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26 January 2023
Former Stoneham Police Officer and Electrical Contractor Indicted on Additional Bribery ChargesRead the Press Release
BOSTON – A former Stoneham Police Officer and his brother, an owner of an electrical contracting company, were charged in a superseding indictment today with an alleged bribery and kickback scheme that netted them millions of dollars in Mass Save contracts.
Joseph Ponzo, 49, of Stoneham, and Christopher Ponzo, 48, of North Reading, were originally charged by a federal grand jury in April 2022 in a 13-count indictment with one count of wire fraud conspiracy and 12 counts of wire fraud stemming from a bribery-kickback scheme with a Mass Save vendor that dated from 2013 to 2017. The superseding indictment includes 12 additional wire fraud counts alleging that the Ponzos’ bribery scheme continued after 2017 through as recently as March of 2022, with the Ponzos paying thousands of dollars in cash bribes to another former employee of a Mass Save lead vendor company to obtain millions more in lucrative Mass Save contracts.
The superseding indictment also charges Joseph Ponzo with four counts of causing false tax returns to be filed with the IRS from 2016 to 2019. Joseph Ponzo and Christopher Ponzo were also each charged with one count of making false statements to government officials. A date for the defendants’ arraignment in federal court on the new charging document has not yet been scheduled.
Massachusetts law requires utility companies to collect an energy efficiency surcharge on all Massachusetts energy consumers. These funds, which amount to hundreds of millions of dollars each year, are to be disbursed by the utility companies to fund energy efficiency programs and initiatives in Massachusetts.
Mass Save is a Massachusetts public-private partnership sponsored by various gas and electric utility companies that disburses these energy efficiency funds through funding energy conservation projects for consumers. Under the Mass Save program, the utility companies select lead vendors. to approve and select contractors to perform energy improvement work for residential customers. This contracting work – performed by contractors at no-cost or reduced cost to the customer – is then paid for by the lead vendor with Mass Save funds.
Joseph Ponzo, a former full-time Stoneham Police Officer, and his brother, Christopher Ponzo, the owner of an electrical contracting company, allegedly conspired to pay, and did pay, tens of thousands of dollars in cash bribes, kickbacks, and other in-kind benefits, including a John Deere tractor, a computer, home bathroom fixtures, and free electrical work, among other things, to Company A employees (Associates 1 and 2) in exchange for the Associates’ assistance in getting the defendants millions of dollars in Mass Save contracts.
It is alleged that on a weekly basis, from 2013 to 2017, Christopher Ponzo paid Associate 1 $1,000 in cash. At times, Christopher Ponzo paid Associate 1 $5,000 to $10,000 in cash, telling Associate 1 that the extra money was allegedly from Joseph Ponzo for his part in the bribery scheme. In return for these payments, Associate 1, among other things, allegedly helped Joseph Ponzo set up a shell company, Air Tight, to do insulation work and get approved as a Company A contractor under the Mass Save program. It is further alleged that Joseph Ponzo put his spouse’s name on Air Tight incorporation documents and contracting licenses in order to conceal his involvement. Despite having no professional experience in residential insulation work, Joseph Ponzo collected over $7 million under the Mass Save program.
After Associate 1 left Company A in 2017, Christopher Ponzo and Joseph Ponzo allegedly recruited Associate 2 to the bribery-kickback scheme from approximately 2018 to 2022, paying Associate 2 thousands of dollars in cash and hiring a relative of Associate 2 as part of the ongoing scheme.
During the course of the bribery-kickback scheme, it is also alleged that Ponzo aided in the filing of false tax returns from 2016 to 2019 by claiming hundreds of thousands of dollars in false business deductions. To disguise personal expenses as business deductions, Ponzo used his company credit card to make hundreds of thousands of dollars in purchases at The Home Depot, Lowes, and Staples, claiming to his tax preparers that charges at those establishments were business-related. It is alleged that in reality, Ponzo used the company credit card at those stores to purchase gift cards that he and his spouse then used to make thousands of dollars in personal expenditures.
The superseding indictment also alleges that in April 2022, both Joseph and Christopher Ponzo falsely denied making bribe payments to any Company A employees when interviewed by federal agents.
The charges of wire fraud conspiracy and wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of false statements provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of aiding in filing false tax returns each provide for a sentence of up to three years in prison, up to three years of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation in Boston; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Elysa Wan and Dustin Chao of Rollins’ Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former St. Louis County Employee Sentenced to 18 Months in Prison for Pandemic Relief Fraud SchemeRead the Press Release
ST. LOUIS – U.S. District Court Judge Stephen R. Clark on Thursday sentenced a former St. Louis County, Missouri employee who launched a scheme to fraudulently obtain COVID-19 relief funds to 18 months in prison.
The scheme by Anthony “Tony” Weaver Sr. was “borne out of his own personal greed” and “his unbridled arrogance,” Assistant U.S. Attorney Hal Goldsmith said during Thursday's sentencing hearing.
In May of 2020, Weaver approached a man who owned several small businesses in St. Louis County and suggested a way to fraudulently obtain grants from the county’s Small Business Relief (SBR) Program. The program used federal CARES Act money to help small businesses deal with the cost of closures due to pandemic-related stay-at-home orders.
Weaver then prepared false grant applications seeking the maximum of $15,000 and planned to split the money with the business owner. Weaver boasted to the business owner of his position in St. Louis County government, his relationship with high-ranking officials and his political influence, Goldsmith said.
Weaver falsely claimed in the applications that the businesses were closed and had to lay off employees during the pandemic. Weaver concealed the fact that Smith had at least 25% ownership in all six businesses because an owner was only allowed to apply for one grant.
Weaver claimed his former boss on the St. Louis County Council, Rochelle Walton Gray, would approve the grants, telling the business owner Walton Gray's office is “going to do what I tell them to do."
Weaver was formerly the administrative assistant for Walton Gray, who has since left the council. Weaver left for a higher-paying job as the “change management coordinator” at the St. Louis County jail. He was working at the jail at the time of his indictment in May of 2022. Weaver also served as the longtime committeeman of the Spanish Lake Township and on the board of Unity PAC, a north St. Louis County political organization.
In a May 14, 2020 meeting, Weaver told Smith, “There is a note here that Rochelle gets the final decision. They’ve got a commission, doesn’t really matter, she can override them.”
In a June 1, 2020 conversation, Weaver said, “All we have to do is apply for them because my people are inside, work their magic and do what they need to do.” He also claimed to have direct communication and conversations with the St. Louis County employee charged with overseeing the grant program.
Weaver never obtained any fraudulent grants for Smith, but told Smith he’d been paid $300 as a kickback for obtaining a grant for someone else.
“Had the Defendant’s scheme been successful, it would have diverted much needed grant funds from legitimate business applicants which actually had to close their doors and lay off employees during the pandemic,” the sentencing memorandum says.
Weaver pleaded guilty in October to four felony counts of wire fraud.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Former President of Venezuelan Supreme Court Indicted on Charges of Accepting Bribes to Resolve Court CasesRead the Press Release
MIAMI – A Miami federal grand jury has indicted Maikel Jose Moreno Perez, 57, former president of the Venezuelan Supreme Court and current Venezuelan Supreme Court justice, with conspiring to launder and laundering bribes he received in exchange for using his position to resolve civil and criminal cases in Venezuela to favor bribe payers.
According to the criminal charging documents, as president of the Venezuelan Supreme Court, Moreno had the power to influence judicial decisions in Venezuela because he had the authority to determine the panel of judges hearing cases at the Supreme Court and the power to appoint or remove lower court judges on the trial and appellate level in Venezuela. This activity went on from 2014 through March 2019.
It is alleged that Moreno received more than $10 million dollars in bribes, typically from Venezuelan contractors who had received contracts from Venezuelan government-owned entities. In 2014, prior to his appointment as president of the Supreme Court, he received $1 million via wire transfers to his personal bank account in Miami from a Venezuelan contractor. This money was for agreeing to resolve future Venezuelan criminal cases in favor of this contractor.
During his tenure on the Supreme Court, Moreno received bribes in exchange for influencing actions in criminal cases, including dismissing criminal charges and arrest warrants or ordering home confinement for charged defendants, according to the criminal charging documents. Moreno received bribes from a contractor charged in the United States with a multi-billion-dollar fraud scheme to have a Venezuelan criminal case dismissed. He also received bribes in exchange for taking official actions in Venezuelan civil cases. He agreed to authorize the judicial seizure of a General Motors auto plant (valued at approximately $100 million) as part of a civil dispute in exchange for a percentage interest in proceeds from the sale of the plant, it is alleged. He maintained a bribe ledger that tracked millions of dollars of incoming bribes and personal expenses.
Moreno allegedly used bribe proceeds to purchase or renovate real estate around the world, including a villa in Tuscany, Italy, for 2.4 million euros, a luxury villa in La Romana, Dominican Republic, for $1.5 million, a building in Las Mercedes in Caracas, Venezuela, for $1.3 million, and an apartment in Miami for $1.3 million. He also used bribe proceeds for cars, luxury goods, luxury travel, and more than $300,000 for a musical performance at his wedding.
The indictment charges Moreno with one count of conspiracy to commit money laundering, one count of concealment of money laundering, and two counts of engaging in transactions in criminally derived property. The money laundering counts each carry a 20-year maximum sentence and the engaging in transactions in criminally derived property counts each carry a 10-year maximum sentence.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe and Acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Fort Lauderdale, El Dorado Task Force-South investigated this case. Assistant U.S. Attorney Michael N. Berger is prosecuting it and Assistant U.S. Attorney Marx P. Calderón is handling asset forfeiture.
You may find related court documents and information 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.
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Former Louisville, Kentucky Department of Corrections Officer Sentenced to 36 Months in Prison for Violent Assault on Pretrial DetaineeRead the Press Release
Darrell Taylor, 32, a former officer with the Louisville Metro Department of Correction, in Louisville, Kentucky, was sentenced to 36 months in federal prison for using unreasonable force against a detainee, thereby violating the detainee’s civil rights.
In October 2022, a jury heard evidence proving that the defendant, while working as a correctional officer, assaulted B.R., a pretrial detainee being detained in the Louisville Metro Department of Corrections. On Dec. 15, 2020, Taylor was serving breakfast to detainees in the Louisville Metro Department of Corrections. During the breakfast service, B.R., a detainee with reported mental health issues, used insulting language in a conversation with Taylor, after which Taylor followed B.R. back to B.R.’s bunk, grabbed him, threw him to the ground and punched him repeatedly in the face. After the fourth punch, B.R. went limp and lost consciousness. Taylor then lifted B.R. and slammed him face-first into the ground. B.R.’s jaw and cheekbone were broken during the assault.
“The defendant abused his authority as a law enforcement officer and betrayed the public’s trust when he violently assaulted a detainee in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Officials working inside jails and prisons who abuse inmates and detainees are not above the law, and we will continue to vigorously prosecute those who deprive people of their Constitutional rights.”
“The defendant’s violent assault in this case was a blatant disregard of the civil rights and physical well-being of a Metro Department of Corrections’ detainee,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “This office will continue to thoroughly investigate and aggressively prosecute corrections officials who violate the civil rights of individuals through the use of unreasonable force.”
“Corrections officers are tasked with the difficult job of maintaining a safe and secure environment in our prison facilities. When one officer abuses the authority placed in them by violating the civil rights of an inmate, it undermines the trust placed in all law enforcement officers,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “This sentence should be a reminder that the FBI takes all allegations of civil rights violations seriously and will vigorously investigate and seek prosecution for these abuses of power.”
The FBI Louisville Field Office investigated the case.
Assistant U.S. Attorney Amanda Gregory for the Western District of Kentucky and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Hillsborough Township School District Official Admits to Paying Kickbacks for Illegal Overtime PaymentsRead the Press Release
Trenton, N.J. – A Somerset County, New Jersey man yesterday admitted to paying kickbacks in return for fraudulent overtime payments that he received in connection with his former role as the Director of Buildings and Grounds for the Hillsborough Township School District, U.S. Attorney Philip R. Sellinger announced today.
Anthony DeLuca, 61, of Raritan, New Jersey, pleaded guilty before Senior U.S. District Judge Peter G. Sheridan to one count of embezzling, stealing, and obtaining by fraud more than $137,000 of funds belonging to and under the care, custody and control of the Hillsborough Township School District, in violation of Title 18, United States Code, Section 666(a)(1)(A).
According to the documents filed in this case:
DeLuca, a long-term employee of the Hillsborough Township School District, was promoted to the position of Director of Buildings and Grounds in approximately July 2019, a salaried position that did not entitle him to overtime pay. Nevertheless, shortly after assuming this position, the School District employee to whom DeLuca reported (referred to as “Individual 1” in the Information) began directing DeLuca to claim that DeLuca was entitled receive overtime payments, including for hours which substantially exceeded those that DeLuca actually worked. DeLuca submitted these claims to Individual 1 who then authorized overtime payments for DeLuca in return for cash kickbacks.
DeLuca admitted in court yesterday that upon receiving the overtime payments approved by Individual 1, DeLuca would typically withdraw cash from his bank account to provide kickbacks to Individual 1. DeLuca stated that Individual 1 would designate the location to which DeLuca should deliver envelopes containing the cash kickbacks, including the console of Individual 1’s vehicle and a drawer in Individual 1’s office desk. DeLuca admitted that through this scheme he received in excess of $137,000 in overtime payments to which he was not entitled and that he provided Individual 1 with at least $39,800 in kickbacks between July 2019 and January 2022.
