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Monday 5 December 2022
Puerto Rico Man Sentenced to Ten Years’ Imprisonment as Member of Maritime Cocaine-Trafficking ConspiracyRead the Press Release
Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin, announced that on December 2, 2022, Jose Crespo-Lorenzo, a/k/a “El Colombiano” (age: 60) of Aguadilla, Puerto Rico, was sentenced to ten years in federal prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States, in violation of Title 46, United States Code, Section 70506(b).
According to court documents, beginning around October 2019, Crespo-Lorenzo and others sought to coordinate the maritime shipment of bulk quantities of cocaine from the Dominican Republic to Puerto Rico. Crespo-Lorenzo, who was in the Dominican Republic at the time, and his Dominican-based associates planned to release a cocaine-laden vessel near Miches, Dominican Republic. The vessel would meet a maritime crew sent by David Quinones-Quinones, a Puerto Rican-based cocaine trafficker, at agreed coordinates, which corresponded to a location approximately seven miles southwest of the Desecheo National Wildlife Refuge. At the designated meet location, Crespo-Lorenzo’s crew planned an at-sea transfer of 100 kilograms (approximately 220 pounds) of cocaine with Quinones-Quinones’s crew. Quinones-Quinones would supply other Puerto Rican-based traffickers who were responsible for sending kilogram-quantities of cocaine to various locations in the continental United States, including Milwaukee, Wisconsin.
Court records indicate that on November 16, 2019, Crespo-Lorenzo and his Dominican-based associates released a cocaine-laden vessel from a location near Miches with the expectation that it would meet Quinones-Quinones’s maritime crew to conduct an at-sea transfer at the agreed coordinates. Yet, in the early-morning hours of November 17, 2019, Crespo-Lorenzo’s maritime crew spotted what they suspected was a Coast Guard patrol and dumped the cocaine load into the water.
Although Crespo-Lorenzo and Quinones-Quinones agreed to arrange a subsequent maritime cocaine load, the plan did not come to fruition as Quinones-Quinones was arrested in January 2020 in relation to the investigation underlying this prosecution, and he currently is serving a 130-month sentence in federal prison
According to United States Attorney Haanstad: “This case demonstrates an extraordinary effort by federal, state, and local law enforcement to hold accountable those involved in international drug-trafficking activity designed to flood the streets of the United States and other parts of the world with harmful controlled substances.”
“The sentence imposed reflects the commitment of the DEA, alongside our local and federal law enforcement and prosecution partners, to hold accountable external actors seeking to inflict harm upon our communities through the trafficking of illicit, deadly drugs,” said John G. McGarry, Assistant Special Agent in Charge of the Drug Enforcement Administration-Milwaukee District Office.
“Complex, collaborative investigations that dismantle large-scale drug trafficking operations help stem the supply of illegal drugs into Wisconsin communities,” said Wisconsin Attorney General Josh Kaul. “Thank you to the many law enforcement officers, including Wisconsin DOJ Division of Criminal Investigation agents, who worked on this significant investigation.”
This prosecution is the product of a multi-year investigation into international drug-trafficking activity, including maritime shipments of bulk quantities of cocaine ultimately intended to reach various locations within the continental United States (such as Milwaukee, Wisconsin) or elsewhere. The investigation was led by law enforcement agents and officers from the Drug Enforcement Administration (DEA), the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigations, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service, and the Milwaukee Police Department. Assistant United States Attorney Robert J. Brady, Jr. and Assistant United States Attorney Gail Hoffman prosecuted the case.
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Providence Man Sentenced for Distributing Meth PillsRead the Press Release
PROVIDENCE, R.I. – A Providence man who, on multiple occasions, while under surveillance by members of the Rhode Island DEA Drug Task Force, sold pills containing methamphetamine, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Jamont Patrick, 30, arrested in November 2021, pleaded guilty in November to a charge of knowingly and intentionally distributing and possessing with intent to distribute pills containing a methamphetamine mixture.
According to court documents, during a six-week span, while under surveillance by DEA agents, Patrick sold over a pound of meth pills to a law enforcement confidential informant. The pills were quickly seized by DEA agents.
On November 10, 2021, members of the task force conducted a court-authorized search of Patrick’s residence and seized approximately 189 grams of pills containing methamphetamine, two scales, and other items used in the distribution of narcotics.
At sentencing today, U.S. District Court Judge William E. Smith sentenced Patrick to thirty-six months of incarceration, to be followed by three years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket and Amtrak Police Departments; and Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation.
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Previously Convicted Felon Sentenced to 56 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
EVANSVILLE – Jose Martiez Crosby, 22, of Evansville, Indiana, was sentenced to 56 months in federal prison after pleading guilty to illegal possession of a firearm by a previously convicted felon.
According to court documents, on June 25, 2021, while at a firing range in Evansville, Crosby was captured on security camera video firing a Springfield, Model XD, .45 caliber pistol, which he owned.
Crosby had previously been convicted of felony theft of a firearm and felony maintaining a common nuisance in the Vanderburgh County Circuit Court under cause number 82C01-2002-F6-01181 on July 23, 2020.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division., made the announcement.
ATF investigated the case and the Evansville Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Crosby be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Todd S. Shellenbarger who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Philadelphia man sentenced for firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcellos Carey Edens, of Philadelphia, Pennsylvania, was sentenced today to 18 months of incarceration for an illegal firearms distribution operation, United States Attorney William Ihlenfeld announced.
Edens, also known as “Camo,” 37, pled guilty in September 2020 to one count of “Conspiracy” involving the illegal purchase and transfer of firearms from Berkeley County to Pennsylvania in December 2019. Edens admitted to having others purchase firearms in Berkeley County, West Virginia, and then transport the firearms across state lines to him in Philadelphia.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Gina M. Groh presided.
Penfield Man Charged with Obstruction of Justice and Lying Under Oath in George Moses InvestigationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Francis Cardinell, 76, of Penfield, NY, was charged by criminal complaint with obstruction of justice and lying under oath. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that George Moses, former chairman of the board of the Rochester Housing Authority, was recently sentenced to serve 78 months in prison for defrauding three organizations, including the Rochester Housing Charities. According to the complaint, in April 2019, Cardinell, owner of Akwasasne Construction, a general contracting firm in Rochester, was interviewed on two separate occasions by the FBI as a witness in connection with the investigation into the fraud allegations against Moses. When asked about a $63,000 contract for boiler work to be performed by his company at the Rochester Housing Charities, Cardinell advised that he paid a cumulative amount of more than $20,000 in cash to Moses as kickbacks related to this contract. During another interview a few weeks later, Cardinell stated that he gave Moses $7,500 in cash out of a payment of $21,800 that he received from the Rochester Housing Charities. In subsequent interviews with the Internal Revenue Service and Housing and Urban Development Office of Inspector General, Cardinell stated that he paid Moses three separate kickbacks totaling $25,000.
However, during the federal trial of George Moses, while under oath on the witness stand, Cardinell testified on cross-examination that he had lied about the kickback scheme and that he never made payments to Gorge Moses in exchange for contracts for his company. Cardinell later told federal investigators that he had fabricated these allegations against Moses because he was spiteful of Moses for the troubles he was having as a contractor.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the Department of Housing and Urban Development, Office of Inspector General, under the direction of Acting Special Agent-in-Charge, Jerome Winkle, and Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Parsons Man Sentenced for Child Porn ConspiracyRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 345 months in prison for conspiracy to commit sexual exploitation of a child (production of child pornography).
According to court documents, Dillon Everman, 30, of Parsons admitted in pleading guilty that he encouraged and requested co-defendant Dustin Strom to sexually abuse two young children and send him images of the abuse. Everman then saved the images and created a shareable link that he made available to Strom and others.
In October 2022, Dustin Strom, 26, of Parsons and was sentenced to 60 years in prison after pleading guilty to two counts of conspiracy to commit sexual exploitation of a child (production of child pornography).
Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children Task Force (ICAC) investigated the case.
Assistant U.S. Attorneys Molly Gordon and Jason Hart prosecuted the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."###
Parkersburg Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Johnathon Earl Hamrick, 33, of Parkersburg, was sentenced today to seven years in prison, to be followed by five years of supervised release, for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on November 4, 2021, law enforcement officers searched the Parkersburg residence of Hamrick, who then directed them to a rural property in Wood County. Hamrick admitted to possessing a total of 6 pounds of methamphetamine found by officers at the two locations. Hamrick further admitted that he intended to distribute the methamphetamine.
Hamrick also admitted that he received quantities of methamphetamine totaling approximately 20 pounds from John Michael Wells II, 33, of Parkersburg. Wells pleaded guilty on March 31, 2022, to conspiracy to distribute methamphetamine and marijuana. Wells admitted to paying and arranging for methamphetamine and marijuana to be shipped through the mail from California to Parkersburg in October and November 2021. Wells was sentenced on June 29, 2022, to 10 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation, the Parkersburg Violent Crimes and Narcotics Task Force (PNTF), and the Wood County Sheriff’s Office.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-139.
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Opioid Abuse Treatment Facility to Pay $3.15 Million for Kickback Violations, Obstructing Federal Audit, and False Claims Submitted to Government Insurance ProgramsRead the Press Release
CAMDEN, N.J. – An opioid abuse treatment facility in Camden will pay a total of $3.15 million to resolve criminal and civil claims that it caused kickbacks, obstructed a federal audit, and fraudulently billed Medicaid, Attorney for the United States Vikas Khanna announced today.
Camden Treatment Associates LLC (CTA) agreed to pay $1.5 million in criminal penalties to resolve allegations that it violated the federal Anti-Kickback Statute and obstructed a Medicaid audit. As part of the resolution, a criminal information was filed on December 2, 2022 in Camden federal court charging CTA with this conduct. CTA entered into a three-year deferred prosecution agreement (DPA) that requires it to abide by certain measures to avoid conviction. CTA also entered into a civil settlement agreement to pay $1.65 million to the United States to resolve claims that it violated the federal False Claims Act by submitting fraudulent claims to Medicaid.
Criminal Resolution
According to CTA’s admissions in the DPA:
Between 2009 and 2015, CTA and a second company were owned and managed by related parties. CTA had a kickback relationship with the second company in which CTA ordered all of its methadone mixing services from the second company and paid it more than $125,300 for those services. This arrangement resulted in kickbacks being paid because the second company paid the profits it made on CTA’s orders of methadone mixing to the related parties who owned and managed both companies. As a result, CTA was induced to order services from the second company and to have CTA patients receive treatment using methadone mixed only by that company. CTA received more than $2.78 million from Medicaid for methadone administration services.
In a separate criminal scheme, CTA obstructed a Medicaid contractor’s 2016 audit of CTA’s claims for payment. CTA submitted falsified materials to the auditor purporting to justify its claims to Medicaid. Specifically, CTA added patient and counselor signatures to patient files, altered names of counselors listed as providing services, added credentials for staff listed as performing services, added sign-off dates for services and, in some instances, submitted entire patient notes to files to justify services rendered. Metadata from CTA’s electronic patient software program revealed that CTA employed these fraudulent means.
