Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 21 November 2022
Honduran Man Sentenced to Prison for Document FraudRead the Press Release
A man who used a false identification document and a false social security number was sentenced today to more than two months in federal prison.
Jose Lindolfo Henriquez-Arriaga, age 39, a citizen of Honduras illegally present in the United States and residing in Charles City, Iowa, received the prison term after a September 26, 2022, guilty plea to one count of unlawful use of identification documents and one count of misuse of a social security number.
At the guilty plea, Henriquez-Arriaga admitted he used a fraudulent Social Security card and a fraudulent Permanent Resident Card, also known as a “green card,” both bearing his name, to prove his authorization to work in the United States when he completed employment and tax forms in June 2021 at a business in Alden, Iowa. The number on the Social Security card was unassigned and the number on the Permanent Resident Card was assigned to a Korean female.
Henriquez-Arriaga was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Henriquez-Arriaga was sentenced to 77 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Henriquez-Arriaga is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-68.
Follow us on Twitter @USAO_NDIA.
Holyoke Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Holyoke man associated with the CJNG (Cartel Jalisco Nueva Generacion) drug cartel has pleaded guilty to drug trafficking charges involving fentanyl.
Josue Rivera Rodriguez, a/k/a “Bori,” 45, pleaded guilty on Nov. 18, 2022 to one count of conspiracy to distribute 400 grams or more of fentanyl, two counts of distribution of 40 grams or more of fentanyl and one count of distribution of 400 grams or more of fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Feb. 6, 2023. Rodriguez was arrested and charged in April 2021.
“The CJNG cartel is one of the most dangerous criminal organizations in Mexico. Mr. Rodriguez conspired to bring CJNG’s violent drug trafficking operations into our Commonwealth. Because of the exceptional work of our law enforcement partners, he failed,” said United States Attorney Rachael S. Rollins. “Not only did he distribute considerable quantities of fentanyl on behalf of the cartel into our communities, agents also seized deadly firearms from his home – including a fully automatic AR-15 machinegun and several handguns fitted with laser sight. These weapons are far too excessive and powerful for any claim of self-defense. They are designed for destruction and harm. Stopping the flow of illegal narcotics from entering into our communities remains the most critical step in combating violent criminal activity directly at its source.”
"Josue Rivera Rodriguez trafficked deadly fentanyl all over Massachusetts including Watertown, Revere, Holyoke, and Springfield for one of the largest and most violent transnational criminal organizations operating in Mexico and the United States. Equally troubling is what we found when we took him into custody— a cache of high-powered weapons, including an AR-15 assault rifle, a bullet proof vest, and even a police hat with insignia,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates the FBI’s commitment to removing large-scale drug traffickers like Rodriguez who are a clear and present danger to our communities from our streets before they can ruin any more lives.”
“DEA is committed to investigating those involved with drug trafficking in Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
Rodriguez was recorded delivering $35,000 to a cooperating witness and using a code indicating that the money was intended for the CJNG cartel. Thereafter, on three occasions in 2020 and 2021, Rodriquez was recorded distributing over 750 grams of fentanyl to the cooperating witness.
At the time of his arrest in April 2021, approximately 300 grams of fentanyl; an AR-15 assault rifle; five semi-automatic pistols, including handguns capable of carrying large-caliber ammunition and fitted with a laser sight; a bullet-proof vest; a police hat with insignia; packaging materials; cellphones; a money counter; and $1,900 cash was seized from Rodriguez’s residence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and distribution of 400 grams or more of fentanyl provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, DEA SAC Boyle and Holyoke Police Chief Manny Febbo made the announcement today. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Gang Member Sentenced to Prison Resulting from Organized Crime Drug Enforcement Task Forces Investigation in Southwest GeorgiaRead the Press Release
ALBANY, Ga. – A documented member of the Bloods criminal street gang organization with ties to California was sentenced to serve 30 years in prison for directing the distribution of methamphetamine in Southwest Georgia.
Calvin Westbrook aka Lo Cal, 39, of Albany, formerly of Los Angeles, was sentenced to serve 360 months in prison to be followed by five years of supervised release on Nov. 18 after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. U.S. District Judge Leslie Gardner handed down the sentence.
According to court documents, agents began investigating Westbrook’s activities brokering methamphetamine and fentanyl in 2020. Westbrook, a documented member of the Bloods criminal street gang, was recorded discussing details with his sources of supply in Atlanta about purchasing five kilograms of methamphetamine for a customer in South Carolina and two kilograms of methamphetamine for himself on Nov. 13, 2020. Westbrook directed co-defendant Tyshambriya Gervin, 29, of Albany, to engage co-defendant Kashambriya Chester, 23, of Albany, to move the methamphetamine from Atlanta to Albany so Westbrook would not be “riding dirty.” On Nov. 16, Gervin and Chester drove together to Atlanta, where they met up with Westbrook to conduct the methamphetamine transaction. On the return trip to Atlanta, Gervin and Chester were taken into custody in Cordele, Georgia, in possession of two kilograms of methamphetamine. Westbrook was driving in another car ahead of them. Westbrook was taken into custody on Dec. 15.
While in the Tift County Jail, Westbrook was recorded making threats to harm a witness. Westbrook also posted threats on social media and directed a co-defendant in this event, Diamond Thomas, 23, of Albany, to assist in his efforts. Thomas pleaded guilty to conspiracy to tamper with a witness and was sentenced to 24 months of probation on June 2, 2022.
Co-defendants Gervin and Chester both pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. On June 2, 2022, Gervin was sentenced to serve 60 months in prison to be followed by two years of supervised release and Chester was sentenced to time served and three years of supervised release.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by GBI, FBI, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lee County Sheriff’s Office, with assistance from the Georgia State Patrol (GSP).
The case was prosecuted by Assistant U.S. Attorney Leah McEwen.
Founder and Former Chief Investment Officer of Infinity Q Pleads Guilty to Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES VELISSARIS, the founder and former chief investment officer of Infinity Q Capital Management (“Infinity Q”), a New York based investment adviser that ran a mutual fund and a hedge fund that purported to have approximately $3 billion in assets under management, pled guilty to securities fraud. VELISSARIS made false and misleading statements to investors and others concerning Infinity Q’s process for valuing certain over-the-counter (“OTC”) derivative positions that made up a substantial portion of the holdings of the mutual and hedge funds and also fraudulently mismarked those securities in ways that did not reflect their fair value. VELISSARIS committed the mismarking scheme in order to inflate the value of the investment funds as reported to investors, to attract and retain capital, and to increase his own compensation. In order to avoid detection of the scheme, VELISSARIS provided both Infinity Q’s auditor and the Securities and Exchange Commission (“SEC”) with falsified or altered documents, including providing the auditor with altered term sheets that served to provide fabricated support for the fraudulently inflated values. Today’s plea was taken by U.S. District Court Judge Denise Cote.
U.S. Attorney Damian Williams said: “Today’s guilty plea demonstrates this Office’s resolve to pursue even the most sophisticated of financial crimes. James Velissaris thought he could get away with mismarking some of the most esoteric derivative products on Wall Street by manipulating sophisticated financial models and computer code. This case has exposed that fraud and shown that Velissaris lied to his investors in order to line his own pockets with inflated fees. Velissaris will now be held accountable for his actions.”
According to the allegations contained in the Indictment, other publicly available information, and statements made in court:
Background
VELISSARIS was the founder and chief investment officer of Infinity Q, an investment adviser that ran both a mutual fund (the “Mutual Fund”), started in about 2014, and a hedge fund (the “Hedge Fund,” and collectively the “Investment Funds”), started in about 2017. As of 2021, the two funds purported to have approximately $3 billion in assets under management. Infinity Q was headquartered in New York, New York, and employed a small staff, including a chief compliance and chief risk officer (“Employee-1”).
A major component of both the Mutual Fund and the Hedge Fund’s holdings were over-the-counter (“OTC”) derivative positions that involved customized contracts that allowed the counterparties to take positions on the volatility, or price movement, of underlying assets or indices. VELISSARIS, through Infinity Q, represented to its investors that it valued these OTC derivative positions based on fair value, and that in order to do so, it utilized the services of an independent third-party provider. In particular, Infinity Q represented to investors and other stakeholders that it used Bloomberg Valuations Service (“BVAL”) to independently calculate the fair value of these positions, in accordance with the terms of the underlying derivative contracts. These OTC derivative positions comprised hundreds of millions of dollars of the Investment Funds’ portfolios.
VELISSARIS’ Scheme to Lie to Investors and Inflate Derivative Swap Positions
In fact, however, VELISSARIS defrauded Infinity Q’s investors by taking an active role in the valuation of Infinity Q’s positions and by modeling the positions in ways that were not based on the actual terms of the underlying contracts and were inconsistent with fair value. VELISSARIS’ input into the BVAL valuation process was inconsistent with Infinity Q’s representations about the independence of the process and allowed VELISSARIS to fraudulently mismark positions in BVAL. VELISSARIS engaged in the mismarking of positions in BVAL by making false entries in BVAL’s system including by secretly altering the computer code employed by BVAL that caused BVAL to alter and disregard certain critical terms. Altering and disregarding terms in this fashion caused BVAL to report values that were artificially inflated and, often, much higher than fair value.
By manipulating OTC derivative positions in BVAL in this way, VELISSARIS caused numerous positions in the Investment Funds to have anomalous and, at times, impossible valuations. For example, at times, VELISSARIS made manipulations in either the Mutual Fund and/or the Hedge Fund that caused certain identical positions that were held by both the Mutual Fund and the Hedge Fund (namely, a position where all the material terms are the same) to have substantially divergent values. In other cases, some of VELISSARIS’ manipulations caused certain positions held by the Investment Funds to have impossible values, such as where, under the true terms of the swap, the value adopted by VELISSARIS could only be true if volatility were negative – a condition which is mathematically impossible.
Ultimately, after VELISSARIS’ mismarking scheme was uncovered in or about February 2021, Infinity Q liquidated the Investment Funds and sold its OTC derivative positions. These positions were sold for hundreds of millions of dollars less than their purported market values in BVAL, thereby resulting in substantial losses to the investors in the Investment Funds.
VELISSARIS Lies to Auditors and Obstructs the SEC’s Investigation
In order to hide this scheme and prevent its detection, VELISSARIS lied to numerous outside stakeholders and regulators. First, in order to prevent Infinity Q’s outside auditor (the “Auditor”) from discovering the fraud, VELISSARIS provided the Auditor with falsified term sheets from counterparties that he had altered to change the true terms of certain OTC derivative positions. In particular, in connection with a number of audits, the Auditor selected certain OTC positions that it would independently value in order to confirm the reasonableness of Infinity Q’s values from BVAL. In order to ensure that the Auditor would not arrive at materially different results when independently valuing positions that VELISSARIS had manipulated in BVAL, VELISSARIS altered the terms of certain deal documents and provided them to the Auditor. After receiving these falsified documents and relying on them in its independent evaluation, the Auditor confirmed the reasonableness of VELISSARIS’ valuations in BVAL.
Furthermore, beginning in May 2020, the SEC opened an inquiry and later an investigation into Infinity Q’s valuation practices. In connection with that investigation, VELISSARIS provided false and misleading information to the SEC. For example, when the SEC asked for original documents that had been provided to investors, VELISSARIS altered the documents before providing them to the SEC, including certain alterations that would help hide his mismarking scheme. For example, Infinity Q’s original investor materials stated that “[o]nce a price is established for a portfolio security, it shall be used for all Funds that hold the security.” As explained above, this was untrue, and on numerous occasions, manipulations in BVAL made by VELISSARIS caused the same positions in the Mutual Fund and the Hedge Fund to have substantially different values. To conceal the falsity of Infinity Q’s disclosures, VELISSARIS, along with Employee-1, removed this line from investor documents that were provided to the SEC.
In June 2020, the SEC requested that Infinity Q provide additional materials, including documents regarding Infinity Q’s valuation committee and all of its meeting minutes. Infinity Q’s investor materials had represented that Infinity Q had a valuation committee, including VELISSARIS, that the committee would meet monthly or more often, and that VELISSARIS would be responsible for preparing minutes of such meetings. In fact, however, VELISSARIS had not kept notes of any such meetings. Accordingly, days before responding to the SEC, VELISSARIS made up notes purporting to be from valuation committee meetings in 2019 and 2020 and submitted them to the SEC.
* * *
VELISSARIS, 38, of Atlanta, Georgia, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only. Sentencing has been scheduled for March 3, 2023, in front of Judge Cote.
Mr. Williams praised the work of the Federal Bureau of Investigation. He further thanked the SEC and the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Daniel Loss, and Daniel Tracer are in charge of the prosecution.
Former Union Officer and Employee Found Guilty of Conspiracy, Wire Fraud, and EmbezzlementRead the Press Release
HONOLULU – After a four-week jury trial before Senior United States District Judge Helen Gillmor, a federal jury today found husband and wife Defendants Brian Ahakuelo (age 61) and Marilyn Ahakuelo (age 59) each guilty of conspiracy, wire fraud, and embezzlement for crimes committed while they were employed by the International Brotherhood of Electrical Workers (“IBEW”) Local 1260. Brian Ahakuelo, who served as IBEW’s Business Manager and Financial Secretary, was additionally convicted of money laundering. Judge Gillmor ordered Brian Ahakuelo detained in custody pending their sentencing, which is set for March 28, 2023. Marilyn Ahakuelo was permitted to remain released on bail. A third defendant, Jennifer Estencion, was found not guilty on all charges.