DeLuca faces a maximum penalty of ten years in prison and maximum fine of 250,000. Sentencing is scheduled for June 1, 2023.
U.S. Attorney Sellinger credited agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; and the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.
The charges and allegations contained in the Information pertain to Anthony DeLuca and any other individuals referenced are presumed innocent unless and until those individuals are proven guilty.
Defense counsel: S. Emile Lisboa IV, Esq., Hackensack, NJ
Florence meth trafficker sentenced to nine years in prisonRead the Press Release
MISSOULA — A Florence man who admitted to trafficking methamphetamine after law enforcement found more than six pounds of the drug, seven firearms and thousands of rounds of ammunition during a search of his residence was sentenced today to nine years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Jason Charles Allen, 48, pleaded guilty in September 2022 to distribution of methamphetamine.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that law enforcement received information from at least five individuals who discussed Allen’s involvement in trafficking meth in the greater Missoula area. On May 24, 2022, an FBI SWAT team executed a federal search warrant on Allen’s residence. Investigators retrieved meth that Allen was attempting to burn in a fire. Law enforcement also recovered seven firearms, 3,200 rounds of ammunition, more than $8,000 in cash and more than six pounds of meth. Six pounds of meth is the equivalent of approximately 21,744 doses. Earlier that month, law enforcement conducted a controlled purchase of meth from Allen.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force.
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.
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Five Members and Associates of White Supremacist Gang Sentenced to Life in Prison for Racketeering, Kidnapping, and MurderRead the Press Release
Five members and associates of a white supremacist gang were sentenced in Alaska this week to life in prison without the possibility of parole for racketeering, including murder in aid of racketeering, kidnapping, and other offenses.
The person formerly known as Timothy Lobdell, 46, who legally changed his name to “Filthy Fuhrer” (Lobdell); Roy Naughton, aka Thumper, 46; Glen Baldwin, aka Glen Dog, 41; Colter O’Dell, 30; and Craig King, aka Oakie, 57, were convicted at trial of racketeering conspiracy, kidnapping resulting in death, and kidnapping conspiracy on May 2, 2022. Baldwin, O’Dell, and King were each also convicted of murder in aid of racketeering. Lobdell and Naughton were also convicted of an additional two counts each of kidnapping conspiracy, kidnapping, and assault in aid of racketeering.
According to court documents and evidence presented at trial, the defendants were leaders, members, and associates of the 1488s, a violent, prison-based Neo-Nazi gang that operated inside and outside of state prisons throughout Alaska. The 1488s use Nazi-derived symbols to identify themselves and their affiliation with the gang, including a 1488 “patch” tattoo which depicts an Iron Cross superimposed over a swastika. The tattoo can only be awarded to members who gained full membership by committing acts of violence on behalf of the gang. The gang enforced discipline through written rules and a code of conduct, including the boast that “the only currency we recognize is violence and unquestionable loyalty.”
Lobdell founded and led the 1488 gang from inside a state maximum-security prison, where he was serving a 19-year sentence for the attempted murder of an Alaska State Trooper. In addition to directing acts of violence aimed at establishing the gang’s dominance in the prison hierarchy, Lobdell ordered members of the gang to commit violent kidnappings and assaults in the “free world” outside of prison. As part of a plan to impose greater organization and structure among non-incarcerated members, Lobdell insisted on punishing members that he perceived to be defying the 1488 code of conduct, which he believed diminished the power, influence, and reputation of the gang. Lobdell sent out a trusted lieutenant with a list of directives, which culminated in the kidnapping and assault of two lower-level gang members on April 2, 2017, and July 20, 2017, and the kidnapping, assault, and murder of 1488 member Michael Staton on Aug. 3, 2017.
On April 2, 2017, Roy Naughton and other 1488 members, acting at the direction of Lobdell, lured a victim to a gang meeting at Naughton’s residence. Once there, the victim was taken into a basement where he was held at gun point, tied up, and assaulted. As part of the assault, the gang members shattered a lightbulb in his mouth and tattooed him with a racial epithet. The victim was threatened with more violence if the incident was reported to police.
On July 17, 2017, Lobdell called Naughton from prison. During the call, Naughton boasted about the April 2 assault, and reported to Lobdell that another member would be assaulted in the next few days. On July 20, 2017, a second victim was assaulted in a similar manner as the first victim and his 1488 membership “patch,” which is a tattoo, was burned off.
In 2016, Naughton asked for and received permission from Lobdell to impose exceptionally severe discipline on Staton, who had previously stolen from both the 1488s and Craig King, who held himself out as a member of the Hells Angels Motorcycle Club. Naughton, King, Baldwin, and O’Dell worked with other 1488 members to locate, kidnap, and murder Staton. On Aug. 3, 2017, 1488 members, including Baldwin and O’Dell, lured Staton to Wasilla, Alaska, where they beat him and took him to King’s duplex. After arriving, Staton was taken to an empty room, which had been lined with plastic sheeting. Inside the room, King and the 1488s beat and tortured the victim, including cutting off his 1488 tattoo with a knife that had been heated with a propane torch. The co-conspirators wrapped Staton in the plastic and carpeting, and Baldwin and O’Dell drove him to a remote section of Wasilla, where they shot him and set fire to his body. O’Dell was awarded full membership in 1488s for his role in the murder.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney S. Lane Tucker for the District of Alaska, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The FBI’s Safe Streets Task Force and the Alaska State Troopers, Alaska Bureau of Investigation, investigated the case in conjunction with the U.S. Attorney’s Office for the District of Alaska and the Criminal Division’s Organized Crime and Gang Section (OCGS). Investigative assistance was provided by the IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the U.S. Marshals Service; Homeland Security Investigations; Anchorage Police Department; and the State of Alaska’s Department of Corrections.
Trial Attorney Jeremy Franker of the Criminal Division’s OCGS and Assistant U.S. Attorneys William Taylor, James Klugman, and Chris Schroeder for the District of Alaska prosecuted the case.
Five Members and Associates of White Supremacist Gang Sentenced to Life in Prison for Racketeering, Kidnapping, and MurderRead the Press Release
ANCHORAGE, ALASKA – Filthy Fuhrer, formerly Timothy Lobdell, 46; Roy Naughton, aka Thumper, 44; Glen Baldwin, aka Glen Dog, 41; Colter O’Dell, 30; and Craig King, aka Oakie, 57, were sentenced this week in Alaska to life in prison without the possibility of parole. All five defendants were convicted of racketeering conspiracy, conspiracy in aid of racketeering, murder in aid of racketeering, kidnapping resulting in death, and kidnapping conspiracy. Fuhrer and Naughton were also each convicted of an additional two counts of kidnapping conspiracy, kidnapping, and assault in aid of racketeering.
Evidence presented at trial showed that the defendants were leaders, members, and associates of the 1488s, a violent, prison-based Neo-Nazi gang that operated inside and outside of state prisons throughout Alaska. The 1488s used Nazi-derived symbols to identify themselves and their affiliation with the gang, including a 1488 “patch” tattoo that depicts an Iron Cross superimposed over a swastika. The tattoo was awarded to members who gained full membership by committing acts of violence on behalf of the gang. The gang enforced discipline through written rules and a code of conduct, including the boast that “the only currency we recognize is violence and unquestionable loyalty.”
The trial testimony established that Fuhrer founded and led the 1488 gang from inside a maximum-security prison, where he was serving a 19-year sentence for the attempted murder of an Alaska State Trooper. In addition to directing acts of violence aimed at establishing the gang’s dominance in the prison hierarchy, Fuhrer ordered members of the gang to commit violent kidnappings and assaults in the “free world” outside of prison. As part of a plan to impose greater organization and structure among non-incarcerated members, Fuhrer insisted on punishing members that he perceived to be defying the 1488 code of conduct thereby diminishing the power, influence, and reputation of the gang. Fuhrer sent out a trusted lieutenant with a list of directives, which culminated in the kidnapping and assault of two lower-level gang members on April 2, 2017, and July 20, 2017, and the kidnapping, assault, and murder of Michael Staton on Aug. 3, 2017.
According to the trial evidence, on April 2, 2017, defendant Roy Naughton and other 1488 members, acting at the direction of Fuhrer, lured a victim to a gang meeting at Naughton’s residence. Once there, the victim was taken into a basement where he was held at gun point, tied up, and assaulted. As part of the assault, the gang members shattered a light bulb in his mouth and tattooed him with a racial epithet. The victim was threatened with more violence if the incident was reported to police.
In addition, the evidence at trial demonstrated that on July 17, 2017, Fuhrer called Naughton from prison. During the call Naughton boasted about the April 2 assault and reported to Fuhrer that another member would be assaulted in the next few days. On July 20, 2017, a second victim was similarly assaulted and had his 1488 membership patch burned off.
Evidence also showed that in 2016 Naughton asked for and received permission from Fuhrer to impose exceptionally severe discipline on 1488 member Michael Staton, who held himself out as a member of the Hells Angels Motorcycle Club, for stealing from both the 1488’s and defendant Craig King. Naughton, King, and defendants Glen Baldwin and Colter O’Dell worked with other 1488 members to locate, kidnap, and murder Staton. On August 3, 2017, 1488 members, including Baldwin and O’Dell, lured Staton to Wasilla where they beat him and took him to King’s duplex. After arriving, Staton was taken to an empty room which had been lined with plastic sheeting. Inside the room King and the 1488s beat and tortured the victim, including cutting off his 1488 tattoo with a knife that had been heated with a propane torch. The defendants wrapped Staton in the plastic and carpeting, and Baldwin and O’Dell drove him to a remote section of Wasilla where they shot him and set fire to his body. O’Dell was awarded full membership in 1488s for his role in the murder.
“The United States Attorney’s Office will use every tool at its disposal to combat and dismantle violent criminal enterprises,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “These life sentences reflect the seriousness of the defendants’ conduct in the maiming of two individuals and the brutal murder of a third, all in order to strengthen their hate-based criminal enterprise. We will continue to work tirelessly with our federal, state and local investigative partners to ensure those engaging in such loathsome crimes are caught and prosecuted to the fullest extent of the law.”
“With federal life sentences imposed on five defendants who were associated with a violent, hate-driven gang, Alaska’s law enforcement community has delivered a devastating blow to the 1488 criminal enterprise,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Dismantling violent, criminal organizations is a priority for the FBI, and a goal that is shared among our law enforcement and prosecution partners across Alaska.”
The FBI’s Safe Streets Task Force, and the Alaska State Troopers, Alaska Bureau of Investigation, investigated the case in conjunction with the U.S. Attorney’s Office for the District of Alaska and the Criminal Division’s Organized Crime and Gang Section (OCGS). Investigative assistance was provided by the IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Anchorage Police Department (APD), and the State of Alaska’s Department of Corrections.
Assistant U.S. Attorneys William Taylor, James Klugman and Chris Schroeder and Trial Attorney Jeremy Franker of OCGS prosecuted the case.
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Federal and Local Law Enforcement Announce New Public Education Campaign to Highlight Danger of Fentanyl – 'Death in Disguise'Read the Press Release
RIVERSIDE, California – Inland Empire law enforcement officials today rolled out a public outreach education campaign to address the ongoing fentanyl crisis and the skyrocketing number of fentanyl poisonings.
Anchored by a new public service announcement titled “Death in Disguise” that expands on the DEA-led “One Pill Can Kill” campaign, the new program announced today includes the wide release of the PSA in conjunction with the launch of a widespread engagement program that will target schools and community groups across Riverside and San Bernardino counties.
The new campaign was announced at a news conference today by United States Attorney Martin Estrada, Riverside County District Attorney Mike Hestrin, San Bernardino County Assistant District Attorney Simon Umscheid, and Drug Enforcement Administration Los Angeles Division Special Agent in Charge Bill Bodner.
“The fentanyl epidemic has targeted our youth, devastating families and scarring communities,” said United States Attorney Estrada. “It is therefore critical that we continue our educational, outreach, and enforcement efforts with our law enforcement partners. We are committed to doing all we can to combat the fentanyl threat and holding accountable those who traffic in this poison.”
“Fentanyl is a deadly drug that is devastating our community,” said District Attorney Hestrin. “Our office continues the urgent work of educating our residents about the dangers of fentanyl and holding those accountable who peddle this poison in Riverside County.”
“At the rates we are seeing, if a fentanyl poisoning hasn’t affected you personally, it soon will,” said San Bernardino County District Attorney Jason Anderson. “That means every person in this county and beyond shares a responsibility to fight the opioid crisis – a responsibility in awareness, in prevention, in response, and in holding social media, dealers and distributors accountable.”
“Fentanyl, a synthetic opioid, is fueling poisonings and drug-caused deaths at historic rates and poses a greater risk to our communities than any other illicit drug in history,” said Special Agent in Charge Bodner. “As we target individuals responsible for importing and distributing fentanyl we are equally focused on educating and increasing awareness about fentanyl so individuals can make better informed decisions. There’s not a community, family, or person that is immune from the dangers of fentanyl, which is why our joint awareness efforts are widespread and boundless.”
As part of this new outreach project, federal officials worked closely with members of the District Attorney’s offices to create age-appropriate presentations for middle and high school students to be made in schools or other community-based settings.