Civil Resolution
The settlement resolves the civil allegations that CTA submitted false claims to Medicaid stemming from the kickback relationship with the methadone mixing company described above. The settlement further resolves allegations that between 2013 and 2016, CTA failed to comply with certain federal and state regulations governing substance abuse treatment facilities. Specifically, CTA allegedly failed to maintain proper supervision and staffing at its facility. Instead, CTA typically used non-credentialed “counselor interns” to perform services at the facility and did not have sufficient licensed staff to properly supervise the interns. Consequently, CTA’s claims submitted to Medicaid for payment, which were contingent on CTA’s certified compliance with these regulations, were false.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Compliance Obligations
As part of the DPA, CTA is required to adopt several compliance measures, including:
- have an effective compliance program, including enhanced compliance policies and annual compliance training regarding federal health care laws;
- retain an independent health care compliance consulting firm specializing in substance abuse disorder facilities to conduct a comprehensive review of its compliance program and to make improvement recommendations;
- create an independent board of advisors to oversee company compliance relating to federal health care laws;
- have a chief compliance officer to oversee compliance-related functions at the company;
- annually certify that its compliance program is effective; and
- provide written reports to the United States every six months over a three-year period detailing its progress in developing and enhancing its compliance program.
Attorney for the United States Khanna credited agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Acting Special Agent in Charge Susan Frisco, with the investigation and prosecution of the case. He also thanked the FBI Health Care Fraud Unit Data Analysis Response Team at FBI Headquarters in Washington, D.C., under the direction of Special Agent Greg Heeb; IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, for their assistance with the case.
The criminal case was prosecuted by Acting Chief of the Health Care Fraud Unit Christina O. Hud, Chief of the Opioid Abuse Prevention and Enforcement Unit R. David Walk, Jr., and Assistant U.S. Attorney Diana V. Carrig of the Criminal Division in Camden. The civil case was prosecuted by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Assistant U.S. Attorney Andrew A. Caffrey III of the District of Massachusetts and formerly of the District of New Jersey.
Omaha Man Sentenced to 12 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – James Michael Milbourn, age 38 of Omaha, was sentenced on Friday, December 2, 2022, to 144 months in prison following his plea of guilty to Possession with Intent to Distribute Methamphetamine, Carrying a Firearm During and in Relation to a Drug Trafficking Crime, and Felon in Possession of a Firearm.
On February 26, 2022, law enforcement encountered Milbourn in his car which was parked in the front yard of a residence in Council Bluffs. Located in plain view on the front passenger seat of the car was a bag that contained methamphetamine, a digital scale, and a loaded firearm. Milbourn intended to distribute the methamphetamine and possessed the firearm for personal protection of his controlled substances. Milbourn has multiple felony convictions which preclude him from possessing a firearm or ammunition.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and Southwest Iowa Narcotics Enforcement Task Force investigated the case.
Northeast Hospital Agrees to Pay $1.9 Million to Resolve Allegations of Controlled Substance Recordkeeping ViolationsRead the Press Release
BOSTON – Northeast Hospital Corporation (Northeast), part of Beth Israel Lahey Health, has agreed to pay $1.9 million in civil penalties to resolve allegations that Northeast violated the Controlled Substance Act (the CSA) by failing to keep accurate records of controlled substances, including opioids.
The CSA requires accurate inventorying and tracking of each controlled substance in circulation, from the manufacturer to the ultimate user. The recordkeeping requirements are intended, in part, to prevent misuse of controlled substances and avoid overdoses or other harms.
Northeast does business as Beverly Hospital in Beverly, Mass.; Lahey Outpatient Center Danvers in Danvers, Mass.; BayRidge Hospital in Lynn, Mass.; and Addison Gilbert Hospital in Gloucester, Mass. Each of these four locations is separately registered with the Drug Enforcement Agency (DEA) to handle controlled substances.
The DEA began investigating Northeast after it reported on March 22, 2018, that an employee had stolen 17,846 dosage units of controlled substances, including fentanyl, Percocet, oxycodone, dextroamphetamine and MS Contin, over more than a year. Northeast discovered the diversion in the course of implementing improvements to its pharmacy operations and controlled substances accountability procedures, and promptly suspended the employee.
The settlement resolves allegations that Northeast’s recordkeeping was not in compliance with the CSA and its regulations. According to the admissions in the settlement, Northeast ordered controlled substances under Beverly Hospital’s DEA registration but subsequently transferred the location of those drugs to other Northeast locations, without notifying the DEA of such inter-registrant transfers. DEA requires that registrants notify the agency of transfers of controlled substances between registrants through filings with the DEA, even when transfers are among affiliated entities. The settlement also resolves allegations that, based on DEA’s audit of the controlled substances that Northeast had on site, Northeast’s actual controlled substances inventory differed from what its records showed should be present.
As part of the settlement, in addition to the improvements undertaken by Northeast voluntarily, both before and after the DEA investigation, Northeast has agreed to additional security and recordkeeping measures.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Rollins’ Civil Division handled the matter.
North Charleston Man Sentenced to Ten Years in Federal Prison for Sexual Exploitation of a Minor Through Social Media AppsRead the Press Release
CHARLESTON, SOUTH CAROLINA — David Curtis White, 23, of North Charleston, was sentenced to 10 years in prison followed by a lifetime of supervised release after pleading guilty to the sexual exploitation of a minor.
According to Court documents, White’s activities were discovered in September 2020 when the mother of a then 11-year-old discovered the child had communicated with and created sexually explicit images at the request of another user on the instant messaging application Snapchat. Law enforcement investigators subsequently identified White as the offender.
Investigators searched White’s residence and digital devices and discovered that he had successfully persuaded and coerced the minor victim to produce sexually explicit material. White, who purported to be a minor, initially communicated with the victim on the Omegle online chat website and then exchanged Snapchat usernames with the victim. Investigators also discovered hundreds of child pornography images and videos on White’s electronic devices that he had collected from the internet.
United States District Judge Richard M. Gergel sentenced White to 120 months imprisonment, to be followed by a lifeterm of court-ordered supervision. There is no parole in the federal system.
The Federal Bureau of Investigation (FBI) investigated the case, and Assistant U.S. Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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North Carolina Man Sentenced to 6 ½ Years for Gunpoint Robbery of Puppies from Lancaster County BreederRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Lamont Stimpson, Jr., 24, of Greensboro, North Carolina, was sentenced to six years and six months in prison, three years of supervised release, and ordered to pay $1,660 in restitution by United States District Court Judge Edward G. Smith for robbing a Lancaster County puppy breeder and his family at gunpoint in order to steal five French Bulldog puppies in October 2020.
In April 2022, the defendant was convicted of robbery which interferes with interstate commerce (Hobbs Act robbery), and interstate transportation of stolen goods in connection with the robbery. Evidence presented at trial proved that in order to gain access to the puppies, dogs with a total value of more than $23,000, Stimpson posed as a customer seeking to purchase five French Bulldog puppies, only to pull out a gun, point it at the victims, and steal the animals. One of the victims recorded the registration of the defendant’s getaway vehicle, which was traced back to a rental company in Greensboro, North Carolina. A customer of the breeder who had also been interested in purchasing one of the puppies later discovered an Instagram posting which featured a video and a photograph of the puppies, as well as photographs of Stimpson. In December 2020, the defendant was arrested in North Carolina.
“The defendant threatened a family at gunpoint inside their own home in order to greedily and callously steal vulnerable, living creatures,” said U.S. Attorney Romero. “ Our Office is committed to prosecuting dangerous, armed criminals, no matter where they may run and hide. We are thankful to our law enforcement partners here in Pennsylvania and in North Carolina for their assistance in bringing Stimpson to justice.”
“This was a frightening armed robbery that saw the victims menaced at gunpoint,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The fact that puppies were the property taken renders this crime more unusual, but no less serious. Christopher Stimpson made the very bad decision to come to Pennsylvania and take these pups by force, and this sentence holds him accountable for his actions.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, the Ephrata Police Department, and the Greensboro (NC) Police Department, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
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Nigerian National Sentenced to More Than Six Years in Federal Prison for International Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Allen Levinson, formerly known as Allen Ameh, to six years and six months in federal prison for wire fraud conspiracy related to his orchestration of a large-scale international tax fraud scheme. Levinson, a resident of Nigeria, was arrested on December 2, 2020, while attempting to enter the United Kingdom. He was extradited to the United States and pleaded guilty upon his arrival on February 3, 2022.
According to court documents, Levinson was the leader of a scheme that attempted to defraud the United States government of more than $63 million through the filing of false and fraudulent tax returns in the names of hundreds of identity theft victims. The scheme operated from summer 2014 through 2019. Out of the $63 million claimed in tax refunds, the IRS paid over $5.5 million, the majority of which went to Levinson.
Levinson recruited coconspirators T’Andre McNeely, Brandon Williams, Michael Carr, and others—through job placement ads and word of mouth—to collect the proceeds of the tax fraud and send it to Levinson.
Levinson used sophisticated cyber means to obtain the personal data used to file the returns. He also hired other foreign nationals—including individuals located in a boiler room in Vietnam—to prepare and file the returns quickly and in large batches. The returns were filed from real certified accounting firms across the United States, all of whom had been hacked by third parties and often had their information sold on darkweb marketplaces, including a website formerly known as the xDedic Marketplace. The xDedic Marketplace was a website that operated for years and was used to sell access to compromised computers worldwide and personally identifiable information of U.S. residents.
U.S. District Judge Kathryn Kimball Mizelle previously sentenced three of Levinson’s money laundering affiliates in a related indictment. McNeely and Carr were each sentenced to six years and six months’ imprisonment. Williams was sentenced to one year and one day in prison.
“For too long, Levinson, and cyber criminals like him worldwide believed using darknet marketplaces and cryptocurrencies gave them anonymity from law enforcement. Today’s significant sentencing makes it clear that IRS-CI special agents and our partners have the sophisticated tools to remove the so called cloak of anonymity to bring these fraudsters to justice, “ said IRS-CI Acting Special Agent in Charge Ronald A. Loecker.
“The FBI and its law enforcement partners will never cease in their efforts to protect the American people by exposing cyber schemes and bringing the fraudsters, no matter where they try and hide, to justice,” said FBI Tampa Division Special Agent in Charge David Walker.
This case was investigated by the Internal Revenue Service – Criminal Investigation’s Tampa and Oakland Field Offices, and the FBI Tampa Field Office. Special assistance was provided by the IRS - CI Washington, D.C. and Los Angeles Field Offices, and Homeland Security Investigations (HSI), Tampa Field Office. Substantial assistance was also provided by the Department of Justice’s Office of International Affairs. It was prosecuted by Assistant United States Attorney Rachel Jones.
Newport News Man Convicted of Robbery and Brandishing FirearmRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man on Friday on charges of brandishing a firearm while robbing a gas station convenience store in Henrico County.
According to court records and evidence presented at trial, on January 17, 2019, the defendant, Chaikim Reynolds, 21, entered a gas station convenience store in Henrico County to rob it. His co-conspirator, Darrell Pittman, 23, of Hampton, was armed with a semi-automatic handgun and trained it on the clerk while Reynolds removed U.S. currency from the cash register.
Reynolds was identified by a member of the Hampton Police Department, who saw him in an area-wide request to identify. Reynolds was arrested less than a week later while fleeing police with Pittman when Reynolds crashed the vehicle he was driving into another car, killing that car’s passenger. A loaded firearm, later identified as the one used in the robbery, was recovered from that vehicle.
Pittman previously pleaded guilty for his role in the conspiracy.
