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30 January 2023
Man Sentenced to 32 Months for Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Julio Soto Robles, 34, of Puerto Rico, was sentenced on Friday, January 27, 2023, to 32 months’ imprisonment followed by four years of supervised release for possession with intent to distribute 735 grams of cocaine.
On August 24, 2022, Soto Robles pleaded guilty to possession with intent to distribute cocaine. According to court records, on August 18, 2020, Soto Robles and a co-traveler, Gregory Vega, arrived at the Cyril E. King Airport from Puerto Rico with no luggage. During a primary inspection by Customs and Border Protection (CBP), Soto Robles was found to be in possession of approximately $11,000 in U.S. currency. Soto Robles told CBP officers that the money was to pay for the surgery of a relative named Rafaela. Soto Robles further stated that he never met this relative and only knew her as “Tia Abuela.” On August 20, 2020, Soto Robles and his co-traveler returned to the Cyril E. King airport and attempted to board a flight to Puerto Rico. During secondary inspection, CBP officers searched a suitcase that the two men were carrying and discovered three separate bundles of cocaine.
The case was investigated by Customs and Border Protection and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Kyle Payne.
Leader of Drug Delivery Service Responsible for Three Fentanyl Poisoning Deaths ConvictedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of BILLY ORTEGA, a/k/a “Jason,” for distributing the fentanyl that killed three young New York City professionals: Julia Ghahramani, Amanda Scher, and Ross Mtangi. The jury convicted ORTEGA following a two-week trial before U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “Billy Ortega ran a drug delivery service that delivered fentanyl, killing three victims on a single day. Worse yet, Ortega was fully aware that a customer had previously overdosed from the deadly fentanyl Ortega laced into his product, yet continued sending the drugs to his victims. As a unanimous jury determined, Ortega will now be held accountable for the victims’ tragic and untimely deaths. This case exemplifies that the national fentanyl epidemic continues to claim lives and inflict havoc on families from all walks of life. Drug dealers don’t label their drugs as poison, they just sell them with indifference to the tragedy left in their wake. Combatting the fentanyl epidemic in our communities is one of my Office’s top priorities.”
According to the allegations in the Indictment and the evidence presented at trial:
From at least in or about 2015 to at least in or about February 2022, BILLY ORTEGA was the leader of a narcotics delivery service in the New York City area that principally distributed cocaine. ORTEGA used his mother’s apartment in Manhattan as his stash house, employing family members and close friends to manage his drugs and cash and to deliver his drugs to customers. In order to protect his drug business, ORTEGA supplied the guns that were kept at the stash house. Over a span of years, ORTEGA ran his drug delivery service over text message, acting as the central contact who, like a dispatcher, coordinated drug deliveries by texting his couriers and his customers.
In the course of a single day – March 17, 2021 – ORTEGA delivered, through one of his couriers, fentanyl-laced cocaine to Ghahramani, Mtangi, and Scher at three separate locations in Manhattan. All three victims died after consuming the drugs distributed by ORTEGA.
On the day of the three poisonings – and prior to the fentanyl being delivered to any of the three victims – ORTEGA received the following text message from a different customer warning ORTEGA that his drugs had almost killed someone else. Specifically, at approximately 2:29 p.m. on March 17, 2021, that other customer sent ORTEGA the following text message: “Hey man. Just on a follow up from yesterday - I gave most of my last bag to my buddy and he just called me this second to say he ended up in hospital last night. [. . .] He had to get a Narcan shot and was released in the early hours.”[1] ORTEGA read this text message prior to coordinating the three deliveries of the drugs, from the same fentanyl-tainted batch of cocaine, that killed the three victims in this case.
Later that night on March 17, 2021, after the victims had stopped responding to ORTEGA’s text messages, ORTEGA offered the fentanyl-tainted batch of cocaine to another drug dealer so he could test it out on “some girls.” Specifically, at approximately 10:25 p.m. on March 17, 2021, ORTEGA texted the drug dealer: “If you[’re] going to be around way let me know have some every one is saying it’s to[o] Strong . . . Give it to some girls and you let me know lol bro.”
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BILLY ORTEGA, 35, of West Milford, New Jersey, was convicted of one count of narcotics conspiracy resulting in death, three counts of narcotics distribution resulting in death, and one count of use and carrying of a firearm in furtherance of the narcotics conspiracy. The charges carry a mandatory minimum sentence of 25 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties 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 New York City Police Department (“NYPD”), the Organized Crime Drug Enforcement Task Forces (“OCDETF”) New York Strike Force, and the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”) Intelligence Analysts for their support and assistance in this matter.
This investigation was conducted by the OCDETF New York Strike Force in partnership with the Drug Enforcement Administration’s (“DEA”) law enforcement partners. The OCDETF New York Strike Force comprises federal, state, and local law enforcement agencies supported by OCDETF and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, NYPD, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Micah F. Fergenson, Michael R. Herman, and Robert B. Sobelman, with the assistance of Analyst Kelsey Opozda and Paralegal Specialists Alex Frenchman and Christine Woods, are in charge of the prosecution.
[1] “Narcan” is an opiate blocker, used to counteract the deadly effects of drugs like fentanyl.
Kentucky Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Melvin Theophilius Hill, 38, of Ashland, Kentucky, was sentenced today to five years and four months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on May 2, 2022, law enforcement officers conducted a traffic stop of a vehicle driven by Hill near 13th Street and Ninth Avenue in Huntington. Officers searched the vehicle and found a loaded FN 509 9mm handgun in the passenger seat rear pocket. Hill admitted to possessing the firearm and placing it where officers found it during the search.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Hill knew he was prohibited from possessing a firearm because of his prior felony convictions in Boyd County, Kentucky, Circuit Court for second-degree robbery on May 9, 2008, and first-degree possession of a controlled substance on January 12, 2011.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-134.
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Justice Department Announces Settlement with Logan Square Aluminum Supply over Lead ViolationsRead the Press Release
Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.
Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.
“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”
“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”
Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.
Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.
EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.
The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here.
Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.
To report a possible violation of the RRP Rule requirements, please visit EPA’s website.
Justice Department Announces Settlement with Logan Square Aluminum Supply over Lead ViolationsRead the Press Release
WASHINGTON – Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.
Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.
“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”
“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”
Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.
Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.
EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.
The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here.
Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.
To report a possible violation of the RRP Rule requirements, please visit EPA’s website.
Indianapolis Men Sentenced to a Combined 60 years in Federal Prison for Their Roles in the Sexual Exploitation of a ChildRead the Press Release
INDIANAPOLIS – Michael Ingram, 43, of Indianapolis, Indiana, was sentenced to 40 years in federal prison after pleading guilty to Sexual Exploitation of a Child, Conspiracy to Sexually Exploit Children, and Distribution and Receipt of Child Sexual Abuse Material. Cameron Helm, 36, of Indianapolis, Indiana, was also sentenced to 20 years in federal prison after pleading guilty to Conspiracy Sexually Exploit Children and Distribution and Receipt of Child Sexual Abuse Material.
According to court documents, in March 2020, the Indianapolis Metropolitan Police Department (IMPD) began investigating Ingram after receiving a CyberTip from an email provider. Further investigation revealed that the owner of this email account sent child sex abuse material to Ingram’s email account. Investigators were able to tie the account to Ingram’s Indianapolis residence and obtained a warrant to search for evidence of crimes.
Members of the Indiana Internet Crimes Against Children (ICAC) task force executed the warrant and recovered Ingram’s iPhone and iPad. A forensic examination of these devices revealed that Ingram had produced, distributed, and possessed child sex abuse material.
In addition, over 1,600 text messages were located on the devices between Ingram and Helm, from February 7, 2018, to October 2020. In these texts, Ingram and Helm conspire to sexually exploit a child and graphically describe potential sex acts with children. At Helm’s direction, Ingram took photos of himself sexually assaulting a child. Ingram distributed that child sex abuse material to Helm, and Helm distributed other child sex abuse material to Ingram in return.
U.S. Attorney for the Southern District of Indiana Zachary A. Myers and IMPD Chief Randal Taylor made the announcement.
“These criminals gleefully reveled in the dark sewer of child exploitation,” said U.S. Attorney Myers. “They placed their own sexual gratification above the autonomy, dignity, and safety of a vulnerable child. The serious sentences imposed here demonstrate that these horrific abuses are unacceptable in civilized society. Indiana’s renowned Internet Crimes Against Children Task Force, including our office and IMPD, will continue to work relentlessly to keep children safe and hold abusers accountable.”
ICAC and IMPD investigated the case. The sentence was imposed by U.S. District Judge, Sarah Evans Barker. Judge Barker also ordered that Ingram be supervised by the U.S. Probation Office for life and Helm be supervised for 15 years following their release from federal prison. Ingram and Helm must also register as sex offenders wherever they live, work, or go to school, as required by law. Additionally, Helm must pay $10,000 in restitution to the child victims and has been fined $10,000 pursuant the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
U.S. Attorney Myers thanked Assistant United States Attorney Kyle M. Sawa who prosecuted the case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Akale Jamel Green, 54, of Huntington, was sentenced today to three years in prison, to be followed by three years of supervised release, for distribution of heroin.
According to court documents and statements made in court, on June 15, 2020, Green sold approximately 1.42 grams of heroin to a confidential informant while parked at a Hurricane shopping plaza. The Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory confirmed the controlled substance contained heroin and fentanyl.
Green further admitted to aiding and abetting the sale of approximately 1 gram of heroin and fentanyl to a confidential informant at a Hurricane residence on June 9, 2020, and to selling approximately 1.33 grams of heroin and fentanyl to a confidential informant in Huntington on June 23, 2020. On July 22, 2020, law enforcement officers executed a search warrant at a Doulton Avenue residence in Huntington and found a quantity of a heroin and fentanyl mixture and digital scales. Green admitted to possessing the heroin and fentanyl mixture and that he intended to distribute it.
United States Attorney Will Thompson made the announcement and commended the investigative work of the DEA and the West Virginia State Police Ona Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-100.
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Hot Springs Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced on January 27, to 97 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, John Raymond Duran, age 58, was identified by law enforcement to be distributing methamphetamine in Hot Springs, Arkansas area.
Between the months of December 2020 and March 2021, investigators were able to conduct multiple controlled purchases of methamphetamine from Duran.
On April 12, 2021, a search was conducted at Duran’s residence, resulting in investigators locating and seizing approximately 1539 grams of a mixture or substance that field tested positive for methamphetamine.
The methamphetamine seized and purchased was subsequently submitted to the Drug Enforcement Administration (DEA) laboratory for additional testing.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Homeland Security Investigations Little Rock, the Drug Enforcement Administration, Hot Springs Police Department, and the 18th East Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Four Washington State Men Sentenced for Hate Crime and False Statement Charges After Racially-Motivated AssaultRead the Press Release
Four men who assaulted a Black man because of the man’s actual and perceived race at a bar in Lynnwood, Washington, were sentenced today in the U.S. District Court for the Western District of Washington.
Jason DeSimas, 45, Jason Stanley, 46, Randy Smith, 42, and Daniel Dorson, 27, previously each pleaded guilty to one count of committing a hate crime, as well as one count of making false statements to investigators about their role in the assault.
DeSimas was sentenced to 48 months; Stanley was sentenced to 47 months and nine days; Smith was sentenced to 42 months; and Dorson was sentenced to 28 months.
“The defendants subjected a Black man to a brutal and racially-motivated assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated hate crimes terrorize entire communities, and they have no place in our society. The Department of Justice will continue to investigate and prosecute individuals who commit these abhorrent crimes.”
“The myth of white supremacy is alive and well and can foment dangerous behavior and violence. These particular defendants are deeply steeped in racial hatred, expressed through their Nazi tattoos, white supremacist symbols on their clothing and their use of racist slurs. They came to our area to honor a man who died leading a racist and violent gang, and thought they could act on their beliefs with impunity,” said U.S. Attorney Nick Brown for the Western District of Washington. “But the victims and witnesses of their brutal assault have proved they are far stronger than these four. And today our justice system is holding them accountable for the damage they did not only to the people they assaulted, but to the community that recoils when presented with their despicable hatred.”
“Imagine being attacked by four men purely because of the color of your skin.” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “The victim in this case does not have to imagine. Tragically, he lived it. With today’s sentences, my hope is the victim feels some sense of justice has been served. However, until all citizens are safe from threats and violence based on their race, ethnicity, gender or beliefs, the FBI’s work protecting victims of hate will continue.”
