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27 January 2023
U.S. Attorney Announces Charges and New Arrest in Connection with Assassination Plot Directed from IranRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Lisa O. Monaco, the Deputy Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Matthew G. Olsen, the Assistant Attorney General for National Security, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the FBI, announced the unsealing of murder-for-hire and money-laundering charges against RAFAT AMIROV, a/k/a “Farkhaddin Mirzoev,” a/k/a “Pᴎᴍ,” a/k/a “Rome,” POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” and KHALID MEHDIYEV, and firearms offenses against MEHDIYEV. The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court. The case is pending before U.S. District Judge Colleen McMahon. AMIROV was taken into custody in the Southern District of New York on January 26, 2023, and will be arraigned on the charges in the Superseding Indictment by Magistrate Judge Sarah L. Cave today. MEHDIYEV was arrested on July 29, 2022, on charges contained in an underlying criminal complaint and will be arraigned on the charges in the Superseding Indictment before Judge McMahon on January 31, 2023, at 4:00 p.m. OMAROV was arrested in the Czech Republic on January 4, 2023, and the United States will request his extradition on the charges in the Superseding Indictment.
U.S. Attorney Damian Williams said: “As alleged, the defendants are members of an organized crime group hired to assassinate, right here in New York City, a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy and its disregard for human rights. This is the second time in the past two years that this Office and our partners at the FBI have disrupted plots originating from within Iran to kidnap or kill this victim for the ‘crime’ of exercising the right to free speech, to independent political thought, and to advocating for the rights of the oppressed and disenfranchised inside Iran. Thanks to the extraordinary efforts of the career prosecutors and FBI agents who led the investigation, this new plot to silence the victim has been disrupted and the defendants will face justice in an American court.”
Attorney General Merrick B. Garland said: “The Victim in this case was targeted for exercising the rights to which every American citizen is entitled. The Victim publicized the Iranian Government's human rights abuses; discriminatory treatment of women; suppression of democratic participation and expression; and use of arbitrary imprisonment, torture, and execution. The Department of Justice will not tolerate attempts by an authoritarian regime to undermine those protections and the rule of law upon which our democracy is based. We will not tolerate attempts by a foreign power to threaten, silence, or harm Americans. We will stop at nothing to identify, find, and bring to justice those who endanger the safety of the American people.”
Deputy Attorney General Lisa O. Monaco said: “Today’s indictment exposes a dangerous menace to national security – a double threat posed by a vicious transnational crime group operating from what it thought was the safe haven of a rogue nation: Iran. As national security and criminal threats continue to blend, the Department of Justice will use all its tools to zealously protect freedom and hold accountable all those who would use violence to undermine it.”
Director Christopher A. Wray said: “The indictment unsealed today reflects the FBI’s commitment to follow the facts wherever they lead, to work our way up to the leaders of criminal plots wherever they are, and to use our long reach to bring those responsible here to face justice in the United States. The conduct charged shows how far Iranian actors are willing to go to silence critics, even attempting to assassinate a U.S. citizen on American soil. We are determined to safeguard the rights of all Americans from the oppressive reach of hostile regimes.”
Assistant Attorney General Matthew G. Olsen said: “Today’s charges underscore the Department’s commitment to protecting Americans and our fundamental values in the face of all forms of transnational repression. To foreign actors who plot violence on our soil believing they are out of reach, know that we will pursue you, wherever you may be, until we deliver justice.”
FBI Assistant Director Michael J. Driscoll said: “We allege the defendants are members of an organized crime group that was tasked with carrying out the coldblooded murder of an American citizen in our city who has long been a target of the Iranian regime. This plot was an attempt to silence a voice critical of Iranian authoritarianism and human rights atrocities. The FBI, along with our partners in law enforcement, will continue to aggressively pursue individuals tasked by Iran or other hostile foreign governments to perform illegal action inside our borders or against our citizens. The FBI will not tolerate foreign governments attempting to violate our laws and freedom.”
According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]
AMIROV is a leader in an Eastern European criminal organization (the “Organization”) who resides in Iran. OMAROV also holds a leadership role in the Organization and resides in Eastern Europe. MEHDIYEV, a member of the Organization, resides in Yonkers, New York. The Organization has ties to Iran and is violent, engaging in murders, kidnappings, assaults, and extortions, and members typically identify themselves with tattoos and other displays of eight-pointed stars.
Since at least July 2022, the Organization was tasked with carrying out the murder of a U.S. citizen of Iranian origin (the “Victim”), who previously has been the target of plots by the Government of Iran to intimidate, harass, and kidnap the Victim. The Victim is a journalist, author, and human rights activist, residing in Brooklyn, New York, who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the United States for rendition to Iran in an effort to silence the Victim’s criticism of the regime. That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in United States v. Farahani, et al., 21 Cr. 430 (RA) (S.D.N.Y.).
About one year after the Farahani charges were filed, the Organization was tasked with carrying out the Victim’s assassination on U.S. soil. Beginning in approximately mid-July 2022, AMIROV sent targeting information – which AMIROV had received from other individuals in Iran – about the Victim and the Victim’s residence to OMAROV. OMAROV, in turn, communicated the targeting information to MEHDIYEV in order to begin conducting surveillance of the Victim and reconnaissance of the Victim’s residence and surrounding neighborhood. MEHDIYEV sent photographs and videos of the Victim’s residence to OMAROV for further sharing with AMIROV and the plot’s orchestrators in Iran.
After MEHDIYEV’s initial surveillance of the Victim’s residence, AMIROV and OMAROV arranged for the delivery of a $30,000 cash payment to MEHDIYEV in New York City in furtherance of the plot. MEHDIYEV used a portion of this cash payment to buy an AK-47-style assault rifle, along with two magazines for ammunition and at least 66 rounds. MEHDIYEV bragged in electronic communications that he had procured for himself a “war machine.”
Between July 20 and 28, 2022, MEHDIYEV repeatedly traveled to the Victim’s neighborhood to conduct surveillance and reconnaissance, sending reports of the Victim’s activities, photographs, and videos to OMAROV for further distribution to AMIROV. On July 24, 2022, after arriving at the Victim’s residence, MEHDIYEV reported to OMAROV that MEHDIYEV was “at the crime scene.” OMAROV encouraged MEHDIYEV, “You are a man!” MEHDIYEV described to OMAROV that “we blocked it from both sides, it will be a show once she steps out of the house.” OMAROV forwarded this report to AMIROV, who responded, “God willing.”
MEHDIYEV was unable to carry out the assassination that day and returned on several subsequent days to seek out opportunities to complete the murder mission. AMIROV, OMAROV, and MEHDIYEV schemed different strategies to attempt to draw the Victim out, including by attempting to ask the Victim for flowers from the Victim’s garden. On July 28, 2022, MEHDIYEV sent OMAROV a video taken from inside the car MEHDIYEV was driving showing the assault rifle, along with the message that “we are ready.” The Victim, after observing suspicious activity outside the residence, left the area, and MEHDIYEV drove away shortly afterwards. After MEHDIYEV drove away from the Victim’s residence, he was stopped after a traffic violation, and during a subsequent search of the car, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.
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AMIROV, 43, of Iran, OMAROV, 38, of the Czech Republic and Slovenia, and MEHDIYEV, 24, of Yonkers, New York, have each been charged with: (i) murder-for-hire, which carries a maximum sentence of 10 years in prison; (ii) conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison; and (iii) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. MEHDIYEV is also charged with possessing a firearm with an obliterated serial number, which carries a maximum sentence of five years in prison.
The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge McMahon.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence-Cyber Division, the New York FBI Iran Threat Task Force, the New York FBI Counterintelligence Task Force, and the New York FBI Joint Terrorism Task Force. Mr. Williams also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, as well as the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two More Sentenced for “Sweepstakes” Scheme Targeting Elderly VictimsRead the Press Release
AUSTIN, Texas – A Nigerian national residing in Canada and a Dallas woman operating a marketing leads business were sentenced in Austin on Thursday for their roles in a fraudulent “sweepstakes” scheme that sent more than $250 million in counterfeit checks with fraudulent lottery award letters to elderly U.S. victims.
Tony Akinbobola, 52, of Toronto, Ontario, was sentenced to 78 months in prison for conspiracy to commit money laundering. According to court documents, Akinbobola laundered money for the scheme beginning in 2015, receiving fraudulently obtained funds by way of wire transfers and money orders from the U.S., which he would deposit into a Canadian bank account in the name of his business. Investigators have identified at least 300 victims, all over the age of 60, sustaining a total of more than $1 million in actual losses with intended losses of more than $9.5 million. Akinbobola was arrested in Canada on Jan. 20, 2022 and was transferred to federal custody on Feb. 11, 2022, where he has remained since. He pleaded guilty to one count of conspiracy to commit money laundering on Sept. 30, 2022. In addition to spending more than six years in federal prison, Akinbobola was ordered to pay $111,870.25 in restitution.
Donna Lundy, 64, of Dallas, was sentenced to 30 months and ordered to pay $111,870.25 in restitution for wire fraud. Lundy owned and operated a lead broker business near Dallas, through which she purchased people’s names and contact information to sell to customers. Lundy sold and emailed numerous lists containing Personal Identifiable Information (PII) of elderly people to the scheming organization’s leader, Harry Cole, making more than $700,000 from him between 2007 and 2016. She pleaded guilty to the charge in January 2019. Cole was sentenced to nearly 14 years in prison in February 2022. Another co-defendant, Joel Calvin, was sentenced to three years in December 2022.
The scheme ran from 2012 to 2016 and involved purchasing lists of potential elderly victims and their mailing addresses. Organization members based in Toronto, Ontario, Canada sent packages containing fraudulent sweepstakes information to conspirators residing in the U.S. The packages contained thousands of mailers to be mailed to victims notifying them that they had won a sweepstakes. Each mailer included a fraudulent check issued to the name of the victim, usually in the amount of $8,000, and a pre-addressed envelope.
Victims were instructed to deposit the check into their bank account, then immediately withdraw between $5,000 and $7,000 in cash or money orders and send the money to a “sweepstakes representative” to facilitate the collection of the prize. By the time the bank notified the victim that the deposited check was fraudulent, the victim would have already sent the cash or money order to the defendants or conspirators.
“I applaud the hard work of the investigating agencies in bringing these defendants to justice—and thank Canadian authorities and the Justice Department's Office of International Affairs for their help in the extradition of Akinbobola,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “This case demonstrates my office's commitment to hold all those responsible for defrauding our senior citizens. Whether supplying the personal information and addresses of elderly citizens or assisting the scam by laundering funds in Canada, our office will pursue all of those that enable these vicious scams to steal from our seniors.”
“This sentence reaffirms HSI’s commitment to working with global law enforcement partners to disrupt transnational financial fraud syndicates,” said Acting Special Agent in Charge Craig Larrabee of the Homeland Security Investigations (HSI) San Antonio Division. “HSI is uniquely positioned to combat criminal organizations that exploit the U.S. financial networks by utilizing our expansive criminal and administrative authorities.”
“Tony Akinbobola and his co-conspirators devised a scheme that targeted and took advantage of one of our country’s most vulnerable populations, senior citizens,” said Inspector in Charge Scott Fix of the U.S. Postal Inspection Service Houston Division. “The USPIS remains resolute in our mission to bring to justice those who fraudulently use the U.S. Mail in the furtherance of their deceptive schemes. Postal Inspectors will continue to work tirelessly with our law enforcement partners, including HSI and IRS-CI, to ensure these individuals are held accountable.”
“Lundy and Akinbobola were part of a criminal enterprise that operated both within and outside the U.S. while preying on innocent victims located here. Now the two will pay for their crimes serving time in a U.S. prison,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s (IRS-CI) Houston Field Office. “This investigation shows our special agents will continue to fight for justice to be served for victims of fraud and other financial crimes, and the criminals who orchestrate such crimes, even internationally, are not out of our reach.”
HSI, the USPIS and IRS-CI investigated the case.
Assistant U.S. Attorneys Michael Galdo and Keith Henneke prosecuted the case. Attorneys with the Justice Department’s Office of International Affairs assisted with extraditions from Canada.
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Two Dale County Residents Sentenced for Sexually Exploiting a ChildRead the Press Release
Montgomery, Alabama – On January 25, 2023, John Hason Bright, 52, was sentenced to 40 years in prison for the sexual exploitation of a child and receipt of child pornography. Previously, on December 4, 2022, co-defendant Tiffany Diane Hughes, 34, received a 20-year sentence for the sexual exploitation of a child. Bright and Hughes are both residents of Ozark, Alabama.
In addition to their lengthy prison sentences, the judge ordered Bright and Hughes to serve five years on supervised release. Bright and Hughes are also required to register as a sex offender. There is no parole in the federal system.
In making the announcement, United States Attorney Sandra J. Stewart noted that the substantial sentences ordered in this case reflect the seriousness of the crimes Bright and Hughes committed against a child. U.S. Attorney Stewart also expresses her gratitude to each of the numerous law enforcement agents and investigators involved in bringing them both to justice.
This case was investigated by the Dale County Sheriff’s Office and the FBI. Assistant United States Attorney J. Patrick Lamb prosecuted the case.
