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Monday 14 November 2022
Former Adams County, Colorado Sheriff’s Deputy Sentenced for Child PornographyRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that CHRISTOPHER MARK HAENEL, 41, of Sheridan, Wyoming, was sentenced by United States District Court Judge Alan B. Johnson on November 7, 2022, for accessing with intent to view child pornography. Haenel was sentenced to 41 months in prison followed by 5 years of supervised release, and ordered to pay a $5,000 special assessment pursuant to the Victims of Sex Trafficking Act of 2015; a $500 special assessment and mandatory restitution of at least $3,000 per requesting victim pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018; and a $100 special assessment.
Haenel, a retired Adams County, Colorado, sheriff’s deputy, came to the attention of law enforcement when Kik, a social media platform, reported that he was sharing child pornography using its service.
This case was investigated by the Homeland Security Investigations Internet Crimes Against Children Task Force (ICAC) and the Wyoming Division of Criminal Investigation ICAC. Assistant United States Attorney Christyne M. Martens prosecuted the case.
This case is part of the Project Safe Childhood initiative. Project Safe Childhood is a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Learn more.
Case No. 22-00063-ABJ
Española man sentenced to two years in prison for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Douglas Smith, 71, of Española, New Mexico, was sentenced on Nov. 10 to two years and three months in prison. On June 18, 2021, a federal jury convicted Smith of involuntary manslaughter in Indian Country.
In the early morning hours of May 5, 2018, Smith shot a woman he believed was trying to break into his mother’s camper trailer. Smith walked outside his residence to investigate a motion sensor alarm, armed with a .22 caliber handgun. When he saw someone at the door of the camper trailer, he fired multiple rounds, one of which struck the victim in the upper left temple, killing her. No weapons or burglary tools were located near the victim.
The incident occurred on the Pueblo of Santa Clara and the victim was an enrolled member of the Santa Clara Pueblo. Smith is non-Indian.
Upon his release from prison, Smith will be subject to two years of supervised release.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the Española Police Department. Assistant U.S. Attorneys Novaline Wilson and Kyle Nayback prosecuted the case.
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Eastern District of California Completes Prosecution of 20 Defendants in DMV Corruption CasesRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announced today the completion of prosecutions of 20 defendants in a series of DMV corruption cases charged in the Eastern District of California. Charges against the defendants included bribery of public officials, identity fraud, unauthorized access of computers, and conspiracies to commit those offenses. The defendants included corrupt DMV employees who took bribes, trucking school owners and affiliates who bribed them, and others who participated in the conspiracies. The criminal activities charged in these cases took place throughout California, including the Central Valley, Los Angeles Basin, and as far north as Eureka.
Defendants helped put unqualified commercial drivers on the nation’s highways operating large commercial vehicles even though those drivers had not passed the necessary written and driving tests. DMV employees accepted bribes to enter fraudulent test scores for applicants who had not even taken the tests or who could not pass them. Various trucking schools in California looked for corrupt DMV employees they could bribe to help failing or unqualified students get their commercial licenses anyway. In total, hundreds of fraudulent commercial driver license permits and licenses were issued as a part of these schemes, jeopardizing public safety.
Every defendant charged in the cases has now been convicted and sentenced, except for one who passed away prior to trial. The convicted defendants and their sentences are:
Defendant’s Name
Case Number
Sentence
Shawana Harris
2:17-cr-210 TLN
60 months
Robert Turchin
2:15-cr-161 WBS
51 months
Mangal Gill
2:15-cr-161 WBS
51 months
Andrew Kimura
2:15-cr-161 WBS
46 months & $7,500 fine
Lisa Terraciano
2:17-cr-187 KJM
40 months & $500 fine
Jagpal Singh, aka “Paul”
2:17-cr-210 TLN
39 months
Donald Freeman
2:17-cr-207 KJM
37 months
David Sun
2:17-cr-223 KJM
37 months
Kari Scattaglia
2:17-cr-187 KJM
32 months & $1,000 fine
Rahim Mahboob
2:17-cr-213 GEB
27 months & $58,500 fine
Damanpreet Singh
2:18-cr-89 GEB
24 months
Emma Klem
2:15-cr-139 GEB
23 months
Aaron Gilliam
2:17-cr-200 KJM
22 months
Kulwinder Dosangh Singh, aka“Sandhu” and “Sodhi”
2:15-cr-146 GEB
19 months
Juan Arturo Arroyo Gomez
2:17-cr-207 KJM
12 months
Pavitar Dosangh Singh
2:15-cr-161 WBS
10 months
Parminder Singh
2:17-cr-210 TLN
Time served with 11 months home confinement
Poya Khanjan
2:17-cr-212 JAM
Time served with 6 months home confinement & $9,500 fine
Ruvila “Ruby” Lima
2:17-cr-212 JAM
Time served & $500 fine
Tajinder Singh
2:17-cr-210 TLN
Time served with 7 months home confinement & $5,500 fine
Defendants Terraciano and Sun later had their sentences reduced during the COVID-19 pandemic under the CARES Act.