In their respective plea agreements, DeSimas, Stanley, Smith and Dorson each admitted that, on Dec. 8, 2018, they entered a bar in Lynnwood, with a large group that included fellow members of Crew 38 and the Hammerskins. Crew 38 is a support group for the Hammerskins, which is a white supremacist organization. The majority of the men in the group were similarly dressed in dark jeans or pants, black boots, black “bomber” jackets and dark-colored t-shirts and had crew-cut hairstyles. Some wore jackets with either Crew 38 patches or other patches aligned with white supremacist beliefs. In addition, many wore shirts with phrases, numbers or logos that expressed white supremacist beliefs and/or memberships, including Crew 38. Many in the group also had visible tattoos, including swastika tattoos, that expressed their views on white race superiority. Members of the group, including defendants Stanley and Smith, repeatedly gave the Nazi salute as they danced.
While in the bar, all four defendants assaulted T.S., a Black man who was serving as the disc jockey at the bar, when T.S. attempted to move defendant Stanley away from his music equipment. All four defendants punched and kicked T.S., even after he fell to the floor, while some in the group called T.S. racial slurs. Two bystanders attempted to intervene to help T.S. and stop the assault. The defendants and other assaulted both bystanders, causing them to sustain injuries. As a result of the defendants’ actions, T.S. suffered serious physical injuries, including extrema pain, loss of consciousness, bleeding and swelling in his eye and bruising on his back, chest and legs.
In their plea agreements, the four defendants each admitted that they were members of Crew 38 and/or prospective members of the Hammerskins, and that they had traveled to the Lynnwood area with others to attend events related to “Martyr’s Day,” an annual gathering honoring a white supremacist who died in a shootout with federal agents on Whidbey Island in the 1980s.
In their plea agreements, defendants DeSimas and Stanley each admitted that they knew that the Hammerskins had used a tactic known as “mutual combat” against members of groups whose beliefs they opposed. Members believed that, using this tactic, they could go to bars frequented by groups whose beliefs they opposed and have one or more members initiate a fight. When the fight began, other members of the group could jump in and assault their perceived antagonists, and later claim a defense of “mutual combat” as a way to avoid accountability.
In addition to the hate crime charge, each defendant pleaded guilty to one count of making false statements to federal agents who were investigating the assault. Specifically, Stanley falsely claimed to the agents that he was not even present in the State of Washington during the weekend of the assault. Stanley made this false claim in order to cover up his participation in the assault of T.S.
DeSimas falsely claimed to the agents that neither he nor anyone else called T.S. a racial slur during the assault, while Smith falsely claimed to the agents that he did not remember anyone calling T.S. a racial slur during the assault. Dorson falsely told agents that he had not traveled to Washington State during the weekend of the assault to attend a white supremacist’s “Martyr’s Day” observance and that he had not owned a jacket associated with a white supremacy hate group prior to the weekend of Dec. 8, 2018. In their respective plea agreements, these defendants each admitted that they made these false statements in order to cover up the motive for the assault, which was the bias that he and others had against T.S.’s race.
The four defendants were charged in an indictment that was unsealed on Dec. 18, 2020.
Smith was charged in the District of Oregon in an unrelated case for illegal possession of a firearm. That charge was resolved in the Western District of Washington.
The FBI investigated the case, with the support of the Snohomish County Sheriff’s Office. The Smith firearms matter was investigated by the FBI Portland Field Office and the Eugene, Oregon, Police Department.
Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Rebecca Cohen for the Western District of Washington are prosecuting the case. The Smith firearms matter was prosecuted by Assistant U.S. Attorney William McLaren for the District of Oregon.
Fort Myers Man Sentenced to More Than 15 Years for Selling Fentanyl and MethamphetamineRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Diante Jarrel Lewis (32, Fort Myers) to 15 years and 8 months in federal prison for twice distributing fentanyl and for distributing methamphetamine. Lewis had pleaded guilty on August 24, 2022.
According to court documents, Lewis was charged with distributing fentanyl on two separate dates in May of 2022. Court documents further show that he was charged with distributing over 50 grams of methamphetamine during that same period. Lewis qualified as a Career Offender under the Federal Sentencing Guidelines based on his criminal history.
This case was investigated by the Lee County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mark Morgan.
Former Top Guatemalan Police Official Who Failed to Disclose Murder Convictions on Green Card Petition Found Guilty of Felony OffenseRead the Press Release
LOS ANGELES – The former chief of the National Police in Guatemala’s second-largest city has been found guilty by a jury of a federal criminal charge for knowingly using a “green card” whose application to U.S. immigration authorities failed to disclose he had been convicted of murdering two political activists in Guatemala in the 1980s, the Justice Department announced today.
Catalino Esteban Valiente Alonzo, 82, of Fontana, was found guilty late Friday of one count of knowing use of a Lawful Permanent Resident card that was procured by means of a false claim or statement. Valiente is the former chief of the National Police in Quetzaltenango, Guatemala.
According to evidence presented at his four-day trial, Valiente entered the United States in April 2013 with a Lawful Permanent Resident card – commonly known as a “green card” – that he fraudulently obtained by failing to disclose that he had been arrested and tried for kidnapping and murder in Guatemala.
In October 1987, shortly after Valiente ordered an “investigation” into two political dissidents associated with anti-police protests at local universities in Quetzaltenango, two people were kidnapped in broad daylight by police officers. Days later, their bodies were recovered in separate locations on the side of the road, just outside the city limits. They had been beaten and tortured prior to being killed.
In December 1987, Valiente and others were charged in Guatemala in connection with the kidnappings and murders. He was arrested and remained in custody for two-and-a-half years while the criminal case against him proceeded.
In 1989, Valiente was convicted in Guatemala of double murder. He was sentenced to 30 years in prison and was ordered to pay approximately $6,000 to the victims’ families. In 1990, an intermediate appellate court overturned Valiente’s conviction, dismissed the charges, and ordered him released from custody.
Immediately after his release from prison, Valiente fled Guatemala. In August 1990, he entered the United States at the San Ysidro Port of Entry in San Diego. Days later, he filed – under penalty of perjury – an application for asylum. On this application, he falsely denied that he had ever been detained, convicted, sentenced or imprisoned in another country.
The Supreme Court of Guatemala in March 1993 vacated the intermediate appellate court’s ruling and issued a warrant for his arrest.
In September 1997, Valiente filed – under penalty of perjury – a false application for a green card in which he denied having been arrested, charged, fined or imprisoned outside the United States for violating any law.
Valiente subsequently lied under oath to a U.S. immigration official during an interview about the answers on his green card application. The green card was approved and Valiente used it, including presenting it to re-enter the United States at Los Angeles International Airport in April 2013.
United States District Judge Dolly M. Gee scheduled a May 24 sentencing hearing, at which time Valiente will face a statutory maximum sentence of 10 years in federal prison.
Homeland Security Investigations (HSI) investigated this matter in coordination with the HSI Attaché in Guatemala City, United States Citizenship and Immigration Services, Fraud Detection and National Security Directorate, and the Document and Benefit Fraud Task Force Los Angeles.
Assistant United States Attorney Joshua O. Mausner of the General Crimes Section is prosecuting this case.
Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes may call the Immigration and Customs Enforcement (ICE) tip line at 1-866-DHS-2423 (1-866-347-2423). Callers may remain anonymous.
Former Naval Officer Agrees to Plead Guilty to Making Threats in Interstate CommerceRead the Press Release
BOSTON – A former naval police officer at the Portsmouth Naval Shipyard in New Hampshire has agreed to plead guilty to three counts of making threatening communications to his ex-wife and her mother in Iowa.
Luis De Leon, 30, of Middleton, was charged and has agreed to plead guilty to three counts of making threats in interstate commerce. A plea hearing has not yet been scheduled by the Court. De Leon was previously arrested and charged by criminal complaint on Sept. 26, 2022.
According to the charging documents, on or about April 30, 2022, De Leon made a threatening phone call to his ex-wife in Iowa from a mobile telephone belonging to another individual. Specifically, during the call, De Leon allegedly made several threatening statements including, “You’re gonna f****** pay! Do you understand!? There will be death! There will be war in the street! You wanna to go war!? I’ll take you to f****** war!”
Between May and June 2022, De Leon allegedly sent two letters containing threats to his ex-wife’s mother in Iowa. In the letters, it is alleged that De Leon wrote, among other things, “I’ll be heading over there soon […] God help you and your dysfunctional family if you try and stop me. I won’t be alone either just so you know and that’s for your safety NOT MINE!!! […] If you don’t believe me just look where I’m sending this from. I don’t really have much else to lose, and do you know what men with nothing left to lose usually do?”
The charge of making threatening communications in interstate commerce provides for a sentence of up to five years in prison, 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Timothy H. Kistner of Rollins’ National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Louisville, Kentucky, Police Officer Sentenced for Using Excessive ForceRead the Press Release
Katie R. Crews, 29, of Jeffersonville, Indiana, was sentenced to two years of probation, 200 hours of community service and a $5,000 fine for violating an individual’s rights by using excessive force while acting as a police officer for the Louisville Metro Police Department.
In October 2022, Crews admitted during a plea hearing that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball even though the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“This former Louisville police officer abused her authority as a law enforcement officer and violated the victim’s civil rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence makes clear that law enforcement officials are not above the law. The Justice Department will continue to prosecute law enforcement officials who violate our federal civil rights laws and defy the public trust by using excessive force.”
“As in this case, our office will work diligently with our federal and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force by officers sworn to protect them,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Louisville, Kentucky, Police Officer Sentenced for Using Excessive ForceRead the Press Release
Katie R. Crews, 29, of Jeffersonville, Indiana, was sentenced to two years of probation, 200 hours of community service and a $5,000 fine for violating an individual’s rights by using excessive force while acting as a police officer for the Louisville Metro Police Department.
In October 2022, Crews admitted during a plea hearing that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball even though the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“This former Louisville police officer abused her authority as a law enforcement officer and violated the victim’s civil rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence makes clear that law enforcement officials are not above the law. The Justice Department will continue to prosecute law enforcement officials who violate our federal civil rights laws and defy the public trust by using excessive force.”
“As in this case, our office will work diligently with our federal and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force by officers sworn to protect them,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.
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Florissant Bank Manager Admits Defrauding Elderly CustomersRead the Press Release
ST. LOUIS – A former bank branch manager from Florissant, Missouri on Monday admitted targeting elderly customers of her bank and stealing $175,000 of customers' money.
Andrea Nicole Hopkins, 28, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to four felony counts of bank fraud.
From Feb. 20, 2020 to May 25, 2021, while manager of the Commerce Bank branch on Natural Bridge Avenue in St. Louis, she devised a scheme to divert money from customer accounts for her own use. She targeted elderly customers, knowing that some had a diminished capacity to understand their financial affairs, her plea agreement says. Among the victims are two 80-year-olds, one 95-year-old and one 82-year-old.
Hopkins logged into 15 accounts and transferred funds out into either cashier’s checks or prepaid cards in the names of other people, her plea says. She changed the address on some account statements, forged signatures and transferred funds among customers to try and hide the thefts.
In all, Hopkins fraudulently diverted a total of $328,273 from customer accounts, but $152,431 of that she transferred internally among customers to hide her theft, leaving $175,842 for her. Hopkins used the money to buy a motorcycle, to pay for living expenses and to pay personal debts.
Hopkins is scheduled to be sentenced May 8. The charges carry a penalty of up to 30 years in prison, a $1 million fine or both.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.
Five Individuals Indicted for Child Abuse on the Red Lake ReservationRead the Press Release
BEMIDJI, Minn. – Five members of the Red Lake Band of Chippewa Indians have been indicted for multiple child abuse charges including child torture and child neglect on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.
According to court documents, between January 1, 2021, and April 29, 2022, Trina Mae Johnson, 49, directed the torture, endangerment, neglect, and abuse of a child who was in Johnson’s legal custody through a foster care placement. Johnson was aided and abetted by Bertram Calvin Lussier, Jr., 42, and Johnson’s three sisters, Bobbi Jo Johnson (a/k/a Bobbi Jo Kingbird), 44, Ellie Mae Johnson, 47, and Patricia Ann Johnson, 39, who all regularly assumed responsibility for all or a portion of the care and supervision of the minor victim. The abuse included withholding food from the victim to the point of starvation, forcing the victim to stand in uncomfortable positions for long periods of time, and assaulting the victim in various ways. As a result of Johnson’s and her accomplices’ abuse, the victim suffered serious and substantial physical, mental and emotional harm.