The young people targeted in these presentations will hear from members of law enforcement, prosecutors, health care professionals and victims, who will engage students and their parents with an interactive presentation, including visual aids and Q&A to help students and parents understand to dangers of fentanyl poisoning. The presentations are designed to drive home the crucial points that tiny amounts of fentanyl can be deadly, and it is inherently dangerous to purchase seemingly legitimate “pharmaceutical” drugs on social media platforms.
The partners involved in this project are developing law enforcement trainings for colleges and universities across the Inland Empire. These will include trainings by DEA special agents on the widespread availability of fentanyl on social media sites, the recognition and safe handling of fentanyl, and the proper use of Narcan by health care professionals.
The “Death in Disguise” PSA was developed in partnership with the Department of Cinema and Television Arts at the California State University, Northridge.
This new outreach campaign is an important part of the law enforcement arsenal to address the fentanyl crisis that continues to take lives every day in Southern California. In conjunction with law enforcement’s prosecution and interdiction efforts, the public education component is part of a comprehensive strategy to address the problem and save lives.
Federal Jury Convicts Blackfoot Man of Distribution and Possession of Child PornographyRead the Press Release
BOISE – After a three-day trial, a federal jury sitting in Pocatello found Joseph Hornof, 41, of Blackfoot, Idaho, guilty of two counts of distribution of child pornography and one count of possession of child pornography, U.S. Attorney Josh Hurwit announced today. Chief U.S. District Judge David C. Nye presided over the trial, which began on January 23, and concluded with a guilty verdict on January 25. Following the jury’s verdict, Hornof is subject to a sentencing enhancement for committing a prior sex offense against a child in 2009 in Bannock County, Idaho.
According to testimony and evidence presented at trial, Hornof used the Kik messenger application to communicate with an undercover officer in North Carolina. Hornof shared videos and images of child pornography with the officer. Hornof then directed the officer to join a social media group called “pedophilia” that Hornof administered. In that group, Hornof distribution 24 videos of child pornography to other members of the group. Law enforcement later served a search warrant at Hornof’s residence in Blackfoot. After seizing his laptop and cellphone, officers discovered additional images of child pornography on the devices.
The charge of distribution of child pornography, with a prior conviction, carries a minimum of 15 years and up to 40 years in federal prison, per count, a fine of up to $250,000, and at least five years and up to lifetime of supervised release. The charge of possession of child pornography, with a prior conviction, carries a minimum of 10 years and up to 20 years in federal prison, a fine of up to $250,000, and at least five years and up to lifetime of supervised release. Hornof will be required to register as a sex offender as a result of the conviction.
Sentencing is set for May 1, 2023, before Judge Nye at the federal courthouse in Pocatello.
U.S. Attorney Hurwit, of the District of Idaho commended the cooperative efforts of the Idaho Falls Police Department, Idaho ICAC Task Force, Boone North Carolina Police Department, and Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorneys John Shirts and Erin Blackadar.
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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Eldon Man Pleads Guilty to $437,000 COVID Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – An Eldon, Mo., man pleaded guilty in federal court today to his role in a scheme to use the identities of deceased people to file hundreds of false stimulus claims under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Lamar K. Johnson, 41, formerly of Kansas City, Mo., pleaded guilty before U.S. District Judge Stephen R. Bough to one count of conspiracy to defraud the government. Johnson is scheduled to be sentenced on June 21, 2023.
By pleading guilty today, Johnson admitted that he participated in a conspiracy to defraud the federal government from March 28, 2020, to April 15, 2021, by using stolen identities to file fraudulent claims. Co-defendant Warren W. Watkins, 40, of Kansas City, Mo., pleaded guilty to the same offense on March 17, 2022, and is scheduled to be sentenced on April 5, 2023.
Conspirators used the identities of other people to file 238 false and fraudulent economic impact payment claims. Most of the individuals whose identities they used were deceased. Each claim sought a $1,200 economic impact payment available under the CARES Act, for a total of $285,600. Watkins also filed at least 28 false and fraudulent federal income tax returns in the names of other individuals seeking a total of $152,155 in income tax credits and refunds. The total attempted loss from both schemes was $437,755. The IRS paid $4,800 of the claims.
Watkins was associated with two Kansas City, Mo., funeral homes; 226 of the individuals whose identities were used to file the false claims had received funeral services from the two funeral homes or a third associated funeral home.
Under federal statutes, Johnson and Watkins each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by IRS-Criminal Investigation.
Duquesne Man Sentenced to Prison for Drug and Gun CrimesRead the Press Release
PITTSBURGH, PA - A former resident of Duquesne, Pennsylvania, has been sentenced in federal court to 78 months’ imprisonment and six years’ supervised release on his conviction of possession with intent to distribute controlled substances and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Cindy K. Chung announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Brandon McCaskill, age 28.
According to information presented to the Court, on Aug. 17, 2020, officers with the Duquesne Police Department attempted to locate a suspect in an unrelated investigation at Brandon McCaskill’s residence in Duquesne. Upon arriving at the residence, officers observed McCaskill seated on the front porch with a backpack between his legs. Officers also detected the strong odor of marijuana. As a result, law enforcement applied for and obtained a search warrant for the porch of the residence.
The backpack between McCaskill’s legs contained a loaded handgun, controlled substances packaged into 11 bricks stamped “Dr. Pepper”, and several plastic bags. A “brick” is typically comprised of 50 glassine bags. From on and underneath a couch on the porch, officers recovered two digital scales, bulk United States currency, and additional packaged controlled substances. The Drug Chemistry Section of the Office of the Medical Examiner, Allegheny County, tested the seized substances. The laboratory confirmed that the bricks marked “Dr. Pepper” contained a mixture of fentanyl and tramadol; that other bricks contained a mixture of heroin, fentanyl, and tramadol; and that some plastic baggies contained cocaine.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the City of Duquesne Police Department for the investigation leading to the successful prosecution of McCaskill.
Dominican National Sentenced, Faces Deportation for Trafficking CocaineRead the Press Release
PROVIDENCE – A Dominican national detained on drug trafficking charges since March 28, 2022, today admitted to a federal judge that he acted as a member of a criminal drug conspiracy when he attempted to retrieve U.S. Priority Mail packages containing cocaine intended for later distribution, announced United States Attorney Zachary A. Cunha.
Rafael Fleury Munoz, 23, admitted that, on March 26, 2022, working with other members of the criminal drug conspiracy, he attempted, unsuccessfully, to retrieve a package from a postal carrier that had been mailed to an address in Providence. That package contained 1.15 kilograms of cocaine; two days later, Fleury Munoz successfully retrieved a different parcel, delivered to a Johnston residence, that contained 1.07 kilograms of cocaine.
Appearing today before U.S. District Court Judge Mary S. McElroy, Fleury Munoz pleaded guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine and a charge of possession with intent to distribute cocaine. Detained in federal custody since his arrest on March 28, 2022, Fleury Munoz was sentenced to time served and he was ordered turned over to Immigration and Custom Enforcement to face deportation proceedings.
The case was prosecuted by Assistant United States Attorneys Denise M. Barton and Stacey A. Erickson.
The matter was investigated by the U.S. Postal Inspection Service.
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Detroit Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Eugene W. Williams, also known as “Bo,” 46, of Detroit, Michigan, was sentenced today to seven years in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on March 4, 2021, Williams sold what he now knows was a quantity of fentanyl to a confidential informant near Mount Hope in Raleigh County. Williams admitted to that transaction and further admitted to selling an additional quantity of fentanyl to the same confidential informant on March 11, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-32.
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Davenport Man Sentenced to 20 years for Possessing a Firearm as a Felon and Tampering with a Witness Related to 2021 ShootingRead the Press Release
DAVENPORT, IA –A Davenport man was sentenced yesterday to 20 years in prison for being a felon in possession of a firearm and two counts of tampering with a witness.
In August 2022, Roylee Richardson, Jr., age 32, went to trial and was found guilty by a federal jury. According to court documents and evidence presented at trial, at approximately 11:00 a.m. on February 7, 2021, Davenport Police Department officers were dispatched to an apartment complex at 3348 Heatherton Drive in Davenport, related to shots fired. Officers located spent casings and two bullet fragments. Richardson was identified as the shooter, and officers subsequently located Richardson attempting to scale off a second-story balcony. Officers then located a loaded pistol inside of the apartment that Richardson had fled from. After being arrested, Richardson repeatedly contacted the victim, and attempted to tamper with the witness’s testimony.
This is the third time Richardson has been convicted for charges related to a shooting. In November 2008, Richardson was convicted of Willful Injury Resulting in Bodily Injury and Intimidation with a Dangerous Weapon, in the Iowa District Court for Scott County. In July 2016, Richardson was convicted of Intimidation with a Dangerous Weapon with Intent, Possession of a Firearm or Offensive Weapon by a Felon, Willful Injury Resulting in Bodily Injury, and Going Armed with Intent, in the Iowa District Court for Scott County.
Richardson was sentenced to the maximum term of imprisonment for each offense, with the sentences to be served concurrently: ten years in prison for the firearm conviction and twenty years in prison for the witness tampering charges. After his prison term, Richardson was ordered to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted Felon Sentenced for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Tuesday sentenced a convicted felon to more than eight years in prison for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge R. David Proctor sentenced Donald Joseph Boteler, Jr, 48, of Pell City, to 106 1/2 months in prison followed by three years of supervised release. Boteler pleaded guilty to one count of being a felon in possession of a firearm in September 2022.
“The illegal possession of firearms by repeat felony offenders is a persistent threat to the peace and safety of our communities,” said U.S. Attorney Escalona. “We are grateful for the work of the St. Clair County Sheriff’s Office and the ATF in apprehending this defendant and securing the evidence for this case.”
“This was extremely great work done by the law enforcement officers who took part in this investigation. Protecting the public from violent criminals who illegally possess firearms is at the core of the mission of the men and women of the ATF. We will continue to work collaboratively with our state, local and federal law enforcement partners to combat violent crimes in an effort to maintain public safety and hold violent members of our society accountable,” said ATF SAC Marcus Watson.
According to court documents, in December 2021, St. Clair County Sheriff’s deputies attempted to pull over a truck driven by Boteler for traveling in the middle of two lanes of traffic. Boteler fled at a high rate of speed from the deputies. The deputies located the truck at the bottom of a hill where Boteler exited the truck and fled on foot. The St. Clair County canine unit was dispatched to the scene and, after a lengthy search, located Boteler in a wooded area. Boteler resisted arrest and deputies were forced to use their tasers to get Boteler to comply. Boteler continued to struggle with deputies and pulled a Diamondback 9mm pistol from his waistband. As deputies struggled to control the pistol, Boteler fired one round. Boteler was eventually taken into custody and the pistol was recovered.
Prior to his arrest in this case, Boteler had been convicted of 13 other felony offenses, including Unlawful Possession and Distribution of Controlled Substances, Receiving Stolen Property, and Escape.
ATF investigated the case, along with the St. Clair County Sheriff’s Office. Assistant U.S. Attorney Michael Royster prosecuted the case.
Clinton Man Sentenced to Eight Years in Prison Related to a January 2022 Shooting in DavenportRead the Press Release
DAVENPORT, IA – A Clinton man was sentenced yesterday to eight years in federal prison for being a felon in possession of ammunition, related to his involvement in a January 2022 shooting in Davenport.
According to court documents and evidence presented at sentencing, Timothy Eugene Angel, age 39, fired multiple shots in the area of 13th Street and Washington Street, a residential area, during the early morning hours of January 29, 2022. Evidence presented showed that Angel was involved in an altercation inside the Thunderguard Club, that the other involved party was kicked out of the club, and that Angel then left the club, retrieved a firearm, and fired numerous rounds, striking one person.
Leonard Fisher, age 32, of Davenport, was identified as another shooter involved. In January 2023, Fisher was convicted by a federal jury of possessing a firearm as a felon. Fisher’s sentencing is set for May 31, 2023. Fisher faces up to ten years in federal prison.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, with assistance from the Bureau of Alcohol, Tobacco, and Firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Cherokee, N.C. Man Is Sentenced for ArsonRead the Press Release
ASHEVILE, N.C. –James Ralph Brady, 55, of Cherokee, N.C. was sentenced to four years in prison today followed by five years of supervised release for the arson of a home that caused approximately $10,000 in damage, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Brady was ordered to pay $10,000 in restitution.
Chief Carla Neadeau of the Cherokee Indian Police Department joins U.S. Attorney King in making today’s announcement.
According to filed court documents, on July 25, 2021, a residential structural fire was reported at 37 Bob Owle Road in Cherokee. The residence is a single-wide trailer and the fire was set to an exterior wall with damage done throughout the residence. Court records reveal that Brady was on house arrest on Tribal charges at the time and his ankle monitoring device pinged at the residence near the time the fire was discovered. According to court documents, when Brady was questioned by Tribal police he admitted throwing an incendiary device commonly called a “Molotov cocktail” near the residence before it caught fire. Law enforcement records show that Brady thought his intended target lived at the residence but was mistaken and that he had no dispute with the actual victim. The victim was able to put the fire out but not before substantial damage was done to the home.
Brady is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the Cherokee Indian Police Department for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
California Man Arrested for Stalking Multiple VictimsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Christopher Au-Young (35, California) with interstate stalking and cyberstalking. If convicted on all counts, Au-Young faces a maximum penalty of 10 years in federal prison.