These cases were the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs; the Federal Bureau of Investigation; Homeland Security Investigations; and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales prosecuted the cases.
Easley Man Sentenced to More Than Three Years in Prison on Federal Gun ChargeRead the Press Release
GREENVILLE, SOUTH CAROLINA --- Virgil Anthony Delord Greggs, 45, of Easley, was sentenced to more than three years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the Court showed that agents with the Carolina Regional Fugitive Task Force went to a hotel on Calhoun Memorial Highway to arrest Greggs on an outstanding warrant. While taking Greggs into custody, agents saw evidence of illegal drug use and secured a search warrant. While executing the warrant, they located a Taurus .380 pistol in a bookbag with Greggs’s belongings.
Greggs was indicted for being a felon in possession of a firearm and was detained without bond. Greggs pleaded guilty, and U.S. District Judge Donald C. Coggins, Jr. sentenced him to 41 months in federal prison to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
Greggs’s criminal history includes prior state convictions for assault and battery, criminal domestic violence, possession of crack cocaine and methamphetamine, and committing or attempting a lewd act on a child less than 16 years old.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol Tobacco Firearms & Explosives (ATF) and Carolina Regional Fugitive Task Force. Assistant U.S. Attorney Chris Schoen prosecuted the case.
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Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on November 10, 2022, ANGEL LUIS RODRIGUEZ, also known as “Lou Rock,” 45, last residing in Newington, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervise release, for trafficking cocaine. Judge Bryant also ordered Rodriguez to pay a $3,000 fine.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force first identified Rodriguez’s connection to drug trafficking in January 2018 when a DEA undercover agent posing as a money broker picked up $118,070 in heroin trafficking proceeds from an individual who was subsequently identified as Rodriguez. In April 2018, the undercover agent picked up $130,950 in drug trafficking proceeds from Rodriguez’s associate, Ismael Roman, also known as “Poochie” and “Pete.” On May 1, 2019, after investigators observed Rodriguez and Roman meet at an associate’s apartment in Enfield, they stopped Roman’s car and seized $27,000 in suspected narcotics proceeds. That same day, investigators searched the associate’s apartment and seized more than $1.1 million in cash.
During the investigation, investigators learned that Rodriguez and Roman conspired to traffic cocaine, and that Rodriguez used tractor trailer drivers to transport narcotics to Connecticut. On December 1, 2020, Rodriguez arranged with a tractor trailer driver to pick up approximately 15 kilograms of cocaine in the Chicago area, transport the cocaine back to Connecticut, and then return to Chicago with payment for the cocaine. On December 3, 2020, the individual picked up 15 brick-shaped packages of cocaine, weighing a total of approximately 14.5 kilograms, at a truck stop in the Chicago area. Rodriguez and Roman were arrested the next day.
Rodriguez has been detained since his arrest on December 4, 2020. On July 15, 2022, he pleaded guilty to attempting to distribute, and to possess with intent to distribute, cocaine.
Roman, 43, of Hartford, pleaded guilty to conspiracy to distribute cocaine and, on October 13, 2022, was sentenced to 41 months of imprisonment.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The investigation was assisted by the DEA Chicago Field Division and the Newington Police Department.
This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Dominican Drug Lord Pleads Guilty to Importing Tons of Cocaine into the United StatesRead the Press Release
SAN JUAN, Puerto Rico –Dominican drug lord Cesar Emilio Peralta-Adamez, also known as “El Abusador,” plead guilty to drug trafficking charges, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
On November 28, 2018, a Federal Grand Jury in the District of Puerto Rico returned an indictment against Peralta, charging him with conspiracy to import heroin and cocaine into the customs territory of the United States (Counts One and Two) and with distributing five kilograms or more of cocaine for purposes of unlawful importation into the United States (Count Three). Subsequently, Peralta was arrested in Colombia and extradited to Puerto Rico.
On November 4, 2022, Peralta plead guilty pursuant to a plea agreement to Count Two of the Indictment which charged that:
From in or about and between 2007 through June 2017, both dates being approximate and inclusive, from the countries of the Dominican Republic, Venezuela, Colombia, the Netherlands Antilles, Cesar Emilio Peralta, the defendant herein, did intentionally and knowingly combine, conspire, and agree with other persons known and unknown to the Grand Jury, to import into the customs territory of the United States, from places outside thereof, five (5) kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II Controlled Substance. All in violation of Title 21, United States Code, Sections 952, 960, and 963.