At trial, the evidence showed that Brian Ahakuelo hired family members at high salaries and authorized the use of union funds for personal purposes, including extravagant travel for himself and those loyal to him. In the case of one family member hired by Brian Ahakuelo, little legitimate work was performed. The evidence at trial also showed that Brian and Marilyn Ahakuelo used union funds to purchase personal trips to the mainland, and that Brian Ahakuelo engaged in self-dealing by using union funds to purchase a truck already owned by Marilyn Ahakuelo while allowing her to continue to use it. When his activities largely depleted the union’s coffers, Brian Ahakuelo, with the help of Marilyn Ahakuelo and other union employees, rigged a vote on a resolution to increase membership dues. The voter fraud caused members to pay an additional $3.7 million in dues over approximately eighteen months.
“The extensive testimony and voluminous documentary evidence produced during this trial supports the just and important verdict of guilt returned by the jury as to Brian and Marilyn Ahakuelo,” said United States Attorney Clare E. Connors. “The Department of Justice is committed to working with our law enforcement partners to ensure that our labor leaders carry out their fiduciary duty to members, and that when the evidence reveals otherwise, they face criminal consequences in a court of law.”
“A famous union organizer named Thomas Donahue once said that the only effective answer to organized greed is organized labor. Obviously, Mr. Donahue never met Mr. and Mrs. Ahakuelo,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Unfortunately, organized greed can be found anywhere, but wherever people like the Ahakuelos choose to work their schemes, there IRS-CI will be also.”
“The vast majority of union officers and employees rigorously follow the law and serve their unions honorably. Brian Ahakuelo, along with his wife, Marilyn Ahakuelo, are the rare exceptions. Brian Ahakuelo betrayed the trust of the union membership who rightfully expected him, as a union official, to protect and safeguard their union’s funds and assets for the benefit of the union and not for his personal interests. The Office of Labor-Management Standards will always find those rare exceptions who choose to break the law and the faith of their union members and bring them to justice,” said Ed Oquendo, District Director, Los Angeles District Office, U.S. Department of Labor, Office of Labor-Management Standards.
“The Hawai‘i Department of the Attorney General is grateful to the team of investigators from our Department and at the federal level, as well as the U.S. Attorney’s prosecutors for their commitment and dedication in achieving a just verdict in this case,” Attorney General Holly T. Shikada said. “We will continue to work collaboratively to hold individuals who defraud those they are elected to represent accountable.”
Brian Ahakuelo and Marilyn Ahakuelo were convicted of one count of conspiracy, which carries a maximum sentence of five years and 42 counts of wire fraud, which each carry a maximum sentence of 20 years. Brian and Marilyn Ahakuelo also were convicted of embezzlement of a labor union asset (six counts and three counts, respectively), which each carry a maximum sentence of five years. Brian Ahakuelo alone was convicted of 19 counts of money laundering, which each carry a maximum sentence of ten years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of an investigation conducted by the Internal Revenue Service-CI, Department of Labor – Office of Labor Management Standards, and State of Hawaii Attorney General’s Office. Assistant U.S. Attorneys Michael F. Albanese and W. KeAupuni Akina prosecuted the case.
Former U.S. Postal Service Employee Pleads Guilty to Federal Mail CrimeRead the Press Release
CHARLESTON, W.Va. – Earnestine White, 48, of Evans, pleaded guilty today to delay or destruction of mail. White admitted to failing to process mail while a U.S. Postal Service employee assigned to the Post Office in Cottageville, Jackson County.
According to court documents and statements made in court, White was employed as a clerk at the Cottageville Post Office from 2017 through 2021. While employed at the Cottageville Post Office, White was responsible for accepting and processing mail dropped off by customers and for ensuring customers received incoming mail. White admitted that from about September 2020 until September 21, 2021, she knowingly delayed the mail by failing to forward mail to its proper location that came into her possession through her employment with the United States Postal Service.
White is scheduled to be sentenced on February 9, 2023, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,00 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Ryan Blackwell 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. 2:22-cr-162.
###
Former Tribal Official Sentenced to Prison for Bribery SchemeRead the Press Release
WASHINGTON – A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced today to six years and three months in prison for a bribery scheme involving soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation, which is the home of the MHA Nation.
According to court documents, from November 2014 through November 2018, Frank Charles Grady, 54, of Billings, Montana, was an elected representative on the Tribal Business Council, the governing body of the MHA Nation. Beginning around 2016 and continuing through 2017, Grady solicited and accepted bribes and kickbacks totaling more than $260,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for the payments, Grady used his official position to help the contractor’s business, including by awarding contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Klemetsrud Puhl for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minnesota Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota are prosecuting the case.
###
22-1246
Former Tribal Official Sentenced to Prison for Bribery SchemeRead the Press Release
A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced today to six years and three months in prison for a bribery scheme involving soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation, which is the home of the MHA Nation.
According to court documents, from November 2014 through November 2018, Frank Charles Grady, 54, of Billings, Montana, was an elected representative on the Tribal Business Council, the governing body of the MHA Nation. Beginning around 2016 and continuing through 2017, Grady solicited and accepted bribes and kickbacks totaling more than $260,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for the payments, Grady used his official position to help the contractor’s business, including by awarding contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Klemetsrud Puhl for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minnesota Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota are prosecuting the case.
Former Supervisory Correctional Officer Sentenced for Abusing a Hawaii Inmate and Leading a Conspiracy to Cover up the BeatingRead the Press Release
A former supervisory correctional officer at the Hawaii Community Correctional Center was sentenced to 144 months in federal prison for his role in the assault of an inmate and his leadership of a multi-year conspiracy to cover up the abuse.
“The defendant had a non-violent inmate in his custody and care, and he abused both the inmate and the Constitution by permitting lower-ranking officers to commit an unjustified assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “His subsequent decision to orchestrate a multi-year cover-up is an affront to the principles of honesty and integrity that our society expects from law enforcement. His sentence makes clear that no one is above the law, and that when officers violate the civil rights of people under their supervision – through violence or obstruction – they will be held accountable.”
According to court documents and evidence introduced at trial, on June 15, 2015, Jonathan Taum, 50, supervised his two co-defendants and a third correctional officer while they transported an inmate across the facility. The inmate became frightened in the course of the transfer, and Taum’s fellow officers took the non-violent inmate to the ground and repeatedly punched and kicked him in the face, head, and body. As the other officers beat the inmate, Taum verbally encouraged them to continue. The inmate’s jaw, orbital socket and nose were broken in the course of the assault. In the months and years that followed, Taum led the officers in a cover-up conspiracy that included writing false reports, submitting false statements to internal affairs and providing false testimony to disciplinary board members.
“Protecting the civil rights of everyone in the community, including inmates, is at the heart of our system of justice,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “Supervisors in our correctional facilities are held to a higher standard of responsibility and as this case demonstrates, we will prosecute those who criminally violate the civil rights of those in their custody.”
“This case highlights how the FBI will vigorously investigate and hold accountable any individual who violates the civil rights of an inmate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “We are committed in ensuring that every citizen—whether free or incarcerated—can exercise their protected liberties without fear of violence. This case should deter others in a position of power from such behavior in the future.”
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office investigated the case.
Assistant U.S. Attorney Craig Nolan for the District of Hawaii, Special Litigation Counsel Chris Perras and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Political Staffer Admits Role in Scheme to Defraud Campaigns and Political Action CommitteesRead the Press Release
NEWARK, N.J. – A Union County man who previously served as a staff member in the New Jersey Senate today admitted his role in a conspiracy to falsely inflate the invoices that a political consultant submitted to various campaigns, political action committees, and IRS 501(c)(4) organizations, U.S. Attorney Philip R. Sellinger announced.
Antonio Teixeira, 43, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion.
According to documents filed in this case and statements made in court:
From 2014 to 2018, Teixeira conspired with Sean Caddle, and Caddle’s political consulting firms, to defraud various campaigns, political action committees, and 501(c)(4) organizations of $107,800. Teixeira then failed to report this illicit income on tax forms that he filed with the IRS during those same years.
Caddle was hired by a former New Jersey state senator to create the PACs and 501(c)(4)s so that they could raise and spend money to advocate on a variety of issues, including supporting particular candidates in local races around New Jersey. Teixeira served as the senator’s chief of staff and wielded influence over the consultants that the campaigns and organizations hired and the budgets that each of these organizations would receive.
Teixeira and Caddle conspired to falsely inflate the invoices that Caddle’s consulting firms submitted to the campaigns, PACs and 501(c)(4)s with phony campaign-related expenditures. Caddle and Teixeira were fraudulently padding the invoices because they agreed to split the difference between Caddle’s actual campaign expenditures and the overage charged to the organizations. Caddle paid a portion of Teixeira’s share to him in cash and funneled the remainder to Teixeira via checks made to out to Teixeira’s relatives in order to conceal that campaign money was being kicked back to Teixeira. In total, Teixeira received more than $100,000. Although Teixeira pocketed these fraudulent proceeds and used the money for personal expenses, he never reported the money on the tax forms that he filed with the IRS during the course of the scheme.
The wire fraud conspiracy charge carries a statutory maximum prison sentence of 20 years, while the tax evasion charge carries a statutory maximum of five years in prison. Both charges are also punishable by a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for March 27, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit, and Executive Assistant U.S. Attorney Lee M. Cortes Jr.
Former Federal Agent Sentenced to More Than 10 Years in Prison for Accepting Bribes to Help Figure Associated with Organized CrimeRead the Press Release
LOS ANGELES – A former special agent with Homeland Security Investigations (HSI) was sentenced today to 121 months in federal prison for accepting cash payments and other benefits to help an organized crime-linked person, including taking official action designed to help two foreign nationals gain entry into the United States.
Felix Cisneros Jr., 48, of Murrieta, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay a fine of $30,000. Judge Klausner also entered a forfeiture order of $133,000 against Cisneros.
On May 3, at the conclusion of a five-day trial, a federal jury found Cisneros guilty of 30 felonies: one count of conspiracy to commit bribery of a public official, one count of bribery, 26 counts of money laundering and two counts of subscribing to a false tax return. Cisneros been in federal custody since the trial’s conclusion.
Over an 18-month period that started in September 2015, Cisneros accepted cash, checks, private jet travel, luxury hotel stays, meals and other items of value from a person identified in court documents as “Individual 1,” who was associated with a criminal organization. Cisneros received approximately $100,000 in checks and gifts from Individual 1 in 2015 and 2016.
Cisneros accepted the cash and other bribes while employed as a special agent with HSI, which is an agency within the United States Department of Homeland Security. In exchange for the bribes, Cisneros performed a series of official acts at the behest of Individual 1, including:
- Accessing a DHS database for information about a German national identified as W.R., and telling Individual 1 he removed a “hit” on W.R., “thus indicating derogatory information had been removed”;
- Placing an alert in a law enforcement database for an address associated with an illegal marijuana grow operation so Cisneros could learn of law enforcement interest and warn Individual 1;
- Obtaining an official DHS letter signed by an HSI assistant special agent in charge to allow the parole of Individual 1’s brother-in-law into the United States from Mexico, and later providing updates about the brother-in-law’s asylum application; and
- Collecting information on an associate of Individual 1 whose home had been searched by law enforcement and later providing Individual 1 with information about the investigation.
Cisneros also underreported his total income on his federal income tax returns by at least $20,000 for the year 2015 and at least $73,404 for the year 2016.
The FBI, IRS Criminal Investigation and the Department of Homeland Security’s Office of Inspector General investigated this matter.
Assistant United States Attorneys Michael J. Morse and Juan M. Rodriguez of the General Crimes Section prosecuted this case.
Former Dodge County Attorney Pleads Guilty to Civil Rights ViolationRead the Press Release
Acting United States Attorney Steven Russell announced that Oliver J. Glass, 47, of Fremont, Nebraska, pleaded guilty to a Criminal Information charging him with Conspiracy to Commit Deprivation of Rights Under Color of Law. Glass faces a maximum possible punishment of 1 year imprisonment, $100,000 fine, or both. Chief United States District Judge Robert F. Rossiter, Jr. ordered a Pre-Sentence Investigation and set sentencing for February 17, 2023, at 1:30 p.m.
As admitted to in the plea agreement:
Oliver J. Glass was appointed as the Dodge County Attorney in 2011 and was subsequently elected in 2014 and in 2018. In 2020, Glass’s wife filed for divorce. On March 6, 2020, Glass learned that his wife had been dating an individual identified in the Information as Victim 1.