According to the complaint, since August 2022, Au-Young has engaged in a campaign of online and telephonic harassment and threats against multiple victims who reside in the Middle District of Florida and elsewhere. Au-Young engaged in a course of conduct with the intent to harass or intimidate the victims. Specifically, Au-Young cyberstalked, harassed, and threatened the victims by posting threatening and harassing videos on Facebook, YouTube, Vimeo, and Reddit. Au-Young also made repeated phone calls to and sent threatening voicemails and text messages to the victims. In addition, Au-Young drove his car from California to Illinois to intimidate and harass one of the victims.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Tampa Police Department, the Anaheim (California) Police Department, and Carbondale (Illinois) Police Department. It will be prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Download Criminal ComplaintBrowning man sentenced to two years in prison for assault on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man who admitted to beating another man in the head on the Blackfeet Indian Reservation was sentenced today to two years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Dale Ray Racine, 30, pleaded guilty in September 2022 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Nov. 19, 2021, Racine and another individual assaulted the victim, identified as John Doe, in a Browning residence, on the Blackfeet Indian Reservation. Doe was asleep when he woke to banging on the door and heard people talking. Doe sat up and saw Racine and the other individual rushing toward him. Doe was struck multiple times in the head and once to the hand and leg. Doe was treated for injuries to his head and hand.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Billings rancher admits fraud in Bureau of Land Management cattle grazing fee investigationRead the Press Release
BILLINGS — A Billings man accused of defrauding the Bureau of Land Management of fees in a cattle grazing scheme admitted to a mail fraud crime today, U.S. Attorney Jesse Laslovich said.
Gene John Klamert, 70, pleaded guilty to mail fraud. Klamert faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 25. Klamert was released pending further proceedings.
The government alleged in court documents that between 2017 and 2020, Klamert held a BLM grazing permit that allowed him to graze his cattle on public land called the Two Crow allotment, near Winnett. The permit authorized Klamert to graze cattle he owned for a low monthly base rate, which the BLM charged for each head of cattle. To graze cattle owned by any third party, the permit required Klamert to pay the base rate plus a higher surcharge per head of cattle. From May 2018 to May 2020, as part of Klamert’s reported use of public land, he submitted a fraudulent bill of sale to the BLM stating that he had purchased cattle from an individual, identified as John Doe, when in fact, Klamert knew that no actual sale occurred. As a result, Klamert avoided paying surcharge fees that he owed to the BLM. To accomplish the scheme, the government alleged, Klamert instructed John Doe to sign a bill of sale, stating that he was selling his cattle to Klamert, when in fact John Doe had only contracted with Klamert to graze his cattle on the BLM allotment. At Klamert’s direction, John Doe mailed the fraudulent bill of sale to Klamert, who signed and mailed it to the BLM to report what cattle he was grazing on the public land.
Assistant U.S. Attorneys Benjamin D. Hargrove and Bryan T. Dake are prosecuting the case, which was investigated by the BLM.
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Baltimore Man Sentenced to over Nine Years in Prison for Obstructing Murder InvestigationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark Johnson, age 36, of Baltimore, Maryland, was sentenced on January 25, 2023 to 110 months’ imprisonment by United States District Court Judge Christopher C. Conner after pleading guilty to obstructing a federal investigation into a triple murder where one of the victims was cooperating with a federal drug investigation.
According to United States Attorney Gerard M. Karam, Johnson helped his brother, Christopher Johnson, and others, attempt to thwart the investigation into the June 25, 2016 murder of three individuals in a barn in Mercersburg, Franklin County, PA. One of the victims was providing information to DEA in Hagerstown, Maryland, and local Maryland law enforcement about drug trafficking in Hagerstown and elsewhere. Karam said that the murder was a contract killing. The killer has pleaded guilty and is awaiting sentencing. Kevin Coles, also from Maryland, was convicted by a federal jury in April 2022 of ordering the contract killing. Mark Johnson was not involved in the murders or the planning of the murders but assisted his brother in avoiding apprehension and in assisting in trying to locate and kill a codefendant in the triple murders who was believed to be cooperating with federal authorities.
The following individuals have been convicted at trial, pleaded guilty or sentenced in connection with the investigation:
- Kevin Coles, New York, NY and Hagerstown, Maryland, was found guilty after a trial in April 2022 of multiple crimes, including murder for hire, robbery, and drug trafficking, and is awaiting sentencing;
- Jerell Adgebesan, Baltimore and Hagerstown, Maryland, pleaded guilty to participating in the murders of the three victims in Mercersburg, Franklin County and is awaiting sentencing;
- Devin Dickerson, Hagerstown, pleaded guilty to conspiracy to distribute heroin and crack cocaine and is awaiting sentencing;
- Kenyatta Corbett, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and the killing of a federal witness and is awaiting sentencing;
- Michael Buck, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Nicholas Preddy, Baltimore, pleaded guilty to attempting to kill a witness and is awaiting sentencing;
- Johnnie Jenkins-Armstrong, Baltimore, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and the killing of a federal witness and is awaiting sentencing;
- Terrance Lawson, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Tyrone Armstrong, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Christopher Johnson, Baltimore, Maryland, pleaded guilty to multiple charges including murder for hire and is awaiting sentencing; and
- Llesenia Woodard, Hagerstown, Maryland, pleaded guilty to providing false testimony to the grand jury investigating the murders and is awaiting sentencing.
Joshua Davis previously pleaded guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was sentenced to serve 100 months’ imprisonment.
Trial for the remaining defendant, Torey White, is currently scheduled for May 1, 2023.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office; Pennsylvania State Police, Chambersburg; Pennsylvania State Police, Troop H; Franklin County Drug Task Force; Franklin County Adult Probation; Pennsylvania State Probation and Parole; Hagerstown Police Department, Criminal Investigation Division; Drug Enforcement Administration, Hagerstown Resident Office; Washington County Narcotics Task Force; Drug Enforcement Administration, Baltimore District Office, Strike Force Group 1; Maryland State Police Homicide Unit; Baltimore Police Department Narcotics, Fugitive And Homicide Units; Baltimore County Police Department Narcotics and Gang Unit; Federal Bureau of Investigation Evidence Management Unit, Quantico, VA; US Marshal’s Service Harrisburg, PA and Phoenix, AZ; Franklin County District Attorney’s Office; United States Attorney’s Office, District Of Maryland; and the Washington County State’s Attorney’s Office.
Judy Fernandez, Manager of Analytic Services at LexisNexis Special Services, Inc., (LNSSI) provided expert assistance to investigators and the prosecution in the areas of analysis, support, and the rendering of her expert opinion.
Assistant U.S. Attorneys William A. Behe and Michael Consiglio are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) identified as “Retribution for Welsh Run.” 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.
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Assault on Bureau of Indian Affairs officer sends Pryor man to prison for five yearsRead the Press Release
BILLINGS — A Pryor man who admitted to his role in assaulting a Bureau of Indian Affairs officer as he was responding to a report of a stolen vehicle in Lodge Grass, on the Crow Indian Reservation, was sentenced today to a mandatory minimum five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Darnell Lee Not Afraid, 38, pleaded guilty in September 2022 to possession of a firearm in furtherance of assault on a federal officer, a crime of violence.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on March 14, 2021, BIA officers, while in the course of their official duties, were pursuing Not Afraid, who was driving a stolen truck at high speeds through residential neighborhoods in Lodge Grass. Not Afraid eventually stopped, got out of the truck and ran away. The officer pursued on foot into a residential yard and drew his Taser. As the officer neared Not Afraid, Not Afraid turned toward the officer, pulled up his shirt and grabbed a silver revolver from his waistband. The officer dropped his Taser, drew his service pistol and fired multiple times at Not Afraid, striking him at least once in the arm. An angry crowd of people, who had been watching the chase, accosted the officer, yelling and cursing at him. The crowd was angry at the officer for shooting Not Afraid and prevented the officer from attending to him.
Co-defendant Earl Landon Old Chief, Jr., is pending sentencing for conviction in the case. A third co-defendant, Darwyna Caylynn Catherine Bullshows, was sentenced to time served for conviction in the case.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case, which was investigated by the FBI.
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Assault of a TSA Officer at RDU Airport Gets Man 37 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Raleigh man, Adonis Fabian Zorrilla, was sentenced today to 37 months in prison, 3 years supervised release, and $4,103.35 in restitution for assaulting a Transportation Security Administration (TSA) officer at Raleigh-Durham International (RDU) Airport.
According to court documents and other information presented in court, Zorrilla, 27, and a traveling companion went through a security checkpoint at RDU airport on March 6, 2022. TSA officers pulled their bags for additional screening and discovered 17 false identification cards with Zorilla’s photo and a variety of names. Zorrilla grabbed the TSA officer’s arm and unsuccessfully attempted to wrestle the identification cards from her, tearing one of the TSA officer’s ligaments in the scuffle. Zorrilla then fled RDU airport without his shoes or other belongings as those remained at the security checkpoint. On April 29, 2022, Zorrilla was arrested for Forgery in Bibb County, Georgia, and brought to the Eastern District of North Carolina to face this charge. On August 9, 2022, Zorrilla pled guilty to the charge.
Zorrilla has prior felony convictions in North Carolina for Common Law Robbery, Possession with Intent to Sell and Deliver Heroin, Identity Theft, and Trafficking Stolen Identities, as well as a conviction for Reckless Driving to Endanger.
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. The Federal Bureau of Investigation (FBI) and the RDU Police Department investigated the case and Assistant U.S. Attorney Brad DeVoe prosecuted the case. Additional assistance was provided by TSA.
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. 2:21-CR-33-BO.
Andrews Man Convicted of Robbing and Murdering Postal Carrier, Faces Life SentenceRead the Press Release
CHARLESTON, SOUTH CAROLINA ---- Trevor Raekwon Seward, 25, of Andrews, SC, was convicted following a multi-day jury trial of all five counts charged: murder of a federal employee in the course of her duties; use of a firearm in furtherance of a crime of violence; robbery; possession of a firearm by a convicted felon; and conspiracy to possess with intent to distribute and to distribute marijuana.
Evidence presented by the Government at trial in the case established that on September 23, 2019, Seward was anticipating the delivery of two pounds of marijuana that had been shipped from California through the United States Postal Service. Rather than deliver the package to Seward’s residence in Andrews, SC, mail carrier Irene Pressley placed a form in Seward’s mailbox stating that the authorized recipient would need to come to the post office to claim the package. After Seward confronted Pressley minutes later and failed to get the marijuana package, he returned home.
Seward left home shortly thereafter armed with an AR-15 in search of Pressley. Approximately one hour after she had left the form in Seward’s mailbox, Pressley was driving down Senate Road in Andrews, SC, when Seward fired approximately twenty rounds of from his AR-15 into the back of Pressley’s vehicle, striking her multiple times. Seward then got into Pressley’s vehicle and drove approximately three miles away, where he left Pressley and her vehicle in a ditch on an access road to a hunt club. While on the access road, Seward removed mail from Pressley’s vehicle and searched through packages for the package intended for his residence or any other items of value. The package of marijuana that had been shipped to Seward’s residence was later found on Senate Road where Pressley had been shot by Seward.
United States District Judge Donald C. Coggins presided over the trial and will sentence Seward after receiving and reviewing a pre-sentence report that will be prepared by the United States Probation Office. Seward faces a mandatory penalty of life imprisonment for the murder of Pressley. Seward also faces up to life imprisonment for the use of firearm in furtherance of Pressley’s murder; up to twenty years imprisonment for the robbery of Pressley; up to ten years for illegal possession of a firearm; and up to five years imprisonment for the marijuana conspiracy conviction.
“The prosecution of violent crime is a priority for our office, and that is especially true when the victim of that violence is a federal employee murdered for doing her job,” said U.S. Attorney Adair F. Boroughs. “We are grateful for the work done by our federal and local partners, particularly the United States Postal Inspection Service and the Williamsburg County Sheriff’s Office, in their efforts to bring justice for such a senseless act of violence.”
“This conviction demonstrates our commitment to ensure that all USPS employees can work and serve the public without having to endure an atmosphere of fear and intimidation. The U.S. Postal Inspection Service will utilize all of our resources and work in collaboration with our law enforcement partners to identify and hold individuals responsible that threaten a safe work environment for our employees,” said Tommy D. Coke, Postal Inspector in Charge of the Atlanta Division. “Our thoughts and prayers continue to go out to the Pressley family, and we are thankful for the assistance from those who helped to ensure the defendant was held accountable for the senseless act of violence against Irene Pressley.”
“We are committed to bringing anyone who commits crimes of violence in Williamsburg County to justice,” said Williamsburg County Sheriff Stephen R. Gardner. “We are thankful for the jury’s decision in this case to hold Trevor Seward responsible for his murder of Irene Pressley, a murder committed because she refused to deliver two pounds of marijuana to him.”
The case was investigated by agents of the United States Postal Inspection Service, the Williamsburg County Sheriff’s Office, the Federal Bureau of Investigation (FBI), the South Carolina State Law Enforcement Division (SLED) and the Charleston County Sheriff’s Office. Assistant United States Attorneys Nick Bianchi, Katherine Flynn and Elle E. Klein are prosecuting the case.