As part of the proceedings, Peralta also entered a plea of guilty for Count One of an Indictment stemming from the Southern District of Florida (SDFL) which was transferred to the District of Puerto Rico for sentencing purposes. In SDFL, Peralta was charged with Distribution of Cocaine for purpose of unlawful importation.
Peralta was the leader of a transnational criminal organization (TCO) based in the Dominican Republic. This TCO transported multi-ton shipments of cocaine from Colombia and Venezuela to Puerto Rico and the continental United States.
“This conviction demonstrates the Department of Justice’s commitment to disrupting and dismantling transnational criminal organizations,” said U.S. Attorney Muldrow. “We will continue to maximize our multi-agency efforts to bring to justice those who disregard our laws and smuggle drugs into Puerto Rico and the continental United States.”
The defendant agreed to forfeit four properties and one business in the Dominican Republic that were controlled by Peralta:
1. Flow Gallery Lounge in Santo Domingo;
2. La Koura Club in Santo Domingo;
3. Aqua Club, in Santo Domingo;
4. Al Panino, in Santo Domingo; and
5. Peralta Investment, SA.
This prosecution is part of the Organized Crime Drug Enforcement Task Force (OCDETF), which 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 Attorney General designated Peralta as an OCDETF Consolidated Priority Organizational Target (CPOT) in 2017. The Attorney General’s (AG) Interagency CPOT list is comprised of leaders who exercise “command and control” of the elements of the most prolific drug trafficking/money laundering organizations that have the greatest impact on the United States’ illicit drug supply. The CPOT list represents the “most wanted” of the cartel leadership and ensures that the full capabilities of the U.S. government are focused, in a coordinated and clear manner, on a group of agreed-upon high-level targets.
Since 2017, the Peralta Drug Trafficking Organization (DTO) has been investigated by agents assigned to the Caribbean Corridor Strike Force (CCSF). The CCSF is a multi-agency OCDETF strike force comprised of federal and state law enforcement agencies, including the Drug Enforcement Administration (DEA), Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), Federal Bureau of Investigation (FBI), U.S. Coast Guard Investigative Service (CGIS), and the U.S. Marshals Service, with the collaboration from the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, FURA, U.S. Customs and Border Protection, U.S. Border Patrol, and the IRS.
Peralta’s DTO was also investigated by the U.S. Department of the Treasury. On August 20, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified Peralta and his Drug Trafficking Organization as significant foreign narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).
The case is being prosecuted by Assistant U.S. Attorney Max J. Pérez-Bouret, Chief of the Transnational Organized Crime Section, and Assistant U.S. Attorney Jawayria Z. Auchter.
Peralta faces a possible sentence of 10 years and up to life in prison. The sentencing hearing is scheduled for May 5, 2023 at 2:00 pm before Judge Pedro A. Delgado Hernández.
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Daleville Man Sentenced to 130 Months in Prison Following Second Conviction for Possessing Child PornographyRead the Press Release
Montgomery, Alabama – Today, Nathan Alan Westbrook, a 44-year-old resident of Daleville, Alabama, received a 130-month prison sentence for possession of child pornography, announced United States Attorney Sandra J. Stewart.
According to court records, in 2015, Westbrook was convicted in federal court for possessing child pornography. At that time, he received a 33-month prison sentence. Westbrook completed that sentence in September of 2017 and was under the supervision of the United States Probation Office. In December 2021, after deception was detected during a polygraph examination, Westbrook’s probation officer began to suspect that Westbrook had been viewing child pornography. Westbrook’s internet-accessible devices were then seized from his Daleville residence pursuant to the terms of his supervised release. Analysis of the devices confirmed that Westbrook had collected images and videos of children who were engaging in sexually explicit conduct.
The probation officer then filed a petition to revoke Westbrook’s supervised release. Westbrook was arrested shortly thereafter. In June of 2022, based on the probation officer’s findings, a federal grand jury indicted Westbrook for possession of child pornography. Westbrook pleaded guilty to the new charge on August 16, 2022. In his plea agreement, Westbrook specifically admitted to using the dark web to view child pornography and that “some images were of prepubescent minors who had not yet attained 12 years of age.” Images were provided to the National Center for Missing and Exploited Children (NCMEC) to identify victims.
The judge sentenced Westbrook to 120 months on the new charge and ordered this sentence to run consecutively to the 10-month sentence he received for violating the terms of his supervised release. Following his prison sentence, Westbrook will be on supervised release for the remainder of his life. There is no parole in the federal system. The judge also ordered that Westbrook pay $60,000.00 to identifiable victims that have requested restitution payments.