Between March 6, 2020, through on or about December 22, 2020, Glass conspired with other individuals who are unnamed in the Information to deprive Victim 1 of his rights protected by the Constitution, specifically, his right against unreasonable search and seizure protected by the Fourth Amendment of the Constitution by conspiring to unlawfully stop or arrest Victim 1. Glass and others utilized their restricted access to the Nebraska Criminal Justice Information System (NCJIS) to obtain information about Victim 1. A supervisor in the Fremont Police Department advised other officers that Victim 1 was dating Glass’s wife and to be on the lookout for Victim 1 and provided other officers with Victim 1’s information, vehicle description, and license plate number. An officer within the Dodge County law enforcement community, while acting as a private investigator, used his law enforcement credentials to obtain access about Victim 1’s criminal history that was not publicly available. Members of law enforcement in Dodge County would drive by Victim 1’s apartment looking for Victim 1 without a legal justification or criminal predicate.
This case was investigated by the Federal Bureau of Investigation.
Fayette County Attorney Sentenced to Probation with Home Detention for Defrauding ClientsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 16, 2022, John William “JW” Eddy, age 40, of Fayette County, Pennsylvania was sentenced by United States District Court Judge Sylvia H. Rambo to five years of probation, including 21 months of home detention with electronic monitoring, for misappropriating funds from clients of his law practice between 2016 and 2020.
According to United States Attorney Gerard M. Karam, Eddy ran a private law practice, Eddy Law Office. As an attorney representing members of the public in the practice of law, Eddy was required to maintain a trust account for client funds, also known as an Interest on Lawyer Trust Account or “IOLTA.” This account was to be used for the securing of client funds, such as proceeds from legal settlements, fees advanced for services not yet performed, or money for court fees. Eddy admitted that between 2016 and 2020 he misappropriated $242,975.89 of client funds entrusted to him.
Eddy pleaded guilty to one count of wire fraud on February 9, 2022. Prior to his guilty plea, Eddy made full restitution to his victims in the amount of $242,975.89, equal to the amount of client funds that he misappropriated.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
# # #
Fall River Man Charged with Bank RobberyRead the Press Release
BOSTON – A Fall River man has been charged in connection with robbing a TD Bank branch in downtown Boston.
William Sequeira, 59, was charged with one count of bank robbery and will appear in federal court in Boston at a later date.
According to the charging documents, on Sept. 30, 2022, a white male – later identified as Sequeira – entered the TD Bank branch on Union Street in Boston. Once inside, Sequeira allegedly approached a teller and stated, “give me all the $100s in the drawer,” and “give me all the money before I blow your brains out.” Sequeira fled on foot after obtaining money from the teller. It is alleged that surveillance footage of the robbery and subsequent interviews positively identified Sequeira as the robber.
On Oct. 5, 2022, law enforcement surveilling the Back Bay area in an effort to locate Sequeira spotted him entering a Citizens Bank branch on Boylston Street in Boston. There, it is alleged that Sequeira approached the teller, said “Give me hundreds,” and then threatened to shoot the teller if they did not move fast enough. Sequeira was immediately apprehended.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Fall River Police Department and the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
El fiscal general Merrick Garland emite un memorando para mejorar el acceso a servicios por parte de personas cuyo dominio del inglés es limitadoRead the Press Release
Observación: El presente comunicado de prensa ha sido traducido a varios idiomas. Véanse los documentos adjuntos más abajo.
El Departamento de Justicia emitió hoy un memorando pidiendo a los organismos federales que revisen sus prácticas y políticas de acceso lingüístico para fortalecer el compromiso del gobierno federal con las personas cuyo dominio del inglés es limitado (LEP, por sus siglas en inglés).
“Todas las personas en este país, independientemente del idioma que hablen, merecen tener acceso importante a los programas y las actividades que los organismos federales dirigen o apoyan”, dijo el fiscal general Merrick B. Garland. “El Departamento de Justicia está comprometido a trabajar con sus socios federales para derribar las barreras lingüísticas en los servicios gubernamentales, las que niegan a las personas la oportunidad completa de participar en los aspectos económico, social y cívico del diario vivir”.
Este memorando explica a grandes rasgos una manera de proceder para que los organismos federales mejoren, modernicen y lleven a cabo sus funciones relativas al acceso lingüístico conforme a la orden ejecutiva número 13166 de “Mejora del acceso a servicios para personas cuyo dominio del inglés es limitado”. Como se establece en el memorando, con la ayuda de la Oficina para el Acceso a la Justicia, la División de Derechos Civiles presidirá una iniciativa colaborativa encaminada a determinar: 1) si los organismos pueden seguir actualizando sus políticas y planes de acceso lingüístico; (2) si al difundir información sobre recursos, programas y servicios federales los organismos están alcanzando de manera eficaz a las personas cuyo dominio del inglés es limitado; (3) si los organismos han considerado actualizar o modificar la orientación para los beneficiarios de ayuda financiera federal con respecto a su obligación de proporcionar acceso lingüístico importante, conforme a los requisitos que se estipulan en el título VI de la Ley de Derechos Civiles de 1964 y en sus reglamentos de implementación; y (4) si los organismos pueden adaptar sus comunicaciones digitales para poder servir a las personas cuyo dominio del inglés es limitado.
Este memorando se fundamenta en labores existentes del Departamento de Justicia que tienen como meta interactuar con las personas cuyo dominio del inglés es limitado e incluye en el Plan estratégico de 2022 a 2026 del Departamento de Justicia un nuevo enfoque de mayor ayuda referente al acceso lingüístico. En mayo de 2022, el fiscal general Garland nombró a Ana Paula Noguez Mercado como coordinadora de acceso al idioma en la Oficina para el Acceso a la Justicia del Departamento de Justicia con la finalidad de ayudar a garantizar que el Departamento de Justicia sea un ejemplo a seguirse. Desde entonces, la Oficina para el Acceso a la Justicia ha aumentado el personal que se dedica al acceso lingüístico y está dirigiendo el “Grupo de trabajo en materia de acceso lingüístico” del Departamento de Justicia para que proporcione ayuda técnica y capacitación a todos sus integrantes a medida que siguen mejorando el acceso lingüístico para todos. La División de Derechos Civiles continúa manteniendo el sitio web www.LEP.gov, en el que se brindan recursos e información para ayudar a ampliar y mejorar, en conformidad con la ley federal, los servicios de asistencia lingüística para las personas cuyo dominio del inglés es limitado.
English
Arabic
Chinese – Simplified
Chinese – Traditional
Korean
Spanish
Tagalog
Vietnamese
Memorandum
Detroit Man Sentenced to Prison for Federal Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Brian Martell Smith, 43, of Detroit, Michigan, was sentenced today to three years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm, and for possessing a firearm with a removed, obliterated, or altered serial number.
According to court documents and statements made in court, on October 11, 2021, law enforcement officers encountered Martell at the Marcum Terrace apartments in Huntington, at which time Martell threw a Lorcin L9MM 9mm pistol to the ground and attempted to flee. Martell admitted to possessing the firearm, which officers recovered, and further admitted that the firearm’s manufacturer serial number had been removed, obliterated, or altered.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Smith knew he was prohibited from possessing a firearm because of his felony convictions for being a felon in possession of a firearm and for carrying or possessing a firearm when committing or attempting to commit a felony (weapons felony firearm) on September 18, 2008, in Michigan Third Judicial Circuit Court, and for possession with intent to deliver/manufacture less than 50 grams of cocaine on August 25, 1999, in Michigan Third Judicial Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-76.
###
Coventry Woman Admits to Fraudulently Applying for and Receiving COVID Unemployment BenefitsRead the Press Release
PROVIDENCE – A Coventry woman today admitted to a federal judge that she fraudulently applied for and received more than $17,000 in unemployment benefits provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Deanna Alston, 34, admitted to the court that while collecting pandemic related unemployment benefits from the Rhode Island Department of Labor and Training, she filed fraudulent applications with the States of California and Pennsylvania, knowing that she was not entitled to collect benefits from those states. Between July 30, 2020, and September 8, 2020, Alston collected approximately $17,075 in unemployment befits that she was not entitled to receive.
Alston today pleaded guilty to a charge of wire fraud. She is scheduled to be sentenced on February 27, 2023. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits, are being investigated jointly by the FBI, Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Stacey P. Veroni, Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Court Authorizes the Seizure of Domains Used in Furtherance of a Cryptocurrency “Pig Butchering” SchemeRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today the seizure of seven domain names used in a recent cryptocurrency confidence crime, known as “pig butchering.”
In pig butchering schemes, scammers encounter victims on dating apps, social media websites, or even random texts masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scam syndicate running fraudulent cryptocurrency investment platforms, where victims are persuaded to invest money. Once the money is sent to the fake investment app, the scammer vanishes, taking all the money with them, often resulting in significant losses for the victim. And that is exactly what happened in this instance.
According to court records, from at least May through August 2022, scammers induced five victims in the United States by using the seven seized domains, which were all spoofed domains of the Singapore International Monetary Exchange. The term “spoofed” refers to domain spoofing and involves a cyberattack in which fraudsters or hackers seek to persuade individuals that a web address or email belongs to a legitimate and generally trusted company, when in fact it links the user to a false site controlled by a cybercriminal. The scammers — using the confidence-building techniques described above — convinced the victims that they were investing in a legitimate cryptocurrency opportunity. After the victims transferred investments into the deposit addresses that the scammers provided through the seven seized domain names, the victims’ funds were immediately transferred through numerous private wallets and swapping services in an effort to conceal the source of the funds. In total, the victims lost over $10 million.
If you believe you are a victim, please contact [email protected] or IC3.gov to file a report. Please provide detailed information in your report, including any purported investment websites visited, telephone numbers, email accounts, and social media profiles used by scammers, and any cryptocurrency addresses, transaction hashes, and dates of transactions. Your responses are voluntary. Based on the information provided, you may be contacted by the United States Secret Service or other law enforcement entity and asked to provide additional information. This office cannot act as your attorney or provide you with legal advice. However, you may seek the advice of an attorney with respect to this or other related legal matters.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; William Mancino, Special Agent in Charge, Criminal Investigative Division of the U.S. Secret Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, announced the seizure of the domain names.
The U.S. Attorney’s Office for the Eastern District of Virginia is represented by Assistant U.S. Attorneys Annie Zanobini, Zoe Bedell, and Carina A. Cuellar. Georgiana L. MacDonald of the Justice Department’s National Cryptocurrency Enforcement Team (NCET) provided substantial assistance in this action.
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. 1:22-sw-596.
Concord Man Sentenced to 30 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
CONCORD - Jerry S. Roberts, Jr., 38, of Concord, was sentenced to 360 months in federal prison and lifetime supervised release for exploitation of a minor, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on July 15, 2019, the Concord Police arrested Roberts, a convicted sex offender, following his assault of another individual. The victim of the assault advised that Roberts and a minor (Child Victim A) had left their personal property in the victim’s apartment. Pursuant to a search warrant, detectives searched the bags and recovered assorted electronic media, including a digital camera. Detectives obtained an additional search warrant for the electronic media. From the digital camera, detectives identified two videos that Roberts filmed depicting Child Victim A engaging in sexually explicit conduct.
“Roberts is a repeat and dangerous sex offender against children. The sentence handed down in this case reflects the serious nature of the crimes committed by this defendant, which are particularly troubling given his multiple prior convictions for sexual abuse of young children,” said U.S. Attorney Young. “This office is committed to protecting the most vulnerable members of our society—our children—and to bringing sexual predators like Roberts to justice.”
“Today’s sentence reflects the seriousness of the crimes Roberts committed and damage he has done to the children he harmed. He will now be behind bars, unable to reoffend, while those he victimized can begin to heal and look to the future. Homeland Security Investigations is proud to provide assistance and expertise to our local partners in the Concord Police Department, working together to ensure predators like Roberts are brought to justice,” said Matthew Millhollin, Special Agent in Charge of Homeland Security Investigations in New England.
“The Concord Police Department remains committed to investigating crimes against children in an effort to protect such a vulnerable population,” said Lt. Marc P. McGonagle, Criminal Investigations Division. “We are thankful for the hard work that was put in by all investigators from the Concord Police Department, Homeland Security and staff from the US Attorney’s Office on this case.”
This matter was investigated by the Concord Police Department, with assistance from the U.S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Cam T. Le and Alexander S. Chen.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Compton Man Sentenced to over 9 Years in Prison for Targeting and Robbing Gay Men He Met on the Grindr Online Dating ApplicationRead the Press Release
LOS ANGELES – A Compton man was sentenced today to 111 months in federal prison for targeting and robbing Los Angeles-area gay men he met on the Grindr online dating application.
Derrick Patterson, 23, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $84,195 in restitution. At today’s sentencing hearing, Judge Walter applied a hate-crime enhancement to Patterson’s sentence.
Patterson has admitted in his plea agreement to robbing five victims from June 2021 to March 2022. He targeted his victims by using Grindr, a social networking platform for gay, bisexual, transgender and queer people. Patterson met his victims at their homes or in hotel rooms under the pretense of sexual encounters. Once there, Patterson asked to use the victims’ phones.
