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Friday 18 November 2022
Federal Jury Convicts Man of Alexandria and Monroe BombingsRead the Press Release
ALEXANDRIA, La. – Daniel Aikens, 40, of Alexandria, Louisiana, was convicted of 8 counts of illegal explosive related charges, announced United States Attorney Brandon B. Brown. The jury found Aikens guilty of 3 counts of Making a Destructive Device, 3 counts of Possession of a Destructive Device in violation of the NFA, 1 count of Use of an Explosive to Commit a Federal Felony and 1 count of Conveying Malicious False Information and will be sentenced by Senior District Judge Dee D. Drell on March 3, 2023.
“What this investigation shows is that when federal, state and local law enforcement partners collaborate to investigate heinous criminal activity, justice is more often than not inevitable. This is an extremely dangerous individual and we are fortunate more persons were not injured. All the investigators at every level, talented prosecutors and the courageous victims and witnesses who faced Aikens in court, played a vital role in helping us obtain this conviction. The Western District of Louisiana is truly a safer place today due to this guilty verdict and given Aikens’ actions, coupled with his failure to accept responsibility, we will indeed seek a lengthy prison sentence,” stated United States Attorney Brown.
The government presented evidence at trial that on September 12, 2019, an explosion occurred at Cloyd’s Beauty School in Monroe, Louisiana. The victim was placing boxes inside a commercial garbage can when the explosion occurred and sustained burns on his hands and face. Remnants of the device were collected by agents for analysis by the ATF laboratory and found to contain a rocket motor commonly sold at hobby stores and a pressure cooker. Law enforcement was unable to identify a suspect at the time, but obtained video footage from Hobby Lobby in West Monroe, LA showing a black male purchasing a rocket motor two days before the explosion. Agents also collected numerous items for DNA analysis, including a piece of tape located on the device. Further, on December 20, 2019, officers responded to reports of an explosion at a Texaco gas station located in Alexandria, Louisiana. 911 dispatch operators received a call from an unknown male caller advising that an explosion had occurred.
On the morning of January 2, 2020, an employee at the Payday Today located on MacArthur Drive, Alexandria, Louisiana received a phone call from cell phone number 716-563-4031. The caller initially spoke with an employee about a set of lost keys. While the employee was in the parking lot looking for the keys, an explosive device detonated in a trash can near the building. The caller advised that he caused the explosion and demanded $10,000 in cash. The caller further advised that there was second device on the scene, and he would cause it to detonate if the employee did not comply. The caller then recited the employee’s home address and explained that he knew that she had three children. He then threatened to kill her and her family if she did not comply. The caller then asked why the employee was going there instead of the bank. This led the employee to believe that the caller was nearby and observing her actions. The employee advised the caller that she needed a bottle of water, but once inside the store, she panicked and the call was disconnected. The employee ultimately did not provide any money to the bomber. Among the blast debris collected from the scene, investigators located metal pipe fragments, which is indicative of a pipe bomb detonation.
During the investigation, law enforcement contacted employees at a nearby gas station. The gas station is within approximately 400 feet of Payday Today and was determined to be an ideal overwatch location to observe any activity at PayDay Today. Surveillance footage retrieved from the gas station showed a white Jeep Cherokee at the location. A tall unidentified black male entered the store and made a small purchase, shortly before the explosion and call at PayDay Today. Surveillance footage even showed the male looking in the direction of PayDay Today while inside the store on the telephone. A BOLO alert was provided to Alexandria area law enforcement, with screen captures of a white Jeep Cherokee taken from the gas station and other businesses near the Payday Today bombing. 4 days later, the Rapides Parish Sheriff’s Office located the Jeep Cherokee and initiated a traffic stop. The driver was identified as Daniel Aikens and matched the description of the subject that was present at the gas station shortly before the explosion. Investigators also secured a search warrant for Aikens’ home and pursuant to the search, observed damage in the kitchen area consistent with a blast and located what appeared to be fragments of galvanized pipe and blast debris indicative of a pipe bomb detonation.
When arresting Aikens, agents secured his cellular telephone and discovered that he had been communicating with a friend via text message concerning the Monroe bombing. Agents later interviewed this friend and the friend stated that Aikens communicated with him after the Monroe and Texaco bombings. He even stated that Aikens called him on the morning of the explosion from his personal cell phone and allowed him to listen in as he called Payday Today from the “bomb phone.” Forensic examination of Aikens’ personal cell phone revealed Google Street View images of the Ferrand Street area near Cloyd’s Beauty School in Monroe, Louisiana. The phone’s web history showed a search for “how to build a pressure cooker bomb” and included a possible pdf download. A piece of black electrical tape was recovered from the pressure cooker device and found to contain a mixture of a known DNA profile found to be 1 trillion times more likely to have originated from Aikens. Cell phone and 911 records confirmed that the “bomb phone” was also used to call emergency services during the Texaco explosion on December 20, 2019. The 911 recording depicts a male caller (who law enforcement identified as Aikens) advising that he was passing by, there was an explosion, and requests law enforcement. Location data from Aikens’ personal phone showed that he frequented several stores in Lafayette, LA, the day before the Texaco explosion. Specifically, it showed Aikens making stops near Home Depot, Academy Sporting Goods and Hobby Lobby. Surveillance video from Home Depot showed Aikens’ entering the store at 12:33pm. Twenty-three minutes later, he purchased a drill bit, two metal pipe caps, a steel pipe and adhesive.
Aikens’ cell phone was then located near Academy Sporting Goods a short time later. Agents reviewed sales receipts around the time that Aikens was in the store. They located a sales receipt at 1:39pm for 2lbs. of Hodgdon H335, Rifle Powder. Included in that same purchase were two children’s fishing rod and reel combos and a lady’s rod and reel combo. All three fishing combos were later collected from Aikens’ girlfriend who advised that she and her two children had received the fishing equipment as Christmas gifts from Aikens. Aikens then traveled to the nearby Hobby Lobby. A review of the December 19, 2019, surveillance video showed Aikens purchasing what appears to be rocket motor starters. Aikens returned to the store on December 21, 2019, and made another purchase identical to the one on December 19.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, Rapides Parish Sheriff’s Office, Alexandria Police Department, U.S. Marshal’s Service, Louisiana State Police and the Alexandria Fire Department investigated the case, with the assistance of the Alexandria Public Safety Commissioner and the City of Alexandria Mayor’s Office. Assistant United States Attorney Jamilla A. Bynog, LaDonte A. Murphy and Daniel J. McCoy are prosecuting the case.
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Federal Jury Convicts Louisville Man of Firearms OffensesRead the Press Release
Louisville, KY – Yesterday, a federal jury convicted a local man of two counts of being a convicted felon in possession of firearms and one count of receiving a firearm while under felony indictment.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Erika Shields of the Louisville Metro Police Department made the announcement.
According to court documents and evidence presented at trial, Antonio D. Williamson¸ 35, of Louisville, received a CZ-USA Scorpion Evo 3 9mm handgun in February 2020 from an individual. On May 22, 2021, Williamson was in possession of this handgun, and he was captured on surveillance video at a local restaurant drive-thru pointing it at another person while he was driving a stolen vehicle. In September 2021 law enforcement executed a search warrant at Williamson’s residence where they located and seized additional ammunition and firearms, including a Romarm/Cugir, 7.62 caliber rifle, an American Tactical M1911, .45 caliber pistol, and an Eagle Arms, 5.56 caliber rifle. Williamson had previously been convicted of two felony burglary charges in Jefferson Circuit Court in December 2008. He was also under indictment beginning in 2019 in Jefferson Circuit Court on multiple felony charges, including being a persistent felony offender. Williamson was released on bond for the 2019 indictment when he received the 9mm handgun in February 2020.
Sentencing for Williamson is scheduled for March 14, 2023, at 10:00 a.m., before a U.S. District Court Judge for the Western District of Kentucky. Williamson remains in custody pending sentencing. Williamson faces a combined maximum sentence of thirty years in prison. There is no parole in the federal system.
This case was investigated by the FBI, the ATF, and the Louisville Metro Police Department.
Assistant U.S. Attorney Joshua Judd and Assistant U.S. Attorney Christopher Tieke prosecuted the case with the assistance of paralegal Shalonte Branham.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal Jury Convicts Louisville Man of Conspiring to Distribute Fentanyl and Heroin, Distributing Fentanyl, Firearms Offenses, and Assaulting a Federal OfficerRead the Press Release
Louisville, KY – Yesterday, following a four-day trial, a federal jury convicted a local man, Terrell Trammell, age 28, of conspiracy to possess with intent to distribute fentanyl and heroin, distribution of fentanyl, possession with the intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, possession of a firearm by a convicted felon, and assaulting, impeding, or interfering with a federal officer.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Erika Shields of the Louisville Metro Police Department made the announcement.
According to court documents and evidence presented at trial, between July 2020, and November 5, 2020, Trammell conspired with others to distribute fentanyl and heroin in the Louisville area. On October 9, 2020, Trammell sold fentanyl to an undercover informant in southern Jefferson County. Trammell, who was a multi-time convicted felon, utilized juveniles to assist in possessing and distributing fentanyl and heroin, as well as in possessing and handling firearms in furtherance of drug trafficking. On November 5, 2020, agents and detectives with the FBI, ATF, HSI, and LMPD attempted to execute a search warrant at an apartment in the Valley Station area of Louisville, which Trammell and other conspirators were using to store fentanyl, heroin, and firearms. Prior to execution of the warrant, Trammell and a 16-year-old crashed their vehicle into an FBI agent, injuring and pinning the agent between two vehicles. Agents ultimately seized an AR-style pistol, a Glock 9-millimeter pistol, and an extended magazine. The FBI laboratory found Trammell’s DNA on the AR-style pistol. From the apartment, agents seized approximately 41 grams of fentanyl and two firearms, one of which had been traded to Trammell in exchange for drugs.
Sentencing for Trammell is scheduled for February 17, 2023, before a U.S. District Court Judge for the Western District of Kentucky. He remains in federal custody pending sentencing. Trammell faces a minimum sentence of ten years and a maximum sentence of life in prison. There is no parole in the federal system.
This case was investigated by the FBI, the ATF, and the Louisville Metro Police Department, with assistance from the DEA and the U.S. Department of Homeland Security, Homeland Security Investigations.
Assistant U.S. Attorneys Frank Dahl and Erin McKenzie prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Excelsior Estates Man Sentenced to 19 Years for Leading Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Excelsior Estates, Mo., man was sentenced in federal court today for his role in leading a conspiracy to distribute methamphetamine.
Mark A. Whitworth, 65, was sentenced by U.S. District Judge Greg Kays to 19 years and seven months in federal prison without parole.
Whitworth was found guilty at trial on June 9, 2022, of one count of conspiracy to distribute methamphetamine from July 1, 2018, to Aug. 18, 2019, and one count of possessing methamphetamine with the intent to distribute.