This case was investigated by the Middle District of Alabama’s United States Probation Office, with assistance from the FBI and NCMEC. Assistant United States Attorney MaryLou E. Bowdre prosecuted the case.
Convicted Felon Charged with Federal Firearms OffensesRead the Press Release
BOSTON – A previously convicted felon was indicted by a federal grand jury in Worcester today for allegedly manufacturing and selling firearms – including ghost guns – and unlawfully possessing ammunition.
Mickie Simmons, 31, of Brookfield, was indicted on one count of conspiracy to deal firearms without a license, one count of dealing firearms without a license and two counts of being a felon in possession of ammunition. Simmons will appear in federal Court in Worcester on Nov. 15, 2022. Simmons was previously arrested and charged by criminal complaint on May 25, 2022.
According to the charging documents, on two separate occasions between March and May 2022, Simmons sold a confidential source ammunition and ghost guns – firearms that have been manufactured by an individual and not by a firearms manufacturing company. It is alleged that during a later search of Simmons’ residence, at least five ghost guns, including an AR-15 short-barrel rifle, 15 ghost gun kits, numerous rounds of ammunition, components of assault-style rifles, several other firearms and more than $25,000 in cash was seized.
Due to a 2014 state conviction for breaking and entering, larceny and conspiracy for which he was sentenced to 18 months in prison, Simmons is prohibited from possessing firearms and ammunition.
The charges of conspiracy to deal firearms without a license and dealing firearms without a license each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to a $250,000. The charges of being a felon in possession of ammunition each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to a $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorneys Danial E. Bennett and Brendan O’Shea of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Construction Company Owner Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A construction company owner became the third person to plead guilty for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy, from April 2015 through at least December 2019, to thwart the competitive bidding process for Caltrans contracts on numerous occasions in order to ensure that companies controlled by co-conspirators or himself submitted the winning bid and would be awarded the contract. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty for paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty to his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000.
“This construction company owner is the third person to plead guilty and the highest-level contractor to face justice in the Antitrust Division’s investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Transportation infrastructure is critical to our nation, so punishing bid-rigging and bribery schemes that target public works remains a top priority for the division and its Procurement Collusion Strike Force partners.”
“California has many government projects that obligate taxpayer money, making it important to root out corruption and protect the integrity of the contracting process,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Miller is scheduled to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines. In addition to his guilty plea, Miller has agreed to pay restitution.
Today’s guilty plea is the result of a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending go to https://www.justice.gov/procurement-collusion-strike-force.
Construction Company Owner Pleads Guilty to Bid Rigging and BriberyRead the Press Release
SACRAMENTO, Calif. — A construction company owner became the third person to plead guilty for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy, from April 2015 through at least December 2019, to thwart the competitive bidding process for Caltrans contracts on numerous occasions in order to ensure that companies controlled by co-conspirators or himself submitted the winning bid and would be awarded the contract. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty for paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty to his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000.
“This construction company owner is the third person to plead guilty and the highest-level contractor to face justice in the Antitrust Division’s investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Transportation infrastructure is critical to our nation, so punishing bid-rigging and bribery schemes that target public works remains a top priority for the division and its Procurement Collusion Strike Force partners.”
“California has many government projects that obligate taxpayer money, making it important to root out corruption and protect the integrity of the contracting process,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”
Miller is scheduled to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines. In addition to his guilty plea, Miller has agreed to pay restitution.
Today’s guilty plea is the result of a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). Assistant U.S. Attorney Lee S. Bickley and Antitrust Division Trial Attorneys Christopher Carlberg and Tai Snow Milder are prosecuting the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending go to https://www.justice.gov/procurement-collusion-strike-force.
Connecticut Man Sentenced to 84 Months of Imprisonment for Drug Distribution from Rutland ApartmentRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brownswell Cedano (a.k.a. “Twin,” “T,” and “J”), 28, of Hartford, Connecticut was sentenced to 84 months of imprisonment on November 10, 2022 in United States District Court in Rutland by Chief Judge Geoffrey W. Crawford. Cedano previously pleaded guilty to possession with intent to distribute cocaine base. Judge Crawford also ordered that Cedano serve three years of supervised release by the U.S. Probation Office after he serves his term of imprisonment.
Cedano’s three codefendants, Ralph Mariani, of West Hartford, Connecticut, Rashane Wedderburn, of Hartford, Connecticut, and Jasmine Wendell, of West Rutland, Vermont, have all pleaded guilty to drug trafficking offenses. Chief Judge Crawford previously sentenced Mariani to 70 months’ imprisonment. Wedderburn and Wendell are awaiting sentencing.