Trina Johnson is charged with one count of child torture, one count of child neglect—deprivation of food and health care, one count of child endangerment and one count of assault on a minor with a dangerous weapon. Bobbi Johnson, Ellie Johnson, Patricia Johnson and Lussier, were each charged with one count of child neglect—deprivation of food and health care and one count of child endangerment.
Trina Johnson, Bobbi Johnson, Patricia Johnson, and Lussier all made their initial appearances Friday, January 27, in U.S. District Court before Magistrate Judge Jon T. Huseby.
Ellie Johnson will make her initial appearance in U.S. District Court before a Magistrate Judge at a later date.
This case was investigated by the FBI and the Red Lake Tribal Police Department, with support from the Minnesota Bureau of Criminal Apprehension, the Beltrami County Sherriff’s Office, the Bemidji Police Department, and the Blackduck Police Department.
Assistant U.S. Attorneys Ruth S. Shnider and Angela M. Munoz are prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fentanyl Dealer Pleads Guilty in Federal CourtRead the Press Release
ASHEVILLE, N.C. – Megan Emily Tate, 28, of Sylva, N.C., appeared before U.S. Magistrate Judge W. Carleton Metcalf this morning and pleaded guilty to distributing a substance that contained fentanyl which resulted in serious bodily injury, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees North Carolina, and Sheriff Doug Farmer of the Jackson County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, in April 2021, deputies with the Jackson County Sheriff’s Office arrested Tate for suspected distribution of fentanyl. Court records show that while Tate was in custody at the Jackson County Detention Center, she supplied two inmates with fentanyl, causing them to overdose. As a result, both overdose victims were transported to the hospital and one victim was placed on a ventilator. Both victims later recovered from their drug overdose. According to court documents, over the course of the investigation into the drug overdose incidents, law enforcement determined that Tate had supplied each victim with a substance that contained fentanyl, which Tate was able to conceal and later retrieve from a body cavity.
According to the DEA, fentanyl is a synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl remains the deadliest drug threat in the United States. According to the CDC, more than 100,000 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. Sixty-seven percent of those deaths involved synthetic opioids like fentanyl. Some of these deaths were attributed to fentanyl mixed with other illicit drugs like cocaine, methamphetamine, and heroin, with many users unaware they were actually taking fentanyl.
Tate is currently in federal custody. At sentencing, Tate faces a sentence of 20 years in prison. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Federal Jury Convicts Omaha Man in Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that on January 27, 2023, a federal jury in the District of Nebraska found Gilberto Aguilar-Beltran, 46, of Omaha, Nebraska guilty of conspiracy to distribute and possess with intent to distribute methamphetamine, and of possession with intent to distribute methamphetamine.
On May 12, 2021, Omaha Police observed Aguilar-Beltran, driving a Jeep Grand Cherokee, meet up with two people driving a black SUV at a Taco Bell on South 42nd Street. A male from the black SUV got into Aguilar-Beltran’s Jeep and they briefly drove around before returning to the Taco Bell. The male returned to the black SUV and departed at the same time as the Jeep. Omaha Police stopped the black SUV, and after completing a canine sniff of the exterior, they searched it. Officers recovered approximately one pound of meth and arrested the driver and passenger.
Following this apparent drug transaction, OPD detectives gathered additional evidence of Aguilar-Beltran’s involvement in methamphetamine distribution. Ultimately, on July 15, 2021, officers executed a search warrant at Aguilar-Beltran’s home, locating distribution quantities of methamphetamine, cash, and a digital scale and packaging materials consistent with drug trafficking.
Investigators further determined through deconfliction and cooperation with federal investigative agencies that Aguilar-Beltran’s activities in furtherance of drug trafficking extended beyond methamphetamine distribution. A cooperating witness testified at trial that Aguilar-Beltran collected thousands of dollars in proceeds from methamphetamine sales for the organization. Additional witnesses testified that Aguilar-Beltran allowed the detached garage at his residence to be used over a period of several years for the regular off-loading of dozens of pounds of methamphetamine from a “trap” car that had been driven repeatedly to Omaha from the southwest border. The methamphetamine from the trap car was intended for distribution in Nebraska.
United States District Judge Brian C. Buescher presided over the jury trial and will sentence Aguilar-Beltran on April 27, 2023.
This case was investigated by the Omaha Police Department, the Drug Enforcement Administration, Homeland Security Investigations, and the Federal Bureau of Investigation.
Federal Grand Jury Indicts New Orleans Man for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – JUSTIN HENRY, age 41, a resident of New Orleans, Louisiana, was charged on January 26, 2023 in a one-count indictment for being a felon in possession of a firearm.
If convicted, HENRY faces a maximum sentence of 15 years in prison, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven 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 Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the Department of Homeland Security, Homeland Security Investigations. Assistant United States Attorney David Berman is in charge of the prosecution.
Domestic Abuser Sentenced to Five Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
INDIANAPOLIS- Carlton Chaney Jr., 27, of Indianapolis, Indiana was sentenced to 5 years in federal prison for illegally possessing a firearm as a convicted felon.
According to court documents, on September 21, 2022, agents with the FBI’s Safe Streets Gang Task Force were conducting an investigation at a residence near Irvington when Carlton Chaney exited the front door of the residence with a handgun in his waistband and drove away. Indianapolis Metropolitan Police Department (IMPD) officers pulled Chaney over on I-465 and recovered the handgun previously seen in Chaney’s waistband.
Chaney is prohibited from possessing a firearm due to his previous felony convictions including a federal conviction for commercial robbery, and state convictions for battery with a deadly weapon, illegal gun possession, and resisting law enforcement. Chaney was also the subject of multiple domestic violence-related protective orders.
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
“Armed domestic abusers pose a serious threat to those closest to them, law enforcement officers, and public safety in general,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Many illegally armed perpetrators of gun violence in the home and mass shootings in public have a prior history of committing domestic violence. That’s why our office is working together with IMPD and the FBI, through the LEATH initiative, to protect the public from these offenders and save lives.”
The FBI investigated this case with the valuable assistance of the IMPD. The sentence was imposed by U.S. District Court Judge Jane E. Magnus-Stinson. Judge Stinson also ordered that Chaney be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Chaney must pay a $900.00 fine and forfeit the handgun.
U.S. Attorney Myers thanked Assistant United States Attorney Barry D. Glickman, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
Doctor Sentenced for Role in Illegally Distributing 6.6 Million Opioid Pills and Submitting $250 Million in False BillingsRead the Press Release
A Michigan doctor was sentenced today to 16.5 years in prison for his role in a health care fraud scheme that resulted in over $250 million in false and fraudulent claims being submitted to Medicare, Medicaid, and other health insurance programs, exploited patients suffering from addiction by administering unnecessary injections, illegally distributed over 6.6 million doses of medically unnecessary opioids, and engaged in money laundering.
“This defendant exploited vulnerable patients struggling with addiction by overprescribing highly dangerous opioid pills and exposing them to unnecessary and sometimes painful injections,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “To make matters worse, the defendant and his co-conspirators submitted over $250 million in false and fraudulent claims to Medicare, Medicaid, and other health insurance programs. As this case demonstrates, the Department of Justice will continue to relentlessly combat health care fraud, particularly where defendants endanger patients by providing addictive substances and billing for needless procedures.”
In September 2021, Francisco Patino, M.D., 68, of Wayne County, was convicted at trial in the Eastern District of Michigan of conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to defraud the United States and pay and receive health care kickbacks, conspiracy to commit money laundering, and money laundering.
Patino joins 21 other defendants who were previously sentenced for participating in the same scheme.
“The defendant in this case preyed upon patients seeking treatment for addiction and pocketed the profits,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain dedicated to pursuing those who exploit our healthcare system and the American people.”
According to court documents and evidence at trial, Patino owned multiple medical practices and clinical laboratories in Michigan. Patino played a critical role in developing and implementing a “shots-for-pills” protocol at several pain clinics, whereby patients were required to receive unnecessary back injections in exchange for prescriptions of dangerous and high doses of medically unnecessary and addictive opioids.
Patino excessively prescribed highly addictive opioids to his patients. In exchange for opioids, these patients would receive – or be billed as if they had received – facet joint or nerve block injections, both lucrative spinal injections. Although these spinal injections were purportedly intended to treat chronic pain, Patino injected the patients without regard to medical necessity. Evidence also revealed that if patients refused to accept the injections, Patino would withhold their prescriptions for opioids. From January 2012 through July 2017, Patino billed Medicare for more of these injections than any other provider in the country. In 2016 and 2017, Patino prescribed more 30-milligram Oxycodone pills than any other provider in Michigan.
“The significance of this sentence underscores the severity of the conduct by the defendant in this investigation,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “In particular, the administration of unnecessary injections, in exchange for unnecessary opioid prescriptions, places patients at serious risk of harm and exploits some of the most vulnerable people. Our office is committed to working together with our law enforcement partners to identify and investigate medical professionals and others who engage in fraudulent conduct and prey on beneficiaries of Federal health care programs.”
Patino also developed an illegal kickback relationship with at least one diagnostic laboratory, from which he was paid in exchange for referring his patients’ samples to that lab. Patino was aware that his ownership structure and kickbacks violated the law and authored emails acknowledging that such ownership constituted a “violation of the Stark and Anti-Kickback laws,” and attempted to conceal and disguise the ownership structure and scheme in order to keep himself “out of Federal Prison & having all our assets seized.” The evidence showed that Patino laundered the proceeds of the scheme to falsely portray himself as a legitimate doctor through the publication of a diet book and plan described as the “next Atkins,” paid-for appearances on a nationally syndicated television show, and the sponsorship of boxers, cagefighters, and prominent Ultimate Fighting Championship World Champions and Hall of Famers. Patino also spent funds he derived from these various schemes on luxury jewelry, cars, and international vacations. Between the medically unnecessary spinal injections and kickback-induced laboratory testing, Patino was responsible for over $120 million worth of fraudulent bills submitted to insurers for payment.
Additionally, Patino pioneered the shots-for-pills protocol while working with CEO Mashiyat Rashid of the Tri-County Wellness Group of medical providers in Michigan and Ohio. In 2018, Rashid pleaded guilty to conspiracy to commit health care fraud and wire fraud and money laundering and was sentenced to 15 years in prison on March 3, 2021. Others convicted at trial or by guilty plea include 12 other physicians who were trained in Patino’s protocols, along with many non-physician defendants who participated in the conspiracy.
The five other defendants most recently sentenced for their part in this scheme include:
- Yasser Mozeb, 40, of Hamtramck, Michigan, the office manager of the Tri-County clinics, was sentenced to five years in prison and ordered to pay over $46 million in restitution following his guilty plea to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive illegal kickbacks and bribes.
- Kashif Rasool, 47, of Troy, Michigan, a physician, was sentenced to 32 months in prison and ordered to pay nearly $2 million in restitution following his guilty plea to one count of conspiracy to commit health care fraud.
- Tariq Siddiqi, 45, of Sterling Heights, Michigan, a physical therapist and home health owner, was sentenced to 30 months in prison and ordered to pay over $880,000 in restitution following his guilty plea to one count of health care fraud conspiracy in connection with his payment of illegal kickbacks for the referral of patients from the clinics for medically unnecessary home health services.
- Tasadaq Ali Ahmad, 55, of Canton, Michigan, the owner of a home health agency, was sentenced to 58 months in prison and ordered to pay over $20 million in restitution following his guilty plea to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive kickbacks.
- Stephanie Borgula, 42, of Livonia, Michigan, a licensed physical therapist, was sentenced to 15 months in prison and ordered to pay over $825,000 in restitution following her guilty plea to one count of conspiracy to commit health care fraud.
The FBI and HHS-OIG investigated the cases.
Acting Principal Assistant Deputy Chief Jacob Foster, Trial Attorneys Steven Scott, Kathleen Cooperstein, and Shankar Ramamurthy, as well as former Trial Attorney Thomas Tynan, of the Criminal Division’s Fraud Section prosecuted the cases.
District Court Enters Permanent Injunction Against Florida-Based Drug Importer and DistributorRead the Press Release
A federal court today entered a consent decree of permanent injunction prohibiting LGM Pharma LLC, a Florida company, from distributing active pharmaceutical ingredients not manufactured, processed, or held in compliance with the Federal Food, Drug, and Cosmetic Act (FDCA).