Three Men Convicted of Violent Kidnapping and Shooting Stemming from Cape Cod Heroin ConspiracyRead the Press Release
BOSTON – Three men have been convicted in federal court in Boston for their roles in a violent kidnapping tied to a drug trafficking organization (DTO) that distributed heroin throughout the Cape Cod and Pawtucket, R.I., regions.
Anthony Basilici, 39, of Pawtucket, R.I., was convicted yesterday following a five-day jury trial of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy.
On Jan. 18, 2023, shortly before trial commenced, Basilici’s two co-defendants, Edwin Otero, 33, of Hyannis, and Justin Joseph, 35, of Pawtucket, R.I., each pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy. Otero also pleaded guilty to being a felon in possession of a firearm and witness intimidation.
U.S. District Court Judge Allison D. Burroughs scheduled Basilici’s sentencing for April 26, 2023 and sentencing for both Otero and Joseph for April 27, 2023.
“For years, members of Edwin Otero’s drug crew plagued the Cape Cod and Pawtucket communities with their heroin operation and the serious, violent crimes it fueled. These defendants actively participated in a violent scheme to kidnap, beat and terrorize a victim who they incorrectly believed was working with law enforcement,” said United States Attorney Rachael S. Rollins. “This case is a prime example of how drug trafficking activities drive violence in our neighborhoods. Law-abiding residents in our Commonwealth have a right to live their lives without from fear or intimidation by violent gangs. Thanks to the exceptional work by our investigative partners and prosecution team, this violent criminal enterprise has been brought to its knees – bringing peace and safety back to the Cape Cod and Pawtucket neighborhoods it once terrorized.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations who are responsible for distributing lethal drugs like heroin,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This conviction not only holds these three men accountable for their crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic and the violent acts that often accompany it by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
In 2018, law enforcement began investigating a Cape Cod-wide DTO led by Otero. The investigation revealed Otero, Joseph, Basilici and their other co-defendants distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I. As part of the conspiracy, Otero, Joseph and Basilici committed a May 2019 shooting related to a drug debt owed by a drug customer. Additionally, in April 2019, Otero, Joseph, and Basilici lured a victim from Massachusetts to Rhode Island where they kidnapped and held him, stripped him naked, assaulted him and threatened to rape him. Otero, Joseph, Basilici and other co-conspirators discussed causing physical injury to the victim to retaliate against him because they believed he was cooperating with law enforcement. Otero and Basilici also further intimidated or attempted to intimidate other witnesses after the kidnapping.
Otero, Joseph and Basilici were initially charged along with eight others in May 2019 on the drug conspiracy charges. In connection with those arrests, heroin, packaging materials, scales, a finger press as well as three firearms and ammunition including a 9 millimeter assault-style weapon were seized from Otero’s grandmother’s residence. In March 2020, Otero, Joseph, Basilici and two others – Cameron Cartier and Albert Lee – were indicted in connection with the violent kidnapping and related charges. Cartier and Lee previously pleaded guilty and are scheduled to be sentenced on Feb. 14, 2023 and Feb. 16, 2023, respectively.
The charge of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin provides for a sentence of up to 40 years in prison, up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession and discharge of a firearm in connection with a drug trafficking crime provides for a sentence of at least 10 years and up to life in prison on and after any other sentence, up to five years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of kidnapping conspiracy provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charges of witness intimidation and witness retaliation conspiracy provide for a sentence of no greater than 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, DEA SAC Boyle, Barnstable Police Chief Matthew K. Sonnabend and Barnstable County Sheriff Donna D. Buckley, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting 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.
Texas Man Arrested in Alaska, Sentenced for Producing Child PornographyRead the Press Release
AUSTIN, Texas – A former Lakeway resident was sentenced in federal court in Austin on Thursday to 15 years in prison with an additional 15 years of supervised release for producing child sexual exploitation material.
According to court documents, Thomas Owen Norvell, 38, persuaded a minor to record a sexually explicit video on his cell phone. Live Oak Police Department launched an investigation and requested the help of the FBI San Antonio Division after a relative of the victim reported awareness of the abuse. Norvell had been living in Fairbanks, Alaska when FBI agents arrested him on Nov. 30, 2021. He was later transferred to Austin, where he remained in custody and awaited sentencing. Norvell pleaded guilty to the charge in October 2022.
“It took a lot of courage for the victim in this case to speak up and for their relative to report the abuse that had taken place,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I commend our law enforcement partners here in Texas and in Alaska for investigating and arresting this predator, leading to this lengthy sentence.”
“This sentencing sends a message to those who exploit innocent children that we will aggressively pursue you and ensure you are prosecuted to the fullest extent of the law," said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “I would like to thank the Live Oak Police Department and FBI Anchorage for their assistance and partnership on this case.”
The FBI and LOPD investigated the case.
Assistant U.S. Attorney Keith Henneke prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Tampa Man Found Guilty of Armed Robbery of A Postal CarrierRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Omar Rochester Miller, Jr. (23, Tampa) guilty of armed robbery of a postal carrier, theft of postal keys, and brandishing a firearm during the robbery. Miller faces a maximum penalty of 25 years in federal prison for the armed robbery, 10 years for the theft of postal keys, and a minimum mandatory 7 years’ imprisonment for brandishing the firearm. His sentencing hearing is scheduled for May 3, 2023.
Miller, along with Christopher Diaz, a.k.a., Chico, were indicted on December 7, 2021. Diaz pleaded guilty on January 10, 2023, to armed robbery of a postal carrier and theft of postal keys. His sentencing is scheduled for April 3, 2023. Edwin Betancourt Vega was also charged for his role in the robbery and pleaded guilty to armed robbery of a postal carrier and theft of postal keys. His sentencing is scheduled for February 3, 2023.
According to evidence presented at trial, Miller robbed a postal carrier at gunpoint while she was delivering mail to an apartment complex. Miller approached the postal carrier from behind, pointed a firearm at her, threatened to shoot her, and demanded her postal keys. After Miller successfully stole the postal keys, he pushed the carrier to the ground and ran to a waiting getaway car driven by Betancourt Vega. This robbery was organized through phone calls and text messages between Betancourt Vega and Diaz, to coordinate the robbery and sale of the postal keys in exchange for cash. During the investigation, law enforcement recovered the postal keys, as well as proceeds from the sale of the key from both Miller and Betancourt Vega, along with the firearm used in the robbery, which contained Miller’s DNA.
This case was investigated by the U.S. Postal Inspection Service and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Ilyssa M. Spergel and Stacie B. Harris.
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.
Tacoma woman sentenced to prison for long-time fraud scheme victimizing friends and acquaintancesRead the Press Release
Seattle – A 41-year-old Tacoma woman was sentenced today in U.S. District Court in Seattle to 27 months in prison for wire fraud for a scheme to defraud various friends and acquaintances of more than $600,000, announced U.S. Attorney Nick Brown. Sabrina Taylor lied about her health, her employment status, and her education to steal more than $600,000 from people who had offered to help her. At today’s sentencing hearing, U.S. District Judge Ricardo S. Martinez emphasized the serious nature of Taylor’s conduct, remarking that for years, Taylor engaged in a sustained and calculated course of conduct that preyed upon her victims’ best emotions. The Court remanded Taylor into custody at the close of the sentencing hearing.
According to records filed in the case, starting in 2013, and continuing into July 2019 and beyond, Taylor convinced various people to provide her with large amounts of money by claiming that she needed to purchase medicine for multiple sclerosis treatment, pay her tuition for the University of Washington, or bail her brother out of jail. In fact, Taylor did not have multiple sclerosis, was not paying tuition to U.W., and did not have a brother in jail. Rather, Taylor used a substantial portion of the defrauded funds to pay for luxuries such as almost $60,000 for multiple trips to Japan and Korea, nearly $38,000 for online purchases from Amazon and Etsy, more than $29,000 for clothing, and nearly $16,000 for make-up.
Taylor also made false claims about how she was planning to repay loans, lying about her employment, a litigation settlement from her bank, and funds she expected to receive from her parents.
Taylor met some of the people she defrauded online, using shared interests such as Japanese anime, comic books, or video games to establish a relationship. Taylor admitted to stealing over $550,000 from one victim.
In their victim impact statements those who were defrauded by Taylor described how they have suffered: One person cancelled plans to move to California; another had to put off buying a home; a third said a family member delayed retirement to help pay back what a victim had borrowed. Some were unable to help others in the community because they had assisted Taylor.
In his sentencing memo the prosecutor noted that Taylor was no novice when it came to fraud. “Taylor carried out an extensive fraud scheme using deceit and deception that preyed upon humankind’s better angels. Several of Taylor’s victims suffered substantial financial hardship—some likely will never be made whole financially. Equally as important, Taylor exploited and betrayed the trust of each of her victims and many of Taylor’s victims will continue to pay an emotional toll for many years to come,” Assistant United States Attorney Joe Silvio wrote in his sentencing memo.
Taylor was ordered to pay $608,975 in restitution to her victims.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Joseph Silvio.
Statement of U.S. Attorney Philip R. SellingerRead the Press Release
NEWARK, N.J. – Philip R. Sellinger, United States Attorney for the District of New Jersey, issued the following statement today:
Like so many around the country, we are deeply disturbed by the circumstances surrounding the tragic death of Tyre Nichols. Shortly after his death, the U.S. Attorney’s Office in the Western District of Tennessee and the Justice Department’s Civil Rights Division opened a criminal civil rights investigation. We express support for our colleagues who are working hand in hand with the FBI and other law enforcement partners. We have no doubt that their investigation will be thorough and methodical, and they will make decisions based on the facts and the law. In addition to the federal investigation, several officers are now facing prosecution for state charges.
We appreciate the significant public interest in this matter. We want to make clear that the U.S. Attorney’s Office respects the right of all people to assemble and protest peacefully. As Tyre Nichols’ family has urged, we urge that any protests remain peaceful and nonviolent.
We will also continue to protect civil rights and work to ensure justice for all in New Jersey. Where law enforcement officers abuse their authority by violating the constitutional rights of our citizens, it undermines all other law enforcement officers who lawfully perform their duties with dignity and respect. The U.S. Attorney’s Office has prioritized civil rights investigations and prosecutions of any public employee who violates this public trust.
Last year, I created a Civil Rights Division at the U.S. Attorney’s Office with the sole focus of enforcing and protecting federal civil rights. Individuals who believe they may have been victims of civil rights violations may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.
Stamford Man Charged with Robbing 3 Banks in 2020Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANCESCO PENSIERO, also known as Frank Pensiero, 50, of Stamford, was arrested today on federal criminal complaint charging him with robbing three Connecticut banks in October 2020.
Pensiero appeared today before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.
As alleged in the complaint, on October 13, 2020, Pensiero and an associate robbed the Chase Bank located at 2855 Main Street in Stratford. During the robbery, Pensiero’s associate displayed a handgun on the teller counter and presented the teller with a note that read “this is a robbery give me all your money.” The teller provided Pensiero’s associate with approximately $1,000 and Pensiero and his associate exited the bank.
It is also alleged that, later on October 13, 2020, Pensiero robbed the People’s United Bank located at 1160 Kings Highway Cutoff in Fairfield. During the robbery, he pulled out a handgun and presented the teller a note that stated “This is a robbery.” The teller provided Pensiero with $5,458 and Pensiero exited the bank.
It is further alleged that, on October 28, 2020, Pensiero and his associate robbed the People’s United Bank located at 95 Main Street in New Canaan. Pensiero displayed a handgun, provided the teller with a note demanding money, verbally threatened to kill the teller and other employees, and ordered the bank employees to lie on the floor. Pensiero and his associate stole $9,130 during the robbery, and fled from the bank in a red Chevrolet Monte Carlo SS. The following day, the car was set on fire on Green Avenue in New Canaan.
The charge of bank robbery carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Pensiero’s associate was charged with, and convicted of, related state offenses stemming from these robberies.
This investigation is being conducted by the Federal Bureau of Investigation and the Stratford, Fairfield and New Canaan Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Daniel E. Cummings and Amanda S. Oakes.
St. Louis Man Sentenced to 16 ¾ Years in Prison on Carjacking, Other ChargesRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Friday sentenced a man who carjacked a Kia in the Central West End neighborhood of St. Louis to 16 years and nine months in prison.
Travon D. Lawrence, now 29, of St. Louis, was caught with a .40 caliber semiautomatic handgun and 59 capsules containing fentanyl after a Sept. 7, 2019 traffic stop. Lawrence, a convicted felon, is barred from possessing a firearm.
On Jan. 8, 2020, Lawrence carjacked a Kia Sportage at gunpoint in the 4300 block of Maryland Avenue. He was spotted by police officers responding to a different call and arrested after fleeing from police in the car and on foot after crashing that car.
Lawrence pleaded guilty in U.S. District Court in St. Louis in August to four felonies: possession with intent to distribute fentanyl, possession of a firearm in furtherance of one or more drug-trafficking crimes, carjacking and brandishing a firearm in furtherance of a crime of violence.
He still faces 35 charges in St. Louis Circuit Court, where he’s accused of a series of armed robberies and other crimes from Nov. 16, 2019 until his arrest in the Kia.