On Aug. 18, 2019, the Missouri State Highway Patrol executed a search warrant at Whitworth’s residence. They found a safe concealed behind a flag in the master bedroom closet that contained 60 $100 bills, totaling $6,000. They also found a cardboard box in a shed that contained approximately 256 grams of methamphetamine. Also in the shed, officers found a 12-gauge shotgun, a .410 shotgun, shotgun shells, and various items that indicated the methamphetamine was being prepared for distribution (including a digital scale and plastic baggies). Officers also found a closed-circuit camera system, which was connected to an external camera, and a police scanner in the shed. According to court documents, a small amount of pre-bagged methamphetamine weighing approximately six grams was recovered from inside a drawer in the shed.
Co-defendant Russell Lee Walker, 57, who shared a residence with Whitworth, was sentenced on July 6, 2022, to four years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. Walker testified at trial that he helped Whitworth by selling methamphetamine two or three times a week in lieu of paying rent.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly and Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the FBI and the Missouri State Highway Patrol.
Española man sentenced to nine years in prison for child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Christopher Baca, 35, of Española, New Mexico, was sentenced on Nov. 16 to nine years and one month in prison for possession of child pornography. Baca pleaded guilty on March 11.
In August 2020, Baca, under the username “C B” within a Kik group, shared more than a dozen videos of young children, some as young as one to three years of age, being sexually abused.
On Jan. 13, 2021, the FBI served a search warrant at Baca’s home, seizing his electronic devices. A forensic examination of four of the electronic devices, including an Asus laptop, a Patriot flash drive, a Samsung Galaxy cellphone and a Samsung hard drive, revealed a total of 730 files containing child pornography. The majority of the files were videos, many of which portrayed sexual abuse of infants, toddlers, or pre-pubescent children. In his plea, Baca admitted that he had previously shared material containing child pornography within Kik Messenger groups.
Upon his release from prison, Baca will be subject to five years of supervised release and must register as a sex offender. Baca must also pay $36,000 in restitution and $22,000 in fines.
The FBI Albuquerque Field Office investigated this case as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant United States Attorney Jaymie L. Roybal prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Ellsworth Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Bryan Ross, 26, from Ellsworth, Iowa, plead guilty November 4, 2022, in federal court to Producing and Distributing Child Pornography.
In a plea agreement, Ross admitted that between July 2019, and February 2022, he knowingly harassed and coerced minors online via Facebook and Snapchat to take sexually explicit photos and videos of themselves to send to him. Ross further admitted that he received and attempted to receive visual depictions of minors engaged in sexually explicit conduct and distributed them to others online.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set for a later date after a presentence report is prepared. Ross was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Ross faces a mandatory sentence of 15 years imprisonment with the maximum of not more than 30 years’ imprisonment without the possibility of parole, a fine of not more than $250,000, a mandatory special assessment of $100 and a term of supervised release of 5 years to life.
The case was investigated by Department of Homeland Security and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3016.
Follow us on Twitter @USAO_NDIA.
Ellenville Felon Sentenced to 97 Months for Drug Trafficking Conspiracy and Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Antonio Naveo, age 42, of Ellenville, New York, was sentenced today to 97 months in prison for his leadership of a drug trafficking organization that distributed cocaine base and fentanyl in Ulster County, as well as for his unlawful possession of a firearm.
The announcement was made by United States Attorney Carla B. Freedman; Michael Alfonso, Special Agent in Charge of Homeland Security Investigations (HSI), New York; and Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT).
As part of his previously entered guilty plea, Naveo admitted that between September 2017 and December 2018, he led an organization that trafficked over 500 grams of cocaine base, as well as fentanyl, from New York City and Pennsylvania, respectively, to Ellenville for redistribution at various locations in the Rondout Valley. Naveo further admitted that he unlawfully possessed a firearm as a previously convicted felon.
United States District Judge Mae A. D’Agostino also ordered Naveo to serve a 4-year term of supervised release following his release from prison.
The following defendants previously pled guilty in connection with the conspiracy, and were sentenced as follows:
Name
Prison Term
Supervised Release Term
Iqwan Mandiville, aka “Qwan”
70 months
4 years
Margaret Vandyke
60 months
3 years
Luis Curet
46 months
3 years
Randy Mandiville, aka “B-Murda”
42 months
6 years
Jennifer McCombs
24 months
3 years
Edwin Jorge
Time served
3 years
This case was investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Elizabeth Holmes Sentenced to More Than 11 Years for Defrauding Theranos Investors of Hundreds of MillionsRead the Press Release
SAN JOSE – Elizabeth A. Holmes was sentenced today to 135 months (11 years, 3 months) in federal prison for defrauding investors in Theranos, Inc. of hundreds of millions of dollars, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, Food and Drug Administration (FDA) Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, and U.S. Postal Inspection Service (USPIS) San Francisco Division Acting Inspector in Charge Kevin Rho. The sentence was handed down by United States District Judge Edward J. Davila.
“Silicon Valley has seen the rise of companies whose inventions have changed the world and, through intellectual prowess, hard work, and sheer determination, this region continues to innovate,” said U.S. Attorney Stephanie M. Hinds. “Capital investment is critical to that innovation. When fraud is perpetrated on those providing the necessary capital, it staunches investment and can cripple an industry. For almost a decade, Elizabeth Holmes fabricated and spread elaborate falsehoods to draw in a legion of capital investors, both big and small, and her deceit caused the loss of hundreds of millions of dollars. Her sentence reflects the audacity of her massive fraud and the staggering damage she caused.”
“Frauds such as the one perpetrated by Holmes can erode investor confidence which impacts our capital markets. Today's sentence should serve as a warning that deceiving investors will not be tolerated. The FBI is committed to investigating corporate fraud and working with our partners to help keep our capital markets working effectively,” said FBI Special Agent in Charge Robert K. Tripp. “The FBI and our partners worked tirelessly on this multi-year case and are proud justice has been served as a result.”“Today’s announcement should serve as a reminder that fraud related to medical products will not be tolerated,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “The FDA will continue to work with our law enforcement partners to bring to justice those who place profits above public health.”
“Postal Inspectors worked closely with our partners at the U.S. Attorney’s Office, the FDA Office of Criminal Investigations, and the FBI to bring this case to court,” said USPIS San Francisco Division Acting Inspector in Charge Kevin Rho. “USPIS remains committed to protecting consumers and investors from fraud.”
Holmes, 38, of Woodside, Calif., founded Theranos in 2003 and held the positions of Chairperson and Chief Executive Officer. Theranos, now defunct, was a blood testing company based in Palo Alto and Newark, Calif. Evidence at her jury trial showed that for more than a decade, Holmes claimed that Theranos had developed a revolutionary blood analyzer, variously referred to as the Theranos Sample Processing Unit (TSPU), Edison, and minilab. She asserted that the Theranos proprietary blood analyzer device could run any blood test that was run by conventional labs, all from a blood sample drawn via a fingerstick rather than the traditional draw from a vein. She asserted the Theranos analyzer produced results that were better, cheaper, and more accurate than existing methods and at a speed faster than ever before possible.
Trial evidence demonstrated that Holmes knew the analyzer was not producing accurate and reliable results. Holmes understood that at best it could only perform a few basic tests and was slower than existing devices. She knew that it could not successfully compete with the established conventional machines. Evidence showed that Holmes repeatedly had to resort to using conventional machines to obtain the blood test results that the Theranos analyzer was supposed to perform, though she led investors and the public to believe that Theranos was conducting most or all of its tests using its own analyzer.
Evidence showed that Holmes, despite being aware of the Theranos analyzer’s failure to perform, was able to induce dozens of investors, many of whom were prominent public figures, to invest hundreds of millions of dollars in Theranos. She used direct communications, marketing materials, statements to the media, financial statements, models, and other information to reach potential investors and induce investments. Holmes consistently provided glowing but false representations to investors and potential investors about the analyzer’s progress and capabilities. She falsely represented to investors that multiple major pharmaceutical companies had comprehensively evaluated Theranos and had validated its technology, and she provided investors with reports bearing logos from pharmaceutical companies, falsely suggesting the pharmaceutical companies endorsed Theranos. Holmes misrepresented to investors that Theranos had a profitable, revenue-generating business relationship with the U.S. Department of Defense and that the Theranos technology had been deployed to the battlefield to treat wounded soldiers. In truth, Holmes knew the technology was never deployed in the battlefield and that Theranos had acquired little revenue from military contracts for trial-runs of the analyzer. Holmes also falsely represented to investors that Theranos would dramatically increase its number of Wellness Centers within stores operated by its partner Walgreens from a few dozen to 900, despite knowing that the relationship with Walgreens was stagnating.
Trial evidence demonstrated that Holmes also misrepresented the dire financial status of Theranos to investors and its prospects for future earnings. In examples at trial, Holmes represented to one investor in 2010 that the projected revenue for Theranos in 2011 was $223 million, when she knew that Theranos’ revenue was dropping precipitously, from $2.8 million in 2009 to less than $600,000 in 2011. Holmes misrepresented to other investors that Theranos, which had zero revenue in 2012 and 2013, was projected to generate over $100 million in revenue in 2014 and to reach nearly $1 billion in 2015. She knew when she made these representations that Theranos would at best generate only modest revenue in 2014 and 2015.
In its memorandum filed for the sentencing hearing, the government pointed to evidence that Holmes’ fraud was immensely successful. Projecting altruistic motives, Holmes raised hundreds of millions of dollars by duping investors of all experience levels to invest in Theranos. She fooled investors new to the healthcare and bio-tech sector as well those with deep sophistication and experience in that arena. By the end of 2014, her stock in Theranos was valued at more than $4 billion. She enjoyed a lavish life while carrying out her fraudulent scheme, living in a $15 million mansion and traveling in a Theranos-paid private jet. She gained a national profile, adorning the cover of Fortune, Forbes, Inc., Glamour, and T: The New York Times Style Magazine. Holmes dined at the White House, joined the Board of Fellows of Harvard Medical School, and was named by Time as one of the 100 Most Influential People in the World. But as the government describes, her scheme not only deprived investors of vast sums of money, it also placed numerous others at risk of great physical harm. Wanting to paint Theranos as a legitimate enterprise, Holmes offered Theranos blood tests to the public, and Theranos’ flawed technology was used on patients with serious medical conditions. As a result, Theranos sent out inaccurate results to patients being screened for cancer, to women monitoring their pregnancies, and to one victim who was led to believe she had the precursor virus to AIDS, among many other examples. Theranos itself eventually concluded a patient impact existed for every test run on patients and voided all tests with its analyzer. The government points out that Holmes was undeterred and again choose deceit over candor by downplaying the extent of the patient impact to investor-victims and continuing forward with her elaborate fraud.
Federal criminal charges were initially filed against Holmes on June 14, 2018. On July 28, 2020, a federal grand jury returned a superseding indictment charging her with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and ten counts of wire fraud, in violation of 18 U.S.C. § 1343. Of the two conspiracy counts, one alleged Holmes conspired to defraud investors and the second alleged Holmes conspired to defraud patients who used Theranos services. Some of the ten counts of wire fraud alleged Holmes committed fraud on individual investors while others alleged Holmes defrauded patients who were induced to purchase Theranos services.