According to court filings, LGM Pharma LLC is an importer and distributor of active pharmaceutical ingredients (APIs), which the company’s customers use to manufacture and compound finished drug products. In a complaint filed on Jan. 11, the United States alleged that LGM Pharma LLC, its chief executive officer, Prasad Raje, and its senior vice president of quality and regulatory affairs, Shailesh Vengurlekar, introduced into interstate commerce adulterated drugs that were manufactured, processed, packed, or held in conditions that do not comply with current good manufacturing practices (CGMP) as required under the FDCA. The complaint alleged that a 2022 FDA inspection of LGM’s Florida headquarters and a Kentucky facility where the company receives, holds, and distributes API identified significant departures from CGMP that posed a serious and ongoing risk to the public. The complaint further alleged that the problems observed in 2022 were similar to violations previously seen during a 2018 inspection of the Kentucky facility.
The defendants agreed to settle the suit and to be bound by a consent decree of permanent injunction. The consent decree, which resolves the case against all defendants, requires, among other things, that the defendants hire a CGMP expert to review and inspect LGM’s methods and controls used to receive, label, hold, and distribute drugs to determine whether the company’s processes and quality controls conform with CGMP. The consent decree also requires ongoing compliance auditing and reporting to FDA.
“Compliance by pharmaceutical importers and distributors with current good manufacturing practices is essential to ensuring the safety of drug products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that companies importing and distributing drugs and active pharmaceutical ingredients comply with federal law.”
“Protecting patients means we must hold all parts of our drug supply chain to the highest standards of quality allowed by law, including importers and distributors of both finished drug products and active pharmaceutical ingredients,” said Acting Director of the Office of Compliance Jill P. Furman, J.D. of the FDA’s Center for Drug Evaluation and Research. “LGM Pharma LLC’s failures to adhere to CGMP requirements put patients at risk. This consent decree requires the firm to implement and adhere to rigorous quality standards, under close FDA supervision. We will continue to do everything in our power to ensure compliance and address violations of federal law to protect the American public and the safety of the drug products they rely on.”
The government was represented by Trial Attorneys Ann Entwistle and Rachael Doud of the Justice Department’s Consumer Protection Branch, with the assistance of Tracey Allen of the FDA’s Office of Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the resolution announced today are allegations only and there has been no determination of liability.
Des Moines Man Who Fled Prosecution Sentenced to 20 Years for Receipt of Child PornographyRead the Press Release
DES MOINES, IA – Jacob Chance Greer, age 27 of Des Moines, was sentenced today to 20 years in prison for knowingly receiving child pornography. Greer was also ordered to pay restitution of $12,000 to victims of the child pornography he collected and placed on supervised release for a term of five years after his prison term. He is also required to register as a sex offender.
Greer was originally arrested on federal child pornography charges in 2016 as the result of an investigation by Homeland Security Investigations. About a month after he was released pending trial, Greer faked his death, leaving a suicide note by his abandoned car, parked by a lake in Dallas County, and absconded. The U.S. Marshals’ Fugitive Task Force developed information that led to Greer’s arrest in Spanaway, Washington on April 4, 2022.
According to court documents, Greer received, possessed, and distributed child pornography on the internet over several years. He tried to avoid detection by, among other things, storing his collection on internet-platforms, instead of on his own electronic devices, and occasionally deleted files on his devices. Yet child pornography and digital evidence of his seeking out and trading child pornography was found on numerous electronic devices seized from him on February 4, 2015, when law enforcement executed a search warrant at his residence in Des Moines.
“Thanks to the dedicated efforts of our law enforcement partners, including the United States Marshals’ Fugitive Task Force, sex offender Jacob Greer failed in his attempt to avoid accountability for these serious charges involving the exploitation of children,” said United States Attorney Richard D. Westphal.
The investigation started in 2014, as part of Project Hydra, a joint task force investigation by Homeland Security Investigations and the York, Ottawa Regional Police in Ontario, Canada targeting persons who produce and distribute child pornography on the internet case. Other agencies who assisted with the case include the U.S. Postal Inspection Service, the National Center for Missing and Exploited Children, the U.S. Forest Service, the Royal Canadian Mounter Police, and the U.S. State Department.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa and Assistant U.S. Attorney Craig Peyton Gaumer, as part of the United States Department of Justice’s “Project Safe Child” 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.
Council Bluffs Man Sentenced to 60 Months in Federal Prison for Child Pornography OffenseRead the Press Release
COUNCIL BLUFFS, IA – Robert Sherman Kerber, age 32, of Council Bluffs, was sentenced on January 25, 2023, to 60 months in prison following his plea of guilty to Receipt of Child Pornography. Kerber will be required to register as a sex offender and serve five years of supervised release following his release from prison. Kerber was also ordered to pay restitution.
In May 2020, a social media application sent a cybertip to the National Center for Missing and Exploited Children regarding an account that uploaded images of child pornography. The cybertip was referred to Iowa Internet Crimes Against Children and the Council Bluffs Police Department started an investigation. The investigation led to a search warrant at Kerber’s residence. A forensic analysis identified that Kerber received and possessed numerous images and videos of child pornography.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by the Iowa Internet Crimes Against Children, the Council Bluffs Police Department, the United States Secret Service National Computer Forensics Institute who provided training and equipment and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. 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. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the resources tab.
Council Bluffs Man Sentenced for Threats to the Islamic CenterRead the Press Release
United States Attorney Steven Russell announced that Nolan Lee Al-Jaddou, 38, of Council Bluffs, Iowa, was sentenced today in Omaha, Nebraska, for transmitting a threat to shoot members of the Islamic Center of Omaha. Senior United States District Judge Joseph F. Bataillon sentenced Al-Jaddou to time served (approximately 30 months of imprisonment) to be followed by placement at a mental health treatment center. Al-Jaddou has been in federal custody since his arrest. Al-Jaddou will be on federal supervision for three years from the date of today’s sentencing and while residing at the treatment facility. At sentencing, Al-Jaddou expressed his apologies to the Islamic Center of Omaha and stated that he was “not himself” when he made the threat.
Investigation revealed that Al-Jaddou made a threat to the Islamic Center from a motel in Council Bluffs on March 25, 2020. He threatened to shoot the members with an AK-47. Al-Jaddou was identified in part due to an ankle monitor that he was ordered to wear on the date of the threat following his state sentence in Iowa for harassing the mayor of Council Bluffs.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
Coronavirus Fraud Task Force Getting ResultsRead the Press Release
OKLAHOMA CITY — Launched in April 2021, the Western District of Oklahoma Coronavirus Fraud Task Force is getting results. The Task Force combines the efforts of federal, state, and local law enforcement agencies to investigate and prosecute fraud related to the COVID-19 pandemic. It focuses on programs created or funded by the Coronavirus Aid, Relief, and Economic Security ACT (CARES Act) and the American Rescue Plan Act (ARPA), and it is designed to find the best way to detect, deter, and punish those who take advantage of federal and state programs during the pandemic. These programs include, but are not limited to, fraud involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), the Main Street Lending Program, unemployment insurance fraud, and fraud involving pandemic-related supplies.
To date, Task Force efforts have produced the following cases:
Sentencings:
- STEVEN MESROP, 30, of Richmond Hill, Ontario, Canada; MIRNA MAHROUS HABIB, 25, of Mississauga, Ontario, Canada; KARIN TREISTER, 25 of Toronto, Canada; and DIJON CORNELIUS SHEPARD, 28, of Los Angeles, California, were collectively ordered to serve 104 months in federal prison and pay nearly $3.5 million in restitution. Public records reflect the defendants pleaded guilty to conspiracy to commit wire fraud and related crimes for participating in a scheme to fraudulently acquire personal protective equipment and event tickets, which came to the attention of law enforcement in Oklahoma when co-conspirators used stolen credit card information from 52 credit cards to purchase $678,842.03 worth of tickets to Oklahoma State University athletic events. The defendants also targeted U.S.-based businesses selling pandemic related supplies during the COVID-19 pandemic. For more information about this case, visit: https://www.justice.gov/usao-wdok/pr/canadian-man-pleads-guilty-conspiracy-fraudulently-acquire-personal-protective.
- ALFRED SMITH, 37, of Miami, Florida, was sentenced on July 27, 2022, to serve 30 months in federal prison and ordered to pay $246,606.50 in restitution. Public records reflect Smith committed access device fraud using debit cards issued by the Oklahoma Employment Security Commission (OESC), the state workforce agency tasked with administering the unemployment insurance program in Oklahoma. Smith used stolen identities to obtain unemployment insurance benefits from OESC. After OESC issued debit cards containing the unemployment benefits, Smith used the debit cards to withdraw cash from local ATMs. During the COVID-19 pandemic, Congress provided additional funding under the CARES Act and ARPA for unemployment benefits, which made the unemployment insurance program a target for fraudulent schemes.
- ANDRICE SAINVIL, 20, of Margate, Florida, was sentenced on December 29, 2022, to serve 24 months in federal prison and ordered to pay $26,699.80 in restitution. Public records reflect that Sainvil conspired with others to steal the identities of dozens of Oklahomans, use their victims’ names and social security numbers to apply for fraudulent unemployment insurance benefits with OESC, and caused OESC to mail prepaid debit cards containing those fraudulently obtained benefits to addresses accessible to coconspirators. Sainvil then retrieved those prepaid debit cards and used them to withdraw thousands of dollars in cash from ATMs throughout Oklahoma City and elsewhere. For more information about this case, visit: https://www.justice.gov/usao-wdok/pr/florida-man-sentenced-two-years-federal-prison-pandemic-related-fraud.
Guilty Pleas:
- JILL NICOLE FORD, 31, formerly of Edmond, Oklahoma, pleaded guilty on January 20, 2022, to bank fraud and money laundering. According to public records, Ford fraudulently obtained a loan through the Main Street Lending Program for her business Oliver & Olivia Apparel, Inc. In the loan application, Ford falsely represented that she would use the loan proceeds for working capital and payroll only, and that she would not make distributions to herself as the company’s owner. Despite these representations, Ford used a portion of the proceeds to pay for construction on her personal home and to purchase a luxury SUV for her personal use. At sentencing, Ford faces up to 30 years of imprisonment and a fine of up to $1,000,000 for bank fraud. She also faces up to 10 years of imprisonment and a fine of up to $250,000 for money laundering. For more information about this case, visit: https://www.justice.gov/usao-wdok/pr/edmond-woman-pleads-guilty-cares-act-main-street-lending-program-fraud.
- BRIAN FOSTER, 53, of Norman, Oklahoma, pleaded guilty on November 15, 2022, to making a false statement to a financial institution. According to public records, Foster provided false income and tax information to a bank when applying for a $20,833 PPP loan in another person’s name. At sentencing, Foster faces up to 30 years of imprisonment and a fine of up to $1,000,000.
- RANDISHA PARKER, 41, of Oklahoma City, Oklahoma, pleaded guilty on January 5, 2023, to making a false statement to the U.S. Small Business Administration (SBA). According to public records, Parker knowingly made false statements to the SBA when she applied for a $56,000 EIDL loan. At sentencing, Parker faces up to two years of imprisonment and a fine of up to $5,000.
- OCTAVIO SANCHEZ, 49, of Norman, Oklahoma, pleaded guilty on January 18, 2023, to conspiracy and aggravated identity theft. According to public records, Sanchez used the identity of his deceased sister to apply for $3,200 in economic impact payments from the Internal Revenue Service. The CARES Act authorized economic impact payments, also known as stimulus checks, to eligible individuals to address the economic fallout from the COVID-19 pandemic. Additional rounds of economic impact payments were authorized by the COVID-related Tax Relief Act of 2020 and ARPA. At sentencing, Sanchez faces up to five years of imprisonment and up to a $250,000 fine for conspiracy and a mandatory term of imprisonment of 24 months for aggravated identify theft.
Sentencings take place approximately 90 days after a plea of guilty.
Charged:
- NAQUIB U. HATAMI, 50, of Fairfax, Virginia, was charged by information on December 7, 2022, for making a false statement to a financial institution. According to public records, Hatami gave false information to a bank regarding his company’s payroll and number of employees when he applied for a $160,480 PPP loan. If convicted of making a false statement to a financial institution, Hatami faces up to 30 years of imprisonment and a fine of up to $1,000,000.