The St. Louis Metropolitan Police Department investigated this case. Assistant U.S. Attorney J. Christian Goeke prosecuted the case.
South Florida Marketer Pleads Guilty to Role in Scheme Involving Purchase and Sale of Millions of Medicare Beneficiary Identification NumbersRead the Press Release
MIAMI – A South Florida man pled guilty in federal court today to conspiring to buy and sell more than 2.6 million Medicare beneficiary identification numbers, along with other personal identifiers.
Charles William McElwee, 36, pled guilty to one count of conspiring to violate the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), Title 42, United States Code, Section 1320a-7b(b)(4). MACRA is a law that makes it illegal to buy, sell, or distribute Medicare beneficiary identification numbers without proper authority. This is one of the first prosecutions brought under MACRA.
As part of his plea, McElwee admitted that he and his co-conspirators used “data mining” and “social engineering techniques” to collect Medicare beneficiary information, which McElwee then advertised and sold online. The trafficked information included beneficiary names, addresses, dates of birth, social security numbers, and Medicare beneficiary identification numbers. According to the charges, some of the illicit transactions involved foreign actors, including sellers in the Philippines.
McElwee’s sentencing hearing is set for April 7, at 1:15 p.m., before U.S. District Judge William P. Dimitrouleas. McElwee faces up to five years in federal prison.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida; Omar Pérez Aybar, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region; and Chad Yarbrough, Acting Special Agent in Charge, FBI Miami announced the guilty plea.
HHS-OIG Miami and FBI Miami are investigating this case. Assistant U.S. Attorney Jon Juenger is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Medicare beneficiaries who believe they have been a victim of medical identity theft can file a complaint with the HHS-OIG hotline by calling 1-800-HHS-TIPS (800-447-8477) or with the Centers for Medicare and Medicaid Services by calling 1-800-MEDICARE (1-800-633-4227).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 22-cr-60202.
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Slidell Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – OLIVER PIERRE, age 40, a resident of Slidell, Louisiana, pled guilty on January 24, 2023 to one count of possession with intent to distribute a quantity of cocaine base (“crack”), in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to filed court documents, in October 2015, agents with the Drug Enforcement Administration learned of the drug trafficking activities of James Bickham, a Houston-based drug trafficker who used PIERRE as a drug courier to deliver drugs from Houston to Slidell, Louisiana. As a part of the investigation, agents intercepted telephone calls between Bickham and a customer discussing the delivery of 7 ½ ounces of crack from Bickham to the customer in Slidell, Louisiana.
Aware of the pending drug transaction, on October 8, 2015, agents established surveillance outside of the customer’s residence in Slidell. Agents also intercepted calls between Bickham, the customer, and PIERRE regarding the delivery of the crack. At approximately 3:40 p.m., the customer exited an apartment and drove to a Quick E-Z in Slidell, La. and parked next to a SUV driven by PIERRE. PIERRE, who was delivering the drugs supplied by Bickham, threw the drugs into the customer’s vehicle. After PIERRE threw the drugs into the customer’s vehicle, the customer and PIERRE left the area in their separate vehicles. Agents attempted to stop the customer but the customer drove away and threw the drugs out of the window. Eventually, agents caught and arrested the customer and retrieved the two bags of drugs . In total, agents recovered 158 grams of crack that PIERRE delivered to the customer.
This case was investigated by the Drug Enforcement Administration and the St. Tammany Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Serial Bank Robber Charged with Brookline Bank RobberyRead the Press Release
BOSTON – A Boston man has been charged in connection with the September 2022 robbery of a bank in Brookline.
Jerome Lamont Turner, 47, was charged with one-count of bank robbery and will appear in federal court in Boston on Jan. 31, 2023.
According to the charging documents, on Sept. 26, 2022, an individual – later identified as Turner – entered a Brookline Bank branch in Brookline. Once inside the bank, Turner allegedly approached a teller and inquired about opening a new account. Turner was provided a bank pamphlet on the process, and he exited the bank. A few minutes later, it is alleged that Turner reentered the bank, approached the same teller and handed them the pamphlet with the words, “Let me have 17,000 in Large bills no dye pack,” written on it. As the teller was gathering money from the cash drawer, it is alleged that Turner repeatedly motioned for more money before exiting the bank.
A subsequent investigation allegedly identified Turner on the bank’s video surveillance from a previous arrest less than a week earlier and identified his fingerprints on the pamphlet.
It is further alleged that on Sept. 27, 2022, Turner was located wearing the same clothing worn in the Brookline robbery. Following a violent struggle, Turner was taken into custody and allegedly found in possession of over $2,500 in cash.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brookline Acting Chief of Police Jennifer Paster made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes 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.
Semmes Man Sentenced to Five Years in Prison for Possessing a Machinegun in Furtherance of Drug TraffickingRead the Press Release
MOBILE, AL – A Semmes man was sentenced to 60 months in prison for possessing a machinegun in furtherance of a drug-trafficking crime.
According to court documents, Jayden Deonte Cassino, 21, was arrested by Mobile police following a high-speed chase of a car in which Cassino was a passenger on June 17, 2021. The pursuit ended on Oak Ridge Court in Mobile, at which time Cassino and other occupants of the car bailed out and ran into a nearby thick wooded area. Officers pursued Cassino and took him into custody. Just before being arrested, Cassino threw down a bag containing a stolen Glock .40 caliber pistol, which was equipped with a machinegun-conversion device, commonly known as a “Glock switch,” and a drum magazine loaded with 25 rounds. Cassino had not registered the machinegun in the National Firearms Registration and Transfer Record, so his possession of the weapon was illegal under federal law. The bag that Cassino discarded also contained 21 grams of cocaine, 16 grams of crack cocaine, 46 grams of marijuana, and a digital scale. Data extracted from Cassino’s cell phone contained hundreds of videos, pictures, and messages depicting his possession of guns, drugs, and cash.
United States District Judge Terry F. Moorer ordered Cassino to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Cassino to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
San Diego Man Pleads Guilty to Failing to Appear, Tax Evasion and FraudRead the Press Release
A California man pleaded guilty yesterday, in three separate cases, to failing to appear at his sentencing, attempting to evade the assessment of income tax and wire fraud.
According to court documents and statements made in court, Robin J. McPherson, formerly of San Diego, failed to appear for his sentencing in March 2001 following a December 2000 bench trial convicting him and two co-defendants of conspiring to defraud the IRS and collectively evading over $1 million in income taxes for tax years 1993 and 1994.
While a fugitive, McPherson was indicted for attempting to evade income taxes due on income he received in 1999 and 2000 from individuals who believed they were investing in an internet shopping mall. The defendant cashed checks he received from these individuals, directed the income from this enterprise to a Canadian bank account and did not file income tax returns for those years with the IRS, causing a tax loss of approximately $79,367.
Later, between 2016 and 2020, the defendant, using the name Raymond James, defrauded other individuals of approximately $1.5 million by inducing them to invest in Costa Rican villas that were never built.
In May 2022, McPherson was apprehended in Costa Rica and deported back to the United States.
“Robin McPherson only delayed the inevitable, when he appeared before the Court and entered his guilty plea today to tax evasion and other crimes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Tax fugitives should know that they will be found and brought to justice, no matter where they hide or how long it takes.”
“After over 20 years since his original conviction for tax charges, McPherson is now being held accountable and taking responsibility for his crimes,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation Los Angeles Field Office. “Today’s guilty plea serves as a reminder and warning, those who evade their taxes and try to run will face the consequences. No person is above the law, and no one can evade the consequences indefinitely.”
McPherson is scheduled to be sentenced on April 28, 2023, and faces a maximum penalty of five years in prison for failure to appear, five years in prison for tax evasion and 20 years in prison for wire fraud. The defendant also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorneys Randy S. Grossman for the Southern District of California and Natalie K. Wight for the District of Oregon made the announcement.
IRS-Criminal Investigation and the FBI are investigating the matter.
Trial Attorney Charles A. O’Reilly of the Justice Department’s Tax Division is prosecuting the cases.
Retired New Jersey Doctor Admits to Fabricating Documents and Faking Diagnosis to Avoid TrialRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Merlino, 85, of Mays Landing, NJ, entered a plea of guilty before United States District Court Judge Gerald A. McHugh on one count of obstruction of justice, arising from his creation and submission of false and fictitious medical records and doctor’s letters, and causing them to be submitted to the District Court, in an effort to keep him from having to stand trial on separate felony charges.
In August 2021, Merlino was under indictment and awaiting trial on a felony misbranding charge for selling a toxic chemical as a weight-loss drug online. Merlino faked a diagnosis of pancreatic cancer and caused fraudulent submissions to the trial court, by altering a doctor’s letters and altering legitimate medical records. The misbranding trial was postponed for months until the documents were discovered to be falsified. In August, 2022, Merlino was convicted at trial of selling misbranded drugs online, arising from his scheme to sell the toxic industrial chemical DNP as a weight-loss drug which he manufactured in a lab in his home.
Merlino is scheduled to be sentenced on both the obstruction charge and the misbranding trial conviction on March 16, 2023.
"Dr. Merlino submitted fraudulent medical records and letters claiming to have pancreatic cancer in an effort to avoid trial for selling misbranded drugs online," said U.S. Attorney Romero. "Obstructing justice to dodge the judicial process with claims of such a deadly cancer is particularly egregious."
“The distribution of unapproved and dangerous drugs puts consumers’ health at risk,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”
The cases were investigated by U.S. Food & Drug Administration Office of Criminal Investigations, U. S. Postal Inspection Service, and Homeland Security Investigations (HSI) Atlantic City under the HSI Newark office and are being prosecuted by Assistant United States Attorney Joan Burnes.
Registered Sex Offender Sentenced for Production and Distribution of Child PornographyRead the Press Release
A Maryland man was sentenced today to 35 years in prison for production and distribution of images and videos depicting the sexual abuse of children.
Justin Michael Peterson, 28, pleaded guilty in the District of Maryland to one count of sexual exploitation of a child and one count of distribution of child pornography on Aug. 30, 2022.
According to court documents, in January 2020, Peterson used Instagram to video chat with a minor victim and entice the minor victim to masturbate and insert objects into the victim’s anus while Peterson masturbated. Peterson used special software to record those chats and distributed the recordings to another minor child with whom Peterson had been exchanging sexually explicit messages on Kik and Snapchat. During his chats with the second minor child, Peterson discussed his interest in traveling to the minor victim’s home to kidnap them.
After his arrest in February 2020, Peterson admitted to law enforcement that he is sexually attracted to children as young as three years old. Peterson’s phone contained hundreds of images depicting the sexual abuse of children, including toddlers and infants. Forensic examination of Peterson’s phone also revealed that he actively participated in several online chat groups dedicated to the sexual exploitation of children and distributing child sexual abuse material. Peterson also posted messages to these groups offering to “rent” one of the minor victims as a “cam slave.”
Peterson was previously convicted in Maryland in 2016 for distributing child pornography and was required to register as a sex offender at the time of his offenses.
In addition to serving 35 years in prison, Peterson was sentenced to 30 years of supervised release years and will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI, the Carroll County Sheriff’s Office, and the Boone, North Carolina, Police Department investigated the case.
Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Paul E. Budlow for the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.justice.gov/psc.
Raleigh Physician Found Guilty of Using Adulterated and Insanitary Medical Equipment on Patients During Nasal SurgeriesRead the Press Release
RALEIGH, N.C. – After a three-week federal jury trial, and 5 hours of jury deliberation, Anita Louise Jackson, 59, was found guilty on charges of adulterating medical devices for use on patients with intent to defraud and mislead, fabricating medical and healthcare records, paying illegal renumerations, mail fraud, and conspiracy. Jackson was convicted of using re-used devices to perform more than 1400 surgeries for Medicare patients between 2011 and the end of 2017. After the verdict, Jackson was taken into custody pending sentencing.
“This doctor put profit ahead of patients, luring in Medicare patients with free “sinus spas” and risking infection to those patients by reusing the same single-use surgical devices on them again and again,” stated Michael Easley, U.S. Attorney. “If we allow doctors to bilk Medicare to pad their profits by performing unsupported medical procedures— each and every American taxpayer eats the cost. But the harm is most felt by the victim-patients who deserved better, and the elderly Americans on Medicare who are entitled to quality care. Jackson’s blatant disregard for her patients’ health has led to her conviction on multiple federal charges. My office is proud to work with the investigative agencies that helped bring this woman to justice.”
Jackson was an Ear Nose and Throat doctor who operated Greater Carolina Ear, Nose, and Throat (GCENT), with offices in Raleigh, Lumberton and Rockingham. Between 2011 and the end of 2017, Jackson preformed 1,555 balloon sinuplasty surgeries on 919 Medicare beneficiary patients. Balloon sinuplasty is an in-office surgery to treat chronic sinusitis. The FDA has cleared the Entellus XprESS device to be used in the performance of balloon sinuplasty procedures, but only on one patient, during one surgery. After that, the device must to be discarded. But, between 2012 and 2017, Jackson obtained, at most, 36 new Entellus devices, despite being, at times, the top-paid Medicare provider of balloon sinuplasty services in the United States. The evidence showed that Jackson misled and did not inform her patients that they were receiving a procedure with an adulterated device. The evidence also showed, and the defendant admitted on cross-examination, that she had sufficient money to buy every patient a new device -- but chose not to do so.