Reynolds was convicted today of interference with commerce by robbery and brandishing a firearm during a crime of violence. He faces a maximum penalty of 20 years in prison on the former with a minimum penalty of seven years’ and a maximum term of life incarceration to be served consecutively on the latter when sentenced on April 25, 2023. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Christopher Amon, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; Col. Eric D. English, Chief of Police for Henrico County Police Department; Steve R. Drew, Chief of Newport News Police; Mark G. Solesky, Chief of Chesapeake Police; and Mark Talbot, Chief of Hampton Police, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the verdict.
Significant assistance was provided by the U.S. Marshals Service.
Assistant U.S. Attorneys Julie D. Podlesni and D. Mack Coleman are prosecuting the case. Former Special Assistant U.S. Attorney Amy E. Cross previously provided valuable assistance in the investigation of the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-39.
Nebraska Man Indicted for Involuntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Stapleton, Nebraska, man for Involuntary Manslaughter.
Coenrad Jones, age 21, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Mark Moreno on November 28, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to eight 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 February 1, 2022, in Todd County, South Dakota, Jones killed a man by operating a motor vehicle in a grossly negligent manner.
The charge is merely an accusation and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the South Dakota Highway Patrol. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Jones was released on bond pending trial. A trial date has been set for January 31, 2023.
Montgomery Defendant Sentenced to 60 Years and Ordered to Pay over $950,000 in Restitution for Sex Trafficking Scheme Involving Forced ProstitutionRead the Press Release
MONTGOMERY, ALABAMA – Today, U.S. District Court Judge R. Austin Huffaker Jr. of the Middle District of Alabama, sentenced defendant Lonnie Mitchell, 36, of Montgomery, Alabama, to 60 years in prison for coercing several victims, including a minor, to engage in prostitution over the course of several years. There is no parole in the federal system. The judge also ordered the defendant to pay over $950,000.00 in restitution to the victims.
In June 2022, following a five-day trial, a jury convicted the defendant of sex trafficking five victims by force, fraud and coercion. The jury also found the defendant guilty of sex trafficking a minor, and three counts of coercing and enticing an individual to travel in interstate commerce for prostitution purposes.
“Today’s sentence reflects the defendant’s horrific treatment and abuse of his victims,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Although their physical injuries will heal, the emotional damage caused by their suffering will last a lifetime. I am thankful for all of the agencies that worked together on this case, and for the courageous victims that testified at his trial. I hope this sentence will provide at least some consolation to the victims knowing that the defendant has been held accountable for his crimes.”
“The defendant used unspeakable violence and manipulation of the victims’ substance abuse problems to control their every move and exploit them for his own financial gain,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Human trafficking is an atrocious crime that targets some of the most vulnerable members of our society, cruelly robbing them of their dignity and freedom. The Department of Justice remains committed to prioritizing human trafficking prosecutions and vindicating the rights of the victims of these heinous crimes.”
“Mr. Mitchell’s crimes were particularly atrocious, which was reflected in the severity of his sentencing,” said DHS Homeland Security Investigations (DHS-HIS) Atlanta Special Agent in Charge Katrina Berger. “We hope this outcome will contribute to the victims’ healing process, but also serve as a warning to others who would victimize others for their own financial gain. HSI special agents and our law enforcement partners will continue to protect our communities from illegal trafficking and narcotics activity.”
According to the evidence presented in court, defendant Lonnie Mitchell targeted vulnerable victims who struggled with substance abuse issues, and then manipulated their substance abuse problems for his benefit. He increased the victims’ use of heroin and encouraged them to use it intravenously. He then withheld heroin from the victims, causing extremely painful withdrawal sickness, if they violated one of his many controlling rules or otherwise did not provide services to enough commercial sex clients. Mitchell also used violence, threats of violence, and threats to send embarrassing information, photos, or videos to the victims’ loved ones in order to coerce compliance with his rules and to ensure that the victims provided him with sufficient money from prostitution. In addition, defendant Mitchell regulated the how much and when the victims could eat and confiscated their identity documents and credit cards as part of his coercive scheme to control them.
Two co-defendants, Nettisia Mitchell and Donna Emmons, previously pleaded guilty to conspiracy to commit sex trafficking. Nettisia Mitchell is the sister of defendant Lonnie Mitchell, and the court previously sentenced her to 120 months confinement and ordered her to pay $2,000 in restitution for her role in her brother’s coercive scheme. Specifically, Nettisia witnessed her brother’s violence against a victim, yet harbored the victim and received the proceeds from the victim’s involvement in commercial sex. The court previously sentenced Emmons to 151 months confinement and ordered her to pay $3,500 in restitution.
Assistant Attorney General Clarke, U.S. Attorney Sandra J. Stewart and HSI Special Agent in Charge Berger made the announcement.
DHS-HSI, Alabama Law Enforcement Agency, Montgomery County Sheriff’s Office, and Montgomery Police Department investigated the case.
Assistant U.S. Attorneys J. Patrick Lamb and MaryLou Bowdre for the Middle District of Alabama and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Reece Dillon Shepard, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Shepard, 31, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Shepard, a person prohibited from having firearms, admitted to having a 40-caliber firearm in July 2022 in Monongalia County.
Shepard faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jennifer T. Conklin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Methamphetamine, heroin trafficking conspiracy alleged in newly unsealed federal indictmentRead the Press Release
CORRECTED BELOW To note defendant Keith Wheeler Jr. is 31 years old.
DUBLIN, GA: A newly unsealed federal indictment charges 13 people with participating in a drug trafficking conspiracy distributing large amounts of methamphetamine and heroin in the Laurens County area.
The indictment in USA v. Martin et. al, follows a nearly three-year investigation by the Laurens County Sheriff’s Office, with assistance from the U.S. Drug Enforcement Administration, into drug trafficking in and around Laurens, Johnson, Treutlen, Emanuel, and Washington counties, and elsewhere, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The 27-count indictment charges each of the defendants with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine, a charge that upon conviction carries a statutory penalty of up to life in prison. There is no parole in the federal system.
“Investigators from the Laurens County Sheriff’s Office and the DEA performed outstanding work in identifying and bringing to justice those alleged to be responsible for a significant amount of drug trafficking in the greater Dublin area,” U.S. Attorney Estes said. “These collaborations with our law enforcement partners continue to send the message that we will be relentless in protecting our communities from drug trafficking and the violent crime it spawns.”
The indictment was unsealed after initial court appearances for each of the defendants. They include:
- Travis Lee Martin, a/k/a “Fat,” 41, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; four counts of Distribution of 50 Grams or More of Methamphetamine; two counts of Distribution of Heroin; four counts of Distribution of 5 Grams or More of Methamphetamine; Possession of a Firearm by a Convicted Felon; and three counts of Use of Communication Facility, related to use of a telephone on behalf of the conspiracy. Martin’s indictment includes a Notice of Enhanced Punishment, noting that he is subject to increased punishment if convicted because he previously was convicted of one or more serious drug or serious violent felonies.
- Lashondria Letrecee Roberts, 37, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Sentell Eugene Carey, 39, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Ikavian Dankevious Carey, a/k/a “Big Mike,” a/k/a “Man,” 25, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Ricardo Jerome Taylor, a/k/a “Mike,” a/k/a “Spook,” 41, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Travis Keith Wheeler Jr., 31, of Soperton, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; and two counts of Distribution of Methamphetamine;
- Travon Lamont Burger, 41, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Carmen Michelle Oxford, 40, of East Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm with an Obliterated Serial Number;
- Gerald Keith Downard, 45, of East Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm with an Obliterated Serial Number;
- Kendrick Lavar Dixon, a/k/a “Ken,” 41, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Jacquelyn Amelia Brewer, a/k/a “Amy,” 50, of Dexter, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; and one count of Use of Communication Facility;
- Nicole Tinagero Gregory, 35, of Swainsboro, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; Distribution of Heroin; and Distribution of Methamphetamine; and,
- Erika Lashandria Tobridge, 43, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; four counts of Distribution of Heroin; and Possession with Intent to Distribute 100 Grams or More of Heroin.
The indictment includes a forfeiture notice regarding two firearms and $86,297 in cash seized during searches as part of the investigation. Nearly 100 dogs suspected to be involved in a dog-fighting operation also were seized during the investigation; that case is being prosecuted separately.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by agencies including the U.S. Drug Enforcement Administration and the Laurens County Sheriff’s Office, with assistance from the U.S. Postal Inspection Service, the Georgia Bureau of Investigation Southeastern Regional Drug Enforcement Office, the Emanuel County Sheriff’s Office, the Johnson County Sheriff’s Office, and the Ocmulgee Drug Task Force, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Jerimiah S. Johnson.
Men Sentenced to Combined 23+ Years for Selling Machinegun, SilencerRead the Press Release
Three men who sold a machine gun and silencer to an undercover ATF agent have been sentenced to more than 23 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Guy Mena, 34, and Stephen Kadlec, 39, were arrested and charged in November 2021. Mr. Kadlec plead guilty in January 2022 to transferring a firearm in violation of the National Firearms Act and was sentenced in June to two years in federal prison. Mr. Mena pleaded guilty to transferring a firearm in violation of the NFA December 2021 and, in a separate case in July 2022, to conspiracy to distribute methamphetamine; he was sentenced last Thursday to a total of 14 ½ years in federal prison.
Their coconspirator Sergio Salgado, 37, was charged in May 2022. He also pleaded guilty to transferring a firearm in violation of the NFA and was sentenced in October to more than seven years in federal prison.
According to court documents, Mr. Mena offered to sell a confidential informant a firearm frame, two receivers – one semi-automatic and one fully-automatic – a silencer, and some firearm magazines for $6,000.
Accompanied by an undercover ATF agent, the confidential informant met Mr. Mena, Mr. Kadlec, and Mr. Salgado at a motel in Arlington on Nov. 18 2021. Mr. Kadlec showed the undercover agent the full-auto receiver, demonstrated how to swap the semi-auto receiver for the full-auto receiver on the firearm frame, outlined the functionality of the silencer, and explained how to toggle the selector switch to full-auto to turn the firearm into a machinegun.
(Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.)
The undercover agent handed over $6,000 and departed with the firearm, receivers, silencer, and magazines. Shortly after the ATF agent left the room, Texas DPS officers observed Mr. Mena, Mr. Kadlec, and Mr. Salgado exit the hotel room and get into a vehicle; when they pulled the vehicle over, they detained the three men and recovered the government funds.
Prior to the firearm transaction, Mr. Mena had sold more than 50 grams of methamphetamine to another confidential informant out of his apartment in Abilene.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division and the Texas Department of Public Safety conducted the investigation in cooperation with the Arlington Police Department, the Abilene Police Department, and the Drug Enforcement Administration’s South Central Laboratory. Assistant U.S. Attorney Levi Thomas prosecuted the firearms cases against all three defendants while Assistant U.S. Attorney Juanita Fielden prosecuted the drug case against Mr. Mena.
Man Sentenced for Using Identities of Prison Inmates to File Fraudulent Unemployment ClaimsRead the Press Release
DETROIT - A man from Novi was sentenced for orchestrating an unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, and Juila Dale, Director of the Michigan Unemployment Insurance Agency.
Terrell Dwayne Mason, 40, was sentenced to 57 months in prison. In sentencing the defendant, United States District Judge Denise Page Hood also ordered Mason to pay restitution to the state of Michigan in the amount of $423,435.
According to court records, between April of 2020 and continuing into February of 2021, Mason filed fraudulent unemployment claims using the identities of federal and state inmates, knowing that the inmates were not eligible to receive such benefits. Mason obtained the inmates’ personal identifying information (PII) from websites on the dark web or from the inmates themselves based on false representations that he would help them improve their credit ratings. Mason pleaded to both wire fraud and aggravated identity theft.
