named Angel Almeida possessing firearms and posting sexually explicit images of children online. The tipster identified social media profiles used by Almeida, including a Facebook account with the profile name “Sargent Grey” (the “Sargent Account”). A review of the Sargent Account, as well as Instagram accounts used by Almeida, revealed photos of Almeida holding what appeared to be firearms. On November 23, 2021, members of law enforcement executed a search warrant at Almeida’s residence and recovered a 9 mm Taurus handgun that appeared to be the same firearm that the defendant had posed with. Almeida has a 2019 felony conviction in Florida for burglary. As a result, in December 2021, Almeida was charged in an indictment with being a felon in possession of a firearm.
In addition, between July 2021 and December 2021, Almeida enticed a minor, Jane Doe-1, to engage in sexually explicit conduct for the purpose of producing videos. Between February 2020 and November 2021, Almeida also enticed another minor, Jane Doe-2, to engage in sexual contact, a violation of the Mann Act. In addition to the enticement and coercion charges, Almeida is also charged with possession of child pornography recovered from multiple cell phones.
The government’s investigation is ongoing. Anyone with information about sexual exploitation by Almeida is asked to contact the FBI at 1-800-CALL-FBI or online at tips.fbi.gov
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, Almeida faces a mandatory minimum of 15 years’ imprisonment and up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorney Chand Edwards-Balfour.
The Defendant:
ANGEL ALMEIDA
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 21-CR-613 (RPK)
Queens Jeweler Convicted in Luxury Watch Robbery and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict today against STANISLAV YAKUBOV, a/k/a “Steve,” on three counts in a Superseding Indictment, including one count of money laundering conspiracy and two counts of making false statements to federal law enforcement agents. YAKUBOV is scheduled to be sentenced on June 1, 2023, by U.S. District Judge Edgardo Ramos, who presided over the eight-day trial.
U.S. Attorney Damian Williams said: “Stanislav Yakubov agreed to purchase hundreds of thousands of dollars’ worth of diamond-encrusted, stolen luxury watches that had been taken during violent robberies, the victims of which included jewelers from Yakubov’s own community. Yakubov’s actions fueled a year-long robbery spree that targeted nearly a dozen victims, and his conviction sends a message to the community that the purchase and laundering of stolen property will be vigorously investigated and prosecuted.”
Photographs of some of the stolen watches are set forth below. If you believe you know the whereabouts of any of these watches, please contact the U.S. Attorney’s Office for the Southern District of New York at 1-866-874-8900, and reference this case:
According to the Superseding Indictment and the evidence presented at trial:
From at least in or about October 2019 up to and including November 2020, STANISLAV YAKUBOV, and others known and unknown, agreed to purchase stolen watches worth up to hundreds of thousands of dollars, each that had been taken during armed robberies. The watches owned by victims targeted in the robberies included diamond-encrusted Richard Mille, Rolex, Audemars Piguet, and Patek Philippe watches owned by jewelers as part of the jewelers’ businesses based in Manhattan’s Diamond District and elsewhere.
The robberies and attempted robberies included the following:
- On October 3, 2019, a jeweler in Long Island City, New York, was robbed of, among other things, a Richard Mille watch worth over $150,000.
- On October 25, 2019, a jeweler in Jamaica, New York, was robbed of, among other things, a Rolex watch worth over $118,000.
- On December 10, 2019, a jeweler in Brooklyn, New York, was robbed of, among other things, a Patek Philippe watch worth over $160,000 and a diamond necklace worth over $77,000.
- On January 14, 2020, a jeweler in Rego Park, New York, was robbed of, among other things, a Richard Mille watch worth over $500,000.
- On February 16, 2020, a jeweler in Jamaica Estates, New York, was robbed of, among other things, an Audemars Piguet watch worth over $28,000.
- On February 20, 2020, an individual in Long Island City, New York, was robbed of, among other things, an Audemars Piguet watch worth over $125,000.
- On June 11, 2020, a jeweler in Brooklyn, New York, was robbed of, among other things, a Richard Mille watch worth over $148,000.
- On July 6, 2020, a jeweler in Hoboken, New Jersey, was robbed of, among other things, a Richard Mille watch worth over $81,000.
- On July 20, 2020, a jeweler in Queens, New York, was the victim of an attempted robbery involving a Richard Mille watch worth over $180,000.
- On August 2, 2020, a food critic/social media influencer was robbed of, among other things, a Richard Mille watch worth over $250,000 in the vicinity of Englewood Cliffs, New Jersey.