Jackson billed Medicare more than $46 million dollars for the balloon sinuplasty procedures between 2014 and 2018. She netted more than $4.79 Million from Medicare for these surgeries alone. That amount does not include any sinuplasty surgeries performed on patients with private health care insurance, other than Medicare, and monies received from Medicare prior to that time. The jury ordered forfeiture in the amount of $4,794,039.31 Million.
“The FDA continues in its commitment to aggressively pursue those who deviate from required standards of use for medical devices,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will remain vigilant in our efforts to protect consumers from potentially dangerous products.”
Jackson was also convicted on 10 counts of illegally inducing her patients to receive the sinuplasty surgery, by failing to collect the portion of the surgery that the patient was required to pay – the co-pay. Jackson, through her employees, marketed the sinuplasty surgery as a “sinus spa.” In doing so, Jackson induced her patients to come to the office for a “free” sinus spa, induced her patients to receive a treatment they may not need, or may not have agreed to, had the full out-of-pocket cost to the patient been disclosed. In an effort to continue obtaining patients for the procedure, Jackson wrote-off, or otherwise hid, the full cost of the procedure on any bills sent to the patient after their visit to GCENT. The patient portion of the sinuplasty surgery could be as high as $1,500 for Medicare beneficiaries, which the jury found was not disclosed to patients.
Jackson was also convicted of three counts of making false statements relating to health care benefits, two counts aggravated identity theft, and three counts of mail fraud. Between 2017 and 2018, Jackson became the subject of three audits by Medicare contractors. The evidence showed, and the jury found, that the defendant fabricated medical records supplied to auditors in an effort to keep more than $1.7 million that had already been paid to her by Medicare. The jury convicted Jackson of fabricating and modifying medical records to justify the billing of balloon sinuplasty surgeries to Medicare auditors. Two aggravated identity theft counts related to the defendant’s knowing use of forged patient signatures on documents in which patients allegedly declared that they received surgeries from the defendant, and that they needed them. The defendant’s Mail Fraud convictions pertained to her fraudulent use of fake medical records to deceive auditors, and to deceive a fellow physician. The defendant was also convicted for tricking a fellow ENT physician into signing a sworn statement that her medical documentation supported her prior balloon sinuplasty surgeries.
The defendant was convicted of conspiring with her staff to commit device adulteration, to pay illegal remunerations, to make false records, and to commit mail fraud.
"It is disturbing when fraudsters exploit vulnerable Medicare enrollees and defraud federal health care programs for personal gain,” said Special Agent in Charge Tamala E. Miles of U.S. Department of Health and Human Services Office of Inspector General. “Today’s verdict in this case shows that our agency, working with our law enforcement partners, will continue to hold bad actors accountable and protect both Medicare and those served by this program.”
“Dr. Jackson corrupted her integrity and violated patient trust by putting profits ahead of quality care,” said Christopher Dillard, the Special Agent in Charge of the DoD Office of the Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with its partners to root out fraud within the Department of Defense's TRICARE program.”
The federal jury convicted Jackson on all 20 counts in the indictment, which included: Count 1 – Device Adulteration 21 U.S.C. § 331(k), 21 U.S.C. § 333(a)(2) and 21 U.S.C. § 35l(a)(2)(A); Counts 2-11 – Illegal Renumerations 42 U. S. C. § 1320a-7b(b)(2)(B) and 18 U. S. C. § 2; Counts 12-14 – Making False Statements Relating to Health Care Benefits 18 U.S.C. § 1035(a)(2); Counts 15-16 – Aggravated Identity Theft 18 U.S.C. § 102A(a)(1); Counts 17-19 – Mail Fraud 18 U.S.C. § 1341; and Count 20 – Conspiracy 18 U.S.C. § 371.
Jackson faces a maximum term of imprisonment of 20 years for Mail Fraud, 10 years for Paying Illegal Remunerations, and 5 years for Conspiracy and Making False Statements, and three years for Adulteration with the intent to defraud or mislead. Aggravated Identity Theft carries a 2-year mandatory prison sentence, consecutive to any other punishment. Jackson also faces fines exceeding $250,000.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Judge James C. Dever III published the verdict. The United States Department of Health and Human Services Office of the Inspector General (HHS-OIG), the United States Food and Drug Administration Office of Criminal Investigations (FDA-OCI), and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service lead the investigation. Assistant U.S. Attorneys William Gilmore and Karen K. Haughton prosecuted the case.
The U.S. Attorney’s Office in the Middle District has a pending civil action against Jackson, in case captioned: United States of America and the State of North Carolina ex rel. Lee M. Mandel, MD, FACS, and Erin Craig v. Anita Louise Jackson, MD and Greater Carolina Ear, Nose & Throat, P.A., No. 17-cv-925 (MDNC).
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00259-D.
Raleigh County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Gregory Kincaid, 30, of Cool Ridge, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on April 7, 2022, law enforcement officers were executing a search warrant at a Cool Ridge residence when Kincaid arrived at the residence in a vehicle. When officers removed Kincaid from the vehicle, Kincaid admitted that he possessed a Smith & Wesson, model M&P Shield, 9mm pistol. Kincaid further admitted that he told officers he had stolen the firearm from his father and had brought it to the residence being searched to sell or trade for controlled substances.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kincaid knew he was prohibited from possessing a firearm because of his prior felony conviction for third-offense driving revoked for DUI in Raleigh County Circuit Court on November 25, 2020.
Kincaid is scheduled to be sentenced on May 12, 2023 and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine..
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit, and the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-192.
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Raleigh County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – David Jeffrey Edwards, 46, of Daniels, pleaded guilty today to possession with intent to distribute methamphetamine and fentanyl.
According to court documents and statements made in court, on February 24, 2022 law enforcement officers executed a search warrant at Edwards’ residence in Daniels. Edwards admitted to possessing 19 grams of methamphetamine packaged in nine separate small bags, 1 gram of fentanyl and $958 found during the search. Edwards further admitted that he intended to distribute the controlled substances.
Edwards also admitted to selling a half-ounce of fentanyl to a confidential informant at his residence on December 12, 2021. Edwards told officers during the February 24, 2022, search that he had been selling an average of a half-ounce of methamphetamine weekly for several weeks. Officers also found an improvised explosive device during the search, a glass bottle filled with gunpowder, metal spheres, projectiles and other objects with a length of cordage inserted in the bottle opening as a means of ignition. Edwards admitted that he made the improvised explosive device.
Edwards 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-125.
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Pass Christian Man Sentenced to 14 years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Pass Christian, Mississippi man was sentenced to 169 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Michael Dedeaux, 46, was sentenced on January 26, 2023, in U.S. District Court in Gulfport.
According to court records, on March 29, 2022, Dedeaux was stopped for a traffic violation in Pass Christian. The traffic stop led to the seizure of 442 grams of methamphetamine from Dedeaux’s vehicle.
A federal grand jury returned an indictment against Dedeaux for possession with intent to distribute methamphetamine. Dedeaux pled guilty on October 25, 2022.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Palm Beach County Resident Pleads Guilty to Importation of MDMA and Possession with Intent to Distribute FentanylRead the Press Release
MIAMI – Tyre Marquise Bradley, 31, of Palm Beach County, Fla., pled guilty today before Senior U.S. District Judge Kenneth A. Marra to possession with intent to distribute fentanyl, among other controlled substances.
On May 15, 2019, Bradley sold crack cocaine to an undercover officer. From about August 22, 2022, to September 20, 2022, he imported MDMA (ecstasy) into the United States via packages from Amsterdam. Law enforcement delivered the package under surveillance and Bradley was taken into custody when he arrived to retrieve it. A 9mm semiautomatic pistol was discovered in his backpack. A state search warrant for Bradley’s home residence was acquired and law enforcement found drugs in the refrigerator, in a cabinet, inside the garbage can, and in the children’s bedroom that tested positive for the following:
Blue fentanyl pills weighing 1.6 pounds
Cocaine weighing 1.3 pounds
Crack cocaine weighing 15 grams
Marijuana weighing more than four pounds
Bradley pled guilty to four counts that included distribution of crack cocaine; importation of a controlled substance (ecstasy); attempted possession with intent to distribute a controlled substance (ecstasy); and possession with intent to distribute a controlled substance (fentanyl, cocaine, and crack cocaine).
Sentencing has been scheduled for April 14, 2023. At sentencing, Bradley faces a maximum term of imprisonment of up to 20 years on counts one, two and three and a statutory mandatory minimum sentence of 10 years and a maximum term of up to life in prison on count five.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami Field Office, and Palm Beach County Sheriff Ric Bradshaw made the announcement.
HSI, West Palm Beach Office, investigated this case with assistance from Palm Beach County Sheriff’s Office. Assistant U.S. Attorney Lothrop Morris is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Carolina Man Pleads Guilty to Bomb Threat Near the Library of CongressRead the Press Release
Defendant Broadcast Live on Facebook While Holding Alleged Explosive Device
WASHINGTON – Floyd Ray Roseberry, 52, of Grover, North Carolina, pleaded guilty today to one charge of threats to use explosives during a standoff with police that lasted four hours near the Library of Congress, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Michael H. Glasheen of the FBI Washington Field Office's Counterterrorism Division, and U.S. Capitol Police Chief J. Thomas Manger.
Roseberry pleaded guilty before the Honorable Rudolph Contreras in the U.S. District Court for the District of Columbia. He faces a statutory maximum sentence of 10 years in prison. Judge Contreras scheduled sentencing for June 15, 2023.
According to court documents, at approximately 9:45 a.m. on August 19, 2021, U.S. Capitol Police and the FBI responded to a bomb threat made by Roseberry who was sitting inside of a black Chevrolet pick-up truck with no license plates, adjacent to the Jefferson Building of the Library of Congress, at First Street and Independence Avenue, in Southeast Washington, D.C. Roseberry was seen holding a cell phone and was claiming he had a detonator.
While inside the truck, Roseberry broadcast live video and audio through Facebook.
He stated that he was upset about the 2020 election results and demanded that President Biden resign from office. Roseberry demanded to speak to President Biden about several grievances. He claimed to have an ammonium nitrate and/or a Tannerite bomb in the toolbox of this truck. Roseberry stated that the explosive device was engineered such that any loud sound would cause it to detonate and destroy two and a half blocks, which would encompass the Library of Congress as well as other buildings owned or leased by the United States. Roseberry further claimed that he was one of five individuals in Washington, D.C. with bombs. Roseberry could be seen on the Facebook videos holding a small metal keg with a puddy like substance on top and holding what appeared to be a trigger. The metal keg was later analyzed by the FBI and determined to have a small quantity of smokeless black powder at the bottom, but was incapable of detonating with the trigger Roseberry was holding, or by an acoustic mechanism as Roseberry described in the Facebook Live videos.
Roseberry was also throwing U.S. dollar bills out of the truck and onto the street and stating, among other things:
“Hey, call the police and tell them to come out here and clear the Capitol. Tell them to clear the Capitol. Tell them to clear it. … They need to clear that ‘cause I got a bomb in here. I don’t want nobody hurt. Yes sir, I don’t want nobody hurt. I’m not coming here to hurt nobody. I’m not lying, tell them there’s some more.”
“…I’m telling you, my windows pop, this bomb is gonna’ go, it’s made for decimals. …there’s gun powder in there this is some of the strongest shit you can get. I got two and a half pound of Tannerite.”
“If you want to shoot me and take the chance of blowing up two-and-a-half city blocks, ‘cause that toolbox is full, ammonium nitrate is full.”
At approximately 10:21 a.m., Roseberry began communicating with law enforcement by writing messages on a small white dry erase board and placing it in the driver’s side window of the target vehicle while intermittently holding an unidentified device. The messages stated in part, “please don’t shoot the windows the vibe will explode the bomb,” “I have no control of it,” “decimals is what sets off not me,” and at approximately 11:21 a.m., “my name is Ray Roseberry.” In video from the morning of August 19, 2021, Roseberry was observed holding an old metal can that appeared to have been fashioned into an explosive device.
In announcing the plea, U.S. Attorney Graves, Chief Manger, and Special Agent in Charge Glasheen commended the work of those who investigated the case from the FBI’s Washington Field Office and the U.S. Capitol Police. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Latina Sanders, as well as Assistant U.S. Attorney Christopher Tortorice, and National Security Division, Counterterrorism Section Trial Attorney John Cella, who prosecuted the case.
New York Woman Sentenced for $9.2 Million COVID-19 Relief FraudRead the Press Release
A New York woman was sentenced today to 45 months in prison for her role in the submission of fraudulent loan applications seeking more than $9.2 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Sherry Joseph, 34, of New York, New York, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Nov. 10, 2022. According to court documents, Joseph recruited multiple individuals to apply for fraudulent PPP loans in exchange for kickbacks from their PPP loan proceeds. Joseph used aliases to send the information of her recruits to co-conspirators, who used this information to prepare fraudulent PPP loan applications that included falsified bank statements and payroll tax forms and falsely represented the borrowing entities’ number of employees and amount of monthly payroll. Joseph engaged in the scheme while on pretrial release for separate federal fraud-related offenses in the District of New Jersey.