“Unemployment insurance is designed to help those in need,” said U.S. Attorney Ison. “This case is another example of my office’s commitment to ensuring that people who abuse the system pay the consequences.”
“Terrell Mason fraudulently applied for benefits intended to assist workers forced to sit idle during the worst pandemic in a century,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This investigation reflects our collective determination to root out and punish criminals who used a national emergency to steal from American taxpayers.”
“This sentencing is another example of justice being served,” said Michigan UIA Director Julia Dale. “UIA investigators work closely with our partners throughout law enforcement to prosecute those who steal or conspire to steal taxpayer money that is meant for deserving workers who have lost a job through no fault of their own. Let this be a warning to any bad actors who exploit the public’s trust: We will come after you.”
“The significant sentence in this case underscores the seriousness of the offence. Terrell Mason was on parole when he filed dozens of fraudulent pandemic unemployment claims in the names of prisoners who were ineligible for benefits. We will continue to work with our law enforcement and state partners to investigate those who exploit the unemployment insurance system,“ stated Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor, Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Timothy Wyse and Mark Chasteen. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
Man Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that ERIC RODRIGUEZ, 41, pled guilty on November 30, 2022 to conspiracy to distribute and possess with the intent to distribute methamphetamine, in violation of Title 21 United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
RODRIGUEZ took part in a conspiracy to distribute methamphetamine throughout Jefferson Parish and surrounding areas for over a year.
At sentencing, RODRIGUEZ faces up to a minimum term of imprisonment of ten (10) years and a maximum term of imprisonment of life, a maximum fine of up to $10,000,000.00, at least five (5) years of supervised release following any term of imprisonment., and a $100 mandatory special assessment fee per count.
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
Man Indicted for Stealing Chief Federal Judge’s Identity and Forging Court DocumentsRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Mark Conover (619) 546-6763Honolulu, Hawaii – Edmond Abordo of Honolulu was arrested by the FBI today in connection with a federal grand jury indictment charging that he forged the signature of a federal judge in order to trick a woman into paying him thousands of dollars for bogus legal services.
According to the indictment, Abordo used the forged signature and a federal court seal to create a phony court order, which he then used to prove to the victim that he’d pulled her Ewa Beach, Hawaii, home out of foreclosure. Abordo allegedly claimed to be a legal expert, which he was not.
The case was initiated when the Clerk's Office of the District Court, District of Hawaii learned of the forged court order containing the signature and seal of U.S. Chief District Judge Derrick K. Watson. The FBI began investigating.
The indictment alleges that Abordo first met the elderly victim in late 2017 and described himself to her as a “non-licensed attorney” who could help her prevent foreclosure. Abordo, who is not a lawyer and has no legal training, claimed that he had expertise on several legal subjects, including mortgages and adverse possession. He convinced the victim to file a federal lawsuit challenging foreclosure of her home. Nearly each time that Abordo met with the victim, he demanded a cash payment of $1,000 to $3,000 dollars.
Abordo ultimately convinced the victim that the federal judge assigned to the lawsuit had awarded her possession of her home, the indictment said Abordo stated that he would not give her the court order until she paid him additional money. In reality, the victim’s home had been lost to foreclosure and the federal lawsuit had been dismissed months earlier. The victim, believing Abordo had a real court order, paid him thousands of dollars in exchange for the forged court order.
The forged court order was a two-page document dated June 26, 2019 and titled “Order Granting Plaintiff’s Motion For Adverse Possession Pursuant HRS § 657-31.5 Adverse Possession and 43 U.S. Code § 1068 Lands Held in Adverse Possession.” The document contained the caption of the federal lawsuit as well as the purported signature of U.S. District Judge Watson, and the seal of the United States District Court for the District of Hawaii.
Abordo assured the victim that the forged court order was a genuine court document and that the judge’s signature on the forged order was genuine, and that the forged court order gave legal possession of the Ewa Beach property to the victim. In reality, and as Abordo then well knew, the forged court order was not genuine, was never issued or signed by the judge, and did not confer any property rights to the victim.
“We will always act to protect the integrity of the court and seek justice for victims of fraud,” said U.S. Attorney Randy Grossman of the Southern District of California. Grossman applauded the work of the prosecution team and the FBI in this matter.
“Trust in our court system is paramount to our society,” said FBI Special Agent in Charge Steven Merrill. “When individuals forge court documents and victimize our kupuna, the FBI will aggressively pursue those individuals to maintain the public’s confidence in the court system and protect the vulnerable.”
Abordo was arraigned on the indictment by U.S. Magistrate Judge Kendal Newman and entered a plea of not guilty. Judge Newman detained Abordo temporarily and ordered him to appear before U.S. District Judge Lynn Winmill on January 19, 2023, at 9 a.m. for a motion hearing.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT
Edmund Abordo 67 Honolulu, HI
SUMMARY OF CHARGES
18 U.S.C. § 1343, Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution18 U.S.C. § 505, Forgery
Maximum Penalty: Five years in prison, $250,000 fine, forfeiture and restitution18 U.S.C. § 1028A(a)(1), Aggravated Identity Theft
Maximum Penalty: Two years consecutive to underlying countAGENCIES
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Little River Man Indicted for Production of Child Pornography and Sexual Coercion of a MinorRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned an indictment against James Edward Moss, Jr., 37, of Little River, for production of child pornography and sexual coercion of a minor.
The indictment alleges that from April 20, 2022, until April 23, 2022, Moss persuaded, induced, enticed, and coerced a minor victim to engage in prostitution and the production of child pornography. The indictment further alleges that during this timeframe, Moss actually produced child pornography of the minor victim.
Moss faces a maximum penalty of life imprisonment, and is currently detained pending a detention hearing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation (FBI) and Horry County Police Department. Assistant U.S. Attorneys Derek A. Shoemake and Lauren Hummel are prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Lincoln Man Sentenced to Eight Years for Possession of Drugs and FirearmRead the Press Release
Acting United States Attorney Steven Russell announced that Joseph Thompson, 24, of Lincoln, Nebraska, was sentenced today by United States District Judge John M. Gerrard to a total of 100 months in prison following his conviction for possession of marijuana with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. After he completes his prison sentence, Thompson will serve five years on supervised release. There is no parole in the federal system.
On April 29, 2021, Lincoln Police investigators searched a Lincoln hotel room and found a backpack containing marijuana, pills, and a firearm magazine speed loader. At various locations in the hotel room, investigators found more marijuana, a scale, more pills, and a 9 mm pistol. The firearm was located under a TV cabinet, was loaded, had an extended magazine attached, and was found to be stolen in 2017 out of McKinney, Texas.
Hotel surveillance video showed Thompson carrying the same backpack into the hotel room. Police interviewed Thompson, who admitted there was marijuana in the hotel room that belonged to him. Investigators seized Thompson’s cell phone from the hotel room and obtained a search warrant. Data from the phone showed evidence of drug dealing and firearms possession. Phone content spanning March through April 2021 included photos and videos of guns of various makes and calibers. For example, an April 28 photo depicted a gun with extended magazine and light attachment that appeared to be the same gun found under the TV cabinet in the hotel room on April 29. A March 29 video showed Thompson holding a gun with an extended magazine. An April 4 video showed Thompson threatening to kill unknown persons while holding a gun. An April 6 video showed a hand displaying numerous pills with the caption, “Shop Open.” A video from April 23 showed Thompson wearing body armor and displaying a handgun.
Drugs taken during the hotel search were sent to the Nebraska State Patrol Crime Lab where a forensic scientist confirmed the presence of marijuana and the presence of methamphetamine in some of the pills. Investigators also obtained cell phone data from one of the individuals seen on hotel surveillance video coming and going from the hotel room. Data from the phone showed communication from Thompson consistent with drug distribution spanning February to March 2021.
During an unrelated investigation stemming from a July 8, 2021, shooting in Lincoln, investigators again seized Thompson’s phone, and obtained a search warrant. Data from the phone showed Thompson’s continued firearm possession and drug distribution between April and July 2021.
Thompson is a felon because of a 2017 conviction for Possession of a Firearm on School Grounds.
This case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation, and was 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.
Lincoln Man Sentenced for Second Offense Possession of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced that Adam Bates, 37, of Lincoln, Nebraska, was sentenced on December 2, 2022, by United States District Court Judge John M. Gerrard to a term of 120 months’ imprisonment following his conviction for possession of child pornography. After he completes his prison sentence, Bates will also serve ten years on supervised release. There is no parole in the federal system.
On July 1, 2016, Bates’ state parole officer contacted the Nebraska State Patrol to report that she found Bates in possession of a cellular phone in violation of his parole conditions during a recent parole visit. On July 8, 2016, investigators spoke with Bates who admitted he had cell phones. He consented to a search of the phones and investigators found child pornography saved on one of the phones. Investigators obtained a search warrant to search Bates’s electronic devices. Investigators located numerous images of child pornography on one of Bates’s phones. At the time, Bates was on parole due to a 2011 conviction from Lancaster County for possession of child pornography.
This case was investigated by the Nebraska State Patrol, and 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.
Lawyer Michael Avenatti Sentenced to 14 Years in Federal Prison for Stealing Millions of Dollars from Clients and Tax FraudRead the Press Release
SANTA ANA, California – Suspended plaintiffs’ lawyer Michael John Avenatti was sentenced today to 168 months in federal prison for stealing millions of dollars from his clients – one of whom was a paraplegic with mental health issues – and for obstructing the IRS’s efforts to collect more than $3 million in payroll taxes from an Avenatti-owned coffee business.
Avenatti, 51, a former Newport Beach resident now in federal custody, was sentenced by United States District Judge James V. Selna, who said Avenatti “has done great evil for which he must answer.”
In imposing the 14-year sentence, Judge Selna ordered that this term of imprisonment run consecutive to sentences totaling five years previously imposed in two federal cases in the Southern District of New York.
Judge Selna also ordered Avenatti to pay $10,810,709 in restitution to four clients and to the IRS.
Today’s sentencing follows Avenatti’s entry of guilty pleas on June 16 to four counts of wire fraud and one count of endeavoring to obstruct the administration of the Internal Revenue Code. He has been a federal prisoner since on February 7, soon after he was ordered to begin serving a sentence in one of the New York cases.
“Michael Avenatti was a corrupt lawyer who claimed he was fighting for the little guy. In fact, he only cared about his own selfish interests,” said United States Attorney Martin Estrada. “He stole millions of dollars from his clients – all to finance his extravagant lifestyle that included a private jet and race cars. As a result of his illegal acts, he has lost his right to practice law in California, and now he will serve a richly deserved prison sentence.”
“Michael Avenatti violated the trust placed in him by his clients. Instead of helping his clients receive the compensation that they were owed and needed, he pocketed the money, stealing from people who were already hurting. The money was used to fuel a lavish lifestyle that had no limits,” stated Tyler Hatcher, the Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “While today’s sentencing concludes the government’s case against Mr. Avenatti, the enormous damage left behind will be felt by his former clients for quite some time. It is our sincere hope that his victims will take some solace in the fact that he has been held accountable for his criminal actions.”
The Wire Fraud Counts
Avenatti received money on behalf of clients into client trust accounts, misappropriated the money, and then lied to the clients about receiving the money or, in one case, claimed that the money had already been sent to the client. The four clients suffered actual losses totalling approximately $7.6 million.