The public is reminded that charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
These investigations were led by the FBI Oklahoma City Field Office; Special Inspector General for Pandemic Recovery (SIGPR); the Internal Revenue Service–Criminal Investigations; the Treasury Inspector General for Tax Administration; the Federal Reserve Board Office of Inspector General; the U.S. Small Business Administration Office of Inspector General; the United States Secret Service; Homeland Security New York’s El Dorado Task Force, the New York City Police Department, the Irvine (California) Police Department, with assistance from Customs and Border Protection; the Department of Labor Office of Inspector General, the Oklahoma City Police Department; and the Village Police Department.
The prosecutions arising out of these investigations were handled by Assistant U.S. Attorneys Jessica Perry, Bow Bottomly, Will Farrior, Julia Barry, Danielle London, and D.H. Dilbeck, with assistance from Paralegals Karen Hadrava and Melody Harris.
Reference is made to public filings for more information on these cases.
For further information on Department of Justice response to the pandemic, please visit https://www.justice.gov/coronavirus or https://www.justice.gov/usao-wdok/covid-19-fraud-0. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Coon Rapids Felon Charged with Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Coon Rapids man has been charged in a criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on December 29, 2022, officers with the Coon Rapids Police Department conducted a traffic stop on a vehicle driven by Lewis Edward Byrd III, 45. Byrd, a felon with a prior sexual assault conviction, was arrested for violations related to his status as a predatory offender. After the arrest, officers searched Byrd’s vehicle and found a Smith and Wesson 9mm handgun in a pillowcase behind the driver’s seat. Further investigation revealed that Byrd purchased the firearm from a private seller earlier in December 2022. Law enforcement contacted the seller who confirmed the sale of the firearm and said that Byrd stated he was not a felon.
Because Byrd has prior felony convictions, including first degree criminal sexual conduct, stalking, and false imprisonment, he is prohibited under federal law from possessing firearms or ammunition at any time.
The complaint charges Byrd with one count of possession of a firearm as a felon. On January 26, 2023, Magistrate Judge John F. Docherty ordered Byrd to remain in detention pending further court proceedings.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Coon Rapids Police Department.
Assistant U.S. Attorney Lindsey Middlecamp is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Conspirators Sentenced in Multimillion-Dollar Reptile Smuggling SchemeRead the Press Release
Today, Ka Yeung Marvin Chan, a Canadian national, was sentenced to a term of 14 months in prison followed by two years of supervised release for his role in a conspiracy to smuggle reptiles from the United States to Asia.
Chan is the last of three defendants sentenced for their roles in this reptile trafficking scheme. According to court documents and information in the public record, Chan and another conspirator, Daisuke Miyauchi, owned and operated businesses overseas and engaged in the sale of reptiles. Both men periodically traveled to the United States to purchase, among other things, ball pythons, blood pythons, common tegus, Argentine tegus and iguanas, which are protected under Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Chan and Miyachi then worked with co-conspirator Chun Ku to smuggle the reptiles out of the country using Ku’s Master File CITES permit and fraudulent export paperwork. CITES regulates trade in endangered or threatened species through permit requirements.
Over a seven-year period, the conspirators collectively engaged in at least 107 separate criminal acts, smuggling to Asia a total of 8,738 CITES II protected animals with a retail market value in excess of $5.13 million. In addition to the CITES II species, the fraudulent shipments contained 61,622 non-CITES animals, many of which were also smuggled.
Chan and his co-conspirators each pleaded guilty to conspiracy to falsely label wildlife being exported from the United States and to smuggle goods and merchandise out of the United States as well as submitting false records and false identification of wildlife intended to be exported.
On Nov. 18, 2022, Ku was sentenced to concurrent terms of one year and one day imprisonment, two years’ supervised release and a $20,000 fine. On Feb. 22, 2022, Miyauchi was sentenced to concurrent terms of 13 months in prison. Each received favorable consideration at sentencing due to their cooperation with authorities during the investigation.
“The defendants abused a system designed to streamline the exportation of captive-bred reptiles for law-abiding breeders. They allowed other business owners to sell and ship reptiles to buyers in Asia without going through the federal agency vetting process,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These prosecutions reflect law enforcement’s commitment to combat illegal wildlife trafficking.”
“The U.S. Fish and Wildlife Service, Office of Law Enforcement is committed to conduct criminal investigations combating the illegal international reptile trade,” said Assistant Director Ed Grace of the Fish and Wildlife Service Office of Law Enforcement “The Office of Law Enforcement takes violations of the Lacey Act seriously. The three-year long investigation involving the three defendants uncovered at least 107 criminal acts, a combined monetary value of $5,134,000, and involved a conspiracy to violate the Lacey Act, smuggle CITES Appendix II reptiles out of the United States, and create and submit fraudulent documents to the government prior to export. We will continue to work combating wildlife smuggling while striving to maintain the integrity of the legal export process.”
The U.S. Fish and Wildlife Service investigated the case with special thanks to U.S. Fish and Wildlife’s Division of Management Authority.
Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Senior Trial Attorney Banumathi Rangarajan of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
Co-Owner of Binary Options Company Sentenced to Prison for Tax EvasionRead the Press Release
TOLEDO – Jared Davis, the co-owner of a binary options company headquartered in Sandusky, Ohio, was sentenced to 30 months in prison on Friday, Jan 27. 2023, by U.S. District Judge Jack Zouhary after Davis pleaded guilty to multiple counts of tax evasion.
According to court documents, between 2012 and 2016, Davis and his business partner ran a binary options investment scheme that regularly committed fraud. One of the multiple entities involved was Erie Marketing LLC, which was headquartered in Sandusky, Ohio. The options businesses used various trade names, including OptionMint, OptionKing, and OptionQueen.
A binary option is a concept in which an investor seeks a future payout based on the future price of a given security or commodity. Binary options are sometimes traded on regulated exchanges that match two investors, one who believes the price of the asset will go up and the other who believes it will go down.
Court documents state that Davis and his partner used call centers, including those run by Erie Marketing LLC, to solicit individual investors in the scheme to deposit money, often through credit cards, into foreign bank accounts that they controlled. Court documents state that Davis used this money to pay expenses, which included employee salaries, facility fees, fees to the companies that supplied the trading platforms on which the options businesses operated, and internet marketing services.
As part of the scheme, Davis created several shell companies and used a network of foreign nationals and foreign bank accounts to receive credit card payments. Court documents state that Davis and his partner ultimately controlled this process and would eventually repatriate the money to a local Ohio bank, using it to pay employees and other expenses.
Davis pleaded guilty in April 2022 to tax evasion after he failed to file personal tax returns for tax years 2014, 2015, and 2016. According to court documents, Davis had a substantial additional tax due and owing for each of 2014, 2015, and 2016 as a result of the options scheme and made numerous attempts to avoid the payment of taxes.
Judge Zouhary also sentenced Erie Marketing, LLC, to serve three years’ probation and to pay a fine of $4.4 million and restitution to all identified victims (a total the United States expects to be approximately $650,000). Further, Judge Zouhary sentenced Davis to 30 months in prison, a fine of $300,000, restitution to the IRS, three years of supervised release, and to be jointly and severally liable for the debts of Erie Marketing, LLC.
The exact restitution will be determined at a later date, but the United States expects that all known victims will be fully repaid from funds already collected.
This case was investigated by IRS Criminal Investigation (CI) and the Cleveland FBI. This case was prosecuted by Assistant U.S. Attorneys Segev Phillips, Brian McDonough, and Gene Crawford, with guidance from Assistant U.S. Attorney Suzana Koch of the Financial Litigation Program and Victim Witness Specialists Allison Kretz and Gail Hollis.
Chicago Illinois Man Sentenced to 30 Months in Prison for Conspiracy to Commit Wire FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Britan Douglas Groom, 66, of Chicago, Illinois, has been sentenced to 30 months in prison for his role in a conspiracy to commit wire fraud causing losses to the Grand Traverse Band of Ottawa and Chippewa Indians of over $1.1 million. U.S. District Judge Robert J. Jonker also ordered Groom to spend 3 years on supervised release, to pay restitution of $1,124,292.68, and to forfeit $302,052.00, representing proceeds he personally received from his fraud.
“This fraudulent scheme hurt every member of the Grand Traverse Band of Ottawa and Chippewa Indians,” said U.S. Attorney Mark Totten. “Instead of using the funds for the benefit of all tribal members, Groom and his co-defendant lied to the tribe and used the money for their personal benefit. My office is committed to holding fraudsters fully accountable for their crimes.”
Groom pleaded guilty to conspiracy to commit wire fraud. From December 2015 to December 2016, Groom’s codefendant and friend, Chester Randall Dunican, served as the CEO of GTB LLC, a tribal entity focused on the development of economic opportunities for the benefit of all members of the Tribe. Dunican represented to the Tribe that he obtained exclusive distributorship rights with a proprietary water filtration company, R.O. Distributors, and that the Tribe would benefit by investing in R.O. Distributors and leasing water coolers that utilized this proprietary technology to various businesses in Michigan and Florida. In reality, R.O. Distributors was a shell company created and controlled by Dunican and Groom.
The Tribe invested nearly a million dollars in R.O. Distributors. Dunican directed other individuals to send most of the Tribe’s investment to another shell company, Evergreen Distributors LLC, before that entity transferred over $700,000.00 of the proceeds to the personal bank accounts of Groom and Dunican. Dunican then told the Tribe that he expected the business to grow and needed additional funding to continue acquiring inventory. When the Tribe resisted, Dunican told the Tribe that a company named High Sierra Distributors, LLC, acquired R.O. Distributors and that High Sierra was a multi-billion-dollar business that could expand the water filtration business nationwide. Dunican asked Groom to recruit someone to pretend to be a corporate representative of High Sierra at a meeting with the Tribe to pitch the additional $2 million in funding. Groom recruited a friend from Illinois who did attend the meeting pretending to be a corporate official of High Sierra. Shortly after the meeting, and before any additional funds were distributed, the Tribe discovered that this individual was actually a schoolteacher from Illinois, uncovered the fraud scheme, and fired Dunican.
“This defendant knowingly defrauded and stole money from people who trusted him to act in their best interest,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “His behavior – and the behavior of his co-defendant – is a betrayal of the entire Grand Traverse Band of Ottawa and Chippewa Indians. The FBI will continue to investigate these types of fraud and hold criminals who commit them accountable.”
A sentencing hearing for co-defendant Chester Randall Dunican is scheduled at the federal courthouse in Grand Rapids, Michigan on February 14, 2023, at 4 p.m., before United States District Judge Robert J. Jonker.
The case was investigated by the Federal Bureau of Investigation, Detroit Division, Lansing, and Traverse City offices. The FBI was assisted by the Grand Traverse Band of Ottawa and Chippewa Indians Tribal Police Department and the IRS Criminal Investigation. Assistant United States Attorney Ronald M. Stella prosecuted the case.
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Canton Man Pleads Guilty to Online Fraud ConspiracyRead the Press Release
BOSTON – A Canton man pleaded guilty on Jan. 27, 2023 in federal court in Boston to wire fraud and bank fraud conspiracy involving romance scams targeting individuals in the United States.
Mark Arome Okuo, 43, pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 29, 2023. Okuo was arrested and charged by criminal complaint in March 2021 and subsequently indicted by a federal grand jury in October 2021. He has been detained since his arrest.
Okuo participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to accounts he controlled. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses. To further the conspiracy, Okuo used fake passports in the names of aliases to open bank accounts in and around Boston to receive the proceeds of the romance scams. Okuo then executed large cash withdrawals from those accounts, generally structured in amounts less than $10,000, in an effort to evade detection. As part of the scheme, Okuo used at least four different aliases to open more than a dozen fraudulent bank accounts and receive approximately $1 million in fraud proceeds.
The charge of conspiracy to commit wire fraud and bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England, made the announcement today. Special assistance was provided by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Beloit Man Sentenced to 42 Months for Possessing a Firearm in a School ZoneRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that David Barber, 38, Beloit, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 42 months in prison for possessing a firearm in a school zone. Barber pleaded guilty to this charge on October 12, 2022.
On December 20, 2020, at approximately 2:18 a.m., a Beloit police officer pulled over a silver SUV that Barber was driving for a traffic offense. Barber handed the officer an identification card. The officer noticed a large revolver and open alcohol in the center console and ordered Barber to step out of the vehicle. Barber then drove off fleeing the scene. Officers went to the address listed on Barber’s identification card and located him in his brother’s apartment. In the bathroom cabinet, an officer found a loaded silver Weihrauch .45 Colt revolver. A laboratory analyst found Barber’s DNA on the trigger of the gun. The traffic stop occurred less than 1,000 feet from a school.