During a July 2021 incident, Patterson entered the victim’s home under the pretense of a sexual encounter. He then asked to borrow the victim’s phone. Patterson then had sex with the victim to distract him while using the victim’s phone to transfer himself money. When the victim realized something was wrong and protested, Patterson went to the victim’s kitchen, pulled out a kitchen knife, threatened the victim, and then used the victim’s Venmo account to steal $3,950. Patterson also used the victim’s online account to pay for two Hotels.com transactions, and he used the victim’s phone to send text messages to the victim’s friends and family in Nevada to request that they send the victim money, which Patterson intended to intercept.
In February 2022, Patterson entered another victim’s residence under the pretense of a sexual encounter. Patterson asked if he could use the victim’s phone. After the victim handed Patterson the phone, the victim turned away and then heard a stun gun activating. Patterson chased the victim with the stun gun and demanded money. The victim gave $120 to Patterson, who then demanded jewelry.
After Patterson left the victim’s home, he used the phone to ask the victim’s contacts for money. Patterson also used the victim’s phone to access the victim’s Apple Pay account and open a line of credit in the victim’s name with Goldman Sachs. Patterson then went to a T-Mobile store in Los Angeles and used the Goldman Sachs credit line to purchase Apple Airpods costing approximately $273. Patterson also used the victim’s bank card to pay for a hotel room.
Patterson admitted in court documents that he assaulted one victim – against whom he used a homophobic slur – and threatened to shoot another victim during an encounter in a hotel room.
The FBI’s investigation in this matter is ongoing. The Los Angeles Police Department, the Los Angeles County Sheriff’s Department and the Beverly Hills Police Department have provided substantial assistance.
Assistant United States Attorney Jeremiah M. Levine of the Violent and Organized Crime Section prosecuted this case.
Cleveland Man Charged with Distributing Narcotics that Led to Fatal OverdoseRead the Press Release
CLEVELAND – A Cleveland man was charged in a superseding indictment with distributing narcotics that led to the overdose death of another individual in January 2022.
The superseding indictment charges Rubin Austin, 54, with distributing a heroin, fentanyl and fluorofentanyl mixture to a victim in January 2022 who later ingested the substance, suffered an overdose and died as a result.
The superseding indictment also charges Austin with additional counts of distribution of heroin, fentanyl, fluorofentanyl and cocaine base (crack); possession with intent to distribute of heroin, fentanyl, fluorofentanyl and cocaine base (crack) and use of a communications facility to facilitate a drug trafficking offense.
According to court documents, in January 2022, officers with the Cleveland Division of Police responded to a residence for reports of an overdose death. At the scene, officers began an investigation into the incident and determined that the deceased had allegedly purchased narcotics from an individual identified as Defendant Austin.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland FBI and the Cleveland Division of Police. This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Crook and Payum Doroodian.
Centerville man arrested for making online threats to commit school shootingRead the Press Release
DAYTON, Ohio – FBI agents have arrested a Centerville, Ohio, man on federal charges related to online threats to commit a mass shooting at a California school.
Alex Jaques, 21, has been charged federally with making interstate threats.
According to an affidavit filed in support of the criminal complaint, on Nov. 15, the FBI National Threat Operations Center received a tip about a video Jaques allegedly posted on YouTube.
In the video, Jaques allegedly uses multiple firearms to shoot a Chromebook computer and threatens to attack Washington Middle School in Salinas, California. The Chromebook has a Washington Middle School sticker affixed to it. The video shows an uzi-style weapon being discharged in rapid succession and multiple shots fired from a rifle-style weapon.
Law enforcement communicated with school officials in Salinas, California, and discovered that Jaques had been a student at a school within the same county.
Other videos on Jaques’s YouTube page allegedly depict the defendant driving while shooting a pistol at street signs.
While executing a search warrant at Jaques’s residence today, FBI agents seized eight firearms, including an uzi-style weapon.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorneys Christina Mahy is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
California Drug Courier Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Los Angeles, California woman was sentenced to 21 months in prison for conspiring to distribute kilograms of marijuana.
According to court documents, Ashley Yvonne Torres, 32, was a drug and money courier for a California-based drug-trafficking organization led by codefendant Anthony Robert Tirado. The organization distributed kilograms of marijuana from the Los Angeles area to Mobile and other cities throughout the United States and employed several couriers—juveniles among them—who ferried bulk amounts of marijuana to Mobile and other cities on commercial flights. In turn, the couriers, including Torres, transported hundreds of thousands of dollars in drug proceeds back to California for Tirado.
In October 2018, Torres transported kilograms of marijuana in two checked suitcases to a coconspirator at a hotel in Mobile and flew back to California with $8,000 in tow. In November 2018, narcotics agents caught Torres’s coconspirator in possession of 20 pounds of high grade marijuana, thousands of dollars in cash, and a handgun. Later, in June 2020, agents seized nearly $60,000 in bulk cash from Torres at the Louis Armstrong International Airport in New Orleans. The money, which Torres admitted to transporting to California in furtherance of drug trafficking and on Tirado’s behalf, had been hidden inside the lining portion of Torres’s checked luggage.
United States District Judge Terry F. Moorer ordered Torres to serve a three-year term of supervised release upon her release from prison, during which time she will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Torres to pay $100 in special assessments. Tirado is scheduled to be sentenced by Judge Moorer in January 2023.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration, the U.S. Marshals Service, the Mobile County Sheriff’s Office, and the Mobile Police Department investigated the case.
Assistant U.S. Attorneys Justin Roller and Deborah Griffin prosecuted the case on behalf of the United States.
The investigation and prosecution of this case was 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.
Calabasas Man Sentenced to 17½ Years in Prison for Scamming Cannabis Vaping Business Investors Out of More Than $35 MillionRead the Press Release
LOS ANGELES – A former UCLA decathlete who also competed with the Philippines national team was sentenced today to 210 months in federal prison for fraudulently raising more than $45 million from investors who were told their funds would be used to finance companies marketing cannabis vape pens.
David Joseph Bunevacz, 53, of Calabasas, was sentenced by United States District Judge Dale S. Fischer, who also ordered him to pay $35,267,851 in restitution. At today’s sentencing hearing, Judge Fischer noted that Bunevacz had “preyed on individuals who believed he was their friend” and that the “seriousness of [his] conduct cannot be captured in mere dollars and cents.”
Judge Fischer also found that Bunevacz continued to perpetrate his scheme even while serving probation for a state court conviction, concluding, “Not even a criminal conviction and the threat of jail convinced [Bunevacz] to become a law-abiding citizen.”
Bunevacz pleaded guilty on July 18 to one count of securities fraud and one count of wire fraud. He has been in federal custody since his arrest in this case on April 5.
Going back to 2010, Bunevacz created various business entities, with names such as CB Holding Group Corp. and Caesarbrutus LLC, that he claimed were involved in the cannabis industry and the sale of vape pens containing cannabis products such as CBD oil and THC.
Bunevacz falsely told at least one investor he had a longstanding relationship with a Chinese manufacturer of disposable vape pens and he obtained “raw pesticide-free oil” that was sent to a “lab that infuses the flavors into the oil with our proprietary custom process that renders the vape flavoring smooth and discrete,” according to court documents. Bunevacz also provided investors with forged documents – such as bank statements, invoices and purchase orders – to support his claims of the businesses’ success and the need for investor funds.
Instead of using the funds to finance business operations – and while some of his victims were suffering severe financial hardship – Bunevacz misappropriated the vast majority of the funds to pay for his own opulent lifestyle, including a luxurious house in Calabasas, Las Vegas trips, jewelry, designer handbags, a lavish birthday party for his daughter, and horses.
To create the false appearance that his companies were engaged in legitimate business activities, Bunevacz registered various shell companies, including several with names similar or identical to those of legitimate cannabis businesses. To conceal his control of these shell companies and the bank accounts associated with them, Bunevacz listed other individuals, including his stepdaughter, as the corporate officers of the shell companies.
Bunevacz’s blog touts his success as a former decathlete who competed for the Philippines, and his wife and daughter appeared in a reality television show. Despite Bunevacz’s promotion of his background, Bunevacz took efforts to conceal negative information from investors, such as his 2017 felony conviction for the unlawful sale of securities, according to an affidavit submitted in support of a criminal complaint in this case.
After one investor uncovered a lawsuit against Bunevacz, Bunevacz emailed a counterfeit version of the settlement agreement to falsely make it appear that he had been paid $325,000 as part of a settlement. In reality, it was Bunevacz who had agreed to pay $325,000 to settle the claim.
Operating through his cannabis companies, Bunevacz raised approximately $45,227,266 from more than 100 victim-investors, according to the government’s filing. Judge Fischer found that Bunevacz caused losses of approximately $35,267,851.
“The sense of violation, the assault on personal dignity, and the lasting trauma [Bunevacz] has caused are very much reminiscent of the harm typically associated with violent crimes,” prosecutors argued in a sentencing memorandum. “And, with well over a hundred victims, [Bunevacz] caused these harms at a scale rarely seen.”
The FBI, IRS Criminal Investigation, and the Los Angeles County Sheriff’s Department investigated this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.
Austin Felon Sentenced to 7 Years in Federal Prison for Manufacture and Sale of “Ghost Guns” and Dealing MethamphetamineRead the Press Release
NEW ALBANY –Christopher M. Caudill, 38, of Austin, Indiana, was sentenced to seven years in federal prison after pleading guilty to distribution of methamphetamine and possession of a firearm by a prohibited person.
According to court documents, between July 12, 2021, and February 17, 2022, Caudill sold drugs and firearms to a confidential informant on five separate occasions, illegally distributing a total of 41.9 grams of methamphetamine. In addition to his distribution of methamphetamine, Caudill sold the confidential informant a silencer, two privately made Glock-style 9mm pistols bearing no serial numbers, and an AR-stye 5.56m rife bearing no serial number. Caudill personally assembled the three firearms using parts and kits he purchased online.
These types of privately made firearms are untraceable and are referred to as “ghost guns.” Ghost guns are unserialized, privately made firearms increasingly recovered by law enforcement officers at crime scenes across the country. Because ghost guns lack the serial numbers marked on other firearms, they are impossible for law enforcement agencies to trace through the ATF’s National Tracing Center.
Caudill has a 2016 felony conviction in Scott County, Indiana, for possession of methamphetamine. Caudill is prohibited from possessing a firearm by federal law due to this prior felony.
“Deadly weapons in the hands of violent criminals and drug traffickers pose a profound danger to our communities,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Using parts and kits purchased online, this drug dealer and convicted felon manufactured and sold untraceable ‘ghost guns’—including an AR-style semiautomatic rifle and a silencer. The sentence imposed today demonstrates that our U.S. Attorney’s Office will work tirelessly with the ATF and all our law enforcement partners, including the Scott County Sheriff’s Office, to identify the most dangerous armed criminals, hold them accountable, and get them off our streets.”
“The illegal sale or transfer of privately made firearms presents a unique challenge for law enforcement,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “In this case, Caudill not only sold illegal drugs, he sold un-serialized, untraceable firearms and an unregistered silencer. When used by criminals, those firearms pose a safety threat to our community, and ATF will continue to work with our state and local partners to bring those trafficking these items to justice.”
The ATF Louisville Group IV investigated the case in conjunction with the Scott County Sheriff’s Office. The sentence was imposed by U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Caudill 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 Matthew B. Miller who prosecuted this case.
This case is being brought as a part of the Department of Justice’s National Ghost Gun Initiative. The initiative was launched in February 2022 in response to the proliferation of ghost guns in our communities, and the growing number of criminals who unlawfully use or possess these untraceable weapons. The Attorney General directed U.S. Attorney’s Offices to train a national cadre of prosecutors as experts to lead investigations and prosecutions of crimes involving ghost guns. These ghost gun coordinators will also share investigation and prosecution tools with other prosecutors and law enforcement officers. As part of the initiative, the U.S. Attorney’s Office for the Southern District of Indiana will focus its investigation and prosecution resources on combatting the illegal possession, use, and sale of ghost guns.
Attorney General Merrick B. Garland Issues Memorandum to Improve Access to Services for People with Limited Proficiency in EnglishRead the Press Release
Note: This press release has been translated into various languages. See attachments below.
The Justice Department issued a memorandum today requesting that federal agencies review their language access practices and policies to strengthen the federal government’s engagement with individuals with limited English proficiency (LEP).
“All people in this country, regardless of the language they speak, deserve meaningful access to programs and activities that are conducted or supported by federal agencies,” said Attorney General Merrick B. Garland. “The Justice Department is committed to working with our federal partners to address linguistic barriers in governmental services that deny individuals a full opportunity to participate in economic, social, and civic life.”
This memorandum outlines a course of action for federal agencies to improve, modernize, and carry out their language access responsibilities under Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency.” As set forth in the memorandum, the Civil Rights Division, with assistance from the Office for Access to Justice, will spearhead a collaborative effort to determine: (1) whether agencies can further update their language access policies and plans; (2) whether agencies are effectively reaching LEP individuals when disseminating information about federal resources, programs, and services; (3) whether agencies have considered updates or modifications to guidance to federal financial assistance recipients regarding their obligations to provide meaningful language access under the requirements of Title VI of the Civil Rights Act of 1964 and its implementing regulations; and (4) whether agencies can adapt their digital communications to welcome LEP individuals.