In addition to her prison sentence, Joseph was ordered to serve three years of supervised released and pay $1,612,837.78 in restitution and $55,000 in forfeiture.
In total, 30 people have been charged for their participation in this scheme in the Southern District of Florida, Northern District of Ohio, and Middle District of North Carolina. All 30 of those defendants have been convicted.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
The IRS-CI and SBA-OIG investigated the case.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
New York Man Sentenced for Straw Purchasing and Unlawfully Possessing FirearmsRead the Press Release
NORFOLK, Va. – A Brooklyn, New York, man was sentenced today to 72 months in prison for being a felon in possession of a firearm and aiding and abetting a straw purchase firearm transaction, both part of a large gun trafficking conspiracy.
According to court documents, Joseph Alexander Johnson, 38, spearheaded an interstate straw purchasing and gun trafficking conspiracy in which members were responsible for the illegal purchase, sale, and transport of at least 43 firearms, including AR-type firearms loaded with large-capacity magazines, between Virginia and New York. He organized and led the conspiracy, managing every aspect of it. As a felon, he could not lawfully obtain or possess a firearm, so he instead recruited at least three straw purchasers, all young women with no criminal records, to buy them for him. Once the straw purchasers obtained the guns and transferred them to him or his co-defendant, Tysohn Stevens, 39, of Brooklyn, New York, Johnson marketed the illegally purchased firearms over Facebook to many felons and gang members throughout Brooklyn.
Stevens pleaded guilty to his role in the conspiracy and will be sentenced on February 24.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Christopher Amon, Acting Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorney William Jackson prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-64.
New Franklin Man Charged with Attempt to Engage in Sexual Activity with Minor and Child PornographyRead the Press Release
AKRON – A federal grand jury returned a three-count indictment charging Kevin Lewis Hedrick, 37, of New Franklin, Ohio, with attempting to coerce or entice a minor to engage in sexual activity and receiving and viewing child pornographic images.
According to the indictment, from August to October 2022, Hedrick used a cell phone in an attempt to coerce or entice a purported 14-year-old girl to engage in sexual activity with him through an adult intermediary. According to the indictment, the intermediary was an undercover officer posing as the mother of the child.
In addition, Hedrick is also charged with receiving and accessing numerous files of child pornography with an intent to view, including at least one image involving a minor under the age of 12.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland FBI, Akron Resident Agency. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
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Missouri Felon Admits Selling 7 Machine GunsRead the Press Release
CAPE GIRARDEAU – A man from Dunklin County, Missouri on Friday admitted selling seven devices that convert AR-15-style rifles into automatic weapons.
Lamad Cross, 24, of Kennett, Missouri, pleaded guilty in U.S. District Court in Cape Girardeau to one felony charge of unlawful transfer of a machine gun.
The investigation began on Jan. 21, 2022, when police in Cape Girardeau recovered a Glock pistol that had a “switch” installed that converted it to an automatic weapon, according to Cross’ guilty plea. Investigators then traced the Glock pistol to a person who admitted that they had bought the pistol for Cross, who as a convicted felon is barred from purchasing or possessing firearms.
A confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted Cross via social media and asked about Glock switches, expressing an interest in purchasing one. Cross instead offered a drop-in “auto sear” that converts an AR-15-style rifle into an automatic weapon, and on Sept. 19, 2022 said his girlfriend would deliver the auto sear. She then delivered the device in exchange for $800. Cross later said he would send videos showing the informant how to install the auto sear and said he could offer a lower price if the informant bought in bulk.
On Sept. 27, 2022, Cross met with the informant in Cape Girardeau and sold three drop-in auto sear devices for $650 each. Cross also said that he was thinking about obtaining AR-15s so he could sell them with the auto sears installed.
On Oct. 12, 2022, Cross agreed to sell three more drop-in auto sears for a total of $1,900, and used a different woman to deliver them to an undercover ATF agent.
Glock switches and auto sears, even if not installed in a firearm, are considered machine guns under federal law.
Cross is scheduled to be sentenced May 4. Each charge carries a penalty of up to 15 years in prison, a $250,000 fine, or both.
During a January 5 press conference in St. Louis, local and federal officials warned of an increase in the recovery and use of Glock switches and auto sears, which make firearms difficult to control and “inherently dangerous.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Missouri Couple Plead Guilty After Unlawfully Obtaining COVID-19 Jobless BenefitsRead the Press Release
CHARLESTON, W.Va. – A St. Charles, Missouri, couple pleaded guilty today after unlawfully obtaining $26,917 in unemployment benefits provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program.
Rhonda Notgrass, 45, pleaded guilty to theft of government property, and Robert Notgrass, 51, pleaded guilty to aiding and abetting the theft of government property.
The CARES Act provided for a temporary emergency increase in unemployment compensation benefits, referred to as the Federal Pandemic Unemployment Compensation Program (FPUC). The CARES Act also created the PUA program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. The FPUC and PUA programs are collectively referred to as pandemic unemployment benefits and even though these benefits are administered by the states, they are funded in part by the federal government.
The couple resided in Washington, West Virginia, when Robert Notgrass was employed as a pastor of a local church from before January 1, 2018, until he was released from his position on June 1, 2020. On August 15, 2020, Rhonda Notgrass applied for pandemic unemployment benefits with WorkForce West Virginia, the agency that administers the pandemic unemployment benefits for West Virginians. Rhonda Notgrass falsely claimed that she was unemployed as a direct result of a pandemic or major disaster. Robert Notgrass helped his wife complete the application and submitted a letter on her behalf in furtherance of the false claim.
On September 16, 2020, Rhonda Notgrass received a pandemic unemployment benefits payment from WorkForce West Virginia that included federal monies from the CARES Act. Rhonda Notgrass admitted that she received approximately $14,150 in pandemic unemployment benefits that she further admitted she knew she was not entitled to receive. Robert Notgrass admitted to wrongly receiving $12,767 in pandemic unemployment benefits.
Rhonda Notgrass and Robert Notgrass are scheduled to be sentenced on May 18, 2023. Each faces a maximum penalty of one year in prison, one year of supervised release, and a $100,000 fine. Rhonda Notgrass and Robert Notgrass each agree that they owe restitution totaling $26,917.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Labor - Office of Inspector General (OIG) and WorkForce West Virginia.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Kathleen Robeson is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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. 2:23-cr-16 and 2:23-cr-17.
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Minnesota Man Charged with Tax and Wire FraudRead the Press Release
A federal grand jury in St. Paul returned an indictment yesterday charging a Minnesota man with assisting in the preparation of false income tax returns and wire fraud.
According to the indictment, from 2014 to 2018, Beau Wesley Gensmer, of Prior Lake, owned a purported consulting company and, starting in 2014, hired a tax return preparer in Anchorage, Alaska, to prepare and electronically file federal income tax returns for members of the Shakopee Mdewakanton Sioux Community, the Native American tribe that owns Mystic Lake and Little Six Casinos outside of Minneapolis. Gensmer allegedly convinced tribal members to hire him to assist in the preparation and filing of their tax returns. The indictment alleges that Gensmer then emailed the Alaskan return preparer false information she used to prepare income tax returns for the tribe members that claimed fraudulent business losses and charitable contributions. The materially false entries allegedly resulted in tax refunds that averaged more than $100,000 for each client. Gensmer’s scheme allegedly involved numerous false income tax returns, for which he received approximately 30% of each inflated tax refund. In total, Gensmer is alleged to have caused a tax loss to the IRS of more than $1.5 million.
The defendant will appear before a U.S. Magistrate Judge for the District of Minnesota for his initial court appearance. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud and 3 years in prison for each false tax return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and United States Attorney Andrew M. Luger for the District of Minnesota made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ahmed Almudallal and Dominick Giovanniello of the Justice Department’s Tax Division and are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Drug Trafficking Organization Sentenced to Prison for Role in Large Methamphetamine Distribution ConspiracyRead the Press Release
LAS VEGAS – A member of the Pomona Sur Lokotes (PSL) drug trafficking organization was sentenced Tuesday by U.S. District Judge Kent J. Dawson to 14 years in prison followed by five years of supervised release for his leadership role in trafficking large quantities of methamphetamine from California and Mexico to Nevada.
Luis Arellano, aka “Lewis Arellano” and “Laughter,” (31) pleaded guilty in September 2022 to conspiracy to distribute a controlled substance.
According to court documents, in December 2019, law enforcement began investigating Arellano and other members of PSL. The evidence showed that Arellano was responsible for distributing over 4.5 kilograms of methamphetamine, a Schedule II controlled substance, in Las Vegas. He also directed other members to import methamphetamine from California and Mexico to Las Vegas.
Co-defendants Jacqueline Martinez (31) pleaded guilty and was sentenced to 78 months in prison; Amelio Che Medina (45) pleaded guilty and was sentenced to 97 months in prison; Anna Barrios (34) pleaded guilty and was sentenced to 90 months in prison; and Victor Manuel Rodriguez, aka “Smokey” (39) pleaded guilty and was sentenced to 100 months in prison. Co-defendants Ivan Salazar, aka “Evil,” (40) and Domingo Montes, aka “JR,” (36) pleaded guilty and await sentencing.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI’s Safe Streets Gang Task Force and Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Kimberly Sokolich prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Mayville Man Charged with Sex Trafficking of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that William A. Quinones, 48, of Mayville, NY, was arrested and charged by criminal complaint with transportation of a minor with intent to engage in criminal sexual activity and sex trafficking of a minor. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in July 2021, the Chautauqua County Sheriff's Office received a complaint that Quinones had been sexually abusing two children over the past eight years. A subsequent investigation identified a total of four minor victims.
According to the criminal complaint, during interviews with investigators, the victims stated that Quinones raped or attempted to rape and sexually abused them. Quinones threatened them with violence or threatened to hurt their families if they disclosed what he was doing. The complaint states that Quinones had regular sexual contact with one minor victim beginning when she was eight years old, as often as three to four times each week. The minor victim told investigators that Quinones started paying her in exchange for sexual contact, beginning when she was 13 years old until age 16 years old. On one occasion, Quinones took her to Erie, PA, to pick up drugs. Prior to returning home, Quinones stopped at a motel to engage in sexual intercourse. During the course of the sexual abuse, Quinones repeatedly raped and physically abused her.
Quinones made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was ordered held following a detention hearing.
“Defendants who engage in the intentional harm of individuals, by forcing those individuals into actions they would not have otherwise engaged in, must be held accountable,” stated U.S. Attorney Ross. “While January is Human Trafficking Awareness Month, each and every day we must continue to create awareness of both sex and labor trafficking, which often victimize those who are most vulnerable, and negatively impact our communities. My office will continue to work with law enforcement to investigate and prosecute those who engage in this form of modern-day slavery.”
“These crimes tear at the foundation of our communities and victimize the most vulnerable members of our society,” said Matthew Scarpino, HSI Buffalo Special Agent-in-Charge “Our agents and victim assistance specialists will continue to seek justice for these victims and hold child predators accountable.”
The complaint is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Maryland Felon Sentenced to 18 Months in Federal Prison for Fraudulently Obtaining More Than $419,000 in COVID-19 CARES Act Loans While on Probation for a Previous Federal ConvictionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah J. Boardman sentenced Sherrie Lynne Bryant, age 55, of Bowie, Maryland, yesterday to 18 months in federal prison, followed by three years of supervised release, for wire fraud, relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications, and for violating her probation from a previous federal conviction for obstruction of an audit.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Financial assistance offered through the CARES Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, and Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations, both administered through the Small Business Administration (SBA). An EIDL advance did not have to be repaid, and small businesses could receive an advance of up to $10,000, even if they were not approved for an EIDL loan.
According to her plea agreement, Bryant was the managing member of NOW LLC. The company’s stated purpose was to “provide mentoring, education and training to underserved populations. Also, to provide vocational rehabilitation and mental health support services to: children, youth and adults.” In reality, NOW LLC has been awarded contracts for “janitorial services” for Amtrak at the New Carrollton, Maryland and Baltimore-Washington International Airport Amtrak stations. They have also applied for SBA loans through various programs and cited their business as “construction and contractors.” A review of checks from NOW LLC’s operating account indicate that they may be outsourcing janitorial work to subcontractors.
On March 30, 2020, Bryant submitted an EIDL loan application for $89,500, which falsely stated that NOW LLC earned approximately $475,610 in gross revenues during the prior 12 months and incurred cost of goods sold of $276,614 during the same time frame. Further, Bryant falsely answered “No” to the question concerning whether she had been convicted…or been placed on any form of parole or probation. In fact, Bryant was on probation for a previous federal conviction at the time she submitted the application.
As detailed in the plea agreement, Bryant received a $10,000 EIDL advance and was subsequently approved for, and received, loan proceeds of $89,400. On April 22, 2021, Bryant submitted a request for a modification of the EIDL, specifically, approval to increase the loan amount to $388,000, based on the certifications in her prior EIDL application. The loan increase was approved and on June 28, 2021, Bryant received additional loan proceeds of $298,500.