According to court records, on November 18, 2020 law enforcement executed a federal search warrant for an apartment at Traverse Place in Rutland, Vermont. Cedano, Mariani, Wedderburn, and Wendell were all present at the time of this search. Law enforcement seized approximately 50 grams of powder cocaine, 34 grams of cocaine base, 69 bags of fentanyl, 52 Oxycodone pills, and four firearms, including a loaded 9mm pistol located on the living room couch. Law enforcement also seized over six thousand dollars in cash: $1,880 from Cedano, $2,380 from Mariani, and $2,134 from Wedderburn.
According to court records, Cedano’s offense involved drug trafficking for profit, possession of firearms, violence, and threats of violence, including his participation of an assault of a female drug addict by Mariani to coerce her into dealing drugs for them in the Rutland area. In addition, Cedano was also trafficking heroin and cocaine base in Orleans County, Vermont. Finally, Cedano was on probation for a Connecticut drug offense while he was traveling to Vermont to sell drugs.
United States Attorney Nikolas Kerest commended the joint efforts of the Vermont State Police (Narcotics Investigation Unit), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rutland City Police, and Homeland Security Investigations of the Department of Homeland Security in this investigation. This case was prosecuted by Assistant U.S. Attorney Joseph Perella. Cedano is represented by Allan Sullivan, Esq. of Manchester, Vermont.
Concord Man Arrested for Possession of Child Sexual Abuse MaterialsRead the Press Release
CONCORD – Scott Wilkinson, 38, of Concord, New Hampshire, was charged in a criminal complaint today with one count of possession of child pornography, United States Attorney Jane E. Young announced today.
Wilkinson was arrested on Friday, November 11, 2022, and made an initial court appearance in the District of New Hampshire today at 3:00 pm. The defendant was detained and a detention hearing has been scheduled for November 17, 2022 at 2:30 pm.
The criminal complaint filed in court alleges that Wilkinson traveled from New Hampshire to New Jersey to engage in sexual intercourse with a 13-year-old female victim and used his phone to video the act which occurred in the back of his car. In addition, internet activity reported by Google, Inc. indicated that files depicting apparent child sexual abuse materials were uploaded to Wilkinson’s Google Drive account from the IP address associated with his residence in Concord.
The charges in the criminal complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation with assistance from the Concord Police Department and the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorneys Mark Zuckerman and Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Columbia Man Pleads to Federal Firearm and Drug ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Dakota F. Brown, 36, of Columbia, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition, and to possession with intent to distribute heroin, fentanyl, methamphetamine, and amphetamine.
Evidence presented to the court showed that on January 4, 2021, a Richland County Sheriff’s Department deputy stopped Brown’s vehicle. Brown exited the vehicle and removed a fanny pack from across his chest, laying it in the driver’s seat before walking back to talk to the deputy. The deputies smelled marijuana and searched the vehicle. The search revealed a loaded 9mm firearm, heroin, fentanyl, methamphetamine, and amphetamine within the fanny pack. Brown admitted that the items were his and that he had bought the gun off the street in December.
A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) linked the firearm to shell casings recovered from December 2020 shooting in Richland County. Local authorities have arrested another individual for that shooting and have no evidence linking Brown to the incident. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Brown, who has been in custody since his January 2021 arrest, is prohibited from possessing firearms and ammunition based upon his prior felony state convictions, which include strong arm robbery, possession of crack cocaine, criminal domestic violence of a high and aggravated nature, and possession with intent to distribute marijuana. Additionally, at the time of this incident, Brown was on federal supervised release after serving a 108 months sentence from a 2011 federal felon in possession of a firearm conviction. As a result of the January 4, 2021, arrest, Brown’s term of federal supervised release was revoked and he was sentenced to 24 months imprisonment, which is separate from the sentence he will receive as a result of his guilty plea to these current charges.
Brown faces a maximum penalty of 10 years in federal prison and a fine of $250,000 on the firearm/ammunition charge and a maximum penalty of 30 years imprisonment and a fine of $2,000,000 on the drug charge. After service of the term of imprisonment, Brown will also face a term of supervised release of up to six years. United States District Judge Sherri A. Lydon accepted the guilty plea and will sentence Brown after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney Stacey D. Haynes is prosecuting the case.
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Colombian National Living in Illinois Charged with Unlawful Transportation of Foreign Nationals in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Sebastian Buitrago-Valero, 23, of Chicago, Illinois, was indicted by a federal grand jury on November 10, 2022 on a charge of unlawfully transporting individuals he knew to have entered the United States illegally. Buitrago-Valero was arraigned on that charge this afternoon in United States District Court in Burlington, and he entered a plea of not guilty. The defendant remains detained pending further proceedings pursuant to a prior detention order issued by U.S. Magistrate Judge Kevin J. Doyle.