On January 3, 2022, after a nearly four-month trial, a federal jury convicted Holmes of one count of conspiracy to commit fraud on investors and three counts of committing fraud on individual investors which involved wire transfers totaling more than $140 million. The jury acquitted Holmes of the patient-related fraud conspiracy count and on three counts of fraud against individual patients. The jury could not reach a unanimous verdict with respect to three individual investor fraud counts. An additional count of wire fraud relating to a Theranos patient had been dismissed during trial.
In addition to the 135 month prison term, U.S. District Judge Davila sentenced Holmes to three years of supervision following release from prison. The parties were instructed to meet and agree on a future date for a hearing to determine the restitution amount to be paid by Holmes. No fine was assessed. Holmes was ordered to surrender on April 27, 2023, to begin serving her prison sentence.
Assistant U.S. Attorneys Robert S. Leach, Jeff Schenk, John C. Bostic, and Kelly Volkar are prosecuting the case with the assistance of Madeline Wachs, Lakisha Holliman, Sara Slattery, Elise Etter, Susan Kreider, and Leeya Kekona. The prosecution is the result of an investigation by the FBI, USPIS, and the FDA Office of Criminal Investigations.
Eighteen Charged in Methamphetamine Trafficking Case in LevellandRead the Press Release
Eighteen alleged methamphetamine traffickers have been federally charged with drug and gun crimes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Twelve of the eighteen individuals were arrested during a large-scale operation in Levelland, Texas and surrounding counties Wednesday. The operation, led by the FBI’s Lubbock Resident Agency, involved around 150 law enforcement personnel. The remaining six individuals, who were already in state custody, are being brought into federal court on writs.
Those charged include:
- Bobby Joe Gonzales – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Rance Devin Jordan – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Michael Salazar – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Timothy John Perez – conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine
- Judy Cirillo Qualls – conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm
- Anthony Raven Ruiz, aka Acid – conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine,
- Jose Angel Marquez – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Juan Luis Quezada – conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime
- Ernest Michael Chavez – conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine
- Jennifer Dianne Clem – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Jason Wade Grant – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Ruben Soliz Guajardo – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Gilberto Guajardo – conspiracy to distribute methamphetamine, distribution of methamphetamine
- Santiago Vizcarra, Jr., aka Quick – distribution of methamphetamine
- Gerry Wayne Varner – possession with intent to distribute methamphetamine, convicted felon in possession of firearms, possession of unregistered firearms.
Indictments are merely allegations of criminal conduct, not evidence.
If convicted, some of the defendants face up to life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency conducted the investigation with the Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Hockley County Sheriff’s Office, the Levelland Police Department, and the Cochran County Sheriff’s Office. Assistant U.S. Attorney Ryan Redd is prosecuting the case.
East Brookfield Man Sentenced for Illegally Operating a Helicopter, Making False Statements and Attempted Witness TamperingRead the Press Release
BOSTON – An East Brookfield man was sentenced today in federal court in Worcester for unlawfully operating a helicopter, making false statements to federal investigators and attempting to tamper with a witness.
Antonio Santonastaso, 62, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to eight months in prison and one year of supervised release. On April 5, 2022, Santonastaso was convicted by a federal jury of one count of serving as an airman without an airman certificate, one count of making false statements to federal agents and one count of attempted witness tampering.
The Federal Aviation Administration (FAA) revoked Santonastaso’s license to pilot an aircraft in 2000, after he participated in the theft of a helicopter from Norwood Memorial Airport. Despite being aware of that revocation, Santonastaso operated a Robinson R-22 helicopter – taking off and landing from his backyard – more than 50 times between April 28, 2018, and Nov. 11, 2018.
When questioned by the FAA, Santonastaso made false statements regarding his eligibility to pilot the helicopter. Specifically, Santonastaso falsely claimed that the events that gave rise to the FAA’s revocation of his license were a fabrication. Evidence at trial also established that Santonastaso attempted to corruptly persuade an individual with the intent to hinder, delay and prevent that individual from reporting his illegal helicopter flights to law enforcement.
United States Attorney Rachael S. Rollins and Christopher A. Scharf, Special Agent-in-Charge, Department of Transportation Office of Inspector General, Northeastern Region made the announcement today. Assistant U.S. Attorneys Evan Panich and Danial Bennett of Rollins’ Criminal Division prosecuted the case.
Doctor Sentenced for Accepting Illegal Kickback Payments in Return for Writing Prescriptions for Compounded Drugs, Will Pay $3.1 Million in Civil SettlementRead the Press Release
ALEXANDRIA, Va. – A doctor licensed in Virginia, Maryland, and elsewhere was sentenced today to 3 years for writing and referring compounded drug prescriptions in return for illegal kickback payments. The doctor previously entered into a civil settlement with the Government that requires him and the company he owned to pay $3.1 million.
According to court documents, Dr. Thomas Raley, Jr., 53, of Baltimore, Maryland, was a physician specializing in orthopedic surgery, spine surgery, and comprehensive pain management services, who has practiced in Virginia, Maryland, and elsewhere since 1998. Raley was also the owner of a medical practice, which had offices in both Virginia and Maryland. In 2013, Raley and Seth Michael Myers, 53, of Crystal Lake, Illinois, began soliciting pharmacists to pay them kickbacks in return for Raley referring expensive compounded medications to the pharmacies.
Raley’s first illegal kickback arrangement was with Michael Beatty, 53, of Finksburg, Maryland, who worked as a licensed pharmacist at Fallston Pharmacy in Fallston, Maryland. From in and around the spring or summer of 2013 to the summer of 2014, Raley and Myers conspired with Beatty to receive kickbacks for Raley’s referral of expensive compounded medications, which were billed to federal health care benefit programs, such as TRICARE, Medicare, and Medicaid. Ultimately, Raley was unhappy with his arrangement with Beatty because he did not find it lucrative enough.
Raley chose to pursue other more lucrative illegal kickback arrangements. In and around late 2013, he met with Mohamed Abdalla, 48, of Allendale, New Jersey, who owned multiple pharmacies in northern Virginia, including Medex Health Pharmacy in Falls Church and Royal Care Pharmacy in Fairfax. Then, in and around May 2014, Raley, Myers, and Abdalla cemented their illegal kickback arrangement. As part of this arrangement, Raley agreed to refer expensive compounded medications to Abdalla’s pharmacies and in return Abdalla agreed to pay Raley 80% of the resulting profit. Over the course of 18 months, Abdalla paid Raley approximately $2.5 million in illegal kickback payments.
Further, Raley used his illegal proceeds to fund his and his family’s lifestyle. For instance, he directed Myers to make his wife a salaried employee of the company that was setup to collect the illegal kickback payments. Raley’s wife was provided a salary of $200,000 and the company also used the illegal proceeds to pay for his wife’s lease of a Mercedes. Raley also directed Myers to have the company write him a $280,000 check, which purported to be a loan—but was never repaid— so that Raley could purchase a building in Baltimore. Finally, illegal kickback proceeds were also used to pay tuition at the private school attended by Raley’s children.
In a parallel civil resolution, Raley and Advanced Spine and Pain, PLLC, owned by Raley at the time, jointly paid $3,159,378.51 to settle civil claims under the False Claims Act, the Virginia Fraud Against Taxpayers Act, and common law remedies.
For their role in conspiring with Raley, Myers was sentenced to two years in prison and Beatty was sentenced to one year and one day in prison. For his role in conspiring with Raley and others, Abdalla was sentenced to four years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Christopher Dillard, Special Agent in Charge for the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); and George Scavdis, Special Agent in Charge, Food and Drug Administration Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton..
Assistant U.S. Attorney Carina A. Cuellar and former Assistant U.S. Attorney Monika Moore prosecuted the criminal case. The civil matter was handled by former Assistant U.S. Attorney Ilene Albala and Assistant U.S. Attorney Gerard Mene. Assistant Attorney General Airen Adamonis of the Office of the Attorney General for the Commonwealth of the Virginia Medicaid Fraud Control Unit handled the matter for Virginia Medicaid claims.
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. 1:21-cr-246.
District Man Sentenced to Five Years in Prison for Stalking and Posting Sexual Images of Woman and Stalking and Threatening WitnessesRead the Press Release
WASHINGTON – Kyle Alexander Jackson, 25, of Chicago, was sentenced today in the District of Columbia to five years in prison for stalking and unlawfully publishing graphic, sexual images of a woman, and for stalking and threatening witnesses to these offenses.
This case involves the “Criminalization of Non-Consensual Pornography Act of 2014” a District of Columbia law that codifies the offense of “unlawful publication” and prohibits the publication or disclosure of explicit photos without the consent of the person depicted in them, even if the photos were taken or given to the defendant consensually by the victim.
The announcement was made by U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Jackson pleaded guilty on Aug. 4, 2022, to two counts of first-degree unlawful publication, one count of unlawful disclosure, two counts of stalking, and one count of felony threats. He was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, Jackson will be placed on three years of supervised release. He also will be required to stay away from the victims and is barred from talking about them on social media.
“Kyle Jackson subjected the primary victim in this case—his ex-girlfriend—to years of torment,” said U.S. Attorney Graves. “This case demonstrates the importance of the law that expressly prohibits such unlawful publication of explicit photos without consent. Now Kyle Jackson is being held accountable for his reprehensible acts.”
According to the government’s evidence, Jackson and the victim were romantically involved for a period several years ago while students at a Washington, D.C. area university. After the conclusion of their relationship, in 2018, Jackson showed sexually explicit images of the victim to other individuals, prompting a Title IX investigation. His behavior escalated when, over the course of several months in 2019, he created multiple fake GroupMe accounts, which he used to post the victim’s sexually explicit images. He often impersonated the victim as well, soliciting others to contact her at her social media accounts. In 2020 and 2021, Jackson continued to post the images on GroupMe and began to post them on Kik and other platforms as well. Often, he would then send text messages to the victim from TextNow numbers, pretending to be other individuals who had seen the explicit images on the internet. Jackson also used these numbers to send a variety of harassing and unwanted text messages. At one point in 2021, Jackson mailed sexually explicit images to the victim’s employer.
In June 2021, the U.S. Attorney’s Office filed criminal charges against Jackson for this conduct. While the criminal case against Jackson was pending, he began to harass potential witnesses in the case. In the first several months of 2022, Jackson sent numerous harassing emails, many containing racist and sexist slurs, to these victims. Jackson used the victims’ professional email addresses and contacted their co-workers as well. The conduct eventually escalated to include violent threats of sexual assault and murder. In April 2022, Jackson was arrested in relation to this conduct and has remained held since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Chicago Police Department.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Special Agent Nelson Rhone of the Criminal Investigations Unit; Victim/Witness Advocate Veronica Vaughan, and Paralegal Specialist Tiffany Jones.
Finally, they commended the work of Assistant U.S. Attorneys Marco Crocetti and Kathleen Houck, who investigated and prosecuted the matter.