In the meantime, on April 28, 2020, Bryant also applied for, and subsequently received, PPP loan proceeds totaling $21,200. Bryant again falsely responded to the question that asked, “within the last five years, for any felony, has the Applicant…(1) been convicted; (2) pleaded guilty; (3) pleaded nolo contendere; (4) been placed on pretrial diversion; or (5) been placed on any form of parole or probation (including probation before judgment)?” Bryant answered “No” to that question, knowing that she was on federal supervised release at the time the application was submitted.
Bryant admitted that she fraudulently obtained at least $419,100 in COVID-19 CARES Act loan proceeds. Bryant misappropriated a portion of the funds for her personal use, including paying for her car and a boat, paying for a vacation, and paying for tickets to sporting events.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the IRS-CI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Joseph Wenner, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Milwaukee Man Sentenced to Five Years in Federal Prison for Kenosha ArsonRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 27, 2023, United States District Judge J.P. Stadtmueller sentenced Esmond King (age: 33) to 60 months in federal prison for arson of a building used in interstate commerce, in violation of Title 18, United States Code, Section 844(i). King, who entered a guilty plea to the offense last year, also will spend three years on supervised release following his prison term and will be required to pay over $271,000 in restitution related to the property damage caused by his offense.
According to court filings, King broke into Mary’s Beauty Salon in Kenosha, Wisconsin, during the early morning of September 11, 2021. While inside, King used a combustible aerosol to ignite a fire inside the office within the salon. Officers arrested King as he exited the salon and brought him to the Kenosha Police Department for processing. The Kenosha Fire Department responded to the scene and was able to extinguish the fire. However, the fire and smoke had damaged not only significant portions of the salon but also businesses that shared the same building. While King was being taken into custody, he threatened to kill officers and their families.
“There is no excuse for the reckless and wanton destruction of property of innocent citizens and business owners,“ stated U.S. Attorney Haanstad. “The U.S. Attorney’s Office remains committed to working with our law enforcement and community partners to protect all who live and work in the Eastern District of Wisconsin.”
“The investigation and prosecution of this individual as well as the sentence imposed illustrates the seriousness of this crime,” said Acting ATF Special Agent in Charge of the Chicago Filed Division Jeffrey L. Matthews. “ATF stands shoulder to shoulder with our law enforcement partners and the United States Attorney’s office to ensure those responsible are held accountable.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) Chicago Field Division investigated the case, assisted by the Kenosha Police Department and Kenosha Fire Department and it was prosecuted by Assistant United States Attorney Peter Smyczek.
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For Additional Information Contact:
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Man Sentenced to 120 Months for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Matthew Hazel, 31, was sentenced on January 27, 2023 to 120 months’ imprisonment followed by five years of supervised release for conspiracy to possess with intent to distribute cocaine. District Court Chief Judge Robert Molloy also sentenced Hazel to 60 months’ imprisonment followed by three years of supervised release for possession of a firearm by a prohibited person, with both sentences to run concurrently. Hazel must also pay a $200 special assessment.
On August 18, 2022, Hazel pleaded guilty to conspiracy to possess with intent to distribute cocaine and possession of a firearm by a prohibited person in connection with a drug deal that occurred at the Havensight Mall on St. Thomas. According to court documents, on October 13, 2021, a Drug Enforcement Administration (DEA) Confidential Source (CS) arranged to purchase 25 kilograms of cocaine for $312,000. On October 14, 2021, at approximately, 4:01 PM, agents and the CS arrived at the Havensight Mall, which was the agreed-upon location, for the CS to purchase the cocaine. Hazel was one of several individuals who arrived at the scene. Hazel arrived driving a black G35 Infiniti sedan, which bore no license plate. Upon arrival on the scene, Hazel spoke with a couple of men before he exited the G35 Infiniti as the trunk of the vehicle sprung open. Agents then observed Hazel and the CS at the rear of the G35 looking into the trunk. Moments later, agents observed Hazel close the trunk as the CS gave a signal to the agents, confirming the presence of the suspected cocaine in the G35 Infinity.
Agents arrested Hazel and the other men. After the arrest, agents recovered approximately 25 brick-like packages of suspected cocaine from the trunk of the G35 Infinity and one loaded semi-automatic Walther Arms handgun, which was on the driver’s seat.
This case is being investigated jointly by the DEA, Homeland Security Investigations, Air Marine Operations, Bureau of Alcohol Tobacco, Firearms and
Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorneys Melissa Ortiz and Meredith Edwards.This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Loveland Man Charged and Detained in Connection with Arson Church FireRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Darion Ray Sexton, age 21, of Loveland, has been arrested and charged by criminal complaint with causing damage to a Loveland Church by fire. Sexton was ordered detained today pending trial by United States Magistrate Judge James P. O’Hara. Sexton had been arrested and charged in a criminal complaint filed on January 23, 2023.
According to allegations in the criminal complaint, in the late evening of January 19, 2023, law enforcement responded to an active fire at church in Loveland, Colorado. First responders extinguished a fire at the front door of the church and then found evidence of another fire in the church basement, which appeared to have been extinguished by the emergency sprinkler system. A broken glass bottle was recovered from the front door near the fire, and the area smelled like gasoline. In the basement, another broken bottle was found, along with a partially melted plastic bottle. Analysis from the ATF indicated that the areas of fire damage were separate and concluded there were multiple areas of fire origin. A doorbell camera at the church captured a masked individual throwing a “Molotov-cocktail”-type destructive device at the church’s front door. Footprints in the snow near the church led to a neighborhood and to the defendant’s residence. Law enforcement later found a plastic bottle at the defendant’s home that was similar to the plastic bottle found in the church basement. Additionally, law enforcement reviewed video from a Loveland liquor store two days prior to the fire showing a man who appears to be the defendant purchasing liquor bottles similar to the broken glass bottles found at the church.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Loveland Police Department. Assistant United States Attorney Bryan Fields is handling the prosecution.
The charge in the complaint is an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-mj-00026
Leader of Guatemalan Drug Trafficking Organization that Smuggled Multi-Ton Quantities of Drugs Sentenced to 17.5 YearsRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
SAN DIEGO – Willian Estuardo Lemus-Lara, aka “Humilde,” a high-level cartel boss from Guatemala, was sentenced in federal court today to 210 months in federal prison.
According to public documents, Lemus-Lara was identified as the leader of a transcontinental criminal organization that moved multi-ton quantities of cocaine from South America via maritime smuggling routes to Guatemala and ultimately to conspirators in northwest Guatemala and Mexico, who in turn imported that cocaine into the United States.
Lemus-Lara, 51, was the head of the organization, and despite the best efforts of the United States to stymie his cocaine operation, he was a prolific trafficker. As the government described in its sentencing papers, a five-day snapshot of his operation gave unparalleled insight into Lemus-Lara’s cocaine trafficking prowess. During a five-day span in May 2017, Lemus-Lara coordinated and oversaw a smuggling venture involving four cocaine-laden vessels. Through this investigation, three of those vessels were interdicted by the U.S. Coast Guard and the Guatemala FEN, which is Guatemala’s Naval Special Forces. The vessels had between 810-914 kilograms of cocaine each. A fourth boat made it through and delivered 814 kilograms of cocaine to Lemus-Lara and his organization.
Lemus-Lara was targeted as part of a long-term joint investigation led by Homeland Security Investigations and the Drug Enforcement Administration. The investigation has led to the indictment and extradition of several high-level South and Central American drug traffickers, including several, like Lemus-Lara, from Guatemala.
“This office is committed to aggressively pursuing leaders of drug trafficking organizations who use international waters as a corridor to smuggle cocaine to the United States,” said U.S. Attorney Randy Grossman. “Today’s sentence marks the culmination of years of efforts by agents and prosecutors to keep those who flood the United States with drugs accountable for their actions.”
Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.
“This sentencing of Lemus is the culmination of years of collaborative efforts between HSI, DEA, the U.S. Attorney’s Office and government of Guatemala,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations (HSI) San Diego. “The joint effort has significantly impacted this international criminal organization’s ability to import dangerous drugs into the United States.”
“International drug trafficking organizations are driving addiction and overdose deaths in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “Today’s sentencing of Lemus-Lara is a win for DEA and our law enforcement partners. We are committed to stopping these organizations from bringing large quantities of drugs into our country and holding their leaders accountable.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANTS Case Number 18CR0390-DMS
Willian Lemus-Lara Age: 51 Guatemala
SUMMARY OF CHARGES
Count 1- Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel –
Title 46, U.S.C., Section 70503, 70506(b)
Maximum Penalty: Life in prison and $10 million fine
Count 2 - International Conspiracy to Distribute Controlled Substances –
Title 21, U.S.C., Sections 959, 960, 963Maximum Penalty: Life in prison and $10 million fine
AGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice, Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Joint Task Force-Investigations (JTF-I)
Joint Interagency Task Force-South (JIATF-S)
Las Vegas Resident Sentenced to Prison for Child Sexual ExploitationRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by U.S. District Judge James C. Mahan to 24 years and four months in prison followed by lifetime supervised release. In June 2022, a jury convicted Barry Allen Gabelman (52) of coercion and enticement. Under the Sex Offender Registration Notification Act, Gabelman is required to register as a sex offender after completion of his prison term.
According to court documents, from October 31 to December 6, 2019, Gabelman exchanged sexually explicit messages and photos via social media and a messaging account with individuals whom he believed to be an 11-year-old girl and her stepfather. During their communications, Gabelman discussed having sex with the girl, requested nude images of the girl, and sent the girl photos of his genitals. On December 6, 2019, he traveled to a pre-arranged location in Las Vegas intending to have sex with the girl, but instead he was arrested by law enforcement.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Bianca Pucci and Supriya Prasad prosecuted the case.
The 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 Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-843-5678, or https://report.cybertip.org.
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Las Vegas Man Sentenced to Prison for Distribution of Fentanyl Resulting in DeathRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Monday by U.S. District Judge Richard F. Boulware II to 10 years in prison followed by 15 years of supervised release for distributing counterfeit pills laced with fentanyl, that resulted in the death of another person.
Gabriel Ulloa (30) pleaded guilty in May 2022 to distribution of a controlled substance.
According to court documents, in June 2020, Ulloa sold three counterfeit M-30 oxycodone pills that contained fentanyl. Ulloa’s phone records indicated that he was aware he was selling counterfeit pills. A 27-year-old man – who believed he was buying oxycodone pills from Ulloa – died as result of ingesting the fentanyl-laced pills.
Fentanyl – a Schedule II controlled substance – is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose. In 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
United States Attorney Jason M. Frierson for the District of Nevada, Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office, and Acting Special Agent in Charge Christopher M. Miller for HSI Las Vegas made the announcement.
The DEA, HSI, Las Vegas Metropolitan Police Department Major Violators Narcotics Crimes Bureau, Overdose Response Team, and the Henderson Police Department investigated the case. Assistant U.S. Attorney Kimberly Sokolich prosecuted the case.
This case was part of the Southern Nevada’s High Intensity Drug Trafficking Areas program that enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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Las Vegas Dentist Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
A Nevada-licensed dentist pleaded guilty yesterday to willfully failing to pay over employment taxes withheld from employees of his Las Vegas practice.
According to court documents, Timothy Wilson of Phoenix, Arizona, was a Nevada-licensed dentist who owned and operated Starsmiles Children’s Dentistry, LLC, a pediatric dental practice with offices located in North Las Vegas and Las Vegas. As the sole owner of Starsmiles, Wilson was responsible for collecting and paying over to the IRS the income, Medicare, and Social Security taxes withheld from the wages paid to Starsmiles’ employees. From 2011 through 2014, Wilson withheld these taxes from his employees’ wages but did not to pay the withholdings to the IRS. In total, Wilson caused a tax loss of $289,654.63.
Wilson is scheduled to be sentenced on April 24, 2023, and faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department’s Tax Division are prosecuting the case.
Las Vegas Dentist Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
LAS VEGAS – A Nevada-licensed dentist pleaded guilty yesterday to willfully failing to pay over employment taxes withheld from employees of his Las Vegas practice.
According to court documents, Timothy Wilson, of Phoenix, Arizona, was a Nevada-licensed dentist who owned and operated Starsmiles Children’s Dentistry, LLC, a pediatric dental practice with offices located in North Las Vegas and Las Vegas. As the sole owner of Starsmiles, Wilson was responsible for collecting and paying over to the IRS the income, Medicare, and Social Security taxes withheld from the wages paid to Starsmiles’ employees. From 2011 through 2014, Wilson withheld these taxes from his employees’ wages but did not pay the withholdings to the IRS. In total, Wilson caused a tax loss of $289,654.63.
Wilson is scheduled to be sentenced on April 24, 2023, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department’s Tax Division are prosecuting the case.