According to public documents in the case, on the evening of October 27, 2022, Border Patrol Agents were notified by the Royal Canadian Mounted Police that two individuals had just entered the United States near Ballard Road—a remote and rural location in the town of Highgate Center, Vermont. A United States Border Patrol Agent responded to the area and observed a blue Hyundai sedan with an out-of-state registration stop at the intersection of Ballard Road and Rollo Road, approximately one-half mile south of the international border. The agent then observed two individuals emerge from a ditch near the intersection and enter the sedan. The agent stopped the vehicle and identified its driver as Sebastian Buitrago-Valero. The agent determined that Buitrago-Valero was a Colombian citizen who had been arrested upon illegally entering the United States in November 2021, but he was thereafter released into the United States pending immigration court proceedings. The agent identified the two passengers in the vehicle and determined both were Colombian citizens who had just entered the United States illegally from Canada. Agents later determined that both passengers had also illegally entered the United States and been arrested earlier in 2022.
The U.S. Attorney’s Office emphasizes that an indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged, Buitrago-Valero would face up to 5 years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines.
Assistant U.S. Attorney Matthew Lasher represents the United States in this case. Buitrago-Valero is represented by Assistant Federal Public Defender Mary Nerino.
Clearfield County Man Pleads Guilty to Drug and Gun Charges in DEA-Led InvestigationRead the Press Release
PITTSBURGH, PA – A former resident of Woodland, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics and firearms laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Justin Zeruth, age 35, pleaded guilty on Thursday to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine and one count of possession of a firearm by a convicted felon before United States District Judge Christy Criswell Wiegand. Zeruth was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Zeruth was a distributor who purchased at least a pound of methamphetamine from Hillebrand that he then redistributed. On March 24, 2021, Zeruth, a felon precluded from possessing a firearm, was stopped while driving a vehicle. Officers searched the vehicle and seized a firearm.
Judge Wiegand scheduled sentencing for Zeruth on March 8, 2023, at 10:00 a.m. The law provides for a sentence of not less than five years to a maximum of forty in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion
Borough Police Department.This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CityXGuide Owner Sentenced to 8+ Years in Prison for Reckless Disregard of Sex Trafficking, Racketeering ConspiracyRead the Press Release
The owner of CityXGuide.com – a leading source of online ads for sex trafficking victims – was sentenced today to more than eight years in federal prison and ordered to forfeit more than $15 million in assets, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Wilhan Martono, 48, was arrested on June 19, 2020, the same day CityXGuide and its sister websites were seized by Homeland Security Investigations.
He pleaded guilty on Aug. 24, 2021 to one count of promotion of prostitution and reckless disregard of sex trafficking and one count of conspiracy to engage in interstate transportation in aid of racketeering enterprises - facilitating prostitution. The plea was the first ever entered under the Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA), the 2018 law that allows the federal government to prosecute websites that facilitate sex trafficking.
He was sentenced Monday to 97 months in federal prison by Chief U.S. District Judge David Godbey, who also ordered him to forfeit more than $15 million in assets, including more than $2 million in silver bullion and almost $1 million in cryptocurrency.
“The owner of CityXGuide intentionally disregarded the blatant sexual abuse occurring on his platform. He profited off of the exploitation of vulnerable women and children, just like the traffickers advertising them on his website did,” said U.S. Attorney Chad Meacham. “Human trafficking is one of the most despicable crimes we prosecute. The Justice Department and its partners will not rest until sites like this are eliminated and their creators brought to justice.”
“Thanks to the investigative efforts of our law enforcement partners on the HSI Dallas led North Texas Trafficking Task Force, the largest digital market place for sex trafficking and prostitution no longer exists,” said Lester R. Hayes Jr., Special Agent in Charge of Homeland Security Investigations Dallas. “This defendant’s greed and trafficking of those who were exploited through the commercial sex websites he created has cost him his freedom and the forfeiture of the criminal proceeds he obtained while committing these crimes. HSI will not relent until those who conspire in these illegal activities are brought to justice.”
“Today’s sentencing illustrates the Secret Service’s steadfast commitment to investigating financial crimes that take place in the ever-evolving cyber domain,” said Secret Service Special Agent in Charge of the Dallas Field Office William Smarr. “We are thankful for the tireless work of our local, state, and federal law enforcement partners as we worked together to bring this case to justice.”
According to court documents, Mr. Martono admitted that he created, owned, and operated CityXGuide and a suite of related websites, including Backpage.co, CAPleasures.com, and BodyRubShop.com, among others.