District Man Sentenced to 8 ½-Year Prison Term for 2019 Killing in Northeast WashingtonRead the Press Release
WASHINGTON – Lavelle Watts, 29, of Washington, D.C., was sentenced today to a prison term of 8 ½ years for killing a man in Northeast Washington in September 2019, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Watts pleaded guilty in June 2022, in the Superior Court of the District of Columbia, to a charge of voluntary manslaughter while armed. The plea, which was contingent upon the Court’s approval, called for a sentence between 7 ½ and 9 years. The Honorable Maribeth Raffinan accepted the plea and sentenced Watts accordingly. Following his prison term, Watts will be placed on five years of supervised release.
According to the government’s evidence, on Sept. 3, 2019, at approximately 10:50 p.m., the victim, Kailin Middleton, was the front seat passenger in a vehicle that stopped in front of a building in the 900 block of Division Avenue NE. Watts then got out of his vehicle and fired multiple rounds into the passenger side of Mr. Middleton's vehicle. Mr. Middleton and the driver of the vehicle were both shot multiple times. Mr. Middleton, 28, was pronounced soon afterwards at a local hospital.
Watts was arrested on Dec. 14, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Grave and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Grazy Rivera and Victim/Witness Advocate Latrice Washington-Williams. Finally, they commended the work of Assistant U.S. Attorney Brian Ganjei, who investigated and prosecuted the matter.
District Man Sentenced to 14-Year Prison Term in 2021 Slaying in Southeast WashingtonRead the Press Release
WASHINGTON – Brian Foster, 40, of Washington, D.C., was sentenced today to a 14-year prison term for shooting and killing a man in Southeast Washington while the victim sat in his car, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Foster pleaded guilty in August 2022, in the Superior Court of the District of Columbia, to second-degree murder while armed. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 14 years in prison. The Honorable Rainey R. Brandt accepted the plea and sentenced Foster accordingly. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 18, 2021, at approximately 12:40 p.m., the victim, Anthony Mitchell, 44, parked his car in the 3700 block of First Street SE. Shortly thereafter, Foster and two friends got into a nearby car and started smoking marijuana and PCP while listening to music. After about eight minutes, Foster got out of the car, walked over to where Mr. Mitchell sat in his car on First Street, pulled out a handgun, and, at around 12:58 p.m., shot Mr. Mitchell twice, through the closed door of Mr. Mitchell’s car. The shots hit Mr. Mitchell in the left side of his face and in his left arm, left lung, and spine, killing him. Foster then walked back to his own car, got in, and drove away, passing Mr. Mitchell’s car on the way.
Foster was arrested on Oct. 26, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach of the Homicide Section of the U.S. Attorney’s Office, who investigated and prosecuted the case.
District Man Sentenced to 14 Months in Prison for Assaulting Woman at Southeast Washington LoungeRead the Press Release
WASHINGTON – Donnell Peterson, 46, of Washington, D.C., has been sentenced to a 14-month prison term for assaulting a woman last summer at a lounge in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Peterson pleaded guilty in September 2022, in the Superior Court of the District of Columbia, to assault with significant bodily injury. He was sentenced on Nov. 17, 2022, by the Honorable James A. Crowell to a total of 32 months of incarceration; however all but 14 months of that sentence was suspended pending the successful completion of an 18-month term of probation that will begin after Peterson’s incarceration.
According to the government’s evidence, on the night of Aug. 3, 2022, Peterson and the victim were both present at a lounge in the 2700 block of Martin Luther King Jr. Avenue SE. The two knew one another casually from being patrons at the bar. While at the bar, they became engaged in a verbal argument. Peterson was standing next to the victim, who was sitting on a barstool. At some point during the argument, the victim stood up in front of Peterson. Peterson then grabbed her by her neck and threw her to the floor.
While the victim was on the floor, Peterson picked up a barstool and struck her in the head with it. When she attempted to get up, Peterson shoved her toward the bar, causing her head to hit the edge of the bar. After she had fallen to the floor again, Peterson picked up another barstool and again struck her in the head. The attack caused a large laceration to the head and required hospital treatment. Peterson turned himself in on Aug. 11, 2022.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim /Witness Advocate Karina Hernandez.
Finally, they commended the work of Assistant U.S. Attorney Alec Levy, who investigated and prosecuted the case.
District Man Sentenced to 13 Years in Prison for Shooting Woman in Northwest WashingtonRead the Press Release
WASHINGTON – Nikko Drake, 34, of Washington, D.C., was sentenced today to 13 years in prison for shooting a woman outside a Northwest Washington nightclub, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Drake was found guilty by a jury in June 2022, following a trial in the Superior Court of the District of Columbia, of aggravated assault while armed, possession of a firearm during a crime of violence, and related firearms offenses. He was sentenced by the Honorable Maribeth Raffinan. Following his prison term, Drake will be placed on five years of supervised release.
According to the government’s evidence, at 11:25 p.m. on Jan. 23, 2020, Drake got into an argument with the female victim, who was then 21, outside a nightclub in the 1900 block of 9th Street NW, in the Shaw area. Drake punched the victim, knocking her to the ground. After a physical struggle, Drake shot her twice at close range in the body. The victim was taken to Howard University Hospital, where she required emergency trauma surgery. She suffered numerous gunshot injuries to the right inner thigh, right hip, stomach, and lower back, and continues to have physical limitations from the injuries.
MPD officers spotted Drake in the area in response to a look-out and apprehended him within 15 minutes of the offense. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Chief of the Appellate Division; Assistant U.S. Attorneys Alicia Long, Mark Hobel, and Daniel Lenerz; former Assistant U.S. Attorney Amanda Fretto Lingwood; Supervisory Paralegal Specialist R. Renee Prather; Lead Paralegal Specialist Tameka S. Garcia; Paralegal Specialists Crystal L. Waddy and Debra McPherson; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Victim/Witness Program Specialist Karina Hernandez; Litigation Technology Supervisor Leif Hickling, and Litigation Technology Specialist Maisha Treadwell.
Finally, they commended the work of Assistant U.S. Attorneys Paul V. Courtney and Nicole G. H. Conte, who investigated and prosecuted the matter.
Defense contractor pleads guilty to providing fraudulent parts to militaryRead the Press Release
COLUMBUS, Ohio – A California man pleaded guilty in U.S. District Court in Columbus to crimes related to supplying the military with faulty parts.
Timothy W. Foley, 72, pleaded guilty to conspiring to commit wire fraud and to money laundering. Each is a federal crime punishable by up to 20 years in prison.
As part of his plea, Foley has agreed to pay more than $1.3 million in restitution.
According to court documents, Foley was the operator and co-owner of Parts Source International Inc. in Goleta, California. Parts Source was a Department of Defense contractor who sold and supplied a variety of military parts to the DOD for use on military weapons systems, and some of which were critical application items, and invoiced the Defense Finance and Accounting Service (DFAS) in Columbus, Ohio, for payment.
Foley admitted that from 2012 through 2019, he conspired to supply non-conforming parts to the DOD. Foley submitted 131 quotes for purchase orders that stated he would provide the exact product as required by the government. Rather, as testing and documents revealed, Foley provided unapproved substitutions in fraudulent packaging rending them unacceptable for use by the military.
Parts Source received a total of approximately $1.36 million in payments for the parts.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; the Defense Criminal Investigative Service (DCIS); and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the guilty plea entered on Nov. 16 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Daycare CEO Pleads Guilty to Financial Fraud SchemesRead the Press Release
MACON, Ga. – The CEO of a Georgia-based daycare business has pleaded guilty to a federal charge resulting from an investigation into an involved check kiting and tax fraud scheme.
Ilene Farley, 62, of Stone Mountain, Georgia, pleaded guilty to bank fraud and failure to pay over trust fund taxes before U.S. District Marc T. Treadwell on Nov. 16. Farley faces a maximum sentence of 30 years in prison and a $1,000,000 fine. Sentencing is scheduled for Feb. 1, 2023.
“Ilene Farley’s long running scheme of check kiting millions of dollars between banks and not paying federal taxes for employees adds up to a serious fraud which carries a lengthy prison sentence,” said U.S. Attorney Peter D. Leary. “These types of criminal schemes will not be ignored by this office or our law enforcement partners. We will hold fraudsters accountable.”
“Ilene Farley believed she had found a shortcut to put money in her pocket, and now she will pay for her criminal behavior,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Today’s guilty plea reflects the FBI’s commitment to work with our partners to bring fraudsters who steal from banks to justice.”
“Employers have a lawful duty and responsibility to withhold income taxes from their employees’ payroll check; failure to do so negatively impacts the U.S. Government and the employees,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-Criminal Investigation is committed to finding and holding those employers engaging in employment tax evasion accountable so that American taxpayers who are entitled can enjoy the benefits of Medicare and social security.”
According to court documents, Farley was the President and Chief Executive Officer (CEO) of Tender Years Learning Corporation (TYLC). TYLC operated a number of daycare centers within the Middle District of Georgia, and elsewhere in the state of Georgia, and had a registered office at 1010 N. Houston Road, Warner Robins, Georgia. Farley handled its financial affairs; the business had a number of bank accounts, including with Bank of America and Citizens Trust Bank.
When a customer presents a check for deposit into an account, it can take anywhere from 24 hours to seven days for the check to clear. The time between presentment and clearing of a check is called the “float.” The term “check kiting” refers to a form of check fraud which involves taking advantage of the float – the time between presentment of a check and the actual receipt of funds – to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks that would otherwise bounce to clear.
From April 2018 until July 2019, Farley executed a check kiting scheme using the TYLC bank accounts with Bank of America and Citizens Trust Bank, sending more than $75,000,000 to banks which were unfunded amounts and were the equivalent of obtaining money from banks without secured loans. All told, 19 checks bounced during the scheme in the amount of $2,202,162.41. Bank of America ended up with a loss of $514,240.89.
In addition, Farley was required to collect, account for and pay so-called “trust fund taxes” for its employees which includes Social Security, Medicare and federal income taxes. Employers are required to remit these withheld trust fund taxes to the Internal Revenue Service (IRS) on a quarterly basis. Between 2015 and 2019, Farley failed to pay over to the IRS $844,091.77 of the TYLC employees’ trust fund taxes that had been withheld from their paychecks. Through her guilty plea, Farley admitted that she knowingly carried out a scheme to defraud Bank of America and Citizens Trust Bank; in addition, she admitted that she did not pay over her employee trust fund taxes.
The case was investigated by FBI and IRS.
Assistant U.S. Attorney Elizabeth Howard is prosecuting the case for the government.
Darkweb Porn Defendant Sentenced to 20 Years in Prison for Distributing Child Pornography to over 75 PeopleRead the Press Release
DETROIT – A prolific trafficker of child pornography was sentenced to 20 years in federal prison for distributing and possessing child pornography, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation.
Dylan Andrew Hill, 30, of Novi, Michigan, was sentenced on November 17, 2022 by United States District Judge David M. Lawson. In July 2020, Hill posted images of child pornography in a group on a social media messaging application, Kik. In a group named “darkweb porn,” Hill distributed at least two sexually explicit images of children under ten years of age. In May 2021, Hill possessed 2,929 images and 984 videos of child pornography when agents executed a search warrant at his residence. Hill admitted to distributing images to between 75 and 100 other people. Hill currently has been criminally charged in Oakland, Washtenaw, and Wayne Counties in three separate cases with sexually assaulting children.