In addition, on or about October 20, 2020, and March 24, 2021, YAKUBOV knowingly and willfully made false statements to federal law enforcement officers investigating the robbery spree. YAKUBOV falsely said, among other things, that he never purchased any watches from the robbery crew and that the robbers were merely customers who had purchased jewelry from YAKUBOV in the past.
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YAKUBOV, 42, of Queens, New York, was convicted of one count of conspiracy to commit money laundering, which carries a maximum prison term of 20 years, and two counts of making false statements to federal law enforcement agents, each of which carry a maximum prison term of five years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the New York City Police Department. Mr. Williams also thanked the Bergen County, New Jersey, Prosecutor’s Office, the Englewood Cliffs, New Jersey, Police Department, the Weehawken, New Jersey, Police Department, and the Nassau County Police Department for their assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews, Andrew K. Chan, and Thomas John Wright, with the assistance of Paralegal Specialist Grayson Glogoff, are in charge of the prosecution.
Pine Ridge Woman Sentenced for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Pine Ridge, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on January 30, 2023.
Misty Bradford, 48, was sentenced to 15 years and eight months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. She also forfeited $23,979.00.
Misty Bradford was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in June of 2022. She pleaded guilty on September 23, 2022.
Bradford obtained methamphetamine and distributed it to others for use and further distribution in the Pine Ridge area. In June of 2022, a search warrant was executed at Bradford’s residence in Pine Ridge. Drug paraphernalia and two safes were discovered. One of the safes contained multiple bags of methamphetamine totaling 1.53 kilograms and $23,979.00 in cash. Bradford and others were responsible for distributing between 1.5 and 5 kilograms of methamphetamine during the course of the conspiracy.
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, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Bradford was immediately remanded to the custody of the U.S. Marshals Service.
Passaic County Man Arrested for Attempt to Firebomb SynagogueRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today for attempting to firebomb an Essex County, New Jersey, synagogue, U.S. Attorney Philip R. Sellinger announced.
Nicholas Malindretos, 26, of Clifton, New Jersey, is charged by complaint with one count of attempted use of fire to damage and destroy a building used in interstate commerce. He is scheduled to have his initial appearance in Newark federal court before U.S. Magistrate Judge Edward S. Kiel on Feb. 2, 2023.
“No one should find that their lives are at risk by exercising their faith,” U.S. Attorney Sellinger said. “The defendant is alleged to have gone to a synagogue in the middle of the night and maliciously attempted to damage and destroy it using a firebomb. Protecting communities of faith and houses of worship is core to this office’s mission. In response to this attempted attack, my office – together with our federal, state, and local partners – worked around the clock to investigate this matter swiftly. We will continue to devote whatever resources are necessary to keep our Jewish community and all New Jersey residents safe.”
“I commend and thank the entire New Jersey law enforcement community for their seamless collaboration and tireless efforts to identify and apprehend the suspect in Sunday’s attack on Temple Ner Tamid,” New Jersey Attorney General Matthew J. Platkin said. “In New Jersey, we stand united against hate and bias, and we speak with one voice to show that our state will remain a place where all can live and worship freely and safely.”
“Newark FBI and our law enforcement partners have been working around the clock since Sunday morning, after being notified someone targeted the Temple Ner Tamid in Bloomfield,” FBI Special Agent in Charge James E. Dennehy said. “We allege Mr. Malindretos threw a Molotov cocktail at the doors of the synagogue. The speed and intensity of this investigation demonstrates our determination and dedication to protecting houses of worship and protecting their congregations. We take seriously all threats of hate and bias aimed at all religions and faiths, and we intend to hold accountable all those who target them.”
“An alleged attempted firebombing on a house of worship is an attack against the entire community,” acting Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms, and Explosives said. “We are honored to work side by side with our local, state, and federal partners to bring today’s charge.”
“The Essex County Prosecutor's Office has long understood that our interfaith community is one of the prime targets for hate,” Acting Prosecutor Theodore N. Stephens II said. “Although we are always troubled by events such as this, we are pleased by the extraordinary efforts undertaken by all involved in Essex County law enforcement to bring this charge.”
According to documents filed in this case and statements made in court:
On Jan. 29, 2023, at 03:19 a.m., a surveillance camera at the Temple Ner Tamid Jewish Congregation in Bloomfield, New Jersey, recorded a person later identified as Malindretos as he approached the temple. He was wearing a black ski mask, a black or dark gray hooded sweatshirt with a white emblem of what appeared to be a skull and cross bones, black pants, dark shoes, and white gloves. The video showed Malindretos walking up to the front entrance area of the temple, pausing, and then igniting a wick on the top of a bottle. He then threw the bottle at the front glass doors of the temple and fled on foot.