At the time of the stop Barber was on federal supervision after being released from prison for a heroin trafficking conviction.
At sentencing, Judge Conley noted that Barber had been serving time and on supervision for criminal convictions since 2001. Judge Conley said that Barber had a history of violating terms of supervision and had been revoked multiple times, and the sentence in this case was designed to hold him accountable and protect the community. Judge Conley sentenced Barber to six months of incarceration on the federal revocation to run consecutive to the 42 months in prison for the gun offense and ordered the gun and the ammunition forfeited. Barber was also ordered to complete an additional two years of supervised release.
The charge against Barber was the result of an investigation conducted by Beloit Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
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.
Bellevue Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Carlos O. Lopez, 29, of Bellevue, Nebraska, was sentenced today in federal court in Omaha for distributing Alprazolam pills and possessing a firearm during a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Lopez to 3 months’ imprisonment on the distribution count and 60 months for the firearms offense, consecutive, for a total sentence of 63 months. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release for each charge, to run concurrently.
On January 15, 2020, during a controlled buy in Bellevue, a confidential informant, equipped with audio and visual recording equipment purchased 50 Alprazolam pills and a Ruger .380 handgun with live ammunition from Lopez. This event was monitored by law enforcement. Alprazolam is a Schedule IV controlled substance, which requires a prescription to possess.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the Omaha Police Department.
Bakersfield Man Sentenced to Almost 4 Years in Prison for Unlawfully Possessing FirearmRead the Press Release
FRESNO, Calif. — Katterin McCray, 25, of Bakersfield, was sentenced today to three years and 10 months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 15, 2022, police officers in Bakersfield attempted to stop a vehicle in which McCray was the passenger for traffic infractions. The vehicle sped off and McCray discarded from the vehicle a Glock, Model 22, 40 caliber handgun with a high-capacity magazine and ammunition near the intersection of Cottonwood Road and Casa Loma Drive in Bakersfield. Because of his criminal record, including a 2017 conviction for being a felon in possession of a firearm and a 2018 conviction for receiving known stolen property, McCray may not lawfully possess firearms or ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Arin C. Heinz prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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.
Arizona Methamphetamine Distributor Sentenced to 14 Years in PrisonRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District Court judge sentenced Kristin P. Prince, 41, of Mesa, Arizona, to 168 months in prison for distribution of methamphetamine.
He was fined $300 and $200 in special assessments. Following his release from federal prison, Prince must complete five years of supervised release.
According to court documents, the offenses occurred in January and February 2021, just months after Prince was released from state prison for convictions of identity theft and felony Aggravated DUI. Prince was still being supervised by the State of Arizona when he was caught distributing large quantities of crystal methamphetamine to the Metro East on multiple occasions through the U.S. Postal Service.
“This sentence demonstrates the severity of consequences for out-of-state individuals who infect our communities with methamphetamines,” said U.S. Attorney Rachelle Aud Crowe. “I applaud the efforts by the Drug Enforcement Administration and the U.S. Postal Inspection Service to disrupt the illegal chain of drug distribution into southern Illinois.”
“Methamphetamine remains the scourge of the Midwest, hurting our communities again and again,” said Assistant Special Agent in Charge Sean Vickers, head of Drug Enforcement Administration operations in southern Illinois. “Prince has proven he’ll take any action to make money off his illegal drug organization. It’s appropriate that federal authorities are matching that behavior with action that will keep this drug dealer behind bars for years.”
A federal grand jury indicted Prince on Dec. 14, 2021, for two counts of distribution of a controlled substance. Prince pled guilty on Aug. 29, 2022.
The DEA and USPIS conducted the investigation, and Assistant U.S. Attorney John Trippi prosecuted the case.
Afton Man Pleads Guilty to Sexually Abusing a Child and Filming the AbuseRead the Press Release
An Afton man pleaded guilty Thursday in federal court for filming himself sexually abusing a young child that he had handcuffed and gagged, announced US Attorney Clint Johnson.
Glenn David Nickols, 40, pleaded guilty to aggravated sexual abuse of a minor under 12 years of age in Indian Country and sexual exploitation of a child.
In March of 2021, the National Center for Missing and Exploited Children (NCMEC) and the Oklahoma State Bureau of Investigation (OSBI) received a CyberTipline report regarding an email account used by Nickols to transmit more than 100 videos and images of child sexual abuse. However, agents noticed that several files were not of previously identified victims of child sexual abuse material. Those images and videos showed multiple instances of a man wearing a hat with the name “Buckster” sexually abusing a child with tape over her mouth and whose arms and legs had been restrained with handcuffs and shackles.
After identifying Nickols and his address, OSBI conducted a search warrant on his home where they seized evidence of the abuse. Agents were also able to identify the young Native American victim and ensure she was safe from any future harm.
Nickols was arrested and interviewed by OSBI agents. During the interview, he identified himself as the adult male seen in the videos, that his nickname was “Buck,” and that he was the owner of the account. He told agents the abuse took place at his home in Afton, within the bounds of the Cherokee Nation.
The OSBI conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
Addict in Possession of a Firearm SentencedRead the Press Release
United States Attorney Steven Russell announced that Derek J. Barbour, 35, of Malvern, Iowa, was sentenced today in federal court in Omaha, Nebraska, as an addict in possession of a firearm. United States District Court Judge Brian C. Buescher sentenced Barbour to 33 months’ imprisonment. There is no parole in the federal system. After her release from federal prison, she will begin a 3-year term of supervised release.
On March 19, 2022, Omaha police officers were dispatched to the Double Tree Hotel for a call of suspicious activity - that there were two parties in the back parking lot in a vehicle parked by the dumpsters. Officers contacted Barbour who was standing beside her silver GMC Envoy, in the back parking lot parked between a dumpster and a storage container.
When contact was made with the suspect vehicle, co-defendant Zachary Younts was seen digging around in the back seat while Barbour stood outside the vehicle. Officers observed an open bottle of alcohol underneath the driver seat and an unzipped black backpack on the front passenger seat where officers could see what appeared to be a gun holster.
Officers learned Younts had an active warrant out of Sarpy County and took him into custody. A search of Younts revealed a small amount of marijuana and a live round of .22 caliber ammunition. Younts was found to be a convicted felon and therefore prohibited from possessing firearms or ammunition.
Officers searched the vehicle and located twelve (12) firearms and a large amount of ammunition. The firearms and ammunition were later determined to have been stolen in a residential burglary in Iowa.
A search of Barbour’s purse revealed three (3) clear plastic baggies of methamphetamine weighing more than five (5) grams, unknown pills, and a hypodermic needle. Barbour admitted to being a regular user of methamphetamine.
Zachary Younts’s case is pending jury trial in the United States District Court for the District of Nebraska.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the Omaha Police Department.
Accountant Ordered to Pay Restitution and Serve Probation for Fraud Scheme Targeting D.C. Property Management CompanyRead the Press Release
Defendant Falsified Documents
WASHINGTON –Ted Blair Williams, Jr., 30, of Longmeadow, Massachusetts, was ordered to pay more than $46,000 in restitution and was sentenced to five years of probation for falsifying the accounting records of a Washington, D.C. property management company, in order to conceal his fraudulent scheme to steal funds from the company. The sentence was announced today by U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Williams pleaded guilty in November 2022, in the Superior Court of the District of Columbia, to second degree felony fraud. He was sentenced by the Honorable Sean C. Staples who also ordered 12 months of supervised release.
According to the government’s evidence, Williams made approximately 20 fraudulent transfers from the company to his personal bank account between April and November 2019, totaling more than $65,000. Williams, who was employed by the company as an accountant and responsible for reviewing its accounting information, hid the fraudulent transactions in the company’s ledger by falsely coding the transactions in the records and concealing any accounting discrepancies from the company. The company had been able to recover approximately $19,000 after discovering the fraud but suffered a net financial loss of more than $46,000 because of the scheme.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department’s Financial and Cyber Crimes Unit. They also commended the work of Assistant U.S. Attorneys Brian P. Kelly and Benjamin D. Bleiberg, who investigated and prosecuted the case.
29 January 2023
Three Dewey County Men Indicted on Firearm OffensesRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted three Dewey County men for Theft of Firearms From a Federal Firearm Licensee, Possession of Stolen Firearms, Burglary and Larceny
Weston Clausen, age 24, Ford Traversie, age 22, and Jalen Ducheneaux, age 23, were indicted in January of 2023. Clausen appeared before Magistrate Judge Mark Moreno on January 18, 2023, and pleaded not guilty to the Indictment. Traversie and Ducheneaux both appeared before Magistrate Judge Moreno on January 25, 2023, and both men 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 $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 13-15, 2022, in Dewey County, in the District of South Dakota, the three men burglarized Reloaders Corner, a Federal Firearms Licensee, and stole multiple firearms, ammunition, and other things of value from the business.
The charges are merely an accusation and Clausen, Traversie, and Ducheneaux are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribal Law Enforcement, Dewey County Sheriff’s Office, Bureau of Indian Affairs, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the FBI. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Clausen and Traversie were released on bond pending trial. Ducheneaux was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Sioux Falls 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 Sioux Falls, South Dakota, man for Possession of a Firearm by a Prohibited Person.
Nathaniel Antonio Hernandez, age 22, was indicted in January of 2023. He appeared before U.S. Magistrate Judge Daneta Wollmann on January 25, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 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 Hernandez knowingly possessing a semi-automatic rifle in Rapid City in November of 2022. Hernandez has multiple prior felony convictions and as a result, cannot legally possess firearms.
The charge is merely an accusation and Hernandez is presumed innocent until and unless 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.
Hernandez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 4, 2023.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on January 25, 2023.
Richard Peneaux, 29, was sentenced to two years and four 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.
Peneaux was indicted for Failure to Register as a Sex Offender by a federal grand jury in May of 2022. He pleaded guilty on October 13, 2022.
Peneaux was convicted of Sexual Abuse of a Minor on March 4, 2014. As a result of this conviction, he is required to register as a sex offender and update his registration within three business days of relocation or changing employment or student status. Peneaux last registered in February of 2022, providing an address for the Cornerstone Mission in Rapid City, South Dakota, as his address. On February 14, 2022, contact was made with Cornerstone Mission and Peneaux had not been staying there. Peneaux’s whereabouts were unknown until he was arrested in Sioux Falls on unrelated charges on April 8, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service and Rapid City Police Department. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Peneaux was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Indicted for Assaulting a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Mission, South Dakota, man for Assaulting, Resisting, and Impeding a Federal Officer.
Dylan Blue Bird, age 29, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 19, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 30, 2022, in Todd County, Blue Bird did assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services and that such conduct involved the use of a dangerous weapon, specifically, a vehicle.
The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 14, 2023.
28 January 2023
Readout of U.S. Assistant Attorney General Kenneth A. Polite, Jr.’s Meeting with Colombian Attorney General Francisco Barbosa DelgadoRead the Press Release
On Jan. 25, Criminal Division Assistant Attorney General Kenneth A. Polite, Jr. met in Washington, D.C. with Colombian Attorney General Francisco Barbosa Delgado.
In the meeting, Assistant Attorney General Polite expressed his deep appreciation for the extraordinary law enforcement partnership between the United States and Colombia and thanked Attorney General Barbosa for his leadership in combating transnational organized crime.
“The Department of Justice has enjoyed an exceptional relationship with the Colombian Attorney General’s Office and the thousands of men and women that Attorney General Barbosa leads,” said Assistant Attorney General Polite. “Colombia continues to be an indispensable partner to the United States. Attorney General Barbosa’s steadfast support for the rule of law while honoring bilateral commitments has been the cornerstone of our law enforcement efforts with Colombia.”
Both leaders committed to continue strengthening the close law enforcement relationship between the United States and Colombia, which has led to, among others, the successful investigation and prosecution of drug traffickers, transnational organized crime groups, human smugglers, money launderers, and malicious cyber actors.
U.S. Attorney General Merrick B. Garland dropped by the meeting to personally thank Attorney General Barbosa for the outstanding cooperation between the United States and Colombia.