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Alleged French cybercriminal to appear in Seattle on indictment for conspiracy, computer intrusion, wire fraud and aggravated identity theftRead the Press Release
Seattle – A 21-year-old French citizen from Epinal, France, will appear tomorrow January 27, 2023, in U.S. District Court in Seattle on a nine-count indictment alleging conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, four counts of wire fraud and three counts of aggravated identity theft, announced U.S. Attorney Nick Brown. Sebastien Raoult aka Sezyo Kaizen, was arrested last year in Morocco and was extradited to the U.S. this week. Raoult and two co-conspirators were indicted by a grand jury sitting in the Western District of Washington on June 23, 2021. Raoult’s initial appearance will be at 2:00 PM in front of Magistrate Judge Michelle L. Peterson
“Too many bad actors believe they can illegally access proprietary information and personal financial information by hiding behind a keyboard,” said U.S. Attorney Nick Brown. “FBI Seattle Cyber Task Force and our experienced cyber unit is working diligently to identify, arrest, and prosecute those who seek to victimize people, businesses, and industries in the Western District of Washington and around the world.”
According to the indictment, Raoult was a participant in a hacking group that dubbed itself the “ShinyHunters.” The conspirators allegedly hacked into protected computers of corporate entities for the theft of proprietary and corporate information. The group advertised sensitive stolen data for sale and sometimes threatened to leak or sell stolen sensitive files if the victim did not pay a ransom. Since early 2020, ShinyHunters Group has marketed and promoted data stolen from more than 60 companies in Washington State and elsewhere around the world.
According to the indictment, the conspirators created websites that appeared to be login pages belonging to legitimate businesses. The conspirators allegedly sent phishing emails to company employees that were designed to look like they came from legitimate businesses and contained links to those login pages. When victims provided their account sign-on credentials on those login pages, the conspirators obtained the victims’ credentials. Using the stolen credentials, the conspirators allegedly accessed protected computers with companies’ data.
The ShinyHunters maintained accounts on various dark web sites where they advertised stolen data for sale, including customer databases with personal and financial information. The conspirators also used social media accounts to direct potential buyers to the dark web marketplaces to purchase stolen data. Sometimes the conspirators alerted the media to their hacking or posted images on a victim website claiming credit for hacking the company.
Some of the victims of the ShinyHunters hacking were located in the Western District of Washington but others were located around the world. The victims range from tech companies, to an international stock trading company, to an apparel company, and a nutrition and fitness company. Millions of customer records were included in the stolen data.
In addition to the conspiracy counts, the wire fraud counts correspond to particular malicious emails to entities in the State of Washington and other transmissions involving the State of Washington. The three identity theft counts are for the use of other people’s log-in credentials to access victim company data.
In addition to Raoult, the indictment charges 23-year-old Gabriel Kimiaie-Asadi Bildstein aka “Kuroi” and “Gnostic Players,” of Tarbes, France, and 22-year-old Abdel-Hakim El Ahmadi aka “Zac” and “Jordan Keso” of Lyon, France.
The conspiracy to commit computer fraud and abuse charge is punishable by a maximum of ten years in prison. The conspiracy to commit wire fraud count is punishable by a maximum of 27 years in prison. Wire fraud is punishable by a maximum of 20 years in prison. Aggravated identity theft is punishable by a mandatory minimum two-year prison term to follow any other prison sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorney Miriam Hinman. DOJ’s Office of International Affairs is providing substantial assistance. The Department of Justice also appreciates the significant cooperation and assistance provided by Moroccan and French authorities.
raoult_et_al_indictment_flat.pdfAlbany Felon Sentenced to 63 Months on Ammunition and Drug ConvictionsRead the Press Release
ALBANY, NEW YORK – Mikal Smith, age 29, of Albany, was sentenced today to 63 months in prison for being a felon in possession of ammunition and possession with intent to distribute cocaine base.
United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; and Albany Police Chief Eric Hawkins made the announcement.
A jury voted to convict Smith on August 31, 2022, following a three-day trial. The trial evidence established that on April 7, 2021, Smith possessed with the intent to distribute 83 grams of cocaine base and possessed a large-capacity magazine loaded with 20 rounds of LC 5.56 ammunition. Smith discarded the drugs and ammunition during a foot pursuit after members of the Albany Police Department’s Community Response Unit attempted to arrest him on a parole warrant. At the time, Smith had felony convictions for Attempted Robbery in the Second Degree and Criminal Sale of a Controlled Substance in the Third Degree. Under federal law, these convictions prevented Smith from lawfully possessing the ammunition.
United States District Judge Mae A. D’Agostino also imposed a 4-year term of post-imprisonment supervised release.
The Albany Police Department and DEA investigated this case. Assistant U.S. Attorneys Allen J. Vickey and Katherine Kopita prosecuted this case.
25 January 2023
Youngstown Area Attorney Convicted of Participating in Scheme to Steal More Than $1.3 Million from IRSRead the Press Release
YOUNGSTOWN – A federal jury today found Robert J. Rohrbaugh, 49, of Canfield, Ohio, guilty of engaging in a conspiracy to help two men illegally obtain more than $1.3 million from the IRS following a six-day trial before U.S. District Judge Benita Y. Pearson in Youngstown.
Rohrbaugh was convicted of conspiracy to commit offenses against the United States, aiding and abetting theft of government property, aiding and abetting false claims against the United States, and conspiracy to commit money laundering.
According to court documents and evidence presented at trial, Rohrbaugh, a Youngstown-area attorney, assisted co-conspirators Brandon Mace and Terris Chanley Baker with obtaining a tax refund check for a fictitious business in the amount of $1,352,779.
Court documents state that in early 2015, Mace and Baker obtained a bogus tax refund check for a fictitious business by using fabricated tax forms and listing false taxes and expenditures that showed significant tax overpayments. After obtaining the refund check, Mace and Baker then contacted and worked with Rohrbaugh to deposit the check in accounts owned by the defendants.
During the trial, prosecutors presented evidence that Rohrbaugh assisted Mace and Baker with the scheme even though he was aware that the two had obtained the refund from an illegitimate business based on false tax returns.
According to court documents, after cashing the refund check, Mace and Baker attempted to launder the money by purchasing several high-end and luxury vehicles. In addition, evidence showed that Mace and Baker used $150,000 of the refund check to pay Rohrbaugh for his services.
Co-defendant Brandon Mace pleaded guilty in September 2020 to his role in the scheme, and co-defendant Terris Chanley Baker was convicted by a jury for his role in April 2022.
Rohrbaugh is scheduled to be sentenced on May 16, 2023.
This case was investigated by IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Erica D. Barnhill.
Willamette Valley Grass Seed Company Pleads Guilty and is Sentenced in Scheme to Defraud SimplotRead the Press Release
PORTLAND, Ore.—On January 24, 2023, a Willamette Valley grass seed marketing and distribution company pleaded guilty and was sentenced in federal court for its role in a scheme to defraud the J.R. Simplot Company and its former subsidiary the Jacklin Seed Company.
Ground Zero Seeds Int’l, Inc. (GZI) pleaded guilty to one count of misprision of felony and was sentenced to one year of probation. The Yamhill, Oregon company was also ordered to pay a $40,000 fine and $516,000 in restitution to Simplot.
According to court documents, GZI and its president, founder, and owner, Gregory McCarthy, maintained longstanding commercial relations with the Jacklin Seed Company, a subsidiary of Simplot based in Liberty Lake, Washington. GZI and McCarthy routinely contracted with Jacklin for the purchase and sale of grass seed. These contracts were typically negotiated with Richard Dunham, a former Jacklin employee who oversaw the company’s order-fulfillment and warehousing operations in Oregon and had the authority to purchase grass seed from certain Oregon growers over others.
Beginning in April 2015, McCarthy and Dunham agreed that GZI would pay Dunham a per pound kickback for grass seed purchased by Jacklin. These kickbacks were built into the prices reflected on GZI’s invoices to Jacklin. Dunham artificially inflated the price Jacklin paid GZI for seed or reduced the price at which Jacklin sold seed to GZI. To help conceal the scheme from Jacklin, Dunham registered a separate business entity through which he purported to offer consulting and grass seed brokering services. Dunham used the company and a checking account in the company’s name to accept kickbacks from GZI, McCarthy, and others.
Between April 2015 and September 2019, McCarthy caused GZI to pay Dunham approximately $191,790.
Prior to GZI pleading guilty and being sentenced, a one-count superseding criminal information was filed charging the company with misprision of felony.
On April 29, 2022, Dunham was charged by criminal information with two counts of conspiracy to commit wire fraud and on July 7, 2022, he pleaded guilty to both charges. Dunham will be sentenced on June 21, 2023.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Wakefield Man Sentenced for Decade-Long Mortgage Fraud SchemeRead the Press Release
BOSTON – A Wakefield man was sentenced today in federal court in Boston for a mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.
Joseph Bates III, 42, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. In October 2018, Bates pleaded guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. Bates was also ordered to pay restitution in the amount of $2,238,354 and forfeiture of $700,000.
Bates was originally charged in September 2018 along with co-defendants George Kritopoulos and David Plunkett. In October 2022, Kritopoulos was sentenced to four years in prison and two years of supervised release after being convicted by a federal jury of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns and is scheduled to be sentenced on Feb. 9, 2023.
From 2006 through 2015, Bates, Kritopoulos and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem, Mass. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units. Together, Kritopoulos and Bates created and provided false documents to defraud lenders for financing the purchases. Kritopoulos also recruited Plunkett to prepare false tax returns in support of the fraud scheme.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when the borrowers actually received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when they did not intend to do so. Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Office; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office made the announcement today. Valuable assistance was provided by the Salem Police Department. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case. Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Recovery Unit, is handling the forfeiture and restitution aspects of the case.
U.S. Attorney’s Office Collects $6.5 million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
BILLINGS- U.S. Attorney Jesse Laslovich announced today that the District of Montana collected $6,579,202 in criminal and civil actions in Fiscal Year 2022. Of this amount, $5,558,568 was collected in criminal actions and $1,020,634 was collected in civil actions.
Additionally, the District of Montana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $9,376,238 in civil cases pursued jointly by these offices.
“This money comes from collecting civil penalties and debts and from seizing proceeds from criminal activity. These funds help crime victims and benefit the American people through deposits to the U.S. Treasury, which are priorities of this office. I want to thank our financial litigation unit, the civil and criminal divisions, and all our employees for their hard work on behalf of crime victims,” U.S. Attorney Laslovich said.
Funds collected in criminal judgments include:
- $1,700,372 from the sale of a mansion formerly owned by Larry Price Jr., a former Signal Peak Energy, LLC, mine official convicted of fraud and other crimes.
- $1 million from Signal Peak Energy, which was convicted of willfully violating health and safety standards.
- $392,173 from Debra Gean Roeber, convicted of defrauding a blind and elderly woman, now deceased, who was under her guardianship.
- $200,000 from Melissa Lynne Horner, co-owner of H & H Earthworks, Inc., who was convicted of failing to pay IRS employment taxes.
- $100,000 from U.S. Minerals, Inc., which was convicted of negligent endangerment for exposing workers to arsenic at its former Anaconda plant.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the District of Montana, working with partner agencies and divisions, collected $548,948 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney's Office Files Suit Against Landlord Alleging Sexual Harassment of TenantRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that it has filed a civil complaint in federal district court alleging that Vernon C. Morgan, Jr., violated the Fair Housing Act by discriminating on the basis of sex when he subjected a former tenant at a property he owns in Greeley, Colorado, to sexual harassment, and by retaliating against her by attempting to evict her after she confronted him about the harassment and obtained a civil protection order against him.
The lawsuit stems from a complaint that the tenant filed with the United States Department of Housing and Urban Development (HUD), which, after an investigation by HUD’s Office of Fair Housing and Equal Opportunity, found reasonable cause that discrimination and retaliation had occurred. The tenant made an election under the Fair Housing Act to have the Department of Justice, through the U.S. Attorney’s Office, file a complaint on her behalf.
“The U.S. Attorney’s Office is committed to protecting tenants who are subjected to unwanted sexual advances and comments,” said U.S. Attorney Cole Finegan. “Sexual harassment related to housing is particularly egregious because everyone should be able to feel safe in their home. The U.S. Attorney’s Office will continue to work with HUD to investigate and hold accountable landlords who violate the Fair Housing Act.”
Additional information about the Fair Housing Act, including information about how to file a complaint, can be found on HUD’s website at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview.
The claims made in the complaint are allegations that, if the case proceeds to trial, the government must prove by a preponderance of the evidence.
This case is being handled by Assistant U.S. Attorneys Jennifer Lake and Zeyen Wu.
U.S. Attorney Jesse Laslovich announces $606,296 grant from Justice Department for agencies, organizations to support at risk youthRead the Press Release
BILLINGS – U.S. Attorney Jesse Laslovich today announced that the Department of Justice has awarded $606,296 to the state of Montana to fund agencies and organizations that support youth and their families.
The grant, administered by the Montana Board of Crime Control, is from the Fiscal Year 2022 Title II Formula Grants Program, from the Office of Justice Programs’ Office of Juvenile Justice Delinquency Prevention. This grant is for Year 2 of the three-year program in Montana.
“The efforts of the United States Department of Justice necessarily seek to hold people accountable for their criminal conduct. But our work must also be proactive, rather than reactive, to help prevent those who are at risk of falling into our criminal justice system. These grants – and the organizations they will support – are an important part of our prevention efforts,” U.S. Attorney Laslovich said.