This memorandum builds on existing efforts by the Department of Justice to engage with LEP individuals, including a new focus on expanding language access assistance in the Department’s 2022-2026 Strategic Plan. In May 2022, Attorney General Garland appointed Ana Paula Noguez Mercado as the Department’s Language Access Coordinator within the Office for Access to Justice to help ensure that the Department is leading by example. The Office for Access to Justice has since expanded its language access team and is leading the Department’s Language Access Working Group to provide technical assistance and training across components as they continue to improve language access for all. The Civil Rights Division continues to maintain www.LEP.gov, which provides resources and information to help expand and improve language assistance services for LEP individuals, in compliance with federal law.
English
Arabic
Chinese – Simplified
Chinese – Traditional
Korean
Spanish
Tagalog
Vietnamese
Attorney Found Guilty of Attempting to Provide Contraband in Prison and for Making False Statements on Federal Agency FormsRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico announced that after a five-day jury trial, a federal jury convicted Jorge L. Armenteros-Chervoni on Friday, November 18, for attempting to provide contraband in prison and for making false statements on federal agency forms. Armenteros is a licensed attorney at both the federal and state levels. United States District Court Chief Judge Raúl Arias-Marxuach presided over the trial.
According to court documents and evidence presented at trial, Armenteros, 51, of San Juan, Puerto Rico, attempted to enter the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico on December 22, 2021 through the front lobby with two cell phones and seventy-five SIM (Subscriber Identity Module) cards hidden inside of a secret compartment of a bubble mailer envelope. Prior to passing the envelope through security, Armenteros handed the front lobby officer three Bureau of Prisons Notification of Visitor forms, for three different inmates, indicating that he did not have in his possession any phones or other electronic devices.
The front lobby officer detected the contraband and after inspection of the bubble mailer envelope, it was opened in the presence of Armenteros. The envelope contained two cell phones and seventy-five SIM cards inside of the secret compartment of the envelope. Testimony presented at trial described a black market within MDC for contraband cell phones and SIM cards which are used by inmates to engage in criminal activities. The two cell phones had a conservative value of $50,000 each and the SIM cards were valued at $2,000 each, for a total value of the contraband electronic devices within MDC of approximately $250,000.
Assistant U.S. Attorney Julian Radzinschi, of the Violent Crimes Unit, prosecuted the case, as well as U.S. Attorney W. Stephen Muldrow. The Federal Bureau of Investigation (FBI) was in charge of investigating the case. The sentencing date is scheduled for February 16, 2023. The maximum penalties for these offenses are: one year for attempting to provide contraband to inmates, and up to five years in prison for lying on federal agency forms.
###
Assistant Attorney General Jonathan Kanter Issues Statement on Penguin Random House and Simon & Schuster’s Decision to not AppealRead the Press Release
Assistant Attorney General Jonathan Kanter for the Antitrust Division issued the following statement regarding Penguin Random House and Simon & Schuster’s Decision to not appeal.
“The district court’s decision is a victory for authors, the marketplace of ideas, consumers, and competitive markets. It reinforces the important principle that antitrust laws apply to transactions that harm content creators and workers. The Department is pleased that Penguin Random House and Simon & Schuster have opted not to appeal.”
As Fentanyl Crisis Continues to Take Lives, Federal Law Enforcement Responds with Multi-Faceted Approach Targeting Street-Level Dealers, Darknet Vendors and Cartel-Supplied Wholesale TraffickersRead the Press Release
LOS ANGELES – Federal authorities today held a news conference to inform the public of their ongoing efforts to stem the widespread damage caused by fentanyl, the extremely dangerous synthetic opioid that has contaminated nearly every corner of the illicit drug market and is killing Americans at an unprecedented level.
Federal law enforcement has ongoing efforts to eliminate organizations that are mass-producing fake pills containing fentanyl that are sold on the darknet and through dealers openly operating on social media sites. Other active programs in the Southern California region target street-level dealers who sell products that lead to fatal fentanyl poisonings, as well as those trafficking wholesale quantities of bulk fentanyl and counterfeit pharmaceutical pills produced by drug cartels.
United States Attorney Martin Estrada, DEA Special Agent in Charge Bill Bodner, FBI Special Agent in Charge Brian Gilhooly, Homeland Security Investigations (HSI) Acting Special Agent in Charge Eddy Wang, and United States Postal Inspection Service Assistant Inspector in Charge Larry Hirose today outlined these enforcement initiatives and highlighted specific cases that demonstrate the severe danger fentanyl poses to public health, as well as the consequences criminals face by putting their customers’ lives at risk. These officials also outlined significant public outreach and education efforts, such as the “One Pill Can Kill” campaign.
“The fentanyl epidemic is a crisis that demands our full attention,” U.S. Attorney Estrada said. “This poison is targeting our young people, causing untold damage to families, neighborhoods, and our entire nation. We are fighting back. We have dramatically ramped up our efforts to stem the flow of narcotics, to vigorously prosecute those directly responsible for peddling this poison, and to respond in innovative ways to improve public safety and educate the public.”
“Violent drug cartels, specifically the Sinaloa Cartel and Jalisco New Generation Cartel, are deliberately pushing deadly fentanyl into our communities with complete disregard for human lives in an effort to maximize their profits,” said DEA Los Angeles Special Agent in Charge Bill Bodner. “Drug poisonings and drug-caused deaths are affecting families across the nation and killing Americans, teens and adults, at historic rates. We are targeting any individual responsible in the drug supply chain – from high-level drug traffickers to street level dealers – who deceptively sell this poison and create further addiction.”
Officials today announced that on Friday, November 18, a federal grand jury returned an indictment charging a Cerritos man with heading an organization that obtained bulk fentanyl, operated labs in Inglewood and Compton that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Christopher Hampton, 36, was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in federal prison.
Hampton – who was active on at least nine darknet marketplaces, where he typically used the moniker “Narco710” – was arrested on November 2, at which time agents with the FBI, DEA, HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with U.S. Postal Inspectors, executed search warrants. Those searches led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a suspected machine gun. Agents also recovered from Hampton’s residence more than 20,000 multi-colored pills containing fentanyl – so-called “skittles” manufactured to resemble oxycodone pills.
The indictment alleges that Hampton sold nearly $2 million worth of narcotics on just two darknet marketplaces that he and his co-conspirators controlled.
The investigation into Hampton was conducted by the FBI-led Joint Criminal Opioid Darknet Enforcement Team (J-CODE) and the DEA HIDTA Tactical Diversion Squad. J-CODE targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity.
Assistant United States Attorneys Ian Yanniello of the General Crimes Section and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Hampton, who is being held without bond, is scheduled to be arraigned on the indictment Wednesday in United States District Court.
“Every parent and guardian must educate themselves and their children of all ages about poisonous fentanyl-laced drugs being sold on social media applications and via the darknet,” said Don Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners operate the Joint Criminal Opioid and Darknet Enforcement Team (J-CODE) to disrupt and dismantle illicit marketplaces facilitating the distribution of fentanyl and other opioids on the Darknet. Since its inception, J-CODE efforts have led to the arrests over 300 darknet drug traffickers and the seizure of $42 million and 800 kilograms of narcotics, as well as 145 firearms. These enforcement efforts, as well as educating buyers, will have an impact on this scourge to society which is taking lives in unprecedented numbers.”
Another important facet of the response to the fentanyl epidemic is the ongoing efforts of the Overdose Justice Task Force, a DEA-led project designed to investigate fatal fentanyl poisonings and identify the dealer who sold the drugs that caused the death. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, target the drug trafficker.
Since the project’s launch about four years ago, the U.S. Attorney’s Office has filed charges against 51 defendants who allegedly sold drugs that resulted in a fatal poisoning. Nearly all of these cases involve fentanyl, and some of the cases involve multiple deaths, including two pending cases filed earlier this year in Santa Ana.
In court documents filed earlier this month, Jason Amin Soheili, 27, of Laguna Hills, agreed to plead guilty to two counts of distribution of fentanyl resulting in death. Soheili, who is expected to formally enter his guilty pleas early next month, has agreed to serve a federal prison sentence of at least 20 years.
Soheili has been in custody since May 2021, when he was arrested on charges alleging he mailed at least two fake oxycodone pills containing fentanyl to a man in Fillmore, Utah. That victim died on February 21, 2021. Only five weeks later, Soheili provided cocaine laced with fentanyl to another victim who died of fentanyl poisoning in his bedroom at his parents’ home in Aliso Viejo.
Assistant United States Attorney Kristin N. Spencer of the Santa Ana Branch Office is prosecuting this case, which was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Department.
“It is our duty as postal inspectors to go after those individuals who attempt to ship through the U.S. mail illicit drugs like fentanyl or the components used to manufacture them,” said Assistant Inspector in Charge Hirose. “We remain steadfast in our resolve to seek justice to the end and to keep communities safe. This goal is achieved through collaborative investigative efforts with other law enforcement agencies.”
Other pending cases brought as a result of the Overdose Justice project include one against Jonathan Limas-Reyes, a 26-year-old Downey man, whom DEA agents arrested in August on a charge of selling fake pills containing fentanyl to a 17-year-old high school student who suffered a fatal poisoning. The Downey Police Department provided significant assistance in this matter. The trial in this case, which is being prosecuted by Assistant United States Attorney David W. Williams of the General Crimes Section, is scheduled for June 6, 2023.
Federal authorities continue to use traditional law enforcement techniques to interdict dangerous narcotics being transported and delivered in wholesale quantities. There are numerous ongoing investigations targeting large-scale operations trafficking fentanyl, most of which is produced by Mexico-based drug cartels that are marketing fentanyl in ever-increasing quantities.
“With Los Angeles’ close proximity to the U.S.-Mexico border, it has become one of the largest fentanyl distribution hubs,” said HSI Los Angeles Acting Special Agent in Charge Eddy Wang. “As such, HSI Los Angeles has prioritized the targeting of fentanyl traffickers and will work tirelessly with our federal, state, local, and international partners to remove this deadly poison from our streets.”
During 2022, law enforcement officials have seized massive shipments of both bulk fentanyl and fentanyl-laced fake pills. In July, in an operation in Inglewood, authorities seized a shipment of nearly 1 million fake pills containing fentanyl. This matter is the subject of an ongoing investigation.
In late October, after several months of discussing a potential transaction involving 2 million fentanyl-laced pills, DEA agents working with investigators from the Hawthorne Police Department, conducted an operation in which they seized more than 800,000 fake pills containing fentanyl. The person who delivered that shipment – George Ramirez, 34, of San Diego – was taken into custody on October 28, and he is currently being held without bond on charges of possession with intent to distribute controlled substances.
The Fullerton Police Department and the Hawthorne Police Department provided significant assistance during the investigation into Ramirez.
The case against Ramirez is being prosecuted by Assistant United States Attorneys Afia Bondero and Alix McKenna of the General Crimes Section.
In relation to all of the pending cases noted above, indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Arcadia Woman Sentenced to 20 Years in Prison for Multimillion-Dollar Fraud Targeting Investors in Coachella Valley DevelopmentRead the Press Release
LOS ANGELES – A San Gabriel Valley woman was sentenced today to 240 months in federal prison for causing tens of millions of dollars in losses to investors who provided funds intended for a hotel and condominium complex in the Coachella Valley, and then using the money to finance her lavish lifestyle.
Ruixue “Serena” Shi, 38, of Arcadia, was sentenced by United States District Judge R. Gary Klausner, who also ordered her to pay $35,842,329 in restitution.
Shi pleaded guilty in October 2021 to one count of wire fraud. Shi has been in federal custody since August 2020 after law enforcement discovered she had been researching how to flee the United States on a contraband iPhone while free on bond in this criminal case.
At today’s sentencing hearing, after Shi attempted to withdraw her guilty plea, Judge Klausner remarked, “There has been no acceptance of responsibility; there has been a denial of responsibility.”
From November 2015 to July 2018, Shi was the general manager of Global House Buyer LLC (GHB), a China-based real estate company that had an office in Los Angeles. Shi had reached an agreement with Dakota Development, a real estate development subsidiary of the Los Angeles-based lifestyle hospitality company SBE Entertainment, to build a real estate development in the City of Coachella under SBE’s brand name “Hyde.” Hyde Resorts was supposed to be a 207-unit luxury condominium and hotel complex with 95,000 square feet of conference facilities, a pool, spa, fitness center and other amenities.
Shi solicited investments in the Hyde complex from victims, the majority of whom were Chinese investors, by giving sales presentations at hotels and contacting victims over WeChat, a Chinese messaging, social media and mobile payment application.
To induce victims to invest in the Hyde complex, Shi falsely told them that their money would only be used to fund the Hyde development project. In reality, Shi used much of the victims’ money on her own personal expenses, including spending nearly $300,000 to purchase two luxury cars, spending approximately $2.2 million at a company that provided luxury travel and concierge services, and spending almost $800,000 in victim funds at a full-service styling agency in Beverly Hills, as well as using hundreds of thousands of dollars of victims’ money on high-end clothing designers, restaurants, and other stores.