A license plate reading device located nearby recorded a vehicle passing by shortly before and shortly after the incident. Law enforcement officers located the vehicle in Clifton and saw several items consistent with the video of the incident plainly visible inside. They obtained a search warrant for the vehicle. Video cameras in the area where the vehicle was parked captured the vehicle parking and a male individual with the same physical characteristics as Malindretos exiting the vehicle and entering a nearby building.
The count of attempted use of fire to damage and destroy a building used in interstate commerce is punishable by a minimum of five years in prison, a maximum of 20 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting of Special Agent in Charge Miller in Newark; the New Jersey Department of Law and Public Safety, under the direction of Attorney General Platkin; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Stephens, and the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office’s Civil Rights Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Owner of Home Health Agency Sentenced to 54 Months in Prison for over $100 Million Health Care FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARIANNA LEVIN was sentenced to 54 months in prison for her leadership role in a broad fraud scheme that defrauded Medicaid for home health and personal care services that were not actually rendered, resulting in the loss of more than $100 million. United States District Judge John P. Cronan imposed the sentence. LEVIN pled guilty to wire fraud on June 1, 2022.
U.S. Attorney Damian Williams said: “For years, Marianna Levin, the owner of a Brooklyn-based home health agency, defrauded taxpayers through a massive, fraudulent home health scheme. As part of the scheme, Levin billed tens of millions of dollars to Medicaid for home health services that were not actually rendered. As a result, the scheme diverted much-needed resources meant to support services for vulnerable individuals. Today’s sentence sends a message that those who engage in health care fraud schemes will face stiff penalties.”
According to statements and filings in federal court:
Since in or about 2015, LEVIN engaged in a widespread fraud scheme through which she and her co-conspirators defrauded Medicaid for home health and personal care services that were not actually rendered. During the course of the scheme, LEVIN served in a senior, executive role at a licensed home care service agency based in Brooklyn, New York (“Agency-1”). In or about 2016, LEVIN and her co-conspirators opened a second licensed home care service agency based in Brooklyn (“Agency-2” and, together with Agency-1, the “Agencies”). LEVIN served as the owner of Agency-2 and also continued in her leadership role at Agency-1.
The Agencies purported to provide home health and personal care services to patients residing in all five boroughs of New York City and Nassau County. Combined, the Agencies employed approximately 3,000 home health and personal care aides (the “Aides”). Most of the Aides were licensed to provide home health aide services and personal care services.
Home care is a health service provided in the patient’s home to promote, maintain, or restore health or to lessen the effects of illness and disability. Home care includes personal care services, administered by Aides, including housekeeping, meal preparation, bathing, toileting, and grooming.
From in or about 2015 to in or about December 2020, Medicaid reimbursed the Agencies hundreds of millions of dollars for home health and personal care services. A significant portion of the Agencies’ billings were fraudulent. In particular, the Agencies billed Medicaid for “no-show” cases in which Aides claimed to be performing home health or personal care services when they were not. At times when Aides falsely claimed to be performing home health or personal care services, they, in fact, stayed home, ran personal errands, vacationed, and socialized with family and friends. The fraud at the Agencies coincided with ballooning costs on home care in New York State. In or about January 2020, New York’s State budget director announced, in substance and in part, that spending in the home health space tripled between the 2013 and 2019 fiscal years, representing a $4.8 billion increase.
With no-show cases at the Agencies, an Aide’s fraudulently obtained wages were often split between the no-show Aide and the no-show patient. In addition to paying kickbacks to no-show patients, no-show Aides sometimes paid kickbacks to conspirators who referred no-show cases to Aides at the Agencies.
LEVIN and her co-conspirators also engaged in other fraudulent activity to boost the Agencies’ billing and increase the amount of money paid out to the Agencies.
Over the course of the scheme, LEVIN received more than $5 million in compensation from the Agencies.
In imposing the sentence, Judge Cronan emphasized the seriousness of LEVIN’s involvement in the fraud, the losses it caused, and the need to deter other home care businesses and workers from engaging in similar crimes.
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In addition to her prison term, MARIANNA LEVIN, 49, of Brooklyn, New York, was ordered to forfeit $1,496,000 and pay restitution of $36,328,183.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo and Daniel G. Nessim are in charge of the prosecution.