“This offender is a demonstrated danger to the community and a prolific trafficker of child pornography. This significant sentence protects vulnerable minors and demonstrates that we will continue to fight to keep our community safe for children.” U.S. Attorney Ison said.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Tara Hindelang.Collin County Dentist Guilty of COVID-19 Relief Related FraudRead the Press Release
SHERMAN, Texas – A Plano, Texas, dentist has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Brian Bui, 42, of Plano, pleaded guilty to wire fraud before U.S. Magistrate Judge Christine L. Stetson on Nov. 17, 2022.
According to court documents, Bui used his dentistry business to obtain at least two Paycheck Protection Program (PPP) loans by submitting materially false application paperwork, including fabricating supporting documentation and lying about the number of employees and monthly payroll expenses. As a result of his conduct, he obtained approximately $1.89 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Bui used the funds in a manner not authorized by the program, including for non-business, personal investments.
Under federal statutes, Bui faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Co-Defendants Sentenced for Distributing 10+ Kilos of Meth in Southwest GeorgiaRead the Press Release
ALBANY, Ga. – Three individuals involved in an illegal drug ring responsible for distributing approximately ten kilograms of methamphetamine in Southwest Georgia were sentenced to prison today for their crimes.
Matthew Bridges, 29, of Albany, was sentenced to serve 293 months in prison to be followed by five years of supervised release after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances; Terrance Battle, 41, of Albany, was sentenced to serve 240 months in prison to be followed by five years of supervised release after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances; and Quannesha Gatling, 27, of Albany, was sentenced to serve 12 months and one day in prison to be followed by two years of supervised release after she previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, possession of methamphetamine with intent to distribute and possession of marijuana with intent to distribute. U.S. District Judge Leslie Gardner handed down the sentences.
“The distribution of harmful illegal drugs like methamphetamine is contributing to the addiction and death of many people,” said U.S. Attorney Peter D. Leary. “Our office is working with law enforcement to prevent the most dangerous drugs from hitting the streets and hold dealers accountable for their crimes.”
“Drug trafficking at any level will not be tolerated in the state of Georgia. It is paramount that violators of drug laws be held accountable. The Georgia Bureau of Investigation is fully committed to working with our local and federal partners in drug enforcement to address these types of crimes,” said GBI Director Michael Register.
“This case demonstrates for the citizens of Lee County and Southwest Georgia that law enforcement is working together to fight drug networks that are pushing the most addictive illegal substances into our communities. We will not tolerate this activity and we will hold them accountable for their crimes,” said Lee County Sheriff Reggie Rachals.
According to court documents, GBI agents debriefed a confidential informant (CI) in Aug. 2021 who advised that Bridges was selling illegal drugs in the Albany area. Between Aug. and Oct. 2021, investigators conducted several controlled buys of methamphetamine and heroin from Bridges and co-defendant Battle. On Oct. 30, Lee County Sheriff’s Office deputies, working with GBI agents, initiated a traffic stop of three vehicles, driven by the co-defendants, who were returning from the Atlanta area. Law enforcement located approximately ten kilograms of methamphetamine and approximately three pounds of marijuana in the vehicle operated by Gatling.
The case was investigated by GBI with assistance from the Lee County Sheriff’s Office and DEA.
The case was prosecuted by Assistant U.S. Attorney Leah McEwen.
Clay County Man with History of Domestic Violence Indicted on Multiple Firearm ChargesRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Paul Steven Hulbert (26, Middleburg) with unlawful possession of a firearm by a person convicted of a misdemeanor crime of domestic violence, unlawful possession of a firearm by a person subject to a domestic violence injunction, and two counts of possession of an unregistered short-barreled rifle and short-barreled shotgun. Hulbert faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies Hulbert that the United States intends to forfeit multiple firearms which are traceable to the offenses. Hulbert made his initial appearance in federal court today and was ordered detained.
According to the indictment and public records, in August 2021, Hulbert was convicted of the misdemeanor crime of domestic battery, in Clay County, Florida. During this timeframe the Clay County Court also issued a “Temporary Injunction for Protection Against Domestic Violence with Minor Children” against Hulbert, which specifically prohibited him from possessing firearms and directed him to surrender any firearms in his possession to the Clay County Sheriff’s Office. After the domestic battery conviction and issuance of the domestic violence injunction, both of which prohibited him from possessing firearms, Hulbert obtained seven firearms that included rifles, pistols, and a shotgun. The barrel of the shotgun and one rifle were illegally modified to shorten their length.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (Jacksonville Office). It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charlotte Man Charged in Connection with Multi-Million Dollar Investment SchemeRead the Press Release
CHARLOTTE, N.C. – An indictment was unsealed today in federal court charging Wynn A.D. Charlebois, 52, of Charlotte, with wire fraud and money laundering in connection with a multi-million dollar investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Charlebois had his initial court appearance this morning after he surrendered to the FBI.
Michael C. Scherck, Acting Special Agent in Charge of the FBI’s Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from 2015 through October 2022, Charlebois used companies he owned and controlled, including WC Private, Wilcox Hybrid, Damon Investments, and others, to perpetrate a multi-million dollar fraudulent investment scheme that caused at least 39 victim investors and entities to lose more than $5.3 million. In furtherance of the scheme, Charlebois recruited victim investors including friends, family members, and social acquaintances, by falsely promising their money would be invested in risk-free investments, subscription agreements, and loans. According to allegations in the indictment, Charlebois fraudulently asserted in the investment agreements presented to victim investors that he and his entities held stock options for particular companies, and that the investors could purchase the options and gain specified profits.
Contrary to Charlebois’s claims, instead of using the investors’ money as promised, Charlebois allegedly used the funds to make Ponzi-style payments to other investors, and on personal expenses including private school tuition, mortgage payments, luxury travel and meals at restaurants.
Charlebois was released on bond following his court appearance. He faces a maximum of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for each of the six money laundering counts, if convicted.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and USPIS investigated the case. The prosecution is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Catoosa Woman Sentenced for Fraudulently Applying for $1M in LoansRead the Press Release
A Catoosa woman who defrauded banks and credit unions through a complex scheme involving falsified loan applications and lien releases was sentenced Friday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil III sentenced Pamela Kathryn Conley, 60, to 54 months in federal prison followed by three years of supervised release. She was further ordered to pay $451,065.64 in restitution.
In September 2021, Conley pleaded guilty to 24 counts of bank fraud and four counts of aggravated identity theft. At the time of her plea, a jury had been selected, and federal prosecutors were set to proceed with their case at trial.
As part of her scheme, Conley falsified and submitted documents to apply for approximately $1 million in loans, securing more than $800,000 in loan proceeds, which gave Conley access to cash, boats, and cars to support her lifestyle. Conley submitted forged earning statements suggesting that she held high level positions at various companies and earned approximately $200,000 annually. Conley’s claims were all provably false.
Sometimes lying on applications was the full extent of Conley’s fraud. On other occasions, when loans were secured with collateral, Conley forged fictitious lien releases for bank collateral using the notarized signature of bank or credit union employees. Conley then caused the bogus lien releases to be filed with the Oklahoma Tax Commission. This allowed Conley to obtain clear title to the collateral without paying off her loans. This aspect of the scheme gave rise to the aggravated identity theft counts alleged in the indictment.
IRS-Criminal Investigation and the U.S. Secret Service conducted the investigation. Assistant U.S. Attorneys Richard M. Cella, Melody N. Nelson, and David D. Whipple prosecuted the case.
Carrol, Iowa Man Pleads Guilty to Possession Child Pornography ChargesRead the Press Release
Wyant Unruh, 37, from Carrol, Iowa, plead guilty November 7, 2022, in federal court to Possession of Child Pornography.
In a plea agreement, Unruh admitted that between November 2019, and July 2021, he used the messaging app Kik to knowingly receive and attempt to receive visual depictions of minors engaged in sexually explicit conduct. He further admitted to using the app to share child pornography with others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set for a later date after a presentence report is prepared. Unruh was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Unruh faces a sentence of up to 20 years imprisonment without the possibility of parole, a fine of not more than $250,000, a mandatory special assessment of $100 and a term of supervised release of at least 5 years with the potential of life.
The case was investigated by Department of Homeland Security and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3016.
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California Man Sentenced for Scheme Involving over $300,000 in Fraudulent Purchases from Home DepotRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JONATHAN or Pilla SINLAO, age 38, a resident of San Jose, California, was sentenced for Conspiracy to Commit Access Device Fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
According to court documents, SINLAO conspired with others to conduct approximately $340,164.49 in unauthorized purchases of gift cards and products at Home Depot stores using Citibank credit card numbers belonging to others. During these transactions, SINLAO used temporary charge passes containing his own name with 16-digit credit card numbers belonging to other customers. These transactions occurred between February of 2019 and July of 2019 at Home Depot stores in Louisiana, Florida, Texas, Arizona, California, New York, and Oklahoma. Video footage and photographic evidence from Home Depot stores captured SINLAO conducting approximately 78 unauthorized transactions.
In April of 2019, SINLAO was captured on video conducting two unauthorized transactions in Harahan, during which he purchased a Home Depot gift card. SINLAO then sold this gift card to a pawn shop in Metairie. Then, in July of 2019, after SINLAO attempted to conduct two unauthorized purchases using two different Home Depot credit card numbers that were not issued to him, law enforcement obtained a warrant to search his U-Haul vehicle. Inside, SINLAO had receipts for fraudulent Home Depot purchases; boxes containing Home Depot merchandise; and temporary charge passes containing SINLAO’s name with 16-digit credit card numbers assigned to others.
U.S. District Judge Barry W. Ashe sentenced SINLAO to serve 63 months in prison to be followed by 3 years of supervised release. Judge Ashe also imposed restitution to be paid by SINLAO in the amount of $341,164.49 and a mandatory special assessment fee of $100.
U.S. Attorney Evans praised the work of the Department of Homeland Security, the Oklahoma City Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Butte man sentenced to 13 years in prison for armed robberies in Missoula, Helena and ButteRead the Press Release
MISSOULA — A Butte man who robbed at gunpoint three business in three cities in five days was sentenced today to 13 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Thomas Scott Cockrill, 50, pleaded guilty in July 2021 to three counts of robbery affecting commerce and to brandishing a firearm in furtherance of a crime of violence.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that on Feb. 9, 2021, Cockrill robbed Blackjack Pizza in Missoula and brandished a handgun at an employee. Later that same evening, Cockrill held up at gunpoint an employee of the La Quinta Inn in Helena. Four days later, on Feb. 13, 2021, Cockrill robbed the Elevated Dispensary in Butte and brandished a handgun at an employee. Each business lost several hundred dollars in the robberies. Cockrill admitted to law enforcement that he owned three firearms and robbed the three businesses.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Helena Police Department, Missoula Police Department, Butte-Silver Bow Law Enforcement and Montana Probation and Parole.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Burlington Man Charged for Selling Drugs in City Hall ParkRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on November 17, 2022, a federal grand jury returned a four-count indictment against Kenneth Jackson, 68, of Burlington, Vermont, which charged him with distribution of fentanyl, possession with intent to distribute fentanyl and cocaine, and being a previously convicted felon in possession of a firearm. Jackson was previously charged via criminal complaint and has been ordered detained pending trial. Jackson will be arraigned on the indictment on November 28, 2022, before U.S. Magistrate Judge Kevin J. Doyle.