“Although the details pertaining to each of the four clients underlying the charges in the indictment differ, the general pattern was the same,” according to a sentencing memorandum filed by prosecutors. “[Avenatti] would lie about the true terms of the settlement agreement he had negotiated for the client, conceal the settlement payments that the counterparty had made, secretly take and spend the settlement proceeds that belonged to the client, and lull the client into not complaining or investigating further by providing small ‘advances’ on the supposedly yet-to-be paid funds.”
According to court documents:
- In the case of Geoffrey Johnson, Avenatti represented Johnson in a lawsuit against the County of Los Angeles that alleged, among other things, Johnson became a paraplegic as a result of the county violating his constitutional rights. The county paid a $4 million settlement in January 2015, but within months Avenatti had drained the entire settlement payment from his law firm’s trust account and used portions of the settlement to finance his coffee business and pay personal expenses. Avenatti never told Johnson about the settlement agreement and terms, and he concealed from Johnson the receipt of the settlement payment from the county. Instead of giving Johnson his portion of the settlement, Avenatti gave Johnson periodic “advances” of no more than $1,900 and paid the rent for his assisted living facility to falsely reassure him that Avenatti was continuing to work on his behalf.
- Alexis Gardner obtained a $3 million settlement in a matter, which included a payment of $2.75 million in early 2017. Avenatti never provided a copy of the settlement agreement to Gardner or told her the true terms of the settlement. Upon receipt of the settlement money, Avenatti took the bulk of this money – $2.5 million – and used it to purchase his portion of a jet, while falsely telling Gardner that the settlement called for monthly payments over eight years. Avenatti gave Gardner a small “advance” for rent and made approximately 12 monthly payments, totally approximately $227,500, making them appear to come from the individual who paid the settlement, but then Avenatti stopped paying Gardner.
- Gregory Barela was to receive a $1.9 million settlement in an intellectual property dispute. Avenatti embezzled the first installment of $1.6 million in January 2018, in part by providing Barela with a bogus settlement agreement indicating that the payment was going to be made two months later. Avenatti used the money to pay expenses at his coffee business and to pay his own legal expenses.
- Michelle Phan and Long Tran hired Avenatti to negotiate a “Common Stock Repurchase Agreement” for the sale of nearly $27.5 million worth of Phan’s shares of ipsy, a company founded by Phan, and then another sale of approximately $8.15 million worth of Phan’s shares. When the first payment was made, Avenatti took his fees for the overall $35 million sale and sent the balance to Phan. But when the second stock sale was finalized and the company sent nearly $8.15 million, all of which belonged to Phan, Avenatti kept $4 million for himself and used this money to pay some of his law firm’s bankruptcy creditors, including the IRS; to provide funding for his various businesses; and to make lulling payments to Johnson, Gardner and Barela. When Phan and Tran demanded Phan’s money, Avenatti falsely told them that the stolen $4 million already had been wired to them and provided them with a wire transfer confirmation document which actually documented the transfer of an earlier $4 million payment.
“[Avenatti’s] scheme to defraud his clients was cruel – often reducing those clients to begging for needed funds and making them feel beholden to him when he ‘advanced’ or ‘loaned’ them funds that were, in fact, the clients’ own money,” prosecutors argued in the sentencing memorandum.
The Tax Count
Avenatti corruptly obstructed and impeded the IRS’s efforts to collect more than $3.2 million in unpaid payroll taxes, which includes money that he withheld from the paychecks of employees of Global Baristas US LLC, the Avenatti-owned company that operated Tully’s Coffee, and should have paid to the IRS but never did.
Avenatti obstructed the agency’s efforts to collect the monies that his company owed by making false statements to an IRS revenue officer; directing employees to stop depositing cash receipts; and changing the company name, Employer Identification Number, and bank account information listed with his credit card processing company to avoid IRS levies.
In addition, prosecutors argued in support of allegations in an indictment that:
- Avenatti failed to file individual tax returns or pay any personal income taxes for 2011 through 2017, even though he had a substantial income and lived lavishly.
- He also failed to file partnership returns or pay taxes – including payroll taxes – for his now-defunct Newport Beach-based law firm Eagan Avenatti LLP, of which he was the managing partner, for 2013 through 2017, even though the law firm received many millions of dollars during those years.
- Furthermore, Avenatti failed to file corporate tax returns or pay taxes for Avenatti & Associates, of which he was president, for 2011 through 2017, even though this entity also received substantial funds.
“[Avenatti’s] tax fraud scheme was massive, resulting in losses to the federal treasury…and harming hundreds of his employees whose payroll taxes he stole,” prosecutors noted in the sentencing memorandum.
IRS Criminal lnvestigation conducted the investigation in this matter. The Office of the United States Trustee provided assistance.
Assistant United States Attorneys Brett A. Sagel of the Santa Ana Branch Office and Ranee A. Katzenstein, Chief of the Major Frauds Section, prosecuted this case.
Kalamazoo Woman Sentenced to Nine Years in Federal Prison for Intent to Distribute FentanylRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Candi Taylor (39) of Kalamazoo, Michigan was sentenced to nine years in prison last Friday by Chief U.S. District Judge Hala Y. Jarbou for possession with intent to distribute 1.5 kilograms of fentanyl. A street-level drug dealer, Taylor, possessed the large quantity of fentanyl because she was transferring it from one higher-level dealer to another.
“Make no mistake about it, my office is committed to prosecuting the traffickers who are distributing fentanyl and other illegal drugs and the dealers who sell it,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “Together with our law enforcement partners, we are fighting to save lives against deadly drugs and working to keep our communities safe.”
Taylor’s charges and conviction stemmed from her arrest on March 2, 2022. The Kalamazoo Valley Enforcement Team (KVET), a multi-jurisdictional narcotics task force, had been investigating Taylor for her involvement with fentanyl distribution in and around Kalamazoo. KVET obtained a warrant to search Taylor’s residence, vehicle, and her elderly father’s residence, which law enforcement believed Taylor was using as a stash house. Taylor was in her vehicle in the driveway of her home when KVET executed the warrants and officers found her with a baggie containing approximately ten grams of fentanyl in her hand and a digital scale nearby. Investigators found two more baggies in her coat pocket containing over 100 grams of fentanyl. The search of Taylor’s elderly father’s house yielded over 1,400 grams of fentanyl in a locked toolbox that Taylor was temporarily holding to transfer to a larger-scale dealer. Taylor pled guilty to possession with the intent of distributing the fentanyl she stashed at her elderly father’s residence.
“The potential consequences of Ms. Taylor’s actions, for the residents of Kalamazoo and surrounding communities, is unfortunately, not inconceivable,” said DEA Detroit Special Agent in Charge Orville O. Greene. “With our federal, state, and local law enforcement partners, we are committed to providing the resources necessary to combat drug trafficking in our communities. These arrests should send a clear message that drug trafficking on any level will not be tolerated.”
In announcing Taylor’s sentence, Chief U.S. District Judge Hala Y. Jarbou recognized that Taylor was primarily a street-level dealer but observed that she made a “huge mistake” and took a “huge gamble” by offering to hold and transfer 1.5 kilograms of fentanyl from one dealer to another. Jarbou further observed that individuals who transport for larger-scale dealers must face consequences. Taylor had prior convictions for retail fraud, carrying a concealed weapon, unarmed robbery, and fleeing from police, which Judge Jarbou also considered when imposing the sentence.
“The poisoning of our community by drug dealers pushing fentanyl into the hands of Kalamazoo residents is devastating,” said Kalamazoo Department of Public Safety Acting Chief David Boysen. “The end user, their family, and the community bear the burdens of the drug dealer’s desire for material gains. Today’s sentence is clear evidence that the Kalamazoo Department of Public Safety will, through targeted enforcement, work tirelessly to stop drug dealers from destroying lives” added Boysen.
This case was investigated by the U.S. Drug Enforcement Administration and the Kalamazoo Valley Enforcement Team, a narcotics task force operating in Kalamazoo County. The case was prosecuted by Assistant U.S. Attorney Joel S. Fauson.
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Justice Department Secures Agreement with Alabama Medicaid to Remove Unlawful Sobriety Mandate for Health Care AccessRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with the state of Alabama’s Medicaid Agency (Alabama Medicaid) under the Americans with Disabilities Act (ADA) to ensure that Alabama Medicaid recipients with Hepatitis C (HCV) who also have a substance use disorder have equal access to medications to treat their hepatitis.
Alabama Medicaid previously maintained a longstanding sobriety restriction policy that denied coverage of HCV medication for any person with HCV who had consumed any alcohol or illicit drugs within the six months prior to starting treatment. The sobriety restriction policy also barred Medicaid payment for HCV medication if a person used alcohol or illicit drugs while using the medication.
“Alabama Medicaid’s reversal of its longstanding sobriety restriction will finally allow Medicaid recipients with substance use disorders to have the same access as others to a cure for Hepatitis C,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the Americans with Disabilities Act to eliminate unnecessary barriers that stand in the way of equal access to health care.”
“We appreciate Alabama Medicaid’s willingness to work with the Department of Justice and our office to remove the sobriety restriction policy that prevented so many Alabamians with HCV, who also have substance use disorder, from receiving appropriate treatment,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “This settlement agreement delivers justice under the Americans with Disabilities Act and significantly advances public health in our state.”
HCV can result in a range of serious health conditions, many of which affect the liver. These may include cirrhosis, liver cancer, liver failure and death. However, according to the Centers for Disease Control and Prevention, highly effective treatments called direct-acting antiviral medications (DAAs) cure HCV in more than 95% of cases. In addition, use of these medications can also stop the spread of HCV because treated individuals will not transmit HCV to others. Abstaining from alcohol or illicit drugs is not medically required for this successful outcome. Alabama Medicaid’s sobriety restriction policy withheld a potentially life-saving service to individuals with HCV who also had (or who were regarded as having, and/or who had a record of) a substance use disorder.
Alabama Medicaid worked cooperatively to modify its policies to ensure that Medicaid recipients have access to DAA treatment for HCV without regard to an individual’s substance use. Alabama Medicaid has withdrawn the sobriety restriction policy, and under today’s settlement will not delay, deny or fail to pay for DAA treatment of HCV based on any Medicaid recipient’s use of drugs or alcohol. Further, it will engage in a robust effort to notify Medicaid recipients and Medicaid providers of these changes, as well as promptly remedy any instances where the prior policy is applied.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 833-610-1264) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint. Anyone in the Northern District of Alabama may also report civil rights violations directly to the U.S. Attorney’s Office for the Northern District of Alabama at [email protected] or (205) 244-2001.
Inmate Sentenced for Possessing Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. – Alex Barrera, 26, an inmate at the Federal Correctional Institution (FCI) McDowell, was sentenced today to one year and three months in prison, to run consecutively to the sentence he currently is serving, for possession of a weapon by an inmate of a federal prison. Barrera was also sentenced to three years of supervised release following his imprisonment.
According to court documents and statements made in court, on April 5, 2022, an FCI McDowell staff member conducting a random pat-down search found a handcrafted weapon commonly known as a “shank” in the waistband of Barrera’s pants. The object was a piece of metal about six and one-half inches long, with one end sharpened to a point and the other end wrapped in cloth and a shoelace as a grip. Barrera admitted to possessing the object and further admitted that it was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber 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. 1:22-cr-151.
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Huntington Woman Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Courtney Michelle McComas, 34, of Huntington, pleaded guilty today to distribution of a quantity of fentanyl.