He registered the domain names for several of the sites on April 8, 2018 — just one day after the feds shut down Backpage.com, then the internet’s leading source of commercial sex advertisements. Like Backpage, Mr. Martono’s sites allowed users, including traffickers, to post hundreds of thousands of commercial sex advertisements worldwide.
In plea papers, Mr. Martono admitted that he turned a blind eye to the illegal sex trafficking occurring on CityXGuide.
Despite terms of use purportedly forbidding the advertisement of illegal sexual services, CityXGuide and its affiliated websites allowed brothels, pimps, and prostitutes to post hundreds of thousands of advertisements for sexual services, which users could then filter by geography and preference. The sites allowed advertisers to select from a pre-populated list of “intimate activities,” then add nude photographs, descriptions, work hours, methods of payment, and contact information for the women being advertised. In order to secure premium placement, the websites offered paid “upgrades,” which could be purchased in Bitcoin or in exchange for gift cards from Walmart, Best Buy, Amazon, and other retailers.
Mr. Martono then used CardCash, a third party gift card reseller, to exchange these gift cards for U.S. currency. He used a VPN to mask his IP address while conducting these CardCash transactions, then funneled proceeds though a network of business and personal bank accounts.
Despite receiving numerous emails from federal, state, and local law enforcement informing him that CityXGuide and its companion websites were being used to facilitate sex trafficking and child exploitation, he continued to operate those sites in the United States and around the world.
In court documents, prosecutors estimated that Mr. Martono netted more than $21 million off his websites, which users described as “taking over from where Backpage left off.”
The North Texas Trafficking Task Force conducted the investigation, led by Homeland Security Investigations’ Dallas Field Office, the United States Secret Service’s Dallas Field Office, and the Colleyville Police Department, with assistance from HSI’s El Paso and San Jose Field Offices as well as the Texas Department of Public Safety. Assistant United States Attorneys John de la Garza, Sid Mody (fmr), and Rebekah Ricketts (fmr) prosecuted the case.
Buffalo Man Charged with Conspiracy to Possess and Smuggling Machine GunsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Angel Flores, 34, of Buffalo, NY, was arrested and charged by complaint with conspiracy to possess machine guns and smuggling machine guns, which carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, on October 27, 2022, Customs and Border Protection officers intercepted a parcel, sent from China, at the FedEx facility at the Memphis International Airport in Memphis, Tennessee. The contents of the parcel were described as “plastic spring buckles used for clothes,” but an examination of the parcel found that it actually contained parts for several Machine Gun Conversion Devices (MCDs), which were concealed in a bag comingled among black plastic drawstring clips. The parcel, addressed to a residence on Sweet Avenue in Buffalo, was seized and turned over to Homeland Security Investigations. Subsequent investigation determined Flores resides at the Sweet Street address.
On November 9, 2022, an investigator delivered the parcel, without the MCDs, to the front steps of the Sweet Avenue residence. A short time later, Flores took the parcel inside before exiting the residence, at which time he was taken into custody.Flores made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bristol Man Sentenced to 70 Months in Prison for Trafficking Cocaine from Puerto Rico to ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on November 10, 2022, JORGE FREYTES, 37, of Bristol, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 70 months of imprisonment, followed by four years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service developed evidence regarding a drug trafficking organization that was sending USPS parcels containing kilograms of cocaine from Puerto Rico to Connecticut and Massachusetts. Between July and December 2018, law enforcement intercepted and seized five suspect parcels that were being mailed to addresses in Bristol, Meriden and Burlington, Connecticut, and in Worcester, Massachusetts. All five of the suspect parcels contained multiple kilogram-sized bricks of cocaine. On several occasions, investigators conducted surveillance of the delivery of suspect parcels and the scheduled delivery of seized parcels. During surveillance, investigators observed Freytes and others picking up or attempting to pick up parcels that had been seized. The investigation revealed that the cocaine was being sent from Puerto Rico by another member of the conspiracy
On January 9, 2019, investigators arrested Freytes and other members of this drug trafficking organization and seized approximately 2.5 kilograms of cocaine, items used to process and package narcotics, and more than $150,000 in cash.
Freytes has been detained since November 1, 2021, after his bond was revoked following his arrest on narcotics distribution charges while he was awaiting trial in his federal case. On November 4, 2021, he pleaded guilty in federal court to conspiracy to distribute 500 grams or more of cocaine. His state charges are pending.
This case is being investigated by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service. The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Beebe Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK—A Beebe man was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Lee P. Rudofsky sentenced Joshua Sweat, 30, to 25 years in federal prison.