The purpose of the project is to support the needs of youth ages 0 to 17 and their families through evidence-based or promising programs or practices. Many of these youth are at significant risk for delinquency, are currently involved in the juvenile justice system or are at risk of suspension or expulsion. The Youth Justice Council, Montana’s state advisory group, has chosen to prioritize delinquency programs, mentoring, counseling and training programs; school programs; diversion; and Native American Tribe programs.
Montana anticipates funding four Big Brothers Big Sisters programs, two Boys and Girls Clubs, CASA Missoula, YWCA Missoula, Friendship House of Christian Service, the Center for Restorative Youth Justice, Bitterroot Ecological Awareness Resources and Chippewa Cree Tribal Court. The service areas will include Yellowstone, Hill, Silver Bow, Gallatin, Park, Missoula, Flathead and Ravalli counties. The Chippewa Cree Tribal Court will serve youth on the Rocky Boy’s Indian Reservation. Some youth in Arlee, on the Flathead Indian Reservation, will be served by YWCA Missoula.
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U.S. Attorney Dena J. King Co-Hosts U.S. Secret Service Seminar in Asheville on Enhancing School SafetyRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King co-hosted a seminar today in Asheville with the United States Secret Service on enhancing school safety.
Presented by experts with the U.S. Secret Service’s National Threat Assessment Center (NTAC), the seminar provided law enforcement, community members, mental health professionals, social workers, educators, school administrators and staff from various school districts and counties throughout Western North Carolina with information and key findings related to school threat incidents, risk management and assessment training, tools on how to identify potential threat indicators, and early intervention techniques aimed at increasing school safety.
Speaking at today’s event, U.S. Attorney King said, “Keeping children safe in schools is paramount. Each of us in this room understands that it takes a village not only to raise a child, but to keep a child safe. Today’s seminar is an example of our combined efforts to increase school safety by sharing important research and information on how to identify, respond and prevent threatening incidents in schools, so our students can stay safe, learn, and be their best.”
For over 20 years, the Secret Service’s NTAC has been conducting research, training, consultation, and information sharing on threat assessment and targeted violence prevention by collecting and analyzing data of incidents directed at government agencies and officials, workplaces, schools, colleges, universities, and other public spaces. The research-based approach to studying the behaviors associated with acts of violence supports the agency’s mission to protect communities and increase public safety. To learn more about Secret Service’s NTAC, click here.
Two Members of the Aryan Circle Sentenced for Attempted MurderRead the Press Release
Two members of the Aryan Circle were each sentenced today to 10 years in prison for their role in the attempted murder of an inmate that occurred while they were incarcerated at U.S. Penitentiary Yazoo City in Mississippi.
On Oct. 3, 2022, William Glenn Chunn, aka Big Head, 40, of Humble, Texas, and Aaron Matthew Rentfrow, aka Mongo, 42, of Fort Wayne, Indiana, were convicted at trial in the Southern District of Mississippi of violent crime in aid of racketeering (VICAR) attempted murder. Chunn was previously convicted at trial in the Eastern District of Texas of racketeering conspiracy and sentenced to life imprisonment for separate crimes.
According to court documents and evidence presented at trial, the Aryan Circle is a race-based and violent prison gang with members operating throughout the country, both inside and outside of prisons. The Aryan Circle enforces its rules and promotes discipline among its members, prospects, and associates through threats, intimidation, and acts of violence including, but not limited to, acts involving assault and murder. Members are required to follow the orders of higher-ranking members without question.
Evidence at trial demonstrated that on Aug. 17, 2017, Rentfrow beat and stabbed the victim to earn membership into the Aryan Circle. Chunn, one of the five-highest ranking Aryan Circle leaders in the nation, ordered the attack and targeted the victim because he believed the victim was homosexual. The victim sustained severe injuries from the attack, including rib fractures, a collapsed lung requiring a chest tube, multiple puncture wounds to the chest, and lacerations to the face and head.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Prisons; and the Drug Enforcement Administration investigated the case.
Trial Attorneys Lakeita F. Rox-Love and Christina Taylor of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Michael FiggsGanter for the Southern District of Mississippi prosecuted the case.
Two Florida Men Sentenced for Racially-Motivated Hate Crime Following Violent Assault on a Black ManRead the Press Release
Two Florida men were sentenced today in federal court in the Middle District of Florida for hate crime charges in connection with their racially-motivated attack against a Black man in Citrus Springs.
Roy Lashley, 56, was sentenced to 60 months in prison, and his brother, Robert Lashley, 52, was sentenced to 36 months in prison.
According to the facts admitted in the defendants’ pleas, on Nov. 17, 2021, Roy and Robert Lashley traveled to the Family Dollar in Citrus Springs, where the victim, a Black man, was shopping inside. After Roy Lashley repeatedly used racial slurs inside the store in reference to the victim, both Roy and Robert Lashley followed the victim into the parking lot. There, Robert Lashley ran to the victim and hit him numerous times, while Roy Lashley retrieved an axe handle from the bed of his truck, ran to the scene, and struck the victim multiple times with it. Both Roy and Robert Lashley directed racial slurs towards the victim before, during, and after the attack. The victim sustained painful injuries to his face and legs, including a laceration to the inside of his mouth. Both Roy and Robert Lashley admitted that they willfully caused bodily injury to the victim and acted because of the victim’s actual or perceived race or color.
“Driven by bigotry and hate, the defendants brutally assaulted a Black man for no other reason than his race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated violence is abhorrent, unlawful and has no place in America today. Aggressive prosecution of hate crimes is a top priority for the Civil Rights Division, and these sentences should send a message to others who would carry out similar acts of violence that they will be brought to justice.”
“The brutal attack against the victim in this case was motivated by hate and bigotry,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Because of the great determination and cooperation between our federal and local law enforcement partners, we were able to bring these callous criminals to justice.”
“Civil rights investigations are at the heart of what we do at the FBI,” Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office. “Hate crimes are not only an attack on the victim; they are meant to threaten and intimidate an entire community. Because of their wide-ranging impact, investigating hate crimes is among the FBI's highest priorities, and we will continue to work with our law enforcement partners to seek justice for victims and their communities.”
Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement.
The FBI and the Citrus County Sheriff’s Office investigated the matter.
Trial Attorneys Maura White and Matthew Tannenbaum of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney William Hamilton for the Middle District of Florida prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Two Florida Men Sentenced for Racially-Motivated Hate Crime Following Violent Assault on a Black ManRead the Press Release
Ocala, FL – Two Florida men were sentenced today in federal court in the Middle District of Florida for hate crime charges in connection with their racially-motivated attack against a Black man in Citrus Springs.
Roy Lashley, 56, was sentenced to 60 months in prison, and his brother, Robert Lashley, 52, was sentenced to 36 months in prison.
According to the facts admitted in the defendants’ pleas, on Nov. 17, 2021, Roy and Robert Lashley traveled to the Family Dollar in Citrus Springs, where the victim, a Black man, was shopping inside. After Roy Lashley repeatedly used racial slurs inside the store in reference to the victim, both Roy and Robert Lashley followed the victim into the parking lot. There, Robert Lashley ran to the victim and hit him numerous times, while Roy Lashley retrieved an axe handle from the bed of his truck, ran to the scene and struck the victim multiple times with it. Both Roy and Robert Lashley directed racial slurs towards the victim before, during and after the attack. The victim sustained painful injuries to his face and legs, including a laceration to the inside of his mouth. Both Roy and Robert Lashley admitted that they willfully caused bodily injury to the victim and acted because of the victim’s actual or perceived race or color.
“Driven by bigotry and hate, the defendants brutally assaulted a Black man for no other reason than his race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated violence is abhorrent, unlawful and has no place in America today. Aggressive prosecution of hate crimes is a top priority for the Civil Rights Division, and these sentences should send a message to others who would carry out similar acts of violence that they will be brought to justice.”
“The brutal attack against the victim in this case was motivated by hate and bigotry,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Because of the great determination and cooperation between our federal and local law enforcement partners, we were able to bring these callous criminals to justice.”
“Civil rights investigations are at the heart of what we do at the FBI,” Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office. “Hate crimes are not only an attack on the victim; they are meant to threaten and intimidate an entire community. Because of their wide-ranging impact, investigating hate crimes is among the FBI's highest priorities, and we will continue to work with our law enforcement partners to seek justice for victims and their communities.”
Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement.
The FBI and the Citrus County Sheriff’s Office investigated the matter.
Trial Attorneys Maura White and Matthew Tannenbaum of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney William Hamilton for the Middle District of Florida prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Two Defendants Indicted for Civil Rights Conspiracy and FACE Act Offenses Targeting Pregnancy Resource CentersRead the Press Release
Tampa, FL – Two Florida residents were indicted by a federal grand jury for spray-painting threats on reproductive health services facilities in the state.
The indictment, returned by a federal grand jury in the Middle District of Florida, alleges that Caleb Freestone, 27, and Amber Smith-Stewart, 23, engaged in a conspiracy to prevent employees of reproductive health services facilities from providing those services. According to the indictment, as part of the conspiracy, the defendants targeted pregnancy resource facilities and vandalized those facilities with spray-painted threats. According to the indictment, Freestone and Smith-Stewart, and other co-conspirators, are alleged to have spray painted threats, including “If abortions aren’t safe than niether [sic] are you,” “YOUR TIME IS UP!!,” “WE’RE COMING for U,” and “We are everywhere,” on a reproductive health services facility in Winter Haven, Florida. The indictment further alleges that facilities in Hollywood, Florida, and Hialeah, Florida, were also targeted.
The indictment also alleges that Freestone and Smith-Stewart violated the FACE Act by using threats of force to intimidate and interfere with the employees of a reproductive health services facility in Winter Haven because those employees were providing or seeking to provide reproductive health services. The indictment further alleges that Freestone and Smith-Stewart violated the FACE Act by intentionally damaging and destroying the facility’s property because the facility provides reproductive health services.
If convicted of the offenses, Freestone and Smith-Stewart each face up to a maximum of 12 years in prison, three years of supervised release and fines of up to $350,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Assistant Director Luis Quesada of the FBI Criminal Investigative Division made the announcement.
The FBI Tampa Field Office investigated the case, with assistance from the Miami Police Department.
Assistant U.S. Attorney Lisa Thelwell for the Middle District of Florida and Trial Attorneys Sanjay Patel and Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services, or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov. For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
An indictment is merely allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Cleveland Men Sentenced to Prison for Using a Firearm in Connection with a Carjacking in ElyriaRead the Press Release
CLEVELAND – A Cleveland man was sentenced to 13 ½ years in prison on Wednesday, Jan. 18, 2023, by U.S. District Judge John R. Adams for his role in an armed carjacking that occurred at an Elyria-area gas station on Jan. 27, 2022.
“Federal, state, and local law enforcement are focused on carjacking and those committing this crime,” said First Assistant U.S. Attorney Michelle M. Baeppler. “We will continue to prosecute and seek lengthy sentences because of the risk to human life this crime creates.”
“Carjacking is a cowardly crime that can occur anytime and anywhere-- including broad daylight, busy areas, or seemingly well-protected points of interest. Sadly, everyone can be a target,” said Cleveland FBI Special Agent in Charge Gregory Nelsen. “This sentence reflects the severity of the crime and the commitment of the FBI, along with our federal, state, and local partners, to lessen the potential of future carjacking offenses.”
According to court documents, on Jan. 27, 2022, Trayqwan Dunlap, 20, and Clinton Lindsey, 25, both of Cleveland, Ohio, approached a victim at a gas station in Elyria, brandished a firearm, and threatened to harm the victim. Court documents state that the defendants then entered the vehicle and fled.
Elyria Police Officers responded and located the stolen vehicle traveling at a high rate of speed. Officers then observed the vehicle enter the downtown Elyria area and crash into a pillar. Dunlap and Lindsey then exited the vehicle and fled from the scene on foot. Court documents state that police officers later apprehended Dunlap and Lindsey and located a semiautomatic pistol in the stolen vehicle.
Clinton Lindsey was sentenced to more than 10 years in prison on Sept. 29, 2022, for his role in the incident.
This case was investigated by the Elyria Police Department and the Cleveland FBI. This case was prosecuted by Assistant U.S. Attorney Scott Zarzycki.
Tulsa Man and Woman Sentenced for their Roles in Two CarjackingsRead the Press Release
A man and woman who were involved in two carjackings at apartment complexes in Tulsa were sentenced in federal court this week, announced U.S. Attorney Clint Johnson. A third codefendant is scheduled to be sentenced in February.
U.S. District Judge Billy R. Wilson sentenced Raul Hernandez-Moreno, 22, to 225 months in federal prison followed by five years of supervised release. He was convicted at trial in January 2022 of two counts of carjacking; two counts of carrying, using and brandishing a firearm during and in relation to a crime of violence; and possession of a firearm and ammunition by an alien illegally in the United States.
U.S. District Judge Rodney W. Sippel sentenced codefendant Nicole Marie Rumualdo, aka Nicole Hughes, 29, to 144 months in federal prison followed by 5 years of supervised release. She previously pleaded guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
Codefendant Carlos Alfredo Arroliga, 27, will be sentenced Feb. 3. He also pleaded guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
“The defendants orchestrated two carjackings, pointed loaded firearms at the victims, and terrorized the victims. These convictions and lengthy sentences should send a message that my office and our law enforcement partners will continue to hold accountable dangerous offenders who threaten the public and commit violent acts within northeastern Oklahoma,” said U.S. Attorney Clint Johnson.