According to court documents and statements made in court, on September 24,2021, McComas sold approximately 1.63 grams of fentanyl to a confidential informant in a vehicle at the intersection of Sixth Avenue and Richmond Street in Huntington.
McComas admitted to that transaction and also admitted to selling approximately 2 grams of fentanyl to the confidential informant on November 16, 2021, in Huntington. On November 19, 2021, law enforcement officers executed search warrants at an Oney Avenue residence and of a vehicle in Huntington. McComas admitted to possessing the approximately 41 grams of fentanyl found by officers during the searches, and further admitted that she intended to distribute the fentanyl.
McComas is scheduled to be sentenced on March 6, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-58.
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Hudson County Real Estate Investor Admits Multi-Year Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, real estate investor has admitted conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.
Anthony Garvin, 52, of Jersey City, New Jersey, pleaded guilty by videoconference on Dec. 2, 2022, before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of conspiracy to commit bank fraud and four counts of bank fraud.
According to documents filed in this case and statements made in court:
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.
The count of bank fraud conspiracy and each count of bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest. Sentencing is scheduled for April 11, 2023.
Two conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.
Hollis Man Sentenced to 6+ Years for Being a Felon in Possession of Ammunition and Violating Conditions of Supervised ReleaseRead the Press Release
PORTLAND, Maine: A Hollis man was sentenced in U.S. District Court in Portland today for being a felon in possession of ammunition as well as for violating conditions of supervised release previously imposed by a federal court in New Hampshire.
Chief U.S. District Judge Jon D. Levy sentenced Julion Parker, 30, to a total of 82 months in prison followed by three years of supervised release. Parker received a sentence of 70 months for the felon-in-possession violation and 12 months for violating the conditions of his supervised release, to be served consecutively. Parker waived indictment and pleaded guilty on September 5, 2022.
According to court records, Parker was convicted in the District of New Hampshire in 2019 for being a felon in possession of firearms. After his supervision was transferred to the District of Maine in early 2022, Parker’s supervising probation officer learned that he was in possession of numerous firearms. In April 2022, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at Parker’s residence in Hollis and recovered several rounds of ammunition. He is prohibited from possessing firearms or ammunition due to prior felony convictions.
ATF investigated the case.
Project Safe Neighborhoods: 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. To learn more information about PSN, visit www.justice.gov/psn.
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Harrison County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Edward Maxwell, of Clarksburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Maxwell, 43, pleaded guilty today to one count of “Possession with Intent to Distribute Fentanyl.” Maxwell admitted to distributing fentanyl in November 2021 in Harrison County.
Maxwell faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Greenwood Man & Greenville Woman Indicted on 10 Counts of Sex Trafficking, Conspiracy, and Witness TamperingRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 10-count superseding indictment against Eric Rashun Jones, a/k/a “E Dolla,” a/k/a “E,” 30, of Newberry, charging felon in possession of a firearm and ammunition, human trafficking conspiracy, five counts of sex trafficking by force, fraud, & coercion, and three counts of witness tampering. The grand jury also indicted a co-conspirator, Brittany Danielle Cromer, 33, of Greenville, with human trafficking conspiracy.
The superseding indictment alleges that between 2018 and 2022, Jones and Cromer recruited, enticed, harbored, transported, and sex trafficked at least five victims by force, fraud, or coercion. The indictment alleges that Jones also corruptly persuaded victims and witnesses to not speak to the police. The indictment also charges that Jones was a felon in possession of a Springfield Armory, 9mm handgun and 9mm ammunition.
Jones faces six counts that carry a mandatory minimum of 15 years in federal prison; he faces a maximum penalty of up to Life in prison. Cromer also faces up to Life in prison.
Jones was ordered detained pending trial by U.S. Magistrate Judge Paige J. Gossett after a contested detention hearing. At that hearing, the Court heard evidence that Jones was a fugitive from state law enforcement from September 2019 until his arrest in March 2022. He has remained in custody since that time. Evidence presented in Court also indicated that Jones recruited vulnerable women and obtained commercial sex from victims for his financial benefit by means of physical and sexual violence, by manipulating victims’ drug withdrawal symptoms, and by threats and fraud. Evidence was presented that some victims were tattooed with a reference to Jones’s name. Evidence also indicated that Jones threatened violence and retaliation if victims or witnesses cooperated with law enforcement.
Cromer was granted a bond pending trial with conditions designed to protect against flight risk or danger.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation (FBI), Greenville Police Department, Newberry County Sheriff’s Office, Newberry Police Department, Lexington County Sheriff’s Department, and Simpsonville Police Department. Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Government Contractor Agrees to Pay over $500,000 to Resolve False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Obsidian Solutions Group, LLC (Obsidian), located in Fredericksburg, has agreed to pay $510,991.08 to settle allegations that it violated the False Claims Act by billing the Defense Intelligence Agency (DIA) for labor performed by personnel that did not meet contractual requirements.
Obsidian had a contract with DIA to provide strategic-level analytical support to advance national and Department of Defense (DOD) goals and objectives for protecting the DOD’s supply chain. The government alleged that Obsidian employed personnel who failed to meet the qualifications specified by the contract, either because the personnel lacked a required degree or the required years of relevant professional experience. As a result, according to the government’s allegations, DIA paid more for labor than could be justified by the personnel’s qualifications.
“To be scrupulous stewards of taxpayer funds, government contractors must comply with contractual requirements, particularly while continuing to charge the government for the costs associated with meeting the requirements,” said U.S. Attorney Jessica D. Aber. “EDVA will continue its work to safeguard the government procurement process.”
“Protecting the integrity of the Defense Intelligence Agency (DIA) procurement process is a top priority for the DIA Office of the Inspector General,” stated Assistant Inspector General for Investigations William B. Borden III, DIA OIG. “The Office of the Inspector General, DIA, will continue to root out fraud, waste, and abuse in DIA programs and operations as we strive to improve government funds stewardship from our civilian and contractor workforce.”
“This settlement demonstrates the continued commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) and its law enforcement partners, to investigate and resolve allegations of false claims. DCIS is steadfast in its commitment to hold defense contractors accountable for employing corrupt business practices” stated, Paul K. Sternal, Assistant Inspector General for Investigations, DCIS. “It is imperative that the procurement process remain free of false statements and that DoD contractors commit to providing adequately qualified personnel as specified by the contracts. A qualified workforce is the foundation of success for the DoD and DIA.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the DIA Office of Inspector General, the DIA Office of the General Counsel, the Defense Criminal Investigative Service, and the Defense Contract Audit Agency.
The matter was investigated by Assistant U.S. Attorney Clare P. Wuerker. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Gainesville Man Convicted of Drug Trafficking and Firearm OffenseRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville convicted Edwin Giovanny Mendoza-Verdugo, 20, of Sinaloa, Mexico, on one count of conspiracy to distribute controlled substances, further finding Mendoza-Verdugo responsible for 40-400 grams of fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking offense. The guilty verdict, returned at the conclusion of a three-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Evidence introduced during the trial revealed Mendoza-Verdugo, along with co-conspirators Helio Rolando Lopez-Elizalde and Jorge Mario Velasquez, conspired to possess with intent to distribute fentanyl pills throughout the Northern District of Florida and elsewhere. The Drug Enforcement Administration, based on a tip from the Alachua County Sheriff’s Office, began investigating Mendoza-Verdugo and his co-conspirators in April of 2022.
After conducting surveillance, the DEA and ACSO seized fentanyl pills, disguised as marked Oxycodone pills, as well as two pistols, from the three conspirators as part of a traffic interdiction in Alachua County, Florida. Further investigation led to the discovery of a shared hotel room where Mendoza-Verdugo and his co-conspirators stored additional fentanyl pills, an AR-15 style rifle, and multiple boxes of ammunition. Co-conspirators Lopez-Elizalde and Velasquez pled guilty prior to trial and are currently awaiting sentencing.
Mendoza-Verdugo’s sentencing hearing is scheduled for March 21, 2023, at 10:00 a.m., at the United States Courthouse in Gainesville before United States District Judge Allen C. Winsor. Mendoza-Verdugo faces 10 to 60 years imprisonment, 4 years to life supervised release, and a fine of up to $5,250,000.
This conviction resulted from an investigation by the Drug Enforcement Administration. Assistant United States Attorney David P. Byron prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Men Arrested in Transnational Wire Fraud and Identity Theft ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of four indictments charging Akinola Taylor (Nigeria), Olayemi Adafin (United Kingdom), Olakunle Oyebanjo (Nigeria), and Kazeem Olanrewaju Runsewe (Nigeria), with conspiracy to commit wire fraud, filing false claims with the United States, theft of public money or property, and aggravated identity theft. Taylor, Adafin, and Runsewe, were each arrested on November 30, 2022, and Oyebanjo was arrested on December 1, 2022. Taylor, Adafin, and Oyebanjo were apprehended in London, United Kingdom, and Runswewe was apprehended in Malmo, Sweden. Each will face extradition proceedings. In conjunction with the arrests, foreign authorities conducted searches of the residences of Taylor and Runsewe.
If convicted, each faces a maximum penalty of 20 years in federal prison for the wire fraud count, as well as additional penalties for the remaining counts. The indictments also notify the defendants that the United States intends to forfeit assets which are alleged to be traceable to proceeds of the offense.
According to the indictments, Taylor and Runsewe obtained unauthorized access to United States businesses’ computer servers, participated in stealing from those servers the personally identifying information of United States residents and used that information to file false and fraudulent Internal Revenue Service (IRS) Form 1040, United States Individual Income Tax Returns (“Form(s) 1040”) seeking income tax refunds with the IRS. Adafin and Oyebanjo assisted in the collection fraud proceeds directed to prepaid debit cards in their possession or to addresses or bank accounts they controlled or to which they had access and transferred a share of the fraud proceeds to other conspirators.
One of the places that Taylor and Runsewe had obtained unauthorized access to computer servers was the xDedic Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide and personally identifiable information of U.S. residents. The xDedic administrators strategically maintained servers all over the world to facilitate the operation of the website.
The xDedic Marketplace was taken down as part of coordinated, global enforcement operations led by the FBI (Tampa Division) the IRS-CI (Tampa Field Office) and the U.S. Attorney’s Office for the Middle District of Florida.
The investigation was led by the IRS-CI Cyber Crimes Unit (Washington, D.C). Substantial assistance was provided by the IRS-CI Tampa Field Office, the FBI Tampa Division, the Department of Justice’s Office of International Affairs, IRS-CI International Operations at Mission UK and Canada, Homeland Security Investigations (HSI), the United Kingdom’s National Extradition Unit, the United Kingdom’s Eastern Region Special Operation Unit, the United Kingdom’s North West Regional Organized Crime Unit, and the Swedish Economic Crime Authority.
The cases will be prosecuted by Assistant United States Attorney Rachel Jones.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Former Oklahoma Supervisory Correctional Officer Sentenced for Promoting White Supremacist Assault on Black Inmates and Ordering Other AbuseRead the Press Release
A former supervisory correctional officer at the Kay County Detention Center (KCDC) was sentenced today to 46 months in federal prison, followed by three years of supervised release, for violating the civil rights of three pretrial detainees held at the KCDC.
On April 15, 2022, a federal jury convicted Matthew Ware, 53, of willfully depriving two pretrial detainees of their right to be free from a correctional officer’s deliberate indifference to a substantial risk of serious harm and of willfully depriving a third pretrial detainee of the right to be free from a correctional officer’s use of excessive force.