According to court records and proceedings, on October 21, 2022, Jackson sold a quantity of fentanyl to a confidential source (CS) working for law enforcement. At the time Jackson sold the CS the drugs, he was working out of his car while parked at City Hall Park in Burlington. On October 28, 2022, Jackson sold fentanyl to the CS a second time, also while at City Hall Park. On November 10, 2022, law enforcement arrested Jackson. During a search of his person incident to arrest, law enforcement found approximately $2,000 in cash. During a search of his car, law enforcement found approximately $5,500 in cash, and distribution quantities of fentanyl, cocaine, and crack cocaine in various containers. Law enforcement also executed a search warrant at Jackson’s residence on November 10, 2022. During that search additional quantities of fentanyl and cocaine were found, as well as a loaded Rossi .357 Magnum revolver. Jackson, who was convicted of conspiracy to distribute cocaine in 1999 and convicted for being a felon in possession of a firearm and possession with intent to distribute cocaine in 2009, is legally prohibited from possessing a firearm.
U.S. Attorney Nikolas P. Kerest emphasized that the defendant is presumed innocent until and unless proven guilty. If convicted, Jackson’s sentence will be determined with reference to the advisory United States Sentencing Guidelines and the impact, if any, of any mandatory minimum prison terms applicable to any count of conviction.
U.S. Attorney Kerest commended the efforts of the Drug Enforcement Administration, the Burlington Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Jackson. Jackson is represented by the Office of the Federal Public Defender.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
Brockton Man Sentenced to 12 Years in Prison for Racketeering and Fentanyl Trafficking ConspiraciesRead the Press Release
BOSTON – A Brockton man was sentenced yesterday for racketeering and drug trafficking conspiracies stemming from his involvement in the Boston-based street gang, NOB.
Wilson Goncalves-Mendes, a/k/a “Dub,” 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 12 years in prison and four years of supervised release. On June 16, 2022, Goncalves-Mendes pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity – commonly known as RICO conspiracy – and one count of conspiracy to distribute and to possess with intent to distribute fentanyl.
Goncalves-Mendes is one of 10 defendants indicted together in June 2020, as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Goncalves-Mendes’ co-defendants have pleaded guilty to various charges and are scheduled to be sentenced in the coming months.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities throughout Massachusetts, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. Numerous contraband was seized in this investigation local and federal law enforcement including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
Goncalves-Mendes was an active, central and violent member of the NOB gang who personally committed, planned and supported various crimes on behalf of the gang – including drug trafficking activities involving fentanyl, including while on state pretrial release. Additionally, the Court determined that Goncalves-Mendes was responsible for two attempted murders and took those into consideration at sentencing. Specifically, in August 2018, an individual was shot as he sat in his car at a gas station through the car window with a .357 caliber handgun. Later, in November 2018, an individual was shot multiple times with a .40 caliber pistol in broad daylight near their residence in New Bedford. Both individuals survived their injuries.
First Assistant United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner Michael Cox; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Boston Man Sentenced for Cocaine Distribution ConspiracyRead the Press Release
BOSTON – A drug distributor within a Boston-area drug trafficking organization (DTO) was sentenced yesterday for his role in a drug trafficking conspiracy involving cocaine and cocaine base.
Phillip Williams, 38, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to 33 months in prison and three years of supervised release. On Aug. 8, 2022, Williams pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.
Williams was charged with 23 others in June 2020 as part of Operation Snowfall, which ultimately resulted in the charging of two different drug trafficking conspiracies during the period of November 2018 through June 2020.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO in which Williams was a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where Williams and others stored, cooked, packaged, and sold drugs – most of which consisted of cocaine or cocaine base, which the DTO supplied to customers, wholesalers, and distributors. As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.
Williams distributed between approximately 100 and 200 grams of cocaine base during the course of his participation in the Fidelis Way DTO. Williams is the fifth defendant to be sentenced in the Fidelis-Way related drug conspiracy. The remaining defendants in the Fidelis Way conspiracy have all been convicted and are pending sentencing. In the other charged conspiracy, the defendants are either pending sentencing or have pleaded not guilty and are pending trial. One defendant, Derek Hart, remains at large.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Blaine Felon Arrested, Charged with Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Blaine man has been arrested and charged in a federal criminal complaint for illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on August 10, 2022, at approximately 1:26 p.m., deputies with the Anoka County Sheriff’s Office responded to a residential burglary in Ham Lake. A video surveillance system at the residence showed a man, later identified as Carson Thomas McCoy, 21, pried open the front door of the residence and later sped away in a stolen black BMW sedan. Among the items stolen from the residence were a Springfield Armory .45 caliber handgun, two loaded ammunition magazines, and $1,500 in cash.
According to court documents and a law enforcement affidavit, less than 30 minutes later, the Anoka County Sheriff’s Office received reports of an incident involving shots fired around Lexington Avenue NE and 155th Avenue NE in Ham Lake. It was reported that a black BMW sedan nearly collided with three people riding motorcycles. Someone in the BMW then held a handgun out of the BMW's sunroof and fired several shots at the three people on the motorcycles. Shortly thereafter, law enforcement located the BMW and attempted to stop the vehicle, but it fled before eventually crashing into an Anoka County Sheriff’s Office patrol vehicle. The driver, McCoy, and a female passenger were taken into custody. Following a search of the BMW, law enforcement recovered the Springfield Armory handgun previously stolen from the residence, a Bersa .380 caliber handgun, narcotics, $851 in cash, and a false identification card.
According to court documents and a law enforcement affidavit, on July 19, 2022, McCoy used the false identification card at car dealership in Eden Prairie to arrange a test drive of the stolen black BMW sedan and then never returned the car.
McCoy is charged with one count of possession of a firearm as a felon. He appeared yesterday in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, and the Anoka County Sheriff’s Office.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Biloxi Man Sentenced to 70 Months in Prison for Possession of Cocaine with Intent to DistributeRead the Press Release
Gulfport, Miss. -- A Biloxi man was sentenced to 70 months in federal prison for possession of cocaine with intent to distribute, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, on October 8, 2021, Albert Joseph Jones, 32, was stopped for a traffic violation by an agent with the South Mississippi Metro Enforcement Team (“SMMET”). Jones was the driver and sole occupant of the vehicle. The vehicle was subsequently searched, resulting in the discovery of eighteen (18) heat-sealed packages of cocaine.
Jones was indicted by a federal grand jury on November 2, 2021, and he pled guilty on August 4, 2022.
The case was investigated by Federal Bureau of Investigation and its FBI Task Force, and the South Mississippi Metro Enforcement Team.
The case was prosecuted by Assistant U.S. Attorney Andrea Jones.
Bayside State Prison Corrections Officer Admits Violating Inmates’ Civil RightsRead the Press Release
NEWARK, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, today admitted agreeing with others to physically assault inmates for actual, perceived, and fabricated violations of the prison’s rules and customs in a manner that resulted in injury to the inmates, U.S. Attorney Philip R. Sellinger announced.
John Makos, 42, of Millville, New Jersey, today pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with conspiring with others to deprive inmates of their right not to be subjected to cruel and unusual punishment.
According to documents filed in this case and statements made in court:
From at least April 2019 through December 2019, while working as a corrections officer, Makos conspired with others at Bayside State Prison to assault and punish certain inmates in a cruel and arbitrary manner by using excessive force that caused physical injury and pain to the victims. Makos and others agreed to physically assault victims for actual and perceived violations of the prison’s rules and customs, which on occasion resulted in the inmates suffering bodily injury. These assaults took place while the inmates were under Makos’ supervision and in areas of the Prison’s kitchen that were out of sight of institutional surveillance cameras.
For example, on Dec. 7, 2019, Makos watched and did not attempt to intervene when multiple inmates pinned a victim to the floor and, while the inmates restrained the victim, punched the victim approximately 25 times. Makos did not report this assault to his supervisors or medical personnel, despite knowing he was required to do so.
Conspiring to violate the civil rights of others carries a maximum sentence of 10 years in prison and a maximum potential fine of the greater of $250,000, twice the gross amount of pecuniary gain that any person derived from the offense, or twice the gross amount of pecuniary loss that any person suffered from the offense, whichever is greatest. Sentencing is scheduled for March 23, 2022.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Acting Commissioner Victoria Kuhn, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Ari B. Fontecchio of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel of the U.S. Department of Justice’s Civil Rights Division.
Baton Rouge Man Sentenced for Animal Fighting Venture CrimesRead the Press Release
A Louisiana man was sentenced yesterday to 12 months and one day in prison for possessing dogs for the purpose of using them in an animal fighting venture.
On July 12, 2022, Aquintas Kantrell Singleton, 35, of Baton Rouge, pleaded guilty before Judge Shelly D. Dick of the U.S. District Court for the Middle District of Louisiana to an Animal Welfare Act crime involving the possession of 17 dogs for use in an animal fighting venture. On Thursday, Singleton returned to that courtroom for sentencing.
According to court documents, law enforcement agents became aware of Singleton’s involvement in an interstate dog fighting ring in 2017. Beginning in the summer of 2017 — as recorded through court-authorized wiretaps — Singleton had various telephone conversations with other dogfighters to discuss the results of fights held in Louisiana and Georgia. They also discussed upcoming matches and the stakes they would wager in those dogfights. The details of these conversations included strategies and plans for how to breed, market, house, train and prepare dogs for dogfights. Based on these calls and other information, law enforcement agents expanded their investigation.
On Oct. 24, 2017, agents searched the defendant’s residence in Baton Rouge where they found seventeen pitbull-type dogs. They were kept separated from one another and restrained with heavy chains and weighted dog collars, or kept in rudimentary cages. Many of the dogs exhibited scars or fresh wounds consistent with dogfighting. Agents found a file box containing breed information, breeding papers, breed magazines, and dog registration papers. Agents also found Dexamethasone — a diuretic used to achieve proper weight in preparation for the dogfights — and other dog-fighting paraphernalia.
“Blood sports, like dogfighting, are federal crimes,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “To set animals against each other for entertainment is cruel and unjust. Anyone who commits these acts should expect to be caught and to serve time in prison.”
“This case, and several related matters, are companions to a drug conspiracy successfully prosecuted by this office,” said U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana. “The interconnection between drug crimes and animal fighting crimes is well known, and this office will continue to use evidence from that interconnection to bring violent criminals to justice. Make no mistake, pitting animals against each other for gaming and cruel amusement is violence.”
“The Department of Agriculture, Office of Inspector General-Investigations, actively investigates allegations of animal abuse,” said Special Agent in Charge Dax Roberson. “This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will no longer be tolerated. We would like to thank the Environment and Natural Resources Division and the U.S. Attorney’s Office for aggressively prosecuting perpetrators of animal fighting and our federal, state and local law enforcement partners for assisting in enforcing these federal statutes.”