On Oct. 26, 2021, Hernandez-Moreno, Rumualdo, and Arroliga were responsible for two carjackings in Tulsa. At 7:30 am, Hernandez-Moreno and his two accomplices pulled alongside a gray 2006 Mazda 3 in the Echo Trails Apartments in Tulsa. The defendants exited their blue SUV, and Rumualdo pointed a loaded handgun at the victim. Hernandez-Moreno blocked the victim from behind. Speaking in Spanish, Rumualdo demanded the victim’s wallet and cell phone. When the victim responded that he did not have his wallet and cell phone, Rumualdo snatched the victim’s keys. Hernandez-Moreno and Rumualdo drove off in the Mazda, and Arroliga followed in the blue SUV.
A few hours later, the three defendants targeted a maintenance worker in his parked vehicle at Bristol Park Apartments in Tulsa. The victim was preparing to perform repairs at the complex when the defendants pulled into a nearby spot. Hernandez-Moreno then approached the victim and pointed a loaded gun at the victim, ordering him to hand over his money. Hernandez-Moreno then took the victim’s keys and drove off in the victim’s 2010 gray Chevrolet Silverado. Arroliga and Rumualdo followed in the blue SUV.
Officers were able to locate surveillance footage of the crimes from one of the apartment complexes. The video showed the vehicle used by the defendants, a bright blue Ford Escape with a paper tag and unique license plate frame. The same day of the crime, the blue Ford Escape was observed on Garnett Road, and a traffic stop was initiated because it matched the description of the SUV seen in the surveillance video. Arroliga was driving the vehicle and taken into custody for questioning. On Oct. 27, 2020, Hernandez-Moreno and Rumualdo were found in the stolen Mazda at the Echo Trails Apartment complex. They were immediately taken into custody.
The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Gina S. Gilmore, Joel-lyn A. McCormick, and Thomas E. Buscemi prosecuted the case. U.S. District Judges Wilson and Sippel are visiting judges who normally serve in the Eastern District of Arkansas and Eastern District of Missouri respectively.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime
Texas Woman Sentenced in Romance Fraud Scams that Defrauded Seniors of More than $2.6 MillionRead the Press Release
PROVIDENCE – A Houston, TX, woman who admitted to a federal judge in Providence, RI, that she collected and banked more than $1.26 million of the more than $2.5 million she and co-conspirators bilked from the unsuspecting victims of internet-based “romance scams” that they executed, was sentenced today to 78 months in federal prison, announced United States Attorney Zachary A. Cunha.
Dominique Golden, 31, previously admitted that, as part of the scam, she obtained fraudulent identification using various aliases; created business in her own name as well as in the names of her aliases; and opened multiple bank accounts using both her aliases and businesses, all for the purpose of receiving and depositing “romance scam” victim funds. From approximately February 4, 2018, through December 12, 2018, she collected and deposited a total of $1,263,822.54 into the bank accounts she controlled.
To carry out these schemes, members of the conspiracy contacted victims via the internet and app-based communication platforms, cultivated relationships of trust, convinced the victims that money was needed for an urgent purpose, and then directed the victims to send money via mail or wire transfer to various persons, including Golden. Golden admitted that she was aware that other members of the conspiracy contacted and developed relationships with the victims for the sole purpose of perpetrating the scam.
Golden admitted that, collectively, members of the conspiracy defrauded victims of approximately $2,545,041 during the period that Golden was involved in the conspiracy.
Golden pleaded guilty on September 1, 2022, to one count each of conspiracy to commit mail fraud and wire fraud. She was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 78 months in federal prison to be followed by three years of federal supervised release, and to pay restitution in the amount of $1,263,822.54.
“Fraud that preys on the emotions and vulnerabilities of vulnerable victims - especially the elderly - to cheat them out of their hard-earned savings is unconscionable,” said U.S. Attorney Cunha. “With today’s sentence, Ms. Golden will deservedly trade her stolen luxuries for a prison jumpsuit, and I am pleased that we have the chance to return at least some of the proceeds of her fraud to her many victims.”
Additionally, Golden will forfeit all interest in any fraud-related assets traceable or derived from her criminal conduct in this matter that were seized from her residence and vehicles during execution of search warrants in September 2109, to include a 2018 Bentley Bentayga; a 2017 Mercedes E-Class; $11,731 seized from her home and from the Bentley, 13 money orders totaling $6,000 in money orders, a gold oyster perpetual women’s Rolex watch; a gold oyster perpetual men’s Rolex watch; a gold and diamond Rolex bezel; a 16” gold rope chain with a diamond coin pendant; a 24” gold rope chain; and three firearms. GOLDEN also agreed to forfeit a sum of $1,263,822.54, to be offset by the forfeited assets, and a judgment against her in that amount will be entered.
Chief Judge McConnell ordered that the 78-month term of incarceration imposed today is to commence today. That 78-month term will be served concurrently with a separate 54-month federal sentence that Golden began serving in March 2020 in the Northern District of Georgia, having been convicted for conspiracy to commit money laundering in an unrelated fraud conspiracy.
The case was prosecuted by Assistant United States Denise M. Barton, with the assistance of Assistant United States Attorney John McAdams.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration in Atlanta.
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Syracuse Man Sentenced for Possessing a Firearm as a FelonRead the Press Release
SYRACUSE, NEW YORK – Rodney Ogletree, age 38, was sentenced today to serve 78 months in federal prison for possessing a firearm as a previously convicted felon. Ogletree was also sentenced to 24 additional months in prison for violating his conditions of supervised release imposed in a previous federal case.
The announcement was made by United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Joseph Cecile, Syracuse Police Department.
As part of his guilty plea, Ogletree admitted that on September 16, 2020, he possessed a loaded Glock model 23, .40 caliber pistol with an extended magazine containing sixteen rounds that was recovered during a traffic stop by Syracuse Police of a vehicle Ogletree was driving. Ogletree was prohibited from possessing the firearm due to previous federal felony convictions involving firearms. Ogletree was on federal supervised release when he committed this offense, for a 2014 conviction for being a felon in possession of a firearm.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department, with assistance from the Federal Bureau of Investigation (FBI) and the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Tamara Thomson as 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.
Swinomish Tribal member sentenced to prison for drug and gun crimesRead the Press Release
Seattle – A 28-year-old enrolled member of the Swinomish Indian Tribe was sentenced today in U.S. District Court in Seattle to six years in prison for drug dealing while carrying a firearm, announced U.S. Attorney Nick Brown. Robert Andrew Johnny was indicted in 2022 after being caught with drugs and firearms on two different occasions. At today’s sentencing hearing U.S. District Judge Lauren King imposed four years of supervised release to follow prison, and noted the harm of drug dealing, particularly to tribal communities.
According to records filed in the case, Johnny was contacted by police on March 14, 2022, while he was a passenger in a car driven by a coconspirator. In the car were nearly 90,000 fentanyl pills and two kilos of methamphetamine. There were four firearms and $10,000 cash in the vehicle. When police searched Johnny’s home, they found more than 2800 fentanyl pills and additional methamphetamine.
Previously, in June 2021, law enforcement searched a car Johnny had been driving and found it contained fentanyl, methamphetamine, and heroin. In the car was a backpack with a firearm and other items bearing Johnny’s name.
In October 2022, Johnny pleaded guilty to conspiracy to distribute controlled substances, possession of controlled substances with intent to distribute and carrying a firearm during and in relation to a drug trafficking crime.
In asking for a six-year prison sentence, prosecutors highlighted the danger of the fentanyl and methamphetamine Johnny distributed on the Swinomish Reservation and elsewhere in Skagit County. “These substances destroy the lives of their users, including leading to death in some cases. Our society also bears an enormous burden for medical treatment, substance abuse treatment, mental health treatment, law enforcement, and corrections. In addition to the danger that Johnny created for users of the drugs that he distributed, Johnny’s activities also created danger to the public by involving firearms to protect drugs and cash,” Assistant United States Attorney Miriam Hinman wrote in her sentencing memo.
The case was investigated by the Skagit County Interlocal Drug Enforcement Unit, Homeland Security Investigations (HSI), the Bureau of Indian Affairs, the Swinomish Police Department and the Mount Vernon Police Department.
The case was prosecuted by Assistant United States Attorney Miriam Hinman.
Sugar Land business owner charged with nine-year fraud schemeRead the Press Release
HOUSTON – A 56-year-old business owner is set to appear in federal court for conspiring to commit mail fraud, announced U.S. Attorney Alamdar S. Hamdani.
Sudhakar Kalaga is charged in a one-count criminal information. He is expected to make his initial appearance before U.S. Magistrate Yvonne Ho at 2 p.m.
He allegedly engaged in a fraud scheme that ran for nine years.
“The consequences of illegal bribes and kickbacks can be devastating,” said Hamdani. “These charges demonstrate our continued commitment to protect victims from those who subvert competition using false, fraudulent and sham bids.”
The charges allege that from 2010 to 2019, Kalaga engaged in a bribery and bid rigging fraud scheme to secure construction and maintenance work contracts from a company with a manufacturing facility in Houston.
During that time, Kalaga allegedly submitted fake bids from non-existent construction companies to the victim company’s facilities manager. This was designed to make it appear his companies’ bids were the lowest, according t0 the allegations. In return, Kalaga allegedly paid the facilities manager millions of dollars in kickbacks. The information further alleges Kalaga failed to disclose he was submitting falsified bids and paying kickbacks from the victim company’s own funds.
The victim company would not have paid Kalaga’s companies’ invoices had it known about the falsified bids or the kickback payments, according to the charges.
If convicted, Kalaga faces up to five years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Statement from United States Attorney Kevin G. RitzRead the Press Release
Memphis, TN – Kevin G. Ritz, United States Attorney for the Western District of
Tennessee, issued the following statement today:“Last week, we announced that the United States had opened a federal civil rights investigation into the circumstances leading to the tragic death of Tyre Nichols.
Earlier this week I had the privilege of meeting Mr. Nichols's mother, father, grandmother, and aunt. I had the privilege of hearing from them about Tyre, a young man who enjoyed skateboarding, Starbucks, and sunsets at Shelby Farms.
I would like to share with the community what I told Mr. Nichols's family. What I said was that the
Department of Justice cares deeply about potential violations of constitutional rights, here in
Memphis and throughout America. I said we have opened a criminal civil rights investigation. I told them this federal civil rights investigation will be thorough. It will be methodical. And it will continue until we gather all the relevant facts. As with any other federal investigation, we will go where those facts take us.I delivered that message to them. I want this community to hear that message as well. As I told Mr.
Nichols's family, our federal investigation may take some time. These things often do. But we will be diligent, and we will make decisions based on the facts and the law.My office is working hand in hand with the Civil Rights Division in Washington, as well as the FBI and other law enforcement partners. Our team includes very experienced federal prosecutors from our office here in Memphis. It includes very experienced FBI agents from the FBI's Memphis Field
Office. It also includes a very experienced attorney from the Civil Rights Division.We have been in constant, very constructive communication with the Shelby County District Attorney and state and local law enforcement agencies about this case. I am thankful for that, and I expect that to continue.
Finally, I know there is significant public interest in the release of the video that was shown to
Mr. Nichols's family. The state and local authorities have responsibility for determining when to release video from this incident to the public. What I will say on behalf of the federal authorities is that we want people to express their right to be heard, but we want them to do so in a peaceful and non-violent way.I'll close by saying that I grew up in this city and care deeply about it. I want this city to be a place where justice is done. The United States is committed to following the facts and the law, guided by principles of justice every step of the way.”
###For more information, please contact Public Information Officer Cherri Green at (901)
544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.St. Louis Man Gets 235 Month Sentence for Involvement in Drug RingRead the Press Release
EAST ST. LOUIS, Ill. – A St. Louis man was sentenced to 235 months in the Federal Bureau of Prisons after admitting to his involvement in a methamphetamine operation in southern Illinois.
Terrence Thompson, 35, pled guilty to one count of Attempt and Conspiracy and one count of Conspiracy to Launder Monetary Instruments. Following his prison sentence, Thompson will have five years of supervised release. He was fined $750 and $200 in special assessments. In addition, the federal indictment lists seven other defendants for their alleged involvement.
“Methamphetamine and other illegal narcotics are poisoning our families and communities, and individuals responsible for its distribution will be held accountable to the fullest extent of the law,” said U.S. Attorney Rachelle Aud Crowe. “Southern Illinois is a transportation hub with major interstate highway systems, and law enforcement play a key role in detecting and disrupting the flow of methamphetamine across the country. This case demonstrates how seriously we all take this responsibility.”
“The length of the sentence in this case speaks to the importance of disrupting drug trafficking organizations to stop the harm they do to our communities,” said Acting Special Agent in Charge Thomas Murdock, IRS-CI’s St. Louis Field Office. “IRS-CI is committed to supporting our law enforcement partners by following the money trail of these ill-gotten gains to help bring these criminals to justice.”
“Drug traffickers engage in their illicit activities for one reason: to make money,” said Assistant Special Agent in Charge Sean Vickers, head of Drug Enforcement Administration operations in southern Illinois. “A critical element in shutting down criminal drug trafficking organizations is making sure they don’t benefit from their illegal business. This nearly 20-year sentence demonstrates that DEA and its local and federal partners are dedicated to putting these criminals out of business.”