“This defendant is being held accountable for abusing his position of power and authority to, among other things, facilitate an attack carried out by white supremacists on a Black inmate,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence handed down reflects the seriousness of the defendant’s actions and ensures accountability for his unlawful conduct. The Justice Department will continue to hold corrections officials accountable, including those in leadership positions, when they willfully violate the constitutional rights of detainees and inmates in their custody and control.”
“A jury found that Mr. Ware abused his position of power over the individuals in his custody,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Today’s sentence holds him accountable for that conduct. Mr. Ware violated the laws he was sworn to uphold, betrayed the public trust and dishonored the many brave corrections officials who lawfully perform their important work each day. My office remains committed to protecting the civil rights of all Oklahomans, including those in custody.”
“The defendant disregarded the civil rights of those under his care and ultimately used his position to inflict physical harm on multiple pretrial detainees,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s sentencing clearly shows the FBI will aggressively pursue any law enforcement officer who abuses their responsibility to protect and serve.”
“The vast majority of the men and women working in correctional institutions do their jobs honorably on a daily basis. However, Mr. Ware’s disgraceful actions undermined the public’s trust and deprived the detainees of their civil rights under the U.S. Constitution,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “Rest assured, the FBI will work tirelessly alongside our law enforcement partners to ensure the civil liberties of every American are protected.”
According to court documents and the evidence introduced at trial, on May 18, 2017, Ware, while serving as the Lieutenant of the KCDC, ordered lower-ranking correctional officers to move two Black pretrial detainees, D.W. and M.M., to a cell row housing white supremacist inmates whom Ware knew posed a danger to D.W. and M.M. Later that same day, Ware gave lower-ranking officers a second order: to unlock the jail cells of D.W. and M.M., and those of the white supremacist inmates at the same time the following morning. When Ware’s orders were followed, the white supremacist inmates attacked D.W. and M.M., resulting in physical injury to both, including a facial laceration to D.W. that required seven stitches to close.
Court documents and evidence introduced at trial also revealed that, on Jan. 31, 2018, Ware, while serving as the Acting Captain of the KCDC, ordered lower-ranking correctional officers to restrain another pretrial detainee, C.D., in a stretched-out position — with C.D.’s left wrist cuffed to the far-left side of the bench and his right wrist cuffed to the far-right side of the bench — in retaliation for C.D. sending Ware a note that critiqued how Ware ran the KCDC. C.D. was left restrained in this position for 90 minutes, resulting in physical injury.
Assistant Attorney General Clarke, U.S. Attorney Troester, Assistant Director Quesada and Special Agent in Charge Gray made the announcement.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Julia Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Oklahoma Supervisory Correctional Officer Sentenced for Promoting White Supremacist Assault on Black Inmates and Ordering Other AbuseRead the Press Release
OKLAHOMA CITY – A former supervisory correctional officer at the Kay County Detention Center (KCDC) was sentenced today to 46 months in federal prison, followed by three years of supervised release, for violating the civil rights of three pretrial detainees held at the KCDC.
On April 15, 2022, a federal jury convicted Matthew Ware, 53, of willfully depriving two pretrial detainees of their right to be free from a correctional officer’s deliberate indifference to a substantial risk of serious harm and of willfully depriving a third pretrial detainee of the right to be free from a correctional officer’s use of excessive force.
"This defendant is being held accountable for abusing his position of power and authority to, among other things, facilitate an attack carried out by white supremacists on a Black inmate," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "This sentence handed down reflects the seriousness of the defendant’s actions and ensures accountability for his unlawful conduct. The Justice Department will continue to hold corrections officials accountable, including those in leadership positions, when they willfully violate the constitutional rights of detainees and inmates in their custody and control."
"A jury found that Mr. Ware abused his position of power over the individuals in his custody," said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. "Today’s sentence holds him accountable for that conduct. Mr. Ware violated the laws he was sworn to uphold, betrayed the public trust, and dishonored the many brave corrections officials who lawfully perform their important work each day. My office remains committed to protecting the civil rights of all Oklahomans, including those in custody."
"The defendant disregarded the civil rights of those under his care and ultimately used his position to inflict physical harm on multiple pretrial detainees," said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. "Today’s sentencing clearly shows the FBI will aggressively pursue any law enforcement officer who abuses their responsibility to protect and serve."
"The vast majority of the men and women working in correctional institutions do their jobs honorably on a daily basis. However, Mr. Ware’s disgraceful actions undermined the public’s trust and deprived the detainees of their civil rights under the U.S. Constitution," said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. "Rest assured, the FBI will work tirelessly alongside our law enforcement partners to ensure the civil liberties of every American are protected."
According to court documents and the evidence introduced at trial, on May 18, 2017, Ware, while serving as the Lieutenant of the KCDC, ordered lower-ranking correctional officers to move two Black pretrial detainees, D.W. and M.M., to a cell row housing white supremacist inmates whom Ware knew posed a danger to D.W. and M.M. Later that same day, Ware gave lower-ranking officers a second order: to unlock the jail cells of D.W. and M.M., and those of the white supremacist inmates at the same time the following morning. When Ware’s orders were followed, the white supremacist inmates attacked D.W. and M.M., resulting in physical injury to both, including a facial laceration to D.W. that required seven stitches to close.
Court documents and evidence introduced at trial also revealed that, on Jan. 31, 2018, Ware, while serving as the Acting Captain of the KCDC, ordered lower-ranking correctional officers to restrain another pretrial detainee, C.D., in a stretched-out position — with C.D.’s left wrist cuffed to the far-left side of the bench and his right wrist cuffed to the far-right side of the bench — in retaliation for C.D. sending Ware a note that critiqued how Ware ran the KCDC. C.D. was left restrained in this position for 90 minutes, resulting in physical injury.
Assistant Attorney General Clarke, U.S. Attorney Troester, Assistant Director Quesada, and Special Agent in Charge Gray made the announcement.
The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Julia Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Muncie, Indiana, Police Officer Pleads Guilty to Eleven Civil Rights and Obstruction Offenses for Assaulting Arrestees and Writing False ReportsRead the Press Release
Chase Winkle, a former officer with the Muncie Police Department, in Muncie, Indiana, pleaded guilty today to eleven civil rights and obstruction charges. Specifically, Winkle pleaded guilty to five federal civil rights offenses for assaulting arrestees, and to six obstruction offenses for writing false reports to cover up the assaults.
“Officer Winkle, the son of the former Chief of Police, confessed to repeated uses of excessive force and obstruction of justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant’s misconduct injured his victims and undermined the police department’s credibility with the community. We hope that this guilty plea sends a message that neither a badge nor familial connections will shield an officer from facing justice for his wrongdoing.”
“Today’s guilty pleas are an important step forward as we seek justice for the victims in this case,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Our office, the Department of Justice and our federal partners are firmly committed to holding law enforcement officers accountable when they violate their oaths and the civil rights of the people they were sworn to protect.”
According to court documents and statements made during the change of plea hearing, on or about Aug. 9, 2018, Winkle and another officer arrested a civilian identified as L.G. As L.G. was lying on the ground, with the other officer holding both of L.G.’s hands behind his back, L.G. directed a verbal insult towards the officers. In response to the insult, Officer Winkle, using his knee, dropped his full bodyweight down onto L.G.’s neck and head area. L.G. screamed out in pain and yelled that Winkle had crushed his face. A few moments later, Winkle deployed taser prongs into L.G.’s back and activated the taser. Officer Winkle’s use of force caused severe bodily injury to L.G., multiple facial fractures that required surgery. Following the incident, Winkle wrote a false report about what happened.
On or about June 5, 2018, Winkle participated in the arrest of two then-juveniles, N.B. and R.F. The incident began when MPD officers attempted to initiate a traffic stop of a car, but the driver did not initially stop and instead drove away from the officers. The occupants – including N.B. and R.F. – eventually jumped out of the car and ran from officers on foot. Officer Winkle and another then-MPD officer, Dalton Kurtz, engaged in a short foot chase of N.B., who eventually lay down in a yard. Kurtz found N.B, alerted Officer Winkle, and aimed his firearm and a flashlight at N.B., who was lying on his stomach with his arms extended in front of him and his hands visible and open. As N.B. lay on the ground, with his hands extended in front of him, Officer Winkle ran towards N.B. and kicked him in the head. Winkle then positioned himself near N.B.’s shoulder and delivered approximately two closed fist strikes to the back or side of N.B.’s head, and two open hand strikes to N.B.’s face. Shortly after N.B.’s arrest, Officer Winkle found R.F. in a nearby garage. Winkle ordered R.F. to show his hands and R.F. complied, holding both hands above his head. As another officer began to handcuff R.F., Officer Winkle walked up and slapped R.F. in the face. Following the incident, Officer Winkle authored a false report regarding the arrests of both N.B. and R.F.
On or about March 27, 2018, Winkle and another MPD officer responded to a call involving a complaint against a civilian, I.P. When the officers found I.P. in an alleyway, I.P. stood up and immediately put his hands up in the air with his palms open, in a position indicating surrender. Winkle ordered I.P. to get down to the ground, and I.P., with his hands in the air, began to get down to the ground. As I.P. began to lower himself to the ground, Officer Winkle kicked him in the abdomen/hip area, causing him to fall backwards into a chain link fence behind him. As I.P. tried to steady himself against the fence, Winkle delivered a second kick directly to I.P.’s head, knocking I.P. unconscious. Shortly after the arrest, Winkle wrote a false report about the incident.
On or about May 22, 2018, Officer Winkle authored a false report about the arrest of an individual identified as D.E. During the arrest, Winkle placed D.E. in handcuffs, and then struck and used a pain compliance technique on him.
On or about Feb. 17, 2019, Officer Winkle responded to the scene of a traffic stop, and he and another officer ordered the passenger, B.B. out of the car. B.B. complied and stepped out of the car, but was caught in the seatbelt. As B.B. started to pull the seatbelt off of his body, Winkle punched B.B. in the face, and officers took B.B. to the ground. After a short scuffle, B.B. was handcuffed, after which Winkle used four knee strikes to B.B.’s torso area. Officer Winkle later wrote a false report regarding the arrest.
Finally, on or about May 13, 2019, another former MPD officer, Jeremy Gibson initiated a traffic stop of a car because one of the car’s headlights was out. When the driver stepped out of the car, Gibson attempted to physically take him to the ground, and punched him several times with a closed fist in the process. As other officers attempted to secure E.M., Officer Winkle used a knee strike to the left side of E.M.’s head or upper body. Gibson delivered a knee strike to the right of E.M.’s head, causing his head to swing to the left, back toward Winkle, and Winkle delivered another knee strike to the left side of E.M.’s head. Following the arrest, Officer Winkle wrote a false report about the incident.
Winkle admitted that he knew at the time of the incidents that his uses of force against the arrestees were unjustified and unreasonable under the circumstances. He further admitted that he wrote false reports about what happened, including making false statements and material omissions, in order to influence any potential investigations into the incidents.
Winkle is one of four Muncie Police Department officers who were indicted in April 2021 in a 17-count superseding indictment for their roles in using excessive force against arrestees and/or attempting to cover up the misconduct. A fifth Muncie police officer, Dalton Kurtz, previously entered a pre-indictment guilty plea on Aug. 4, 2021, to one count of misprision of felony for concealing and failing to report inappropriate use of force by Officer Winkle during the arrest of N.B. On May 13, 2022, Officer Jeremy Gibson also pleaded guilty to civil rights and obstruction charges for assaulting E.M. and writing a false report about the incident. The remaining two officers are scheduled to stand trial in January 2023.