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King of Prussia Woman Sentenced to 12 Years in Federal Prison for Drug Trafficking and COVID FraudRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Denise Brown was sentenced yesterday to 144 months in prison for conspiracy to distribute heroin and fentanyl and 60 months for submitting a false claim to the Small Business Administration (SBA), to run concurrently. Brown was also ordered to pay $10,000 in restitution to the SBA. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents and statements made in open court, Denise Brown, age 40, was a leader of the Jamar Jackson drug trafficking organization responsible for distributing large quantities of drugs, sourced from Mexican cartels, throughout Delaware and the surrounding region. Brown managed the day-to-day drug business, setting up the DTO’s drug milling and packaging operations in Bear, Delaware and King of Prussia, Pennsylvania, recruiting other members of the conspiracy, and directing drug sales. Brown was ultimately arrested at her King of Prussia home on September 23, 2020. Upon searching Brown’s home, law enforcement found thousands of packets of fentanyl-laced heroin, bulk quantities of heroin and fentanyl, and over $120,000 in cash.
In June 2020, Brown also submitted a fraudulent application to the SBA seeking COVID-19 relief funds through the Economic Injury Disaster Loan program. Based on this this application, the SBA deposited $10,000 into the defendant’s bank account.
U.S. Attorney Weiss stated, “Yesterday, the Court justly held Denise Brown accountable for her crimes. By trafficking large quantities of drugs from Mexico and distributing deadly fentanyl into our communities, the defendant put lives at risk. She also took advantage of government program designed to provide economic relief during the COVID-19 pandemic. This sentence sends a message that those who aspire to profit from illegal activity – whether through drug distribution or fraud – will face significant punishment.”
“Yesterday’s sentence demonstrates the unwavering resolve of law enforcement to protect our community and economy against criminals engaged in drug trafficking and fraud,” said William S. Walker, Special Agent in Charge of the Homeland Security Investigations (HSI) Philadelphia office. “Through exceptional collaborative efforts, HSI and our partners aggressively identified and investigated the criminal activity in this case. This sentencing is proof positive that those who commit such crimes will be held accountable for their actions.”
U.S. Postal Inspection Service (USPIS) Acting Inspector in Charge, Raimundo Marrero, added that, “Denise Brown help lead an organized, multi state, illegal narcotics distribution organization. That organization distributed large quantities of dangerous drugs, including heroin and fentanyl, that destroy our communities. She will face many years in jail which will hopefully serve as a warning to others; these drugs destroy and if you get involved in their distribution, you run the risk of spending many years in prison. I want to thank our law enforcement partners and the United States Attorney’s Office for the hard work pulling this case together.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “IRS-CI will continue to work with our law enforcement partners by following the money and leveraging our resources.”
Assistant U.S. Attorney Meredith C. Ruggles prosecuted the case along with former Assistant U.S. Attorneys Christopher L. de Barrena-Sarobe and Whitney Cloud. This case was investigated by HSI and USPIS, with assistance from IRS-Criminal Investigation Division, Delaware State Police, Pennsylvania State Police, and local law enforcement partners.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-CR-00084 (Jamar Jackson et al.) and Case No. 20-CR-00075 (Castro Valenzuela).
Kennewick Man Sentenced to 42 Months in Federal Prison for Obstructing an Official Proceeding, Lying to the FBI, and Staging Automobile AccidentRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Ali Abed Yaser, age 52 of Kennewick, Washington, was sentenced after having pleaded guilty to conspiracy to obstruct an official proceeding, making false statements to the FBI, conspiracy to commit mail and wire fraud, conspiracy to commit healthcare fraud, and two counts of mail fraud. United States District Judge Mary K. Dimke sentenced Yaser to a 42-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Judge Dimke also ordered Yaser to pay restitution in the amount of $126, 990 and forfeiture of $19,978. At sentencing, Judge Dimke observed that Yaser engaged in a “concerted and dedicated effort to undermine the credibility of” the FBI and his actions “undermined the reputation of that agency and the community’s ability to have trust and faith in the justice system as a whole.”
According to court proceedings, in February 2019, the FBI opened an official investigation into allegations that Yaser and others were involved in a scheme to defraud insurance companies and obtain money and property by staging automobile accidents, and filing false and fraudulent claims with insurance companies. As part of the investigation, the FBI used a confidential human source (CHS) who covertly recorded conversations with individuals suspected of being involved in the staged accident scheme. The CHS provided information to the FBI regarding violations and suspected violations of the Federal criminal laws.
In May 2020, the FBI executed warrants to search residences in Washington and California for evidence of federal crimes. Shortly afterward, Yaser told the CHS to be careful because Yaser suspected someone was an FBI informant. Yaser told the CHS that he learned that the individual Yaser suspected was an FBI informant recently visited the CHS. Yaser admonished the CHS for not calling him when that individual visited the CHS. Yaser told the CHS he would have come to his residence, closed the garage door, shut off the security system cameras, and killed the individual Yaser suspected was the FBI informant. Yaser added, “they would not have recognized his face from his foot.” Yaser encouraged the CHS to call the person Yaser thought was the FBI informant and to convince the person to meet with Yaser at his residence.
A few days later, Yaser met with the CHS and discussed his plan to file a false, fictitious, and fraudulent complaint against the FBI case agent and the suspected FBI informant. Yaser also sought to persuade others to support his plan to make false allegations against the FBI case agent and the other individual. Yaser stated, “When we make [the suspected informant] wear the handcuffs, we will be sending him away from the field, keep him on the sideline.” Yaser also stated, “After I screw [the suspected informant], a week later I would go to [the FBI] again and say to them, Protect me. Protect my children. I need protection for myself and my children, and that Al-Mahdi Army militias are threatening my family in Iraq. I would put [the suspected informant] in such a mess he would never get out of.”
Yaser instructed the CHS to audio record the suspected informant so Yaser could tamper with the recording and play a tampered version for police. Yaser told the CHS, “I want to record his words. There are words I want to pick out. So, If I am at a spot, I will play them to the police. I would say when he came to me here, I became afraid and thought he must have something bad, and I was afraid of him, and I put the recorder for him.”
In late August 2020, Yaser discussed fabricating a story for local local police and the FBI to further his scheme to discredit the case agent and the individual Yaser suspected was an FBI informant. Yaser’s plan was to make them unavailable as witnesses, to get the FBI agent removed from the case and to impede proceedings against Yaser. Yaser stated in sum and substance, “We will file a complaint with the police and the police will forward it to [FBI]” and “[t]he police will turn it upside down on them, it won’t take half an hour and it would reach them.”
In September 2020, when interviewed by FBI, Yaser and codefendant Mohammed Naji Al-Jibory falsely accused the FBI case agent and the individual they suspected of being an FBI informant of soliciting approximately a $20,000 bribe from Yaser to make the case go away. In doing so, Yaser and Al-Jibory engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication to these officers and a federal judge of information relating to the commission and possible commission of federal crimes. Yaser and Al-Jibory also attempted to corruptly obstruct, influence, and impede, and attempt to obstruct, influence, and impede an official proceeding, that is, a federal grand jury proceeding and the federal criminal case against him.
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington said, “Staged accidents make our streets dangerous and distract police from responding to legitimate distress calls. Moreover, efforts to hinder federal criminal proceedings will not be tolerated. We will continue to work closely with out federal and state law enforcement, and private industry, partners to investigate fraud schemes. I am grateful to the tremendous investigative agents and Assistant United States Attorney George Jacobs, who spent substantial time and resources to ensure that our community continues to be safe and strong, and that individuals who perpetrate these types of complex schemes are held accountable.”
“When faced with the discovery of his fraud scheme, Mr. Yaser doubled down,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Despite his efforts to discredit law enforcement, the full extent of his crimes was revealed and thwarted. I am thankful for the hard work of our investigators and partners to hold Mr. Yaser accountable for his actions.”
This case was investigated by the Federal Bureau of Investigation, the United States Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington. Dominique J. Park, a former Assistant United States Attorney for the Eastern District of Washington, also participated in the investigation and indictment of this case.
4:21-CR-6042-MKD-1
Justice Department Announces Charges and New Arrest in Connection with Assassination Plot Directed from IranRead the Press Release
A federal court in New York today unsealed murder-for-hire and money laundering charges against three members of an Eastern European criminal organization for plotting the murder of a U.S. citizen who has been targeted by the Government of Iran for speaking out against the regime’s human rights abuses.
According to court documents, Rafat Amirov, aka Farkhaddin Mirzoev, aka Pᴎᴍ, aka Rome, 43, of Iran; Polad Omarov, aka Araz Aliyev, aka Polad Qaqa, aka Haci Qaqa, 38, of the Czech Republic and Slovenia; and Khalid Mehdiyev, 24, of Yonkers, New York, are charged with money laundering and murder-for-hire in a superseding indictment unsealed today in the Southern District of New York. Amirov, who resides in Iran, arrived in the Southern District of New York on Jan. 26, and will be arraigned on charges before Magistrate Judge Sarah L. Cave today. Mehdiyev was arrested on July 29, 2022, on charges contained in an underlying criminal complaint and will be arraigned on the charges in the superseding indictment before the Honorable Colleen McMahon on Jan. 31, 2023, at 4 p.m. ET. Omarov was arrested in the Czech Republic on Jan. 4, 2023, and the United States will request his extradition on the charges in the superseding indictment.
“The Victim in this case was targeted for exercising the rights to which every American citizen is entitled. The Victim publicized the Iranian Government's human rights abuses; discriminatory treatment of women; suppression of democratic participation and expression; and use of arbitrary imprisonment, torture, and execution,” said Attorney General Merrick B. Garland. “The Department of Justice will not tolerate attempts by an authoritarian regime to undermine those protections and the rule of law upon which our democracy is based. We will not tolerate attempts by a foreign power to threaten, silence, or harm Americans. We will stop at nothing to identify, find, and bring to justice those who endanger the safety of the American people.”
“Today’s indictment exposes a dangerous menace to national security – a double threat posed by a vicious transnational crime group operating from what it thought was the safe haven of a rogue nation: Iran,” said Deputy Attorney General Lisa O. Monaco. “As national security and criminal threats continue to blend, the Department of Justice will use all its tools to zealously protect freedom and hold accountable all those who would use violence to undermine it.”
“The indictment unsealed today reflects the FBI’s commitment to follow the facts wherever they lead, to work our way up to the leaders of criminal plots wherever they are, and to use our long reach to bring those responsible here to face justice in the United States,” said FBI Director Christopher Wray. “The conduct charged shows how far Iranian actors are willing to go to silence critics, even attempting to assassinate a U.S. citizen on American soil. We are determined to safeguard the rights of all Americans from the oppressive reach of hostile regimes.”
“Today’s charges underscore the Department’s commitment to protecting Americans and our fundamental values in the face of all forms of transnational repression,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “To foreign actors who plot violence on our soil believing they are out of our reach, know that we will pursue you, wherever you may be, until we deliver justice.”
“As alleged, the defendants are members of an organized crime group hired to assassinate, right here in New York City, a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy and its disregard for human rights,” said U.S. Attorney Damian Williams for the Southern District of New York. “This is the second time in the past two years that this office and our partners at the FBI have disrupted plots originating from within Iran to kidnap or kill this victim for the ‘crime’ of exercising the right to free speech, to independent political thought, and to advocating for the rights of the oppressed and disenfranchised inside Iran. Thanks to the extraordinary efforts of the career prosecutors and FBI agents who led the investigation, this new plot to silence the victim has been disrupted and the defendants will face justice in an American court.”
According to the allegations contained in the superseding indictment, other court filings, and statements made during court proceedings:
Amirov is a leader in an Eastern European criminal organization (the Organization) who resides in Iran. Omarov also holds a leadership role in the Organization and resides in Eastern Europe. Mehdiyev, a member of the Organization, resides in Yonkers, New York. The Organization has ties to Iran and is violent, engaging in murders, kidnappings, assaults, and extortions, and members typically identify themselves with tattoos and other displays of eight-pointed stars.
Since at least July 2022, the Organization was tasked with carrying out the murder of a U.S. citizen of Iranian origin (the Victim), who previously has been the target of plots by the Government of Iran to intimidate, harass and kidnap the Victim. The Victim is a journalist, author and human rights activist, residing in Brooklyn, New York, who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the United States for rendition to Iran in an effort to silence the Victim’s criticism of the regime. That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in United States v. Farahani, et al., 21 Cr. 430.
About one year after the Farahani charges were filed, the Organization was tasked with carrying out the Victim’s assassination on U.S. soil. Beginning in approximately mid-July 2022, Amirov sent targeting information – which Amirov had received from other individuals in Iran – about the Victim and the Victim’s residence to Omarov. Omarov, in turn, communicated the targeting information to Mehdiyev in order to begin conducting surveillance of the Victim and reconnaissance of the Victim’s residence and surrounding neighborhood. Mehdiyev sent photographs and videos of the Victim’s residence to Omarov for further sharing with Amirov and the plot’s orchestrators in Iran.
After Mehdiyev’s initial surveillance of the Victim’s residence, Amirov and Omarov arranged for the delivery of a $30,000 cash payment to Mehdiyev in New York City in furtherance of the plot. Mehdiyev used a portion of this cash payment to buy an AK-47-style assault rifle along with two magazines for ammunition and at least 66 rounds. Mehdiyev bragged in electronic communications that he had procured for himself a “war machine.”