“Animal cruelty is a heinous crime that deserves our ultimate condemnation and serious legal consequences for those who engage in it for ‘sport’ and/or profit,” said Special Agent in Charge Douglas A. Williams Jr. of the FBI New Orleans Field Office. “Today’s sentencing should serve as a reminder to those like Mr. Aquintas Singleton who commit such crimes, that they will be held accountable. We thank our partners at the U.S. Attorney’s Office Middle District of Louisiana, U.S. Department of Justice Environment and Natural Resources Division, and U.S. Department of Agriculture Office of Inspector General for their outstanding cooperation and great work in the prosecution of those who participated in animal fighting ventures.”
The FBI and USDA investigated the case.
Trial Attorney Matthew D. Evans of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Lyman Thornton III for the Middle District of Louisiana prosecuted the case.
Bapchule Man Sentenced to Nearly Six Years for ShootingRead the Press Release
PHOENIX, Ariz. – On November 1, 2022, Anthony Manuel, 38, of Bapchule, Arizona, was sentenced by United States District Judge Susan M. Brnovich to 71 months in prison, followed by three years of supervised release. Manuel previously pleaded guilty to Assault Resulting in Serious Bodily Injury.
On February 20, 2021, Manuel, an enrolled member of the Gila River Indian Community, shot the victim once in the upper leg.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00635-PHX-SRB
RELEASE NUMBER: 2022-212_Manuel# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Armed Highlands County Carjackers Sentenced to PrisonRead the Press Release
MIAMI – U.S. District Judge Aileen M. Cannon has sentenced Artavis Spivey, 21, of Winter Haven, Fla., and Daniel Zamot, 18, of Avon Park, Fla., to prison for armed carjacking. Spivey received 175 months in prison and Zamot received 70 months. Spivey received enhancements to his sentence for reckless endangerment during flight and obstruction of justice.
Spivey and Zamot both previously pled guilty to carjacking and brandishing a firearm during and in relation to a crime of violence.
According to the court record, on February 17, 2022, at approximately 12:37 p.m., law enforcement received a 911 call advising that an armed carjacking had just taken place at Highlands Advanced Rheumatology and Arthritis Center in Avon Park. Law enforcement interviewed the victim of the carjacking, “J.S.” According to her statement, she was sitting inside her 2018 Lincoln MKC in the Highlands Rheumatology parking lot when a man, later determined to be Spivey, armed with a 9mm semi-automatic handgun, approached her and demanded the keys to her vehicle. J.S. complied and gave Spivey her keys, after which he demanded her cellphone, which she also gave him. Spivey then told J.S. to exit and walk to the back of the vehicle and threatened to shoot her.
J.S. described Spivey as a black male with a slender build wearing sweatpants, a red or orange hooded jacket, and a facemask with holes for his eyes and mouth. J.S. stated that a second man, later determined to be Zamot, described as a heavier set black male, was standing at the rear of her vehicle when she was robbed. Zamot also was wearing sweatpants, a red or orange hooded jacket, and a facemask with holes for his eyes and mouth. Spivey and Zamot fled the scene in J.S.’s vehicle.
Law enforcement was able to track J.S.’s vehicle and learned that it was in Lee County, Fla. At approximately 3 p.m., law enforcement located the Lincoln and attempted to conduct a traffic stop in north Fort Myers, Fla. A vehicle pursuit ensued, during which Spivey and Zamot drove through several yards and almost crashed into another vehicle. They ultimately crashed into a patch of bushes. Spivey exited the vehicle from the front driver’s side and Zamot exited the vehicle from the passenger’s side. Both Spivey and Zamot fled on foot and were apprehended a short time later. Spivey was wearing a red hooded jacket when he was arrested.
While searching the vehicle, law enforcement recovered, among other things, two ski masks from behind the front passenger’s seat and a loaded black H&K 9mm semi-automatic firearm with an extended magazine between the driver’s seat and center console. The firearm had been reported stolen out of Polk County, Fla. A loaded Cobra, .380 caliber semi-automatic firearm was found in the bushes where Zamot exited the vehicle. This particular firearm was reported stolen out of Osceola County, Fla.
Spivey had been released from prison on separate felony convictions on January 30, 2022, just 18 days before he and Zamot committed the armed carjacking.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; acting Special Agent in Charge Robert M. DeWitt, Federal Bureau of Investigation, Miami Field Office; Highlands County Sheriff Paul Blackman; and Lee County Sheriff Carmine Marceno made the announcement.
FBI, Fort Pierce Field Office, Highlands County Sheriff’s Office, and Lee County Sheriff’s Office investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14026.
Arizona Man Sentenced in Southwest Virginia Meth ConspiracyRead the Press Release
Abingdon, Va. – A defendant in a drug distribution organization that trafficked methamphetamine from Texas and Indiana into Southwest Virginia was recently sentenced in federal court on drug conspiracy charges, United States Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares announced.
Pedro Loza III, 28, of Bullhead City, Arizona, was sentenced this week to 72 months in federal prison. He was previously convicted of one count of conspiring to possess with the intent to distribute and distributing 50 grams or more of methamphetamine and one count of possessing with the intent to distribute and distributing 5 grams or more of methamphetamine.
In all, five individuals were charged as being part of this drug trafficking conspiracy, four of whom have now been sentenced for their roles in the scheme. Paul Warren Rucker previously pleaded guilty and was sentenced to 120 months in federal prison in July 2022. Defendants Amber Lynn Tackett and Benjamin Alvis entered guilty pleas and are scheduled for sentencing in April 2023. The lead defendant, Alonso Cantu-Cantu, is scheduled for trial in March 2023.
This case arose from a series of indictments stemming from an ongoing methamphetamine trafficking conspiracy operating primarily in the Smyth County, Virginia area. In total, 26 defendants have been charged in connection with the investigation.
This investigation was led by the Drug Enforcement Administration’s Bristol, Virginia Office with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General assigned to the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Argyle Fire Chief Indicted for Federal ViolationsRead the Press Release
PLANO, Texas – The former Argyle Fire Chief has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Troy Mac Hohenberger, 63, was named in a federal indictment returned by a federal grand jury on Nov. 17, 2022, in the Eastern District of Texas. The indictment charges Hohenberger with multiple federal violations related to misuse and theft of funds from the Argyle Fire District, Inc. operating account, along with making false statements to the Department of Labor. Hohenberger made his initial appearance today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to the indictment, Hohenberger, while chief of the Argyle Fire Department, is alleged to have taken money from the operating account of the fire district (which received federal funds in the form of Medicare reimbursements) and used over $490,000 of those funds to pay personal credit card bills. The indictment also alleges these personal credit card expenses included cash advances at casinos, payments related to a family member’s business in Hawaii, and other personal uses. Hohenberger is also alleged to have failed to fund firefighter retirement accounts in the time required by federal regulations and thus embezzled or stole the funds, and that he made false statements related to the ERISA-qualified firefighter retirement plan on a form submitted to the Department of Labor.
If convicted, Hohenberger faces up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Department of Labor – EBSA.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Anderson Felon Sentenced to 18 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
INDIANAPOLIS – Detreck Wilson, 50, of Anderson, Indiana, was sentenced to 18 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on September 13, 2021, law enforcement officers learned that the Anderson City Court had issued a warrant for Wilson’s arrest for failure to appear. On September 14, 2021, law enforcement officers located Wilson at the Anderson Inn. Officers were aware that Wilson was a previously convicted felon. Officers were advised that Wilson was in the room and that he had a firearm. Officers accessed Wilson’s room with a key provided by the hotel and found him lying in bed with a semi-automatic handgun within his reach on an adjacent nightstand.
Wilson admitted to officers that he had two prior felony convictions and possessed the handgun found on the nightstand. Wilson was previously convicted of strangulation and non-support of a dependent, in Madison County, Indiana. Wilson is prohibited by federal law from possessing firearms due to these felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
FBI investigated the case and the Anderson Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Wilson be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this case.
24-Year-Old Tucson Man Sentenced to 14 Months and Fined $10,000 for Alien SmugglingRead the Press Release
TUCSON, Ariz. – On November 8, 2022, Michael Ernesto Abril, 24, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker to 14 months in prison, followed by three years of supervised release. Judge Hinderaker also ordered Abril to pay a $10,000 fine. Abril previously pleaded guilty to Transporting Illegal Aliens for Profit.
On November 17, 2021, U.S. Border Patrol (USBP) agents observed Abril erratically driving a U-Haul box truck at a high rate of speed near Arivaca, Arizona. After an attempted immigration stop, Abril eventually pulled over but then fled from the agents on foot. USBP agents were able to apprehend Abril and arrest him. Inside the box of the U-Haul truck, agents discovered five undocumented noncitizens who had illegally entered the United States.
U.S. Border Patrol, Tucson Sector, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-3188-TUC-JCH-LCK
RELEASE NUMBER: 2022-211_Abril# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.10 charged in business email compromise and money laundering schemes targeting Medicare, Medicaid, and other victimsRead the Press Release
ATLANTA - The U.S. Department of Justice announced charges against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.
“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”
“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”
“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”
“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments. The prosecutions allege schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients.
For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals.
Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals.
The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.
This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.
The seven defendants against whom charges were unsealed this week are:
- Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on November 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments.
- Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies.
- Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application.
- Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on November 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme.
- Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity.
- Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds. Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA).
- Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on September 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare.
The three defendants previously charged are:
- Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on February 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari.
- Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On September 15, Adesanya was sentenced to four years in prison.
- Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on September 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for January 9, 2023.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.
Assistant U.S. Attorney Kelly K. Connors for the Northern District of Georgia, Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
10 Charged in Business Email Compromise and Money Laundering Schemes Targeting Medicare, Medicaid, and Other VictimsRead the Press Release
The U.S. Department of Justice announced charges today against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.
“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”
The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments.
“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”
“In the District of South Carolina, we’ve seen a marked increase in email scams, identity theft, and related money laundering schemes,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “These indictments demonstrate our unwavering commitment to fighting internet crime and holding internet fraudsters accountable, particularly when their schemes target taxpayer-funded programs intended to benefit the most vulnerable among us.”
The prosecutions announced today include alleged schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients. For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals. Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals. The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.
“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”
“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.
The seven defendants against whom charges were unsealed this week are:
- Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on Nov. 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application. If convicted of the top count, he faces a maximum penalty of 30 years in prison.
- Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme. If convicted of one of the counts, he faces a maximum penalty of 20 years in prison.
- Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity. If convicted of the top count, she faces a maximum penalty of 20 years in prison.
- Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds. Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA). If convicted of the top count, he faces a maximum penalty of 30 years in prison.
- Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on Sept. 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare. If convicted, he faces a maximum penalty of 20 years in prison.
The three defendants previously charged are:
- Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on Feb. 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On Sept. 15, Adesanya was sentenced to four years in prison.
- Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on Sept. 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for Jan. 9, 2023. If convicted of any of the counts, he faces a maximum penalty of 20 years in prison.
In each case, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.
Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia, Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Thursday 17 November 2022
Yuba County Men Indicted on Drug Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment today against Darrell Anderson, 50, and Ricky Phienemanh, 35, both of Olivehurst, charging them with conspiracy to distribute heroin and methamphetamine, distribution of methamphetamine, distribution of heroin, and possession with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, throughout 2020, Anderson sold heroin to an undercover officer. In 2022, Anderson conspired with Phienemanh and Sanit Khamthong, 41, of Marysville to distribute, and did in fact distribute, methamphetamine and heroin. During the investigation, law enforcement learned that Phienemanh and Khamthong were supplying Anderson with large amounts of methamphetamine and heroin. Khamthong was separately indicted in September 2022 and is in federal custody.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the Bureau of Land Management, the U.S. Postal Inspection Service, the Yuba County Sheriff’s Office, the Sutter County Sheriff’s Office, the Yuba City Police Department, the Marysville Police Department, and the California Highway Patrol. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Anderson and Phienemanh face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 www.justice.gov/OCDETF.
Yonkers Man Convicted of March 2011 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against DARNELL KIDD a/k/a “Black,” a/k/a “Donney,” a/k/a “Donney Black,” on one count of an indictment charging him with the 2011 murder of Jonathan Johnson, 21, in White Plains, New York. U.S. District Judge Nelson S. Román presided over the eight-day trial.
U.S. Attorney Damian Williams said: “Darnell Kidd shot and killed Jonathan Johnson during a robbery. He now stands guilty of that murder. We will continue to work with our law enforcement partners to vigorously investigate gun violence and pursue justice for the victims of violent crimes.”
According to the allegations in the Indictment and the evidence at trial:
On or about March 18, 2011, DARNELL KIDD murdered Jonathan Johnson by shooting him during the course of an armed robbery for marijuana in White Plains, New York. KIDD’s co-defendant MARCUS CHAMBERS arranged by phone to purchase the marijuana from Johnson. CHAMBERS and KIDD met with Johnson to rob him of marijuana, and during the robbery, KIDD shot and kill Johnson.
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KIDD, 31, of Yonkers, New York, was convicted of one count of murder through the use of a firearm, which carries a mandatory minimum prison term of five years and a maximum prison term of life.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CHAMBERS previously pled guilty for his role in the murder. CHAMBERS was sentenced to 20 years in prison.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, Rockland County District Attorney’s Office, New York City Police Department, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department, New Rochelle Police Department, White Plains Police Department, Clarkstown Police Department, and Ramapo Police Department. Mr. Williams also thanked the White Plains Police Department and the Westchester County District Attorney’s Office for their assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Olga I. Zverovich, Christopher Brumwell, Steven J. Kochevar, and Hagan Scotten and Paralegal Specialist Shannon Becker are in charge of the prosecution.
Woonsocket Man Admits to Participating in Fentanyl Distribution ConspiracyRead the Press Release
PROVIDENCE – A Woonsocket man today admitted to a federal judge that he participated in a conspiracy that trafficked hundreds of grams of fentanyl, announced United States Attorney Zachary A. Cunha.
Nelson J. Davila, 28, pleaded guilty to a single count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl.
According to court documents, it is alleged that Davila participated in a conspiracy with Gregory Ortega, 33, of Woonsocket, in which multiple purchases and deliveries of fentanyl were executed. Davila admitted that the amount of fentanyl trafficked as a result of his conduct was at least 280 grams but less than 400 grams.
Davila is scheduled to be sentenced on March 2, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Ortega is currently detained and awaiting trial on charges of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; and possession with intent to distribute 400 grams or more of fentanyl. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorneys Zechariah Chafee, Richard B. Myrus, and G. Michael Seaman.
The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force.
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Woman Sentenced for Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A woman was sentenced today in federal court in Worcester for her role in a wide-ranging fentanyl, heroin, cocaine and crack cocaine trafficking conspiracy.
Jessica Hughes, 31, of Orange, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to time served (one week in prison) and three years of supervised release. On May 16, 2022, Hughes pleaded guilty to conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base (crack cocaine).
Following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, intercepted electronic communications revealed that Pedro and Anthony Baez worked together and with others to distribute a fentanyl and heroin mixture and crack cocaine on a regular basis to individuals in the Fitchburg area who then redistributed that mixture to others. In total, over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 were seized.
Hughes was a regular drug customer of the DTO, who routinely purchased both a fentanyl/heroin mixture and crack cocaine from Pedro Baez. Hughes used most of the drugs she purchased and resold a portion to support her own addiction. It is estimated that Hughes purchased approximately 70 grams of crack cocaine and approximately 20 grams of a heroin/fentanyl mixture from Pedro Baez over a one-week period.
Hughes was charged along with 17 others in July 2020. Prior to that, she was arrested on unrelated state charges out of Orange District Court where she successfully completed the Drug Court program. Over the course of the last two years, Hughes has maintained her sobriety and now works full time as a recovery specialist.
Hughes is the 11th defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison and five years of supervised release. Two of the remaining defendants, Pedro Baez and Hector Matos, have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments and the U.S. Postal Inspection Service provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
West Roxbury Man Pleads Guilty to Role in Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A West Roxbury man pleaded guilty today in federal court in Boston in connection with a scheme to defraud an insurance provider for physical therapy services that were not provided to patients.
Slava Pride, 42, pleaded guilty to one count of conspiracy to commit mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for March 23, 2023. Pride was indicted in February 2021 along with co-defendants Anna Barenboym, Gyulnara Bayryshova and Raya Bagardi.
Pride was a physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. Barenboym and Bagardi were also employed at BPT as a licensed physical therapist and a licensed physical therapist assistant, respectively. According to the charging documents, from October 2018 through June 2020, Pride and his co-defendants conspired to cause an insurance company to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Pride and, allegedly, his co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. It is further alleged that BPT paid patients for referrals, referred patients to attorneys to assist with patients’ insurance settlements and accepted kickbacks from those attorneys in return.
Pride is the second defendant to plead guilty in the case. On March 17, 2022, Barenboym pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on April 4, 2023.
The charge of conspiracy to commit mail fraud 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; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wasco Couple Arrested for 6-Year Credit Card Fraud Scheme that Caused $825,000 in LossesRead the Press Release
FRESNO, Calif. — Miguel Leyva, 35, and Karina Gutierrez, 32, both of Wasco, were arrested today after a federal grand jury indicted them for conspiracy, bank fraud, access device fraud, and aggravated identity theft in connection with a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February 2016 and August 2022, Leyva and Gutierrez stole the personally identifiable information (PII) for individuals some obtained from health care providers where Gutierrez worked. They then used the PII to obtain fraudulent credit cards from banks in the identities of those individuals. Specifically, Leyva and Gutierrez created online accounts with credit reporting agencies for the individuals so they could check credit scores before applying for the credit cards. They then used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses over which they had control so any communications from the banks would go to them. They also used checks that had been stolen from trucking and other companies to access the companies’ bank accounts and make fraudulent payments to the credit cards.
Leyva and Gutierrez’s scheme caused an actual loss of over $825,000 to the banks. They spent the proceeds on home appliances, automobile accessories, gardening equipment, designer clothing, concert tickets, professional sporting events tickets, and travel, among other items. Often times, they sold the merchandise for cash on social media sites.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Leyva and Gutierrez face a maximum penalty of 30 years in prison and $1 million fine for each of the conspiracy and bank fraud charges, 10 years in prison and $250,000 fine for the access device fraud charges, and mandatory two years in prison, consecutive to other counts, for the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of the applicable statutory factors and Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Leyva and Gutierrez are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Virginia Man Convicted for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Michael Mandel Baldwin, 53, of Alexandria, Virginia, for orchestrating an investment scheme that defrauded victims of more than $800,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
“Baldwin’s Miracle Mansion was a house of lies,” said U.S. Attorney King in announcing the guilty verdict. “Using Biblical themes and empty promises to cover up the fraud, Baldwin engaged in an extensive scheme that caused significant monetary losses to his victims. My office is committed to uncovering investment fraud and ensuring that perpetrators like Baldwin face the criminal justice system.”
According to trial evidence and witness testimony, from 2009 to October 2021, Baldwin served as an Assistant Pastor and Musical Director for a church in Northern Virginia, and Chief Executive Officer of the Miracle Mansion, LLC (Miracle Mansion). As evidence established, over the course of the scheme, Baldwin made numerous fraudulent representations to victim-investors about the viability, legitimacy, and success of Miracle Mansion, and solicited investments from a Charlotte-area church and its members, as well as individuals and entities located throughout the United States, including in Virginia, Arkansas, Florida, and Georgia.
According to evidence presented at trial, as part of the fraudulent investment scheme, Baldwin created and distributed promotional materials to potential investors that described Miracle Mansion as “a one-of-a-kind entertainment complex that [would] reshape the face of family entertainment in the Washington Metropolitan region,” with a mission that “promotes family-focused inspiration, entertainment and enrichment anchored by a Biblical worldview.” In furtherance of the fraud, Baldwin also held in-person and virtual meetings with potential investors, during which he falsely claimed the investors’ money would be used to develop, create and construct Miracle Mansion, including to purchase the land on which Miracle Mansion would be located.
According to witness testimony, in furtherance of the scheme, Baldwin presented to investors several investment opportunities, including “GroundSwell 73,” which was described as “73 acres = 7,300 people, investing $73 per month, for 73 months.” Baldwin also represented to potential investors that The Kennedy Center and high-level executives at Hobby Lobby and Chick-Fil-A had endorsed and supported Miracle Mansion. Contrary to Baldwin’s claims, high-level executives with Hobby Lobby and Chick-Fil-A testified at trial that they neither knew nor supported Baldwin and his project.
Rather than using the victims’ money to create, develop and construct Miracle Mansion as promised, trial evidence established that Baldwin spent hundreds of thousands of dollars on his personal lifestyle, including to pay for personal expenses, travel, and meals at restaurants, and to make credit card payments and cash withdrawals. He also used a portion of the victims’ money to pay others involved in Miracle Mansion, and to make Ponzi style payments to some of the investors.
The federal jury convicted Baldwin of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and securities fraud, which carries a maximum prison term of 20 years and a $5 million fine. Baldwin is currently released on bond. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King thanked the U.S. Secret Service for leading the investigation.
Assistant U.S. Attorneys Caryn Finley and Kenneth Smith of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Vacaville Felon Indicted for Manufacturing DMT and Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Robert Charles Crist, 56, of Vacaville, charging him with being a felon in possession of a firearm and manufacturing a controlled substance, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2022, law enforcement officers executed a search warrant at Crist’s home and found a lab he used to manufacture N,N‑Dimethyltryptamine, or “DMT,” a Schedule I controlled substance. Crist traveled to Hawaii to obtain plant materials for manufacturing DMT, which he mailed back to California in order to turn the plant materials into a crystalline controlled substance. Officers also found Crist in possession of a firearm. Crist is prohibited from possessing firearms because he has five prior felony convictions.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms; the U.S. Postal Inspection Service; and the Solano County Sheriff’s Office. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Crist faces a maximum statutory penalty of 15 years in prison and a $250,000 fine on the firearm count and a maximum of 20 years in prison if convicted for the manufacturing of a controlled substance count. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.