In connection with the sentencing hearing, more than two dozen victims submitted statements to the court, with many describing the substantial financial hardship they experienced. Several discussed their reliance on Shi’s false promises that their investments would assist them in securing visas to immigrate to the United States. One victim even wrote that, after losing his retirement savings to Shi’s scheme, he “even contemplated suicide,” according to court papers filed by prosecutors.
In its sentencing papers, the government argued that victims lost at least $26,185,634 investing in Shi’s fraud scheme but that the actual figure could be far higher.
“Largely targeting her fellow Chinese nationals…Shi preyed on her victims’ hopes for a better life,” prosecutors argued in a sentencing memorandum. “She exploited her victims’ ignorance of English and trust in the soundness of the American economy. And while her victims suffered financial ruin and psychological torment, [Shi] was living large off their investments.”
The FBI investigated this matter.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.
Ang Pangunahing Abogado na si Merrick Garland ay naglathala nang isang Panandaan upang Mapabuti ang Daan ng mga Paglilingkod para sa Mga Taong may Limitadong Kasanayan sa InglesRead the Press Release
Magtala: Isinalin ang pahayag na ito sa iba’t ibang mga wika. Tingnan ang mga nakalakip sa ibaba.
Naglathala ngayon ang Departamento ng Hustisya ng isang panandaan na humihiling sa mga ahensiyang pederal na suriin ang kanilang mga gawi at mga patakaran ukol sa daan sa wika upang patibayin ang pakikipag-ugnayan ng pamahalaang pederal sa mga indibidwal na may limitadong kasanayan sa Ingles (LEP).
“Lahat ng tao sa bayang ito, anuman ang wikang kanilang sinasalita, ay nararapat na magkaroon ng makahulugang daan sa mga programa at mga aktibidad na isinasagawa o sinusuportahan ng mga ahensiyang pederal,” sabi ni Pangunahing Abogado Merrick B. Garland. “Nakatuon ang Departamento ng Hustisya na makipagtulungan kasama ang aming mga kapangkat sa pederal upang matugunan ang mga hadlang sa wika sa mga pamahalaang paglilingkod na tinatanggihan ang mga indibidwal ng isang buong pagkakataon na lumahok sa ekonomiya, panlipunan, at sibikong buhay.”
Binabalangkas ng panandaang ito ang isang kurso ng aksyon para sa mga ahensyang pampederal upang mapabuti, gawing moderno, at maisakatuparan ang kanilang mga reponsibilidad sa daan sa wika sa ilalim ng Batas ng Nakatataas 13166, “Ang pagpapabuti ng Daan sa mga Paglilingkod para sa mga Taong may Limitadong Kasanayan sa Ingles.” Gaya ng nakasaad sa panandaan, mangunguna ang Dibisyon para sa mga Karapatang Sibil, sa tulong ng Tanggapan para sa Daan sa Hustisya, sa isang sama-samang pagsisikap upang matukoy: (1) kung maaari pang mag-update ang mga ahensya ng kanilang mga patakaran at mga plano ukol sa daan sa wika; (2) kung mabisang nakikipag-ugnay ang mga ahensya sa mga indibidwal na LEP kapag nagbibigay ng impormasyon tungkol sa pederal na mga mapagkukunan, mga programa at mga paglilingkod; (3) kung isinasaalang-alang ng mga ahensya ang mga pag-update o mga pagbabago sa gabay sa mga tatanggap ng pederal na tulong na pampinansyal ukol sa kanilang mga obligasyon upang magkaloob ng makabuluhang daan sa wika sa ilalim ng mga kinakailangan ng Pamagat VI ng Batas ng Karapatang Sibil ng 1964 at ang pagpapatupad ng mga regulasyon nito; at (4) kung mai-aangkop ng mga ahensya ang kanilang mga komunikasyong dihital upang tanggapin ang mga indibidwal na LEP.
Itinatayo ng panandaang ito ang mga kasalukuyang pagsisikap ng Departamento ng Hustisya upang makipag-ugnayan sa mga indibidwal na LEP, kasama ang isang bagong tampulan sa lumalawak na tulong sa daan sa wika sa 2022-2026 na Estratehikong Plano ng Departamento. Noong Mayo 2022, hinirang ni Pangunahing Abogado Garland si Ana Paula Noguez Mercado bilang Tagapangasiwa ng Daan sa Wika ng Departamento sa loob ng Tanggapan para sa Daan sa Hustisya upang makatulong na matiyak na ang Departamento ay nangunguna bilang halimbawa. Mula noon, pinalawak ng Tanggapan para sa Daan sa Hustisya ang koponan nito sa daan sa wika at pinangungunahan ang Pangkat ng Pagtatrabaho sa Daan sa Wika ng Departamento upang magkaloob ng teknikal na tulong at pagsasanay sa kabuuan ng mga bahagi habang patuloy nilang pinapabuti ang daan sa wika para sa lahat. Nagpapatuloy ang Dibisyon sa Karapatang Sibil na mapanatili ang www.LEP.gov, na nagkakaloob nang mga mapagkukunan at impormasyon upang makatulong na palawakin at pahusayin ang mga paglilingkod ng tulong sa wika para sa mga indibidwal na LEP, na sumusunod sa pederal na batas.
English
Arabic
Chinese – Simplified
Chinese – Traditional
Korean
Spanish
Tagalog
Vietnamese
Memorandum
Friday 18 November 2022
Woman Who Drove with Meth in her System Sentenced for Taking Another Woman’s Life in a CollisionRead the Press Release
A woman who drove while under the influence of methamphetamine and caused a collision that killed another driver was sentenced today in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Courtney Gail Lawson, 43, of Haskell, to 37 months in federal prison followed by three years of supervised release. During the sentencing hearing, the victim’s husband and friends spoke of their tremendous loss and about what Chelsea meant to each of them and her family. Her husband called her a light in the lives of those who knew and loved her.
On April 1, 2022, Lawson pleaded guilty to the charge in the indictment, involuntary manslaughter in Indian Country. In her plea agreement, Lawson admitted that on Dec. 2, 2020, she had a detectable amount of methamphetamine in her system, drove over 100 miles per hour, and tried to pass in a no passing zone. At that time, she struck an oncoming vehicle, killing the driver Chelsea Pugh.
Judge Frizzell ordered Lawson to self report to the U.S. Bureau of Prisons in December.
The Oklahoma Highway Patrol, FBI, and Oklahoma State Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Michael F. Harder prosecuted the case.
United States Attorney’s Office Honors Law Enforcement Personnel for Exceptional ServiceRead the Press Release
Fairview Heights, Ill. - United States Attorney Rachelle Aud Crowe announced the recipients of the
2022 Law Enforcement Public Service Awards on Thursday, November 17, 2022. Personnel from several
federal, state, and local law enforcement agencies who contributed to the success of federal cases
were recognized for their commitment to pursuing justice and public safety.These awards recognize law enforcement officers and support personnel for exceptional leadership,
outstanding collaboration, investigative achievement and excellence, victim assistance, and
community engagement.“Today we honor exceptional law enforcement officers and the vital public service they provide.
These women and men engage in an unrelenting and often unacknowledged fight to keep our communities
safe every day. It is an honor today to recognize each of you for your service and successful
investigations,” said United States Attorney Rachelle Aud Crowe. “Each law enforcement partner was
nominated by an Assistant United State Attorney. It is the partnership between law enforcement and
these prosecutors, as well as the support staff of the United States Attorney’s Office, that
ultimately leads to justice for victims, protecting the rule of law and successful prosecutions”.Nick Manns, Illinois State Police, was presented an award for his vision, implementation, and
leadership of the Illinois Public Safety Enforcement Group (PSEG). Nick successfully developed
partnerships with existing community organizations to implement trauma-informed interventions and
provide needed social services for victims and witnesses identified by the PSEG Unit in the course
of their investigations.Investigator Amanda Wimmersberg, Illinois Attorney General, Investigations Division/High Tech
Crimes, received recognition for her tireless work to identify and remove some of the worst child
predators in our communities and for the incredibly thorough investigation that led to the
successful prosecution of Lance Wehrle. At trial, Amanda provided compelling testimony regarding
her extensive forensic review and the deta ls of the abuse victim. Werhle was convicted
and sentenced to 40 years in the Bureau of Prisons.Drug Enforcement Administration Special Agent Ayla Horlick received an award for her tireless work
removing dangerous drugs from our community. Special Agent Horlick was also recognized as an
exceptional team player that stays closely involved throughout the investigative process and
prosecution of each matter she submits.A group award was given to members of the Centralia Police Department and the Centralia Safe
Streets Working Group for their investigation which led the successful prosecution of Chris
Jamison, a prolific shooter and member of a well-known street gang in Centralia. Jamison was
eventually sentenced to 78 months in the Bureau of Prisons, almost double the advisory sentencing
guideline range. Receiving the award were Centralia Police Officers Lieutenant Jamie James,
Sergeant Mike Peebles, and Officer Travis Ripperda and FBI Special Agent Ryan James.Personnel from the United States Postal Inspection Service were recognized for their outstanding
work they have done over the past decade in bringing to justice fraudulent telemarketers who
victimize citizens of Southern Illinois. Receiving the award were Inspector Adam Latham, Inspector
Kathy Broderick, Inspector Molly Emmerich, Analyst Tim Brunholz (Retired), and Analyst Marvin
Koechig.The United States Attorney’s Office “Exceptional Service Award” was presented to Federal Bureau of
Prisons (BOP) Supervisory Attorney Tracy Knutson. She will be retiring in December after serving 24
years with BOP. Knutson made significant contributions in civil and criminal
matters handled by the U.S. Attorney’s Office.U.S. Attorney Karam Launches United Against Hate InitiativeRead the Press Release
SCRANTON - United States Attorney Gerard M. Karam today announced his office’s participation in the Department of Justice’s new initiative to better counter hate crimes and hate incidents in the Middle District of Pennsylvania.
The Middle District of Pennsylvania was one of the first of 16 U.S. Attorney Offices to launch the United Against Hate program. The United Against Hate initiative seeks to strengthen collaborative relationships of federal, state, and local law enforcement agencies with communities in order to build trust and encourage the reporting of hate crimes and hate incidents. As part of the initiative, U.S. Attorney Karam hosted a meeting yesterday with an audience of various law enforcement agencies and community leaders from across the mid-state.
“The foundation of our democracy seeks for us all to have equal protection and opportunities under the law,” said U.S. Attorney Karam. “With the rising number of crimes occurring because of someone’s skin color, the faith they practice, who they love, or because they have a disability, we recognize the need to reach out to our community leaders and our state and local law enforcement colleagues to develop a partnership to combat acts of hate. Through the United Against Hate initiative, we have combined the strengths of law enforcement with community leaders to identify, report, investigate, and prosecute hate crimes.”
At this initial event, subject matter experts from the United States Attorney’s Office, the Pennsylvania Attorney General’s Office; the Federal Bureau of Investigations, the Pennsylvania State Police, the York County District Attorney’s Office, the Anti-Defamation League, and other local law enforcement identified federal and state criminal hate crime statutes. The audience was made up of groups of community leaders, civil rights advocates and organizations, and religious leaders of various faiths. Presenters highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
As part of its United Against Hate programming, the U.S. Attorney’s Office will continue to collaborate with communities across the Middle District of Pennsylvania to expand connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.
Those who believe they are subject to hate crimes or incidents should contact local law enforcement and the FBI. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
# # #
U.S. Attorney Darcie N. McElwee Statement on Transgender Awareness Week and Transgender Day of RemembranceRead the Press Release
This week, the Human Rights Campaign announced in its annual report that at least 32 transgender and gender-nonconforming people have been killed in the United States in 2022 – “at least” because transgender victims may be misgendered in news or police reports, and deaths of transgender people often go unreported. The report described the victims as “overwhelmingly Black, under 35 and killed with a firearm” with trans women disproportionately at risk.
Transgender rights are human rights, and no one should ever be a target of a crime or harassment because of who they are. This week marks Transgender Awareness Week, and this Sunday is Transgender Day of Remembrance, a worldwide observance to remember and honor transgender victims of violence. It is an opportunity to bring attention to the threats and harassment transgender people face – including here in Maine – and to acknowledge those who have been victimized simply for being who they are.
I am aware that there is a feeling of mistrust among transgender Mainers towards law enforcement, and I understand and acknowledge the root causes of that wariness. I want all Mainers to feel seen, heard and respected in their interactions with law enforcement and to feel safe to report when they are the victim of crime. I am committed to doing what I can in my role as U.S. Attorney for the District of Maine, and I welcome the opportunity to work with LGBTQ+ leaders in Maine to build that trust.
# # #
Two Somerset County Attorneys Indicted for Visa FraudRead the Press Release
TRENTON, N.J. – Two Somerset County, New Jersey, attorneys were indicted today for making false statements under penalty of perjury in visa applications, U.S. Attorney Philip R. Sellinger announced.
Steven G. Thomas, 52, and Maria Thomas, 81, both of Montgomery Township, New Jersey, were indicted for conspiring to prepare and file false visa applications on behalf of clients. Steven Thomas was also charged with one count of filing a false visa application.