Between July 20 and 28, 2022, Mehdiyev repeatedly traveled to the Victim’s neighborhood to conduct surveillance and reconnaissance, sending reports of the Victim’s activities, photographs, and videos to Omarov for further distribution to Amirov. On July 24, 2022, after arriving at the Victim’s residence, Mehdiyev reported to Omarov that Mehdiyev was “at the crime scene.” Omarov encouraged Mehdiyev, “You are a man!” Mehdiyev described to Omarov that “we blocked it from both sides, it will be a show once she steps out of the house.” Omarov forwarded this report to Amirov, who responded, “God willing.”
Mehdiyev was unable to carry out the assassination that day and returned on several subsequent days to seek out opportunities to complete the murder mission. Amirov, Omarov and Mehdiyev schemed different strategies to attempt to draw the Victim out, including by attempting to ask the Victim for flowers from the Victim’s garden. On July 28, 2022, Mehdiyev sent Omarov a video taken from inside the car Mehdiyev was driving showing the assault rifle, along with the message that “we are ready.” The Victim, after observing suspicious activity outside the residence, left the area, and Mehdiyev drove away shortly afterwards. After Mehdiyev drove away from the Victim’s residence, he was stopped after a traffic violation, and during a subsequent search of the car, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.
Amirov, Omarov, and Mehdiyev are charged with: (1) murder-for-hire, which carries a maximum sentence of 10 years in prison; (2) conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison; and (3) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. Mehdiyev is additionally charged with possessing a firearm with an obliterated serial number, which carries a maximum sentence of five years in prison.
The FBI and its New York Field Office Counterintelligence-Cyber Division, the New York FBI Iran Threat Task Force, the New York FBI Counterintelligence Task Force and the New York FBI Joint Terrorism Task Force are investigating the case, with valuable assistance provided by the New York City Police Department (NYPD) and the NYPD Intelligence Bureau, as well as the Justice Department’s National Security Division and Office of International Affairs.
Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman for the Southern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Convicts Former U.S. Postal Service Clerk of Stealing Mail and Money OrdersRead the Press Release
LAS VEGAS – A jury convicted a former U.S. Postal Service clerk on Wednesday for stealing a customer’s mail and cashing the postal money orders worth over $2,300 that were inside.
Following a three-day trial, James Earl Magee, 32, of Las Vegas, was found guilty of theft of government money and mail theft by a postal employee. U.S. District Judge Gloria M. Navarro presided over the trial. Sentencing has been scheduled for April 25, 2023.
According to court documents and evidence presented during trial, between June 28, 2016 and July 6, 2016, Magee stole an envelope containing three money orders worth about $2,340.27 and cashed the money orders for his personal use.
The maximum statutory penalty for Theft of Government Money is 10 years’ imprisonment, a three-year period of supervised release, and a fine of $250,000. The maximum statutory penalty for Mail Theft by a Postal Employee is five years’ imprisonment, a three-year period of supervised release, and a fine of $250,000.
United States Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge London Mulcahy for the U.S. Postal Service - Office of Inspector General, Western-Pacific Area Field Office made the announcement.
The U.S. Postal Service - Office of Inspector General investigated the case.
Complaints regarding fraud, waste, and misconduct within the U.S. Postal Service involving employees and/or contractors, please file an online complaint form with the U.S. Postal Service – Office of Inspector General Hotline at: https://www.uspsoig.gov/form/file-online-complaint.
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Jamestown Woman Pleads Guilty for Her Role in Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Katie Calimeri, 30, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between 2019, and June 2022, Calimeri conspired with others to sell heroin, fentanyl, and methamphetamine for profit and for her own use. Calimeri utilized Facebook to conduct her drug trafficking activities, including making deals with associates, suppliers, and customers. On February 11, 2021, Calimeri sold heroin to an individual working with the Jamestown Metro Drug Task Force.
Co-defendant Rachelle Allison was previously convicted and is awaiting sentencing. Charges remain pending against co-defendants Ryan Bloom and Morales Sanchez.This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for July 21, 2023, at 9:00 a.m. before Judge Sinatra.
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Jamestown Man Pleads Guilty to Meth ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Luis Martinez, 51, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a fine of $5,000,000.
Assistant U.S. Attorneys Evan K. Glaberson and Michael J. Adler, who are handling the case, stated that in May and June of 2020, Martinez conspired with others to sell methamphetamine. On June 5, 2020, investigators executed a search warrant at a Water Street residence, recovering approximately 20 grams of cocaine, a loaded Glock, $3,534 in cash, 14 individually wrapped plastic bags containing a total of approximately 363 grams of methamphetamine, a kilo press, two digital scales, a number of cell phones and tablets, additional smaller bags of cocaine and methamphetamine, and other drug paraphernalia.
On June 10, 2020, investigators received information that Martinez had an outstanding parole warrant issued against him, at which time he was located in a vehicle on Price Street and taken into in custody. Law enforcement also recovered another $37,670 in cash behind a residence.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for May 31, 2023, at 10:00 a.m. before Judge Sinatra.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 27 was:
Brandi Marie Hiatt, 43, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Hiatt faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hiatt was released pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 23-02.
Appearing on Jan 26 was:
Tyler Ryan Stonebraker, 27, of Billings, on charges of prohibited person in possession of ammunition. If convicted of the most serious crime, Stonebraker faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Stonebraker was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Yellowstone County Sheriff’s Office investigated the case. PACER case reference. 23-11.
Loy Matthew Bryant, 51, of Lame Deer, on charges of sexual abuse of a minor and abusive sexual contact of a minor. If convicted of the most serious crime, Bryant faces a maximum of 15 years in prison, a $250,000 fine and a mandatory minimum five years to life of supervised release. Bryant was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-145.
Glen Fredrick Reitler, Jr., 42, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Reitler faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Reitler was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-10.
Appearing on Jan. 24 was:
Jaide Nicole Alexander, 28, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Alexander faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms crime. Alexander was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 23-20.
Brandi Alexandria Davitt, 33, a transient, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Davitt faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Davitt was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-130.
Appearing on Jan. 23 was:
Joshua Leon Hiestand, 41, a transient, on charges of stalking and harassing telephone calls. If convicted of the most serious crime, Hiestand faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Hiestand was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-122.
Drew Parker Seymour, 24, of Banning, California, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Seymour faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Seymour was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 22-138.
Charles Burchell, 48, of Billings, on charges of possession with intent to distribute meth, distribution of meth, prohibited person in possession of a firearm and dealing firearms without a license. If convicted of the most serious crime, Burchell faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Burchell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Division of Criminal Investigation investigated the case. PACER case reference. 23-03.
Carson Troy Tillet, 29, of Livingston, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Tillet faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Tillet was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 23-12.
Lianna Rose Collins, 41, of Livingston, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Collins faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Collins was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 23-04.
Kyle Richard Lewellen, 41, of Joliet, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Lewellen faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Lewellen was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference 23-07.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 26 was:
Rembrandt Carlos Kemp, 32, of Fridley, Minnesota, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Kemp faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Kemp was detained pending further proceedings. The Havre Police Department and Tri-Agency Task Force investigated the case. PACER case reference 22-86.
Porter James Hudshon, 23, of Tacoma, Washington, on charges of conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl. If convicted of the most serious crime, Hudshon faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Hudshon was detained pending further proceedings. The FBI, U.S. Postal Service, Roosevelt County Sheriff’s Office, Fort Peck Tribes Law and Justice Department and Bremerton, Washington, Police Department investigated the case. PACER case reference 22-94.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Havelock Man Sentenced to 7 ½ Years in Prison for Receiving Child PornographyRead the Press Release
WILMINGTON, N.C. – William McCoy was sentenced today to 90 months in prison for receipt of child pornography. McCoy, 26, pled guilty to the charge on July 27, 2022.
According to court documents and other information presented in court, on February 24, 2021, Investigators at Marine Corps Air Station Cherry Point received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding activity on Facebook Messenger. The user had been identified as William McCoy, who was then a lance corporal stationed at Cherry Point.
The CyberTip showed that in chats dated January 31, 2021, McCoy and 16-year-old female Victim-1 had discussed previously having sexual intercourse. McCoy referred to a video recording of the encounter and had instructed Victim-1 to watch a video.
On March 2, 2021, an NCIS agent obtained command authorization to search McCoy and his living space, including digital devices. Agents met McCoy at his commanding officer’s office and seized from McCoy’s person a Samsung Galaxy Note phone.
McCoy waived his rights and agreed to a video recorded interview. He stated he had dated Victim-1, who he claimed was 22 years old. He stated that they had been dating for six months and were sexually active. McCoy gave permission for his phone to be searched, and agents saw multiple sexually explicit photos of Victim-1, as well as a video in which McCoy and Victim-1 are masturbating together over the video chat application Google Duo. Agents found a phone number for Victim-1, who they contacted and confirmed was currently 17 years old. McCoy admitted that he lied about Victim-1’s age, that he found out her true age in November 2020, and that they had sexual intercourse in December 2020.
A digital forensic examiner reviewed McCoy’s Samsung Galaxy Note cellphone and found over 50 image files and 150 video files that appeared to depict Victim-1 in child exploitative poses. Of these, 11 images and 47 videos were confirmed to be child pornography based on content through which the subject could be identified as Victim-1 and therefore a minor. It is believed that all photos were of Victim-1; no other minors were identified within the photos.
Subsequent investigation determined that McCoy had solicited, and in some cases received, sexual photos from at least three other minor females who were connected to Victim-1. At the same time, McCoy sent photos and videos depicting his penis to minor females, and some were able to describe his military quarters to investigators.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. Naval Criminal Investigative Service (NCIS) investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.justice.gov/psc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-cr-00001-M.
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HSI San Juan Arrests 3 Men on Child Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico – In three separate cases, Homeland Security Investigations (HSI) special agents with the support of the Puerto Rico Department of Justice and the Puerto Rico Police Bureau arrested three men charged with production of child pornography, transportation of minors to engage in sexual criminal acts, coercion and enticement of minors and possession of child pornography, respectively.
According to court documents, from on or about July 2021 through on or about May 9, 2022, Fredis Cruz-Bonilla, 41, of San Juan, did knowingly persuade, induce, and coerce a female minor who had not attained the age of 18 years to engage in sexual activity for which a defendant could be charged with a criminal offense under the laws of the Unites States of America and Puerto Rico. Cruz-Bonilla was also charged with possession of child pornography.
In an unrelated case, HSI special agents arrested Luis E. Ojeda-Peña, 37, of San Juan. According to the indictment, from on or about July 9, 2022, through on or about August 2, 2022, Ojeda-Peña did knowingly persuade, induce, entice, and coerce a nine-year-old minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
In another case, HSI special agents arrested religious leader José Bermudez-Soler, 42, of Adjuntas. According to the indictment, from in or about June 2021 to in or about January 2022, the defendant persuaded, induced, enticed, and coerced a 14-year-old female minor to engage in sexual activity for which Defendant could be charged with a criminal offense. The indictment indicates that in July 2021, the defendant transported the female minor with the intent that the minor engage in sexual activity. The indictment also charges Bermudez-Soler with attempted production of child pornography.
Assistant United States Attorney Daynelle Álvarez, from the Child Exploitation and Immigration Unit, is prosecuting these cases.
“The sexual abuse of children is intolerable in civilized society, and victimizes the most innocent and vulnerable members of our community,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “We are committed to bringing the defendants in these cases to justice and protecting every child. I would like to thank the agents and state and local partners who are relentless in their pursuit of child predators.”
“HSI San Juan’s priority is to protect our children from sexual predators,” said Acting Special Agent in Charge Rebecca C. González Ramos “We will continue working with our federal, state, and local partners to identify, arrest and prosecute those who in the cruelest manner steal the innocence of our children.”
HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
If convicted, defendant Cruz-Bonilla faces a mandatory minimum 10 years to life in prison; Ojeda-Peña faces a mandatory minimum 15 years and a maximum penalty of 30 years in prison; and Bermudez-Soler faces a mandatory minimum 10 years to life in prison. Defendants convicted of these crimes also face, after serving their term of imprisonment, an additional mandatory supervised release term of 5 years up to life and would be required to register in the Sexual Offender Registry. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security Investigations is investigating the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Geneva Man Sentenced to 15 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Kurt D. Heckenliable, 51, of Geneva, Nebraska, was sentenced today in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Heckenliable to 180 months in prison for possession with intent to distribute 500 grams or more of methamphetamine mixture and 50 grams or more actual methamphetamine. Heckenliable faced a 15-year mandatory minimum sentence because of a prior conviction for delivery/possession with intent to deliver a controlled substance in York County District Court. After serving his sentence, Heckenliable will be placed on supervised release for 10 years. There is no parole in the federal system.
On September 22, 2021, state troopers responded to a single motorcycle accident near Mead, Nebraska. At the scene, Heckenliable was identified as the driver of the motorcycle, and he received medical attention at the roadside and later at a hospital. During the accident response, law enforcement noticed suspected methamphetamine on the ground near the motorcycle. Troopers then searched the motorcycle and found more methamphetamine. In total, about four kilograms of lab confirmed methamphetamine were seized from Heckenliable’s motorcycle. Some of that methamphetamine was tested for purity and determined to be at least 96% pure.
This case was investigated by the Nebraska State Patrol and the Saunders County Sheriff’s Office.