Co-defendant Richard Stark, 52, of Hazelwood, Missouri, pled guilty to one count of Attempt and Conspiracy and one count of Manufacture, Distribute, Dispense, Possess a Controlled Substance. In July 2022, Stark was sentenced to 292 months in the BOP and will have five years of supervised release. He was fined $500 and paid $200 in special assessments.
Tamara Peoples, 63, of Granite City, Illinois, pled guilty to one count of Attempt and Conspiracy and one count of Manufacture, Distribute, Dispense, Possess a Controlled Substance. Her sentencing is scheduled for March 30, 2023.
According to court records, Thompson conspired with the co-defendants to distribute more than 500 grams of methamphetamine in the Southern District of Illinois. Law enforcement conducted a search warrant on Thompson’s residence and recovered more than 10 kilograms of methamphetamine.
In addition, members of the conspiracy utilized various payment methods to deal the illegal narcotics including CashApp, cashier’s checks, bank transfers and postal money orders.
The federal indictment also lists Neyisha Anderson, Corey Hendriex, Thomas Hines, Amy Lynch and Terrell Winston for their alleged involvement. Each are facing charges ranging from Attempt and Conspiracy, Conspiracy to Launder Monetary Instruments and/or Manufacture, Distribute, Dispense, Possess a Controlled Substance.
An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The IRS and DEA are leading the investigation. Assistant U.S. Attorney Karelia Rajagopal is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the U.S. using a prosecutor-led, intelligence-driven, multi-agency approach. More information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Sixteen Members of A Washington Heights Narcotics Crew Charged with Narcotics and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Keechant Sewell, the Commissioner of the New York City Police Department (“NYPD”), and Patrick Freaney, Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced the unsealing of an Indictment today charging 16 members of a Washington Heights-based narcotics trafficking organization with conspiring to distribute narcotics in New York and with possessing firearms in furtherance of the narcotics trafficking conspiracy. ALEXANDER FRANCISCO, a/k/a “Javy,” ARISTIDES RAMIREZ, a/k/a “AR,” DAVID GLOVER, ALEX GARCIA, a/k/a “AG,” ANEUDY ALVARADO, a/k/a “Smiley,” JERIEL ABREU, a/k/a “Jerry Gunz,” LAZARETH PAULINO, a/k/a “Laz,” JOAN MERCEDES, a/k/a “Saul,” and ENMANUEL LIRIANO, a/k/a “Chubster,” a/k/a “Eman,” were arrested today and presented before United States Magistrate Judge Sarah L. Cave. CHRISTOPHER SANTOS, a/k/a “Casper,” was arrested previously in this matter. ALVIN EUSEBIO, a/k/a “Goo,” EDWARD RODRIGUEZ, and JAWAN MILLS, a/k/a “JD,” were already in custody in other jurisdictions. RAY EDUARDO, JONATHAN RODRIGUEZ, a/k/a “JR,” and EDDY CAMINERO, a/k/a “Malibu,” remain at large. This case is assigned to United States District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, these defendants injected substantial quantities of narcotics into the community, putting dangerous drugs on the streets and putting lives in danger. Thanks to the extraordinary work of our partners at NYPD, HSI, and the USSS, the defendants now face federal charges for their crimes.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The success of today’s operation represents another important stride in our ongoing effort to combat narcotics trafficking and firearms use in New York City and also reinforces our commitment to our law enforcement partners. I’m proud of our agents’ extensive investigative work to apprehend these members from the Washington Heights-based 174th Street Crew - a crew who are known to traffic narcotics and possess firearms. HSI will continue to work closely with the New York City Police Department, the U.S. Secret Service, and all of our local, state, and federal law enforcement partners to dismantle these dangerous criminal enterprises and hold their members accountable for their blatant disregard for the law.”
NYPD Commissioner Keechant L. Sewell said: “This investigation, involving several law enforcement agencies across multiple jurisdictions, is a perfect example of how focused collaboration makes us all safer. The illegal drug trade wreaks havoc in our most vulnerable communities, and our job is to ensure that anyone who peddles this poison be brought to justice swiftly and successfully. This dangerous and exploitative criminal behavior will never be tolerated in our city, and I want to thank the U.S. Attorney’s Office for the Southern District of New York, Homeland Security Investigations New York, the New York Field Office of the United States Secret Service, and everyone else who worked on this case and made New York City safer for all the people we serve.”
USSS Special Agent in Charge Patrick Freaney said: “The Secret Service’s New York Field Office is proud to work with our law enforcement partners in keeping our local neighborhoods safe from the variety of dangerous threats that criminal organizations pose. The Secret Service, HSI, and the NYPD enjoy a robust partnership founded on our mutual dedications to public safety and security, and I can assure the public this partnership makes for a safer New York City for us all.”
As alleged in the Indictment unsealed today in Manhattan federal court and in other court papers and proceedings:[1]
From at least in or about 2019, up to and including January 2023, in the Southern District of New York and elsewhere, ALEXANDER FRANCISCO, ARISTIDES RAMIREZ, DAVID GLOVER, ALVIN EUSEBIO, ALEX GARCIA, ANEUDY ALVARADO, EDWARD RODRIGUEZ, JERIEL ABREU, RAY EDUARDO, LAZARETH PAULINO, JONATHAN RODRIGUEZ, JAWAN MILLS, JOAN MERCEDES, EDDY CAMINERO, ENMANUEL LIRIANO, and CHRISTOPHER SANTOS operated a large-scale narcotics trafficking organization in, among other places, New York City. This organization (the “174th Street Crew”) operated principally in the Washington Heights neighborhood of Manhattan between West 174th and West 175th Streets and Amsterdam and Audubon Avenues (the “Set”). Within the Set, the 174th Street Crew conducted narcotics trafficking on the street and from multiple store fronts. The 174th Street Crew ran an organized, sophisticated narcotics trafficking operation that is best described as a street pharmacy, which sold a variety of narcotics, both illicit and prescription, to its customers, including methamphetamine, cocaine, heroin, crack cocaine, fentanyl, oxycodone, Xanax, and marijuana. The crew operated on the Set at all hours, and its members were assigned to work in designated shifts. Managers ensured that the Set was properly staffed for narcotics distribution and fined and disciplined members who missed work or demanded proof of illness (such as a doctor’s note or picture of a positive COVID-19 test).
Members and managers of the 174th Street Crew frequently carried and used firearms, including to protect the stash of narcotics belonging to the 174th Street Crew. In addition to one firearm seized today, twice in the past 13 months – in December 2021 and August 2022 – NYPD officers recovered handguns possessed by 174th Street Crew members holding stashes of narcotics on the Set.
During simultaneous arrests and searches conducted today in New Jersey and New York, law enforcement agents seized quantities of methamphetamine, cocaine, heroin, oxycodone, Percocet, and suboxone, as well as large sums of cash.
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All defendants are charged with conspiracy to distribute and possess with intent to distribute (i) 500 grams and more of mixtures and substances containing a detectable amount of methamphetamine, its salts, isomers, or salts of its isomers; (ii) 500 grams and more of mixtures and substances containing a detectable amount of cocaine; (iii) mixtures and substances containing a detectable amount of heroin; (iv) mixtures and substances containing a detectable amount of fentanyl; and (v) mixtures and substances containing a detectable amount of oxycodone. This charge carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. All defendants are also charged with possessing firearms in furtherance of the narcotics trafficking offense charged in the Indictment, which carries a mandatory minimum sentence of five years in prison, which must be served consecutively to any other sentence imposed, and a maximum sentence of life in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendants would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, the New York City Police Department, the U.S. Secret Service, and the Organized Crime Drug Enforcement Task Forces (“OCDETF”). This prosecution is part of an 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 prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Ashley C. Nicolas and Andrew W. Jones are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Shelby, N.C. Man Is Sentenced to More Than 17.5 Years for Trafficking Fentanyl and CocaineRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Chadwick Javon Strong, also known as “Izeem Ockman Ackridge,” 45, of Shelby, N.C., to 214 months in prison, followed by 10 years of supervised release, for trafficking fentanyl and cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and court proceedings, from 2018 to July 2021, Strong distributed fentanyl and cocaine in Mecklenburg, Gaston, and Cleveland Counties. Over the course of the investigation into Strong’s drug trafficking activities, law enforcement determined that the defendant sold and possessed with intent to distribute almost one kilogram of fentanyl, and that Strong sold the fentanyl with pill markings for a different substance. In addition to the narcotics, Strong was found in possession of more than $3,000 in cash and two handguns.
Strong pleaded guilty to conspiracy to distribute and to possess with intent to distribute
and distribution of fentanyl and cocaine. Strong remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
According to the DEA, fentanyl is a synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl remains the deadliest drug threat in the United States. Just two milligrams of fentanyl, which is equal to 10-15 grains of table salt, is considered a lethal dose. According to the CDC, 107,375 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. A staggering 67 percent of those deaths involved synthetic opioids like fentanyl. Some of these deaths were attributed to fentanyl mixed with other illicit drugs like cocaine, methamphetamine, and heroin, with many users unaware they were actually taking fentanyl.
U.S. Attorney King credited today’s outcome to investigations led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), which have resulted in the conviction of more than 70 individuals, and the seizure of over 567 kilograms of cocaine, over 30 kilograms of fentanyl, more than 17 kilograms of methamphetamine, more than six kilograms of cocaine base, and over four kilograms of heroin, 127 firearms, and more $437,000 in cash and other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Federal Bureau of Investigation, the Gastonia Police Department, the Charlotte-Mecklenburg Police Department, and Cleveland County Sheriff’s Office for their coordination and investigation of the case.
Assistant United States Attorneys Steven R. Kaufman and Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Seven Sentenced in Kickback Conspiracy to Defraud Federal Health Insurance ProgramsRead the Press Release
COLUMBIA, SOUTH CAROLINA --- Seven individuals have been sentenced after pleading guilty for their roles in a kickback conspiracy to enrich themselves at the expense of the United States and beneficiaries of federal health insurance programs.
Evidence presented to the Court showed the kickback scheme generally operated as follows:
- Durable Medical Equipment Companies (“DME Companies”) entered into agreements with marketing companies and/or call centers to purchase completed product orders, sometimes referred to as “leads.”
- These completed product orders included patient information and signed prescriptions for durable medical equipment.
- Marketing companies and/or call centers entered into agreements with telemedicine companies to obtain the signed prescription and the telemedicine companies contracted with physicians, often referred to as “telemedicine physicians.”
- The telemedicine physicians involved in the kickback conspiracy would often sign the prescriptions of the federal health insurance program beneficiaries without ever speaking to, examining, or following up with the patients. The telemedicine physicians did not have patient/healthcare professional relationships.
- The DME companies would pay the marketing companies and/or other call centers on a per-prescription basis. The DME companies would then take prescription and patient information and submit or cause to be submitted claims, or bills, to federal health insurance programs.
- To disguise the arrangement between the marketing companies/call centers and DME companies, the marketing companies/call centers sent invoices to the DME companies that disguised the fact that what was being purchased was a signed prescription and patient information.
- The scheme used drop ship companies to process the orders and ultimately ship the DME products to the beneficiaries. These dropship companies were paid by the DME companies participating in the scheme.
The individuals sentenced were involved in the kickback conspiracy as owners of the marketing companies or call centers, owners of the dropship companies, telemedicine physicians, or owners of the DME companies billing the federal health insurance programs.
The following individuals have been sentenced by Senior United States District Judge Joseph F. Anderson, Jr.:
- Henry Barton was sentenced to 24 months in federal prison, to be followed by three-year term of court-ordered supervision. Barton was also ordered to pay $1,850,000.00 in restitution.
- David Tsui was sentenced to 15 months in federal prison, to be followed by three-year term of court-ordered supervision. Tsui was also ordered to pay $1,003,300.00 in restitution. The dropship company Tsui owned was ordered to pay a $400,000 fine.
- Jeffrey Hoffman was sentenced to 12 months and 1 day in federal prison, to be followed by three-year term of court-ordered supervision. Hoffman was also ordered to pay $238,150.00 in restitution.
- Steve Lowell was sentenced to 12 months and 1 day in federal prison, to be followed by three-year term of court-ordered supervision. Lowell was also ordered to pay $919,548.00 in restitution.
- Christina Anderson was sentenced to 3 years’ probation, to be followed by three-year term of court-ordered supervision. Anderson was also ordered to pay $14,863.00 in restitution.
- Kathryn VanRavenstein was sentenced to 5 years’ probation, 8 months of which will be on home detention, and ordered to pay $46,250.00 in restitution.
- John Hynes was sentenced to 5 years’ probation, 180 days of which will be on home detention, and ordered to pay $39,925.00 in restitution.
These sentencings are the result of an investigation by the Federal Bureau of Investigation, Office of the Inspector General – Veteran Affairs, and the Office of the Inspector General – Health and Human Services, specifically Special Agent Ryan Schubert. Assistant United States Attorney Amy Bower prosecuted the case for the District of South Carolina.
These sentences are the result of a national case spearheaded by the District of South Carolina that led to prosecutions in several federal districts around the United States. The case was prosecuted in conjunction with the Department of Justice Healthcare Fraud Strikeforce.
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Rosebud Man Indicted on Firearm ChargesRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Rosebud, South Dakota, man for Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm.
Isaiah Beck, age 19, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 19, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 9, 2021, and June 25, 2022, in Todd County, Beck, an unlawful user of a controlled substance, possessed a firearm with a barrel length of less than 18 inches and the firearm was not registered to him.
The charge is merely an accusation and Beck is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Beck was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 28, 2023.