27 January 2023
وزارت دادگستری از اتهامات و دستگیری جدید در ارتباط با طرح ترور به کارگردانی ایران خبر دادRead the Press Release
یک دادگاه فدرال در نیویورک امروز اتهامات قتل اجاره ای و پولشویی را علیه سه عضو یک سازمان جنایی اروپای شرقی به دلیل برنامه ریزی ترور یک شهروند آمریکایی که توسط دولت ایران به دلیل صحبت علیه نقض حقوق بشر رژیم هدف قرار گرفته بود، اعلام کرد.
طبق اسناد دادگاه، رفعت امیروف، با نام مستعار فرخالدین میرزایف، ملقب به ریم و رم، ۴۳ ساله، اهل ایران؛ پولاد عمروف، با نام مستعار آراز علی اف، با نام مستعار پولاد قاقا، با نام مستعار هاچی قاقا، ۳۸ ساله، از جمهوری چک و اسلوونی و خالد مهدی اف، ۲۴ ساله، از یونکرز، نیویورک، در یک کیفرخواست جایگزین که امروز در ناحیه جنوبی نیویورک منتشر شد، به پولشویی و قتل اجاره ای متهم شدند. امیروف که مقیم ایران است، در ۲۶ ژانویه وارد ناحیه جنوبی نیویورک شد و امروز با اتهامات وارده نزد قاضی سارا ال. کیو محاکمه خواهد شد. مهدی اف در تاریخ ۲۹ جولای ٬ ٬۲۰۲۲ به اتهامات موجود در یک شکایت جنایی اساسی دستگیر شد و در تاریخ ۳۱ ژانویه٬ ٬۲۰۲۳ در ساعت ۴ بعد از ظهر نزد کالین مک ماهون محترم به اتهامات موجود در کیفرخواست جایگزین محاکمه خواهد شد. عمروف در ۴ ژانویه٬ ٬۲۰۲۳ در جمهوری چک دستگیر شد و ایالات متحده درخواست استرداد او را به اتهامات موجود در کیفرخواست جایگزین خواهد کرد.
” قربانی در این پرونده به دلیل استفاده از حقوقی که هر شهروند آمریکایی از آن برخوردار است، هدف قرار گرفت. قربانی نقض حقوق بشر؛ رفتار تبعیض آمیز با زنان؛ سرکوب مشارکت و بیان دموکراتیک؛ و استفاده از زندان، شکنجه و اعدام خودسرانه، که توسط دولت ایران انجام میشوند را بااطلاع عمومی می رساند “ ٬ مارک برنان گارلند، دادستان کل ایالات متحده گفت. ” وزارت دادگستری تلاشهای یک رژیم استبدادی را برای تضعیف آن حمایتها و حاکمیت قانون که دموکراسی ما بر آن استوار است را تحمل نخواهد کرد. ما تلاش های یک قدرت خارجی برای تهدید، ساکت کردن یا آسیب رساندن به آمریکایی ها را تحمل نخواهیم کرد. ما برای شناسایی کردن، یافتن و به دست عدالت سپاریدن کسانی که امنیت مردم آمریکا را به خطر می اندازند، کوتاهی نخواهیم کرد. “
لیزا او. موناکو، معاون دادستان کل امریکا، گفت: "کیفرخواست امروز یک تهدید خطرناک برای امنیت ملی را آشکار میکند - یک تهدید دوگانه که توسط یک گروه جنایتکار بینالمللی وحشی که از آنچه تصور میکرد پناهگاه امن یک کشور متقلب: ایران، عمل میکنند، ایجاد شده است."
با ادامه ادغام تهدیدات امنیتی ملی و کیفری، وزارت دادگستری از همه ابزارهای خود برای محافظت جدی از آزادی و پاسخگویی به همه کسانی که از خشونت برای تضعیف آن استفاده میکنند، استفاده خواهد کرد.
کریستوفر رای، مدیر افبیآی، گفت: ”کیفرخواستی که امروز اعلام شد نشاندهنده تعهد افبیآی به دنبال کردن حقایق به هر کجا که منجر شود، برای رسیدن به سران توطئههای جنایتکارانه در هر کجا که هستند، و استفاده از دسترسی دوربردمان برای آوردن مسئولین به اینجا برای رویارویی با عدالت در ایالات متحده است. رفتار متهم نشان می دهد که بازیگران ایرانی تا چه حد حاضرند منتقدان را ساکت کنند، حتی اقدام به ترور یک شهروند آمریکایی در خاک آمریکا کنند. ما مصمم هستیم که از حقوق همه آمریکایی ها در برابر نفوذ ظالمانه رژیم های متخاصم محافظت کنیم. “
متیو جی. اولسن، دادیار دادستان کل از بخش امنیت ملی وزارت دادگستری، گفت: ”اتهامات امروز بر تعهد وزارت برای محافظت از آمریکایی ها و ارزش های اساسی ما در برابر همه شکلهای سرکوب و فشار فراملی تأکید می کند. برای بازیگران خارجی، که با این تصور که از دسترس ما دور هستند، نقشه خشونت را در خاک ما میکشند، بدانید، که ما شما را در هر کجا که باشید، تعقیب خواهیم کرد تا زمانی که عدالت را اجرا کنیم. “
دامیان ویلیامز، دادستان ایالات متحده در ناحیه جنوبی نیویورک گفت: ”همانطور که گفته می شود، متهمان اعضای یک گروه جنایتکار سازمان یافته هستند که برای ترور، در همین شهر نیویورک، یک شهروند آمریکایی ایرانیتبار که منتقد استبداد رژیم و نادیده گرفتن آن به حقوق بشر است، استخدام شده اند. این دومین بار در دو سال گذشته است که این دفتر و شریکان ما در افبیآی توطئههایی را که از داخل ایران برای ربودن یا کشتن این قربانی بهخاطر ”جنایت“ استفاده از حق آزادی بیان، تفکر مستقل سیاسی و دفاع از حقوق ستمدیدگان و محرومان در داخل ایران سرچشمه میگیرد، مختل کردهاند. به لطف تلاشهای فوقالعاده دادستانهای حرفهای و ماموران افبیآی که تحقیقات را رهبری میکردند، این توطئه جدید برای ساکت کردن قربانی مختل شده و متهمان در دادگاه آمریکایی با عدالت روبرو خواهند شد. “
به توجه به ادعاهای مندرج در کیفرخواست جایگزین، سایر پرونده های دادگاه و اظهارات بیان شده در جریان دادرسی:
امیروف یکی از رهبران یک سازمان جنایی اروپای شرقی (سازمان) است که در ایران اقامت دارد. عمروف همچنین نقش رهبری در سازمان دارد و در اروپای شرقی اقامت دارد. مهدی اف، یکی از اعضای سازمان، ساکن یونکرز، نیویورک است. این سازمان با ایران ارتباط دارد و خشونت آمیز است و در قتل، آدم ربایی، حمله و اخاذی شرکت می کند و اعضا معمولاً خود را با خالکوبی و سایر نمایش های ستاره های هشت پر معرفی می کنند.
حداقل از جولای ۲۰۲۲، این سازمان موظف به انجام قتل یک شهروند آمریکایی ایرانیتبار (قربانی) بود که قبلاً هدف توطئههای دولت ایران برای هراساندن، آزار و اذیت و ربودن قربانی قرار گرفته بود. قربانی یک روزنامه نگار، نویسنده و فعال حقوق بشر، ساکن بروکلین، نیویورک است که نقض حقوق بشر و سرکوب بیان سیاسی توسط دولت ایران، از جمله در ارتباط با تداوم اعتراضات علیه رژیم در سراسر ایران را به اطلاع عموم رسانده است. در سالهای ۲۰۲۰ و ۲۰۲۱، مقامات اطلاعاتی و داراییهای ایران نقشهای برای ربودن قربانی از داخل ایالات متحده برای تحویل به ایران در تلاش برای خاموش کردن انتقاد قربانی از رژیم داشتند. این توطئه توسط افبیآی مختل و افشا شد و منجر به تشکیل اتهامات توطئه آدم ربایی و اتهامات دیگر فدرال در ناحیه جنوبی نیویورک علیه چندین شرکت کننده در توطئه در ایالات متحده علیه فراهانی و همکاران، ٬۲۱جنایی ٬۴۳۰ گردید.
حدود یک سال پس از ثبت اتهامات فرحانی، سازمان وظیفه ترور قربانی را در خاک ایالات متحده بر عهده گرفت. تقریباً در اواسط جولای ۲۰۲۲، امیروف اطلاعات هدفگیری را - که امیروف از افراد دیگر در ایران دریافت کرده بود - در مورد قربانی و محل سکونت قربانی برای عمروف ارسال کرد. عمروف نیز به نوبه خود اطلاعات هدف گیری را به مهدی اف منتقل کرد تا نظارت بر قربانی و شناسایی محل سکونت قربانی و محله اطراف آن را آغاز کند. مهدی اف عکسها و فیلمهایی از محل اقامت قربانی برای عمروف فرستاد تا با امیروف و طراحان توطئه در ایران به اشتراک بگذارد.
پس از نظارت اولیه مهدی اف از محل سکونت قربانی، امیروف و عمروف قرار گذاشتند که مبلغ ۳۰۰۰۰ دلار نقدی به مهدی اف در شهر نیویورک برای پیشبرد نقشه تحویل دهند. مهدی اف بخشی از این پرداخت نقدی را برای خرید یک تفنگ تهاجمی به سبک AK-47 به همراه دو خشاب مهمات و حداقل ۶۶ گلوله استفاده کرد. مهدی اف در ارتباطات الکترونیکی به خود می بالید که یک ”ماشین جنگی“ برای خود تهیه کرده است.
بین ۲۰ تا ۲۸ جولای٬ ۲۰۲۲، مهدی اف بارها به محله قربانی سفر کرد تا نظارت و شناسایی انجام دهد و گزارشهایی از فعالیتها، عکسها و فیلمهای قربانی را برای توضیح بیشتر به امیروف برای عمروف ارسال کرد. در ۲۴ جولای٬ ۲۰۲۲، مهدی اف پس از رسیدن به اقامتگاه قربانی، به عمروف گزارش داد که مهدی اف ”در صحنه جنایت“ است. عمروف مهدی اف را تشویق کرد: ”تو مردی! “مهدی اف به عمروف توضیح داد که ما از هر دو طرف جلوی آن را گرفتیم، زمانی که او از خانه خارج شود نمایشی خواهد بود. “عمروف این گزارش را برای امیروف ارسال کرد و او در پاسخ گفت:” انشاءالله “.
مهدی اف در آن روز نتوانست ترور را انجام دهد و چند روز بعد برای یافتن فرصتهایی برای انجام مأموریت قتل بازگشت. امیروف، عمروف و مهدی اف راهبردهای مختلفی را برای بیرون کشیدن قربانی طراحی کردند، از جمله تلاش برای درخواست گل از قربانی از باغ قربانی. مهدی اف در ۲۸ جولای ۲۰۲۲ ویدئویی را که از داخل ماشینی که مهدی اف در حال رانندگی بود گرفت و به عمروف فرستاد که تفنگ تهاجمی را به همراه پیام "ما آماده ایم" نشان می داد. قربانی پس از مشاهده فعالیت مشکوک در خارج از محل سکونت، منطقه را ترک کرد و مهدی اف مدت کوتاهی پس از آن از محل خارج شد. پس از اینکه مهدی اف از محل اقامت قربانی دور شد، پس از یک تخلف رانندگی متوقف شد و در بازرسی بعدی خودرو، افسران پلیس تفنگ تهاجمی، ۶۶ گلوله، حدود ۱۱۰۰ دلار پول نقد و یک ماسک اسکی مشکی را پیدا کردند.
امیروف، عمروف و مهدی اف به موارد زیر متهم می شوند: (۱) قتل اجارهای که حداکثر مجازات آن ۱۰ سال زندان است؛ (۲) توطئه برای انجام قتل اجارهای، که حداکثر مجازات آن ۱۰ سال زندان است؛ و (۳) توطئه برای ارتکاب پولشویی که حداکثر مجازات آن ۲۰ سال زندان است. مهدی اف همچنین به داشتن اسلحه گرم با شماره سریال محو شده متهم است که حداکثر پنج سال زندان است.