Assistant Attorney General Clarke, U.S. Attorney Myers and Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office made the announcement.
The FBI conducted the investigation.
Trial Attorneys Katherine G. DeVar and Mary J. Hahn of the Civil Rights Division, and Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana are prosecuting the case.
Former Clerk for Chicago Transit Authority Retirement Plan Charged with Fraudulently Obtaining More Than $350,000 in Plan FundsRead the Press Release
CHICAGO — A former clerk for the Retirement Plan for Chicago Transit Authority Employees has been indicted on federal charges for allegedly fraudulently obtaining more than $350,000 in Plan funds.
AYANNA NESBITT created and obtained approval for fraudulent payment requests of various retirement benefits, including death benefits and pension contribution refunds, to purported CTA retirees or their beneficiaries, according to an indictment returned Thursday in U.S. District Court in Chicago. The payment requests contained false and fraudulent representations about the purported recipients’ identities and entitlement to the payments, the indictment states. Nesbitt either accepted the fraudulently obtained funds in accounts she controlled or else had the money paid to others and then transferred to Nesbitt, the charges allege.
From 2019 to 2021, Nesbitt fraudulently created approximately 43 false payment requests, defrauding the Plan of approximately $356,934, the indictment states.
The indictment charges Nesbitt, 50, of Chicago, with five counts of wire fraud. Arraignment is set for Dec. 8, 2022, at 1:30 p.m., before U.S. District Judge Matthew F. Kennelly.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Christopher K. Veatch.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Florida Man Pleads Guilty to a Violation of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DANTE BOWMAN, age 23, a resident of Florida, pled guilty on November 30, 2022 before United States District Court Judge Jane Triche Milazzo to a one-count indictment charging him with possession with intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, following a traffic stop on Interstate-10, law enforcement officers located approximately 3.1 pounds of methamphetamine within locked canvas bags hidden in the spare tire area of a vehicle rented by BOWMAN.
BOWMAN is scheduled to be sentenced on March 1, 2023. BOWMAN faces a mandatory minimum sentence of 10 years and up to life imprisonment, a fine of up to $10,000,000, at least five (5) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by Homeland Security Investigations and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman.
Ecuadorian National Sentenced to over 16 Years for Trafficking Cocaine on the High SeasRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced Jose Luis Pinargote-Baquerizo (37, Ecuador) to 16 years and 4 months in federal prison for conspiring to possess with the intent to distribute over 2,700 kilograms of cocaine. Pinargote had pleaded guilty on August 23, 2022.
According to court documents and information offered in open court, between June and September 2017, Pinargote conspired to traffic over 2,700 kilograms of cocaine by three different vessels through the Eastern Pacific Ocean (photographs directly below). These cocaine-laden vessels left the shores of Tumaco, Colombia, with a destination of Mexico. On these three drug trafficking ventures, Pinargote hired six Ecuadorian mariners who set sail from Colombia to Mexico, paying them in U.S. dollars for their participation. Pinargote often kept a portion of this payment as a fee. He also provided logistical support for transporting the mariners from Ecuador to Colombia, arranging and paying for their transportation and hotels. Pinargote personally shepherded these mariners from Ecuador to Colombia, and on one occasion accompanied them directly into Tumaco, Colombia.
On August 8, 2019, in the Eastern Pacific Ocean, Pinargote was found on board a cocaine-laden vessel (1,029 kilograms) by the Colombian Navy (photograph directly below). Pursuant to an outstanding provisional arrest warrant, Pinargote was sent to a Colombian jail to await extradition to the United States.
On August 24, 2020, while awaiting extradition to the United States, Pinargote was inadvertently released from a Colombian jail. However, on February 6, 2022, he was interdicted in the Eastern Pacific Ocean on board a self-propelled semi-submersible (SPSS) vessel by the Colombian Navy, this time with 3,764 kilograms of cocaine on board (photograph directly below).
Pinargote was again arrested pursuant to the outstanding provisional arrest warrant, sent back to jail in Colombia, and extradited to the United States on March 2, 2022. In total, Pinargote is responsible for trafficking over 7,500 kilograms (or 17,000 pounds) of cocaine, which is worth approximately $225,000,000 USD.
This case was investigated by the United States Coast Guard and the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. Substantial assistance was also provided by the Department of Justice’s Office of International Affairs. The Narcotics and Dangerous Drug Section’s Judicial Attaché’s Office in Colombia also assisted in facilitating the extradition. 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 www.justice.gov/OCDETF.
The case was prosecuted by Assistant United States Attorney David Pardo.
Dr. Victor Savinov Pays $50,000 to Resolve False Claims Act Allegations Relating to Unlawful KickbacksRead the Press Release
DETROIT - Dr. Victor Savinov, a medical doctor who practices and resides in the Eastern District of Michigan, has agreed to pay the United States $50,000 to resolve allegations that in 2009 he received remuneration in exchange for referring Medicare patients to third-party-owned home health agencies, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Mario Pinto, United States Department of Health and Human Services – Office of Inspector General.
The allegations arose from a lawsuit filed in 2009 by whistleblowers, Ruqiayah Madany and John Collins, under the qui tam provisions of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and potentially share in any recovery. After the United States conducted its own investigation, it intervened and commenced litigation in the qui tam case in 2014. The original qui tam complaint named over 30 defendants, and the United States has either settled with or obtained judgments against most of those defendants. In March 2022, the Court granted the United States summary judgment against two defendants and awarded the United States nearly $40 million in damages and penalties.
This settlement resolves allegations that Dr. Savinov received kickbacks in the form of a credit card payment, free office space, and free use of a medical assistant in exchange for his referral of Medicare patients to home health agencies. The United States contends that the claims for payment were rendered false because they were tainted by Dr. Savinov’s receipt of unlawful kickbacks, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b). The whistleblowers will receive $11,000 in connection with this settlement.
“The Anti-Kickback Statute was designed to ensure doctors make medical decisions based on the best interest of their patients,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Kickbacks threaten to corrupt that decision-making process, and our Office is prepared to pursue anyone who fails to abide by the rules that safeguard the integrity of the Medicare program.”
“The payment of kickbacks to induce referrals can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of
Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars as well as pursue medical providers engaging in improper financial relationships.”
The matter was handled by Assistant United States Attorneys John Postulka and John Spaccarotella from the U.S. Attorney’s Office for the Eastern District of Michigan.
The case is docketed as United States ex rel. Madany and Collins v. Petre, et al., No. 09-cv-13693. The claims resolved by the settlement are allegations only; there has been no determination of liability.Connecticut Man Sentenced to 27 Months of Imprisonment for Possession with Intent to Distribute FentanylRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jorge Torres, 23, of Hartford, Connecticut, was sentenced to 27 months of imprisonment today in United States District Court by United States District Judge William K. Sessions III. Torres previously pleaded guilty to possession with intent to distribute fentanyl. Judge Sessions also ordered that Torres serve three years of supervised release after he serves his term of imprisonment.
According to court records, on December 21, 2021, Torres was arrested in the town of Orleans in the Northeast Kingdom while he was traveling northbound on Interstate 91 in possession of about 1500 bags of fentanyl, several grams of crack cocaine, and a loaded 9mm handgun. Prior to his arrest, Torres had sold fentanyl on several occasions to one or more persons cooperating with law enforcement. Torres was detained following his arrest and had been in custody since that time. This was Torres’ first criminal conviction.
This matter was investigated by the Vermont State Police Narcotics Investigation Unit and the Federal Bureau of Investigation, with assistance from the Newport, Vermont Police Department. Assistant U.S. Attorney Michael Drescher was the prosecutor. Torres was represented by Lisa Shelkrot, Esq., of Burlington.
Columbia Man Sentenced to 10 Years in Federal Prison for Drug and Gun CrimesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Derek Taft Evans, 45, of Columbia, was sentenced to 1o years in federal prison after pleading guilty to possession with intent to distribute crack cocaine and fentanyl and possessing a firearm in furtherance of drug trafficking.
Evidence presented to the Court showed that on June 15, 2020, a Richland County Sheriff’s Deputy stopped a Chrysler 200 driven by Evans for speeding. In a subsequent search of the Chrysler, law enforcement recovered a loaded Smith and Wesson 9mm handgun, approximately 36 grams of crack cocaine and 3.8 grams of fentanyl from the Chrysler’s center console. Additional investigation showed Evans was involved in trafficking multiple controlled substances, including heroin, crack cocaine, methamphetamine, and fentanyl.
United States District Judge Mary Geiger Lewis sentenced Evans to 120 months imprisonment, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by Richland County Sheriff’s Department and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Cedar Rapids Man Sentenced to Prison for His Role in Selling HeroinRead the Press Release
A Cedar Rapids man who was involved in the distribution of heroin was sentenced today to more than 6 years in federal prison.
Sammie Truman Williams, age 37, from Cedar Rapids, Iowa, received the prison term after an April 22, 2022 guilty plea to conspiracy to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that in 2017 and 2018, Williams and other individuals worked together to sell heroin in the Cedar Rapids area. In January 2018, investigators conducted a wiretap investigation of a phone operated by Williams. Multiple people called the phone to arrange heroin deals. Williams would set up the deal, but an accomplice would deliver the heroin. In total, Williams was responsible for the distribution of over 100 grams of heroin.
Williams was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Williams was sentenced to 77 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Williams is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and Special Assistant United States Attorney Adam J. Vander Stoep and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration Cedar Rapids Resident Office, the Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cedar Rapids Police Department, and the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-06.
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California Man Indicted for Drug TraffickingRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Long Beach, California, man for Conspiracy to Distribute Methamphetamine.
Jamaul Carter, a/k/a Mud, a/k/a Mudd Roll, age 34, was indicted in October of 2022. He appeared before Magistrate Judge Mark A. Moreno on November 30, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $10,000,000 fine, a lifetime of supervised release, and a $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September of 2021 and November of 2022, the defendant conspired with others to knowingly distribute over 500 grams of methamphetamine in South Dakota, on the Rosebud Sioux Indian Reservation.
The charge is merely an accusation and Carter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Carter was released on bond pending trial. A trial date has been set for January 31, 2023.
Convicted Felon Arraigned for Possession of FirearmsRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that PATRICK CHARLES SCHUTZ, 38, of Casper, Wyoming was charged with being a felon in possession of firearms at an arraignment hearing on November 29, 2022, before United States Magistrate Judge Michael Shickich and pleaded not guilty to the charges. A trial has been set for January 23, 2023.
If convicted, Schutz faces up to 15 years’ imprisonment with three years of supervised release, up to a $250,000 fine, and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Jonathan C. Coppom is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-CR-00132
Cheyenne Man Charged with Being a Felon in Possession of an Illegal FirearmRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that MICHAEL LANGLEY 26, of Cheyenne, Wyoming was charged with being a felon in possession of a firearm with an obliterated serial number, at an arraignment hearing on November 29, 2022, before United States Magistrate Judge Michael Shickich and pleaded not guilty to the charges. A trial has been set for January 17, 2023.
If convicted, Langley faces up to 15 years’ imprisonment with three years of supervised release, up to a $250,000 fine, and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cheyenne Police Department. Assistant United States Jonathan C. Coppom is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-CR-00133