According to documents filed in this case and statements made in court:
From 2015 to 2021, the defendants encouraged their clients to apply for asylum under fraudulent pretenses. They advised their clients regarding the manner in which they were most likely to obtain asylum, knowing that these clients did not legitimately qualify for asylum. The defendants then prepared, or caused to be prepared, fraudulent applications and affidavits on behalf of those clients, which were submitted to the United States Citizenship and Immigration Services.
A confidential source also met with Steven Thomas in January of 2020, and Steven Thomas filed a visa application containing numerous false statements in April 2020.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the indictment.
The government is represented by Senior Civil Rights Counsel Joseph Gribko.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Indicted in Cryptocurrency Money Laundering ConspiracyRead the Press Release
TYLER, Texas – A Nevada man and a South Carolina man have been indicted in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Randall V. Rule, 71, of Reno, NV, and Gregory C. Nysewander, 64, formerly of Irmo, SC, were named in an indictment returned by a federal grand jury this week, charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act.
According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency. The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators. The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.” The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges. During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million. Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.
If convicted, Rule and Nysewander face up to 20 years in federal prison on each money laundering charge and up to 5 years in federal prison on the conspiracy to violate the Bank Secrecy Act charge. A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
This case is being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
###
Two Doctors and the Operators of Three Pain Clinics Charged with $2.6 Million Illegal Opioid Distribution ConspiracyRead the Press Release
DETROIT – Six individuals, including two doctors and the operators of three pain clinics, were charged with conspiring to illegally distribute over 500,000 opioid pills worth over $2.6 million in an indictment unsealed today, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of Federal Bureau of Investigation, Mario Pinto, Special Agent in Charge of The Department of Health and Human Services, Office of Inspector General, and Michigan Attorney General Dana Nessel.
The indictment charges the defendants with a drug conspiracy involving Schedule II controlled substances, including Oxycodone, Oxymorphone, Oxycodone-Acetaminophen (Percocet), and Hydrocodone (Norco), some of the most addictive and commonly diverted opioids having a significant street value.
Charged in the indictment are:Angelo Foster, 33, of Detroit, Michigan
Brandy King 33, of Detroit, Michigan
Dr. Juan Bayolo, 48, of Lake Mary, Florida
Dr. Renee Gonzalez Garcia, 62, of Henderson, Nevada
Latrina Williams, 45, of Sterling Heights, Michigan
Edward King, 33, of Northville, Michigan
The Indictment alleges that Foster, Edward King, and Brandy King operated several pain clinics in the Metro Detroit area, including Priority One Health Management, Lincoln Park Health Management, and Priority One Health Essentials. At each clinic location, patients were recruited by “patient recruiters” such as Williams, to see Drs. Bayolo and Gonzalez Garcia via telehealth. These doctors were paid to illegally issue opioid prescriptions, with no physical examination, for patients who had no legitimate medical need for the drugs.
As alleged in the indictment, these telehealth appointments allowed members of the conspiracy to receive cash payments in exchange for controlled substance prescriptions issued by doctors. According to the indictment, Drs. Bayolo and Gonzalez Garcia, along with other medical professionals, prescribed more than 500,000 dosage units of Schedule II controlled substances.
The prescribed controlled substances carried a conservative street value of more than $2.6 million.
“It is particularly disturbing when physicians break their oaths and illegally distribute highly addictive drugs. My office remains committed to pursuing medical providers who abuse their roles as physicians to harm our community.” U.S. Attorney Ison said.
“When medical professionals and others scheme to illegally provide medically unnecessary prescription drugs, they put patients at risk and drive up the cost of health care for everyone,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI and our law enforcement partners will continue to investigate this type of health care fraud scheme and bring those who operate these criminal schemes to justice.”
“As the fight against the opioid crisis continues, our agency remains committed to investigating those – including medical professionals – who seek to profit from scams involving powerful controlled substance medications,” 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 closely with our law enforcement partners to detect and take action against bad actors who allegedly participate in such schemes.”
“Those willing to profit off addiction are at the center of the opioid epidemic,” said Nessel. “The medical professionals who betrayed their oath to get rich off of substance use disorder are the most insidious actors in this scheme. I am proud of the work done by my department, in concert with our federal law enforcement partners, to pursue and prosecute those who exploited their positions while Michiganders suffered.”
The case was investigated by special agents and officers of the Federal Bureau of Investigation, the Department of Health and Human Services, and the Michigan Department of Attorney General.
The case is being prosecuted by Assistant United States Attorneys Alison A. Furtaw, Regina R. McCullough, and Lisandra Fernandez-Silber.
The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit.An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Third Conspirator in Attempted $600,000 Cocaine Purchase Sentenced to 19 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Derek Morales-Figueroa (26, Orlando) to 19 years and 7 months years in federal prison for conspiracy to distribute cocaine. Morales-Figueroa had pleaded guilty on May 10, 2022.
According to the plea agreement and other court documents, beginning on September 11, 2020, Morales-Figueroa and a co-conspirator, Jacob Luis Bonilla-Rivera, engaged in a series of phone calls with individuals they believed to be cocaine dealers but who were, in fact, undercover agents working on behalf of Homeland Security Investigations (HSI). These discussions culminated in an agreement to purchase 20 kilograms of cocaine in Orlando. On September 16, 2020, HSI agents met with Bonilla-Rivera and Juan Omar Rodriguez, Jr. (21, Auburndale, Florida, where the conspirators showed HSI agents the $600,000 in cash they had brought to the deal in a hidden compartment in one of their vehicles. After doing so, Bonilla-Rivera and Rodriguez proceeded to a location where HSI agents had arranged to show them the 20 kilograms of cocaine to be purchased. Morales-Figueroa participated in inspecting the cocaine by video conferencing on one of the conspirator’s phones. After inspecting the cocaine, Bonilla-Rivera and Rodriguez returned to their car to retrieve the cash from the hidden compartment when they were arrested. Upon searching both vehicles, HSI agents found that both Bonilla-Rivera and Rodriguez had loaded firearms in their possession in the vehicles they had driven to the meeting, along with a total of $639,325 cash.
On September 17, 2020, Bonilla-Rivera and Rodriguez were charged for their roles in the conspiracy. Bonilla-Rivera and Rodriguez pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of that offense, and on March 12, 2021, each defendant was sentenced to 15 years in federal prison.
Morales-Figueroa was not located at the time of the initial arrest. On March 10, 2021, Morales-Figueroa was identified in a traffic stop in Flagler County on Interstate-95. During the traffic stop, Morales-Figueroa was asked to get out of the vehicle and, instead, got out of the passenger’s seat and into the driver’s seat of the vehicle and fled from officers with an uninvolved minor in the back seat of the vehicle. On January 3, 2022, Morales-Figueroa was arrested at a Jacksonville residence in connection with a search of that residence and the seizure of nine kilograms of cocaine and significant quantities of U.S. currency.
“This investigation was based on the due diligence of hard working HSI special agents and task force officers who ultimately brought to justice these international narcotics traffickers," said Homeland Security Investigations (HSI) Orlando Assistant Special Agent in Charge David Pezzutti. "Our agency, along with our partners, work tirelessly to bring to justice those who attempt to poison our communities."
This case was investigated by Homeland Security Investigations (HSI), with assistance from the Seminole County Sherriff’s Office, the Flagler County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dana E. Hill.
The Remaining Defendant in a 16-Member Drug Trafficking Organization with Ties to Grape Street Crips Gang SentencedRead the Press Release
Memphis, TN – A now-33-year-old former California native has been sentenced to 10 years in federal prison following a year-long investigation by local state and federal law enforcement agencies into a drug trafficking organization with ties to the Grape Street Crips gang.
In July 2019, a federal grand jury indicted 16 individuals in an eleven-count indictment for federal drug and gun charges. The indictment charged that the defendants conspired to possess with the intent to distribute controlled substances, including methamphetamine, heroin, and fentanyl.
The defendants charged in the indictment were:
• Travon Allen a/k/a "Little Y," 30, Los Angeles, California
• Ozene Benson, 27, Memphis, Tennessee
• Vincent Boykin a/k/a "Veto," 31, Memphis, Tennessee
• Antwan Brown, 31, Memphis, Tennessee
• Christopher Brown, 29, Memphis, Tennessee
• Lonnell Davis, 41, Memphis, Tennessee
• Clifton Graves, 35, Memphis, Tennessee
• Preston Hampton a/k/a "Grape da Shooter," 26, Memphis, Tennessee
• Amber Howe, 31, Memphis, Tennessee
• Claude Cordell Irby, 23, Memphis, Tennessee
• Eddie Johnson a/k/a "Eddie Grape," 36, Memphis, Tennessee
• Lapheal Johnson a/k/a "Peaches," 25, Jackson, Tennessee
• Tionna Jones, 24, Memphis, Tennessee
• Terrell Kennedy, 34, Memphis, Tennessee
• Antonio Lurry, 37, Memphis, Tennessee
• Tarzell Worles a/k/a "Snugg," 26, Memphis, Tennessee
• Lapheal Johnson pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. On May 5, 2022, she was sentenced to time served, followed by 4 years supervised release.
• Amber Howe pleaded guilty to conspiracy to possess with intent to distribute one kilogram of heroin and possession of heroin with intent to distribute. On June 23, 2020, she was sentenced to 12 months and 1 day imprisonment, followed by 3 years supervised release.
• Vincent Boykin pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and possession of 50 grams or more of methamphetamine with intent to distribute. On April 29, 2021, he was sentenced to 150 months imprisonment, followed by 3 years supervised release.
• Clifton Graves pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. On May 11, 2021, he was sentenced to 12 months and 1 day imprisonment, followed by 4 years supervised release.
• Ozene Benson pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and possession of 50 grams or more of methamphetamine with intent to distribute. On June 1, 2021, he was sentenced to 180 months imprisonment, followed by 3 years supervised release.
• Terell Kennedy pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. On November 5, 2020, he was sentenced to 60 months imprisonment, followed by 4 years of supervised release.
• Eddie Johnson pleaded guilty to conspiracy to distribute more than 50 grams of a mixture and substance containing methamphetamine. On December 2, 2020, he was sentenced to time served, followed by 4 years of supervised release.
• Antwan Brown pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and possession of 50 grams or more of methamphetamine with the intent to distribute. On December 3, 2020, he was sentenced to 78 months imprisonment, followed by 3 years supervised release.
• Christopher Brown pleaded guilty to conspiracy to possess with the intent to distribute more than 500 grams of a mixture and substance containing a detectable amount of methamphetamine, and conspiracy to distribute 100 grams or less of heroin. On July 1, 2021, he was sentenced to 120 months imprisonment followed by 3 years supervised release.
• Lonnell Davis pleaded guilty to conspiracy to possess with the intent to distribute more than 50 grams of a mixture and substance containing a detectable amount of methamphetamine. On June 29, 2021, he was sentenced to 60 months imprisonment, followed by 4 years supervised release.
• Tionna Jones pleaded guilty to conspiracy to possess with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. On June 22, 2021, she was sentenced to 37 months imprisonment, followed by 3 years supervised release.
• Antonio Lurry pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. On May 27, 2021, he was sentenced to 60 months imprisonment, followed by 4 years supervised release.
• Tarzell Worles pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, conspiracy to possess with intent to distribute 1 kilogram or more of heroin, possession of fentanyl with intent to distribute, and possession of heroin with intent to distribute. On April 26, 2022, he was sentenced to 150 months imprisonment, followed by 5 years supervised release.
• Preston Hampton pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. On May 13, 2021, he was sentenced to 120 months imprisonment, followed by 5 years supervised release.
• Claude Cordell Irby pleaded guilty to conspiracy to possess with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. On January 25, 2022, he was sentenced to 37 months imprisonment, followed by 3 years supervised release.
• Travon Allen pleaded guilty to conspiracy to possess with the intent to distribute more than 50 grams of methamphetamine. On November 15, 2022, he was sentenced to 120 months imprisonment, followed by 5 years supervised release. There is no parole in the federal system.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Postal Inspection Service, Drug Enforcement Administration (DEA), Shelby County Sheriff's Office
Narcotics Division, Memphis Police Department Organized Crime Unit, Bartlett Police Department, and West Tennessee Drug Task Force all investigated this case.
United States Attorney Kevin G. Ritz thanked Assistant United States Attorney Mark Erskine, who prosecuted this case.
Statement of Special Counsel Jack SmithRead the Press Release
Following his appointment by Attorney General Merrick B. Garland today, Special Counsel Jack Smith made the following statement:
“I intend to conduct the assigned investigations, and any prosecutions that may result from them, independently and in the best traditions of the Department of Justice. The pace of the investigations will not pause or flag under my watch. I will exercise independent judgement and will move the investigations forward expeditiously and thoroughly to whatever outcome the facts and the law dictate.”
St. Louis County Felon Admits to Gun, Methamphetamine ChargesRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Friday admitted being a felon in possession of both a firearm and methamphetamine.
Mosley Jumon Williams, 31, pleaded guilty in front of U.S. District Court Judge Catherine D. Perry to one felony charge of being a felon in possession of a firearm and a misdemeanor charge of simple possession of methamphetamine.
Williams on Friday admitted prosecutors could prove by a preponderance of the evidence that he used the gun in a kidnapping during a family dispute in 2019.