افبیآی و بخش ضدجاسوسی-سایبری دفتر ساحویی آن در نیویورک، گروه ویژه ضد تهدیدات ایران افبیآی در نیویورک، گروه ویژه ضد جاسوسی افبیآی نیویورک و گروه ویژه و مشترک عملیات تروریستی افبیآی نیویورک در حال بررسی این پرونده هستند، با کمکهای ارزندهای که توسط پلیس شهر نیویورک (NYPD) واداره اطلاعات NYPD، همچنین بخش امنیت ملی و دفتر امور بین الملل وزارت دادگستری ارائه شدهاند.
مایکل دی. لاکارد، جیکوب اچ. گوتویلیگ، و متیو جی. سی. هلمن، دستیاران دادستانی ایالات متحده برای ناحیه جنوبی نیویورک، با کمک های ارزشمندی که توسط دادستان محاکمه کریستوفر ام. ریگالی از بخش ضد جاسوسی و کنترل صادرات بخش امنیت ملی ارائه شده است، این پرونده را تحت تعقیب قرار می دهند
کیفرخواست صرفا یک ادعاست. همه متهمان تا زمانی که مجرمیت آنها فراتر از شک معقول در دادگاه ثابت نشود بی گناه فرض می شوند.
به روز شده در ۲۷ ژانویه٬ ۲۰۲۳
Woman Sentenced to Prison, Man Pleads Guilty After Raleigh County Drug RaidRead the Press Release
BECKLEY, W.Va. – Krystle Elaine Cresce, 34, of Glen Morgan, was sentenced today to seven years and six months in prison, to be followed by three years of supervised release, for aiding and abetting the possession with intent to distribute heroin and methamphetamine. Tyrone Douglas Amar, 46, of Beckley, encountered during the same incident, pleaded guilty to possession with intent to distribute fentanyl and a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on November 8, 2021, law enforcement officers executed a search warrant at a Beckley hotel room where Cresce was staying. During the search, officers found quantities of methamphetamine, fentanyl, heroin, $917, and three firearms: a SCCY, Model CPX-2 9mm semi-automatic pistol; a Springfield Armory, Model 911, 9mm semi-automatic pistol; and a Mossburg, Model 500, 12-gauge shotgun. Cresce admitted that she worked with and assisted Amar in the possession and distribution of the heroin and methamphetamine.
Officers encountered Amar in the hallway near Cresce’s hotel room during the search and took him into custody. Amar admitted that he possessed approximately 59 grams of fentanyl, 45 grams of methamphetamine and more than $2,850 found by officers on his person. Amar further admitted that he intended to distribute the controlled substances.
Amar is scheduled to be sentenced on May 12, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Raleigh County Sheriff’s Department, and Beckley City Police Department.
United States District Judge Frank W. Volk presided over the hearings. Assistant United States Attorneys Alex Hamner, Timothy D. Boggess and Andrew D. Isabell prosecuted the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:21-cr-265 and 5:23-cr-8.
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Wolf Point woman admits role in kidnapping, assault of girl on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Wolf Point woman accused in the kidnapping and assault of a minor girl on the Fort Peck Indian Reservation admitted on Jan. 26 to her role in the kidnapping, U.S. Attorney Jesse Laslovich said.
Patti Jo Annunciata Mail, 23, pleaded guilty to kidnapping of an individual under 18. Mail faces a mandatory minimum 20 years to a maximum of life imprisonment, a $250,000 fine and not less than five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 8. Mail was detained pending further proceedings.
In court documents, the government alleged that on Sept. 15, 2021, a group of individuals lured a 15-year-old girl from her house in Wolf Point and kidnapped her. That evening, after drinking alcohol, Mail accompanied the group of individuals to the victim’s home. The victim was lured out of her home and the situation escalated. The group assaulted the victim in her front yard. When eyewitnesses yelled that they were going to call the police, some in the group kidnapped the victim, forcing her into a vehicle and driving away so that they could continue to assault her. Mail helped to seize, confine and abduct the victim, taking her to a vacant field in Wolf Point, where some in the group beat the victim again.
Co-defendants Lavanchie Patricia Goodbird and Elmarie Amelia Weeks have pleaded guilty to charges in the case and are pending sentencing. Co-defendants Cheri Cruz Granbois, Dylan Troy Jackson and Kaylee Jade Jackson have pleaded not guilty and are pending trial.
Assistant U.S. Attorneys Wendy A. Johnson and Ryan G. Weldon are prosecuting the case, which was investigated by the FBI, Fort Peck Law Enforcement, Roosevelt County Sheriff’s Office and Wolf Point Police Department.
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Waterloo Man Pleads Guilty to Gun ChargeRead 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 David L. Brinson, 60, of Waterloo, NY, pleaded guilty to possession of a firearm by a convicted felon before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that on the morning of September 14, 2022, New York State Parole Officers went to Brinson’s residence on Seneca Boulevard in Waterloo to conduct a home visit. During the visit, a parole officer went inside of Brinson’s bedroom and found a .22 caliber rifle. Brinson was previously convicted in 2000, 2006 and 2016 of felony charges and is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for May 18, 2023, at 3:00 p.m. before Judge Larimer.
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Walgreen Co. Pays $7 Million to Settle Allegations Under the False Claims ActRead the Press Release
KNOXVILLE, Tenn. – Walgreen Co. (Walgreens) has paid $7 million to the United States and the State of Tennessee to resolve allegations that it violated the False Claims Act by submitting claims to TennCare—the Medicaid program for the State of Tennessee—and knowingly retaining overpayments for specialty Hepatitis C medications dispensed to TennCare enrollees who did not meet TennCare’s clinical criteria for coverage and payment.
Walgreens operates retail pharmacies throughout Tennessee. TennCare pays prescription drug benefits for a variety of covered prescription drugs, including drugs prescribed for enrollees with Hepatitis C. Prior to 2019, TennCare required prior authorization based on clinical eligibility criteria related to disease severity and substance use before approving coverage for certain Hepatitis C direct-acting antiviral (DAA) medications. The False Claims Act prohibits a pharmacy from knowingly submitting claims for payment for medications dispensed to patients who do not meet Medicaid coverage and payment requirements, and from knowingly retaining payments that were improperly made in violation of such requirements.
In a complaint filed with the United States District Court in May 2021, the United States and the State of Tennessee alleged that, from October 2014 through December 2016, a former pharmacist and store manager at Walgreens’ specialty pharmacy in Kingsport, Tennessee falsified prior authorization requests and supporting clinical records for 65 TennCare enrollees who failed to meet TennCare prior authorization requirements for the DAAs. The complaint further alleged that Walgreens improperly billed TennCare for DAAs dispensed to the TennCare enrollees based on the falsified requests, and that Walgreens knowingly retained the resulting overpayments after the misconduct of its former store manager came to light.
As part of the settlement, the parties filed a joint stipulation of dismissal with the United States District Court, dismissing the complaint.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
Assistant U.S. Attorneys Robert C. McConkey, III and Joseph C. Rodriguez represented the United States. Assistant Attorneys General David Rudolph and Tony Hullender represented the State of Tennessee.
Members of the public are reminded that the claims settled by this agreement are allegations only; there has been no determination of liability, and Walgreens does not admit liability for the allegations.
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United States Reaches Settlement with Commonwealth Clinical Group, Inc. Regarding Compliance with ADARead the Press Release
SCRANTON – The United States Attorney’s Office announced a civil settlement with a Harrisburg mental health service provider to ensure equal access under Title III of the Americans with Disabilities Act (“ADA”).
According to U.S. Attorney Gerard M. Karam, the U.S. Attorney’s Office received a complaint that patients with physical disabilities could not access the entrance of the Commonwealth Clinic Group, Inc. located in Harrisburg, Pennsylvania. The front entrance could only be accessed by stairs. Although Commonwealth Clinical Group had a ramp to access the rear entrance, that ramp was located in a restricted employee parking lot, the main entrance had no signs pointing to the rear entrance, and there was no designated accessible parking space.
Under the terms of the settlement agreement, Commonwealth Clinical Group would remove the barriers to access the building, including redesignating the employee lot as the accessible parking area, allow use of the ramp in the rear to all those entering the building, place signage at the front entrance that provides notice of the rear accessible entrance, and designate and mark a van accessible parking space.
“Businesses must ensure that their entrances to their buildings are accessible to everyone, including those with physical disabilities under the ADA,” said U.S. Attorney Karam. “Providers of mental health and other medical services have a particular responsibility to make sure their patients can enter their facilities without physical barriers. Commonwealth Clinical Group, Inc. has taken steps with this settlement agreement to ensure that access.”
Title III of the ADA prohibits public accommodations, such as mental health providers, from excluding people with disabilities from enjoying goods, services, privileges, facilities, and advantages provided. For more information regarding the Department of Justice’s efforts to combat discrimination, please visit ADA.gov. To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY). Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
The settlement agreement was reached to avoid the costs and burdens of litigation and does not represent an admission of liability by Commonwealth Clinical Group. Assistant U.S. Attorney Michael J. Butler represented the government during the investigation and settlement.
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U.S. Attorney’s Office Collects over $ 30 Million in Criminal and Civil Actions in Fiscal Year 2022Read the Press Release
SCRANTON - U.S. Attorney Gerard M. Karam announced today that the Middle District of Pennsylvania collected $26,268,064.48 in criminal and civil actions in Fiscal Year (FY) 2022. Of this amount, $3,916,063.20 was collected in criminal actions and $22,352,001.28 was collected in civil actions.
Additionally, the Middle District of Pennsylvania worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,612,653.43 in criminal and civil cases pursued jointly by these offices.
“The cases we prosecute and litigate don’t always end when a defendant is sentenced or a case is settled,” said United States Attorney Karam. “When someone is defrauded or injured or a defendant steals taxpayer money, it’s our job to get that back. I’m proud to say that over the past year we have returned millions of dollars to crime victims in this district and clawed back millions more in taxpayer dollars. Victims of fraud, of sex trafficking, and other crimes have received much needed compensation for what they lost and for the physical and mental trauma they suffered at the hands of criminal defendants. We take our duty to crime victims and to the taxpayers of this district seriously, and we will continue to work to collect what is owed.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. The Middle District of Pennsylvania worked to collect $3,916,063.20 from criminal debtors and $22,352,001.28 from civil debtors in FY 2022.
For example:
Om Sri Sai, Inc., a Bartonsville company that owned and operated a Howard Johnson Hotel and was convicted of sex and drug trafficking after a jury trial in 2020, was ordered to pay over $277,000 to victims trafficked through the hotel. Through the efforts of the United States Attorney’s Office, those victims were paid full restitution in 2022.
The USAO collected $500,000 from two defendants, Hope Carbone and Donna Venturini. The defendants imported cigars through D&H Marketing and evaded more than $1.8 million in unpaid excise taxes.
Lobar Inc., a construction company based in Dillsburg, Pennsylvania, paid $400,000 in restitution for Clean Air Act violations.
As part of a civil settlement, KFC Technologies repaid $1,226,436.14 it received through improper billing from the Departments of the Army and Navy.
The USAO collected almost $900,000 from Penn State University as part of a civil settlement related to improper billing to Medicare.
Additionally, the U.S. Attorney’s Office in the Middle District of Pennsylvania, working with partner agencies and divisions, obtained forfeiture judgments amounting to $3,742,379 in criminal and civil asset forfeiture actions in FY 2022, including both physical assets and forfeiture money judgments. Generally, under federal law assets such as currency, real property, and personal property can be forfeited to the government when they constitute proceeds of illegal activity or were used to facilitate crime. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For example:
The USAO won a civil forfeiture of $650,160 in drug trafficking proceeds. The cash was hidden in a cereal box in the trunk of a car and was being driven from New York to California by a hired courier.
Another $345,950 in drug trafficking proceeds, also seized from a vehicle making a cross-country trip, was forfeited in 2022. The cash was found in Ziploc baggies with brass knuckles and loaded tasers during a routine car stop.
Om Sri Sai, Inc. was ordered to forfeit $2 million cash in lieu of the company’s hotel property after conviction on sex trafficking and drug trafficking charges. The company’s largest shareholder and general manager were also convicted and sentenced to prison terms. Over $277,000 from the forfeited funds was used to pay restitution to sex trafficking victims.
The government collected a $1.4 million forfeiture money judgment from Daniel and Benjamin Gutman at the time of their sentencing in November 2022. The brothers operated a livestock exporting business in Maryland and South Central Pennsylvania and worked with a veterinarian to falsify certifications and blood sample/vaccination reports for tuberculosis testing for thousands of cattle due to be shipped abroad. As part of their sentence, the brothers were ordered to forfeit $1.4 million in proceeds of their crimes.
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