The St. Louis Metropolitan Police Department was told that on March 28, 2019, Williams tried to kidnap the boyfriend of Williams’ former mother-in-law to learn the location of Williams’ ex-wife. The boyfriend escaped. Police investigated and arrested Williams at a probation violation hearing for his prior domestic assault cases, but could not find the gun until Williams called his girlfriend and told her in coded language to move the gun to a closet.
Williams’ girlfriend allowed police to search their apartment, where officers found a .45-caliber, HS Produkt handgun with a flashlight-laser combination that the girlfriend had purchased for Williams and 42 tablets containing methamphetamine, Williams’ plea agreement says.
Williams is scheduled to be sentenced March 10. As part of the plea, both sides agreed to recommend a 10-year sentence.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Zachary M. Bluestone is prosecuting the case.
Springfield Man Pleads Guilty to Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A Springfield man pleaded guilty today to a drug offense involving fentanyl distribution.
Christian Camacho, 25, pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 13, 2023. Camacho was indicted by a federal grand jury and arrested in May 2022.
On or about March 30, 2022, in Hampden County, Camacho knowingly possessed 40 grams or more of fentanyl intended for distribution. Additionally, at the time of his arrest, Camacho was found in possession of more than 129 grams of fentanyl laced with heroin packaged for distribution in more than 8,000 bags as well as $14,282 cash.
The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, four years of supervised release and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Rollins’ Springfield Branch Office is prosecuting the case.
South Florida Man Sentenced to 30 Years in Prison for Sex Trafficking Offenses Against Minor GirlsRead the Press Release
MIAMI — A 26-year-old Broward County man was sentenced today in Fort Lauderdale, Fla., by U.S. District Court Judge William P. Dimitrouleas to 30 years in prison and five years of supervised release for conspiring to traffic minor girls for commercial sex.
On August 11, 2022, following a four-day trial, a federal jury found Kerby Brown Jr., aka “Slime,” guilty of conspiracy to commit sex trafficking of a minor, attempted sex trafficking of a minor, and sex trafficking of a minor.
Brown conspired to traffic at least five minor girls for commercial sex between November 2018 and May 2019. Starting in November 2018, he worked to recruit three minor girls for commercial sex work at a hotel party. Brown successfully posted a commercial sex advertisement online for at least one of those minors—Minor Victim 1—who was 14 years old. At the time, Minor Victim 1 was a runaway.
Between January and February 2019, Brown trafficked 15-year-old Minor Victim 2 for commercial sex. Like Minor Victim 1, she was a runaway when Brown recruited her. He lured Minor Victim 2 under the guise of offering her a free place to stay. However, Brown later caused her to sell herself for commercial sex in order to contribute to costs. He drove Minor Victim 2 from Fort Lauderdale to Orlando, Fla., where she engaged in commercial sex acts with strangers at his discretion. He then drove Minor Victim 2 back to Fort Lauderdale where she continued to engage in commercial sex acts.
Minor Victim 2 testified at trial that she forfeited the majority of proceeds from these commercial sex acts directly to Brown, who coordinated each encounter by using explicit photos of Minor Victim 2 to advertise to interested parties. During trial there was a voice recording where Brown had discussed Minor Victim 2 with an 18-year-old female co-conspirator.
Brown was arrested in May 2019 during a sex trafficking operation after he delivered his female co-conspirator for a commercial sex act with an undercover officer. In the car that Brown was driving, law enforcement found a 17-year-old girl. The only possessions the minor had with her were a cellular telephone and a purse containing condoms.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; acting Special Agent in Charge Robert M. DeWitt, Federal Bureau of Investigation (FBI), Miami Field Office; acting Special Agent in Charge Aaron LaFortune, U.S. Department of State’s Diplomatic Security Service (DSS), Miami Field Office; Hollywood Police Department Chief Chris O’Brien; and Fort Lauderdale Police Department Chief Patrick Lynn announced the sentence.
This case was investigated by FBI’s Crimes Against Children Human Trafficking Task Force, in partnership with the Hollywood Police Department, and the Fort Lauderdale Police Department. The case was prosecuted by Assistant U.S. Attorneys Monica K. Castro and Manolo Reboso.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section, Project Safe Childhood assembles 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.projectsafechildhood.gov.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The hotline is not managed by law enforcement, immigration, or an investigative agency. Correspondence is confidential and you may request assistance or report a tip anonymously. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking, visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Smyrna Man Sentenced to 10 Years in Federal Prison for Attempted Dover Home InvasionRead the Press Release
WILMINGTON, Del. - David C. Weiss, U.S. Attorney for the District of Delaware, announced that Willilam Bailey, 39, of Smyrna was sentenced on November 16, 2022 to 10 years in federal prision for his role in an attempted Dover home invasion. Chief U.S. District Judge Colm F. Connolly pronounced the sentence.
According to court documents and statements made at the sentencing, around midnight on May 10, 2018, Bailey attempted a home invasion with separately charged defendant, Tyler Deberry, and another man. Armed with a sawed-off rifle, the three men tried to force their way into a Dover mobile home, expecting to rob its occupants of drugs and cash. The intruders attempted to enter through the trailer’s back door, but found it blocked on the inside by a washer/dryer. One of the intruders forced his head, shoulder, arm, and the rifle through the blocked doorway, while victims within the home fought back, pushing against the door to force it closed. Several shots were fired in the struggle before a victim took the rifle away from the intruders, who then fled. At sentencing, the prosecutor noted that this was Bailey’s second conviction for home evasion. Defendant Tyler Deberry’s sentencing is set for February 6, 2023.
U.S. Attorney Weiss stated, “In the middle of the night, the defendant joined with others in an armed attempt to break into a home. Bailey and his confederates dangerous plan failed only because the door was blocked, and the occupants fought back. My office is committed to prosecuting violent crimes, even more so when those crimes are committed by recidivists.”
The case was investigated by the Dover Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Edmond Falgowski and former Assistant U.S. Attorney Graham Robinson.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-79.
Slidell Woman Sentenced for FEMA FraudRead the Press Release
NEW ORLEANS, LOUISIANA – SCHSHINETIA ANDERSON, age 44, a resident of Slidell, Louisiana, was sentenced on November 17, 2022 for FEMA fraud announced U.S. Attorney Duane A. Evans. The defendant was sentenced by the Honorable Mary Ann Vial Lemmon to 5 years of probation and ordered to pay $22,104 in restitution to FEMA.
According to court documents, on or about August 18, 2016, ANDERSON filed a fraudulent request for financial assistance due to a natural disaster related to the alleged loss of her primary residence. In truth and in fact, as she well knew, the house she had been renting did not sustain any damage and she prepared false records claiming that it had. She also prepared false and inflated rent lease agreements to increase the funds she received from FEMA. ANDERSON received approximately $22,104 as a result of her fraud.
U.S. Attorney Evans praised the work of the Office of Inspector General for the Department of Homeland Security in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
Six Federally Indicted and Arrested for Methamphetamine Trafficking ConspiracyRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on November 2, 2022, charging six local men and women with engaging in a long-term drug trafficking conspiracy. One man was also charged with a firearm offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Special Agent in Charge Jerry C. Templet, Jr. of the U.S. Department of Homeland Security Investigations, and Chief Erika Shields of the Louisville Metro Police Department made the announcement.
According to court documents, Dion Brown, 29, Raheem Richardson, 30, Jamesha Hickman, 29, Demeeko Johnson, 28, Tyrece Clark, 29, and Hubert Brown, 51, all of Louisville, conspired to distribute 50 grams or more of methamphetamine between May 23, 2022, and November 1, 2022. Brown, Richardson, Johnson, and Hickman also distributed 50 grams or more of methamphetamine on multiple occasions, and Richardson possessed a firearm after having been convicted of a felony. On November 16, 2022, all six defendants were arrested.
The defendants made their initial court appearances on November 17, 2022, before a U.S. Magistrate Judge in the Western District of Kentucky. If convicted, they each face a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The DEA, the U.S. Department of Homeland Security Investigations, and the Louisville Metro Police Department are investigating the case with assistance from the ATF and IRS Criminal Investigation.
Assistant U.S. Attorney Alicia P. Gomez is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Silver Spring Dentist Sentenced to More Than Two Years in Federal Prison for Scheme to Fraudulently Obtain Medicaid Funds by Recruiting Medicaid Beneficiaries Through the Payment of Kickbacks and BribesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Edward T. Buford III, age 70, of Silver Spring, Maryland, to 30 months in federal prison, followed by three years of supervised release, for conspiracy to commit mail fraud and healthcare fraud. Judge Chuang also ordered Buford to pay $1,267,630 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division; and Daniel W. Lucas, Inspector General for the District of Columbia.
Buford was a licensed dentist in Washington, D.C. and the owner and Chief Executive Officer of International Dental Associates, Inc. (IDA), a dental clinic located in Washington, D.C. According to his guilty plea, from January 2013 to May 2018, Buford led a scheme to file fraudulent Medicaid claims for dental services to Medicaid beneficiaries and recruited Medicaid beneficiaries to fuel the scheme through the payment of kickbacks and bribes.
Buford caused the submission of Medicaid claims for a variety of dental services, including dentures. As part of the conspiracy, Buford paid kickbacks to patient recruiters in exchange for referring Medicaid beneficiaries to IDA for dental services. At Buford’s direction, the recruiters offered cash bribes to beneficiaries to visit IDA and accept dental services. Medicaid paid substantially more for dentures than for many other dental services, including dental cleanings. Buford paid larger cash kickbacks to recruiters—approximately $50 per beneficiary—for beneficiaries that agreed to be fitted for dentures, and typically paid the recruited beneficiaries $20 to be fitted for dentures. Buford knew that Medicaid would not have paid the claims had it known they were procured through kickbacks and bribes.
As detailed in the plea agreement, even though dentures required multiple visits to fit and deliver, Buford caused the recruiters and beneficiaries to be paid only for the initial visit—after which Buford could bill Medicaid for the dentures—and numerous beneficiaries never returned to IDA after receiving the cash bribe. Buford stored hundreds of undelivered dentures on IDA’s premises, many of which had been billed to and paid for by Medicaid. As part of the scheme, Buford maintained a post office box in Silver Spring, Maryland as IDA’s billing address and received the fraudulently obtained payments at that location.
Based on the amount that Medicaid paid to Buford and IDA for dentures that were not delivered, the actual loss to Medicaid was at least $1,267,630.
United States Attorney Erek L. Barron commended the FBI, HHS-OIG, the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit, and SSA-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jessica C. Collins and Kelly O. Hayes, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Saint Louis Man Sentenced to 30 Years in Federal Prison for Sexually Exploiting a 14-year-old Owensboro GirlRead the Press Release
Owensboro, KY – Christopher Bertolett was sentenced yesterday to 30 years in prison for violating federal child exploitation laws.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rob Holman of the United States Secret Service, Kentucky Attorney General Daniel Cameron, and Chief Arthur Ealum Jr. of the Owensboro Police Department made the announcement.
Bertolett, 54, previously pled guilty to online enticement of a minor, transfer of obscene material to a minor, production of child pornography, and interstate travel to engage in illegal sexual activity.
In the change of plea hearing, Bertolett admitted that in January 2021, he met a 14-year-old girl through an online software application. The girl lived in Owensboro, Kentucky and Bertolett lived in Saint Louis, Missouri. The two communicated online from January 2021 until May 2021. Bertolett and the girl discussed a variety of topics while communicating online, including sexual activity. On or about February 4, 2021, Bertolett sent the 14-year-old girl pictures of his genitalia.
On or about May 9, 2021, Bertolett rented a car and drove from Saint Louis to Owensboro where he met the girl, drove her to an Owensboro motel, and sexually exploited her. Law enforcement officials arrested Bertolett on May 10, 2021.
In addition to the 30-year prison sentence, Bertolett was ordered to pay the victim $10,000.00 in restitution. He was also ordered to serve a life term of supervised release after his release from prison. There is no parole in the federal system.
Assistant United States Attorneys Jo E. Lawless and Raymond McGee prosecuted the case.
The United States Secret Service, the Kentucky Office of Attorney General’s Department of Criminal Investigations, and the Owensboro Police Department conducted the investigation.
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 www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
###
Slidell Woman Sentenced for FEMA FraudRead the Press Release
NEW ORLEANS, LOUISIANA – SCHSHINETIA ANDERSON, age 44, a resident of Slidell, Louisiana, was sentenced for FEMA fraud announced U.S. Attorney Duane A. Evans. The defendant was sentenced by the Honorable Mary Ann Vial Lemmon to 5 years of probation and ordered to pay $22,104 in restitution to FEMA.
According to court documents, on or about August 18, 2016, ANDERSON filed a fraudulent request for financial assistance due to a natural disaster related to the alleged loss of her primary residence. In truth and in fact, as she well knew, the house she had been renting did not sustain any damage and she prepared false records claiming that it had. She also prepared false and inflated rent lease agreements to increase the funds she received from FEMA. ANDERSON received approximately $22,104 as a result of her fraud.
U.S. Attorney Evans praised the work of the Office of Inspector General for the Department of Homeland Security in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.