In April 2019, police in Allen, Texas, notified the Little Rock Police Department that they had located messages between an individual they were investigating in Texas and Joshua Sweat, who lived in Arkansas. In the messages, Sweat stated he was caring for a “little boy” each day and began sending nude images of the child, who appeared to be approximately three years old.
Law enforcement located and interviewed Sweat, who told them he babysat locally and had access to small children. Sweat confessed to law enforcement that he had images of child sexual abuse on his phone that included children under the age of 10 engaging in oral and anal intercourse. Sweat also admitted to taking photos of the victim and texting them to others.
Sweat was indicted in May 2019 and pleaded guilty in May 2022. In addition to the prison term, Sweat was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the FBI; the Allen, Texas Police Department; and the Little Rock Police Department. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Athens Man Who Fired at Repo Workers and Fled Arrest Sentenced to Maximum Prison TermRead the Press Release
ATHENS, Ga. – An Athens resident with a violent criminal history who shot at two people attempting to repossess a vehicle and then led police on a high-speed chase was sentenced to the maximum prison term allowed under federal guidelines for illegally possessing a firearm.
Ceddrick Demon Mercery aka Stunt, 30, of Athens, Georgia, was sentenced to serve 120 months in prison by U.S. District Judge C. Ashley Royal on Nov. 9 after he previously pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“Prosecuting repeat offenders who are responsible for the greatest gun violence in our communities is our office’s highest priority,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, we will continue to hold convicted felons with violent pasts accountable at the federal level when they possess, or especially use, a firearm.”
“Career criminals who carry guns are a threat to the safety of our neighborhoods,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case is another example of how the FBI and our law enforcement partners in the Project Safe Neighborhoods program are dedicated to keeping the sanctity and security of our communities a priority.”
“Ceddrick Mercery is a career violent offender who is now removed from the streets of Athens and our community is safer for it,” said Chief Jerry Saulters, Athens-Clarke County Police Department. “I want to thank the U.S. Attorney’s Office and FBI for their assistance in this case. It is important that we continue to work with our state and federal partners to make Athens safe.”
According to court documents, two individuals seeking to lawfully repossess a Honda Accord located on Loblolly Road in Athens on Sept. 23, 2020, were nearly struck by the same vehicle as Mercery sped away from them driving the car. Mercery then drove toward Freeman Drive, made a wide right turn, stopped, rolled down the window and fired three shots at the individuals, who took cover from the gunshots and were not struck. An Athens-Clarke County Police Department (ACCPD) officer spotted the Honda Accord being driven by Mercery on Commerce Road and attempted to pull him over. Mercery fled at a high rate of speed through a residential complex and then abandoned the car, running away. Officers found heroin and methamphetamine in the vehicle. The following day, a loaded .40 caliber pistol was found discarded in front of an apartment building on College Avenue, which was along the route that Mercery had driven while fleeing apprehension. Ballistics tests confirmed this gun had been used in the shooting
FBI and ACCPD tracked Mercery to an apartment complex on Berlin Street and took him into custody on Oct. 26. Prior to his arrest, Mercery was armed with a pistol and was pacing inside the apartment, voicing displeasure that the police were outside the apartment. Mercery was taken into custody without incident. Agents found a loaded Glock .40 caliber pistol with an extended magazine and a laser sight inside the apartment. Mercery’s cell phone was also located inside the apartment; it had been broken and placed in a toilet. Mercery has a lengthy criminal history which prohibits him from possessing a firearm, including prior felony convictions for hit and run, possession of cocaine and aggravated stalking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
The case was investigated by the FBI Athens Middle Georgia Safe Streets Gang Task Force, Northeast Georgia Regional Drug Task Force and the Athens-Clarke County Police Department Gang Unit.
Assistant U.S. Attorney Mike Morrison prosecuted the case.
Friday 11 November 2022
Maryland U.S. Attorney Erek L. Barron Announces End of Year Strategies to Reduce Violent CrimeRead the Press Release
Baltimore, Maryland – At a press conference yesterday, U.S. Attorney Erek L. Barron, joined by federal, state, and local partners announced new initiatives to fight violent crime in Maryland. These efforts build on previous successes and are intended to prevent and reduce violent crime in Baltimore City. Partners at yesterday’s announcement included:
U.S. Attorney Erek L. Barron;
Governor Larry Hogan;
Colonel Woodrow W. “Jerry” Jones III, Superintendent, Maryland State Police;
Colonel Kevin Anderson, Chief, Maryland Transportation Authority Police;
Colonel Joseph Conger, Baltimore County Police Department; and
Deputy Chief Gerard Fleming, Anne Arundel County Police Department.This announcement was also following consultation with federal, state, and local partners including Baltimore Mayor Brandon Scott and Baltimore Police Commissioner Michael Harrison.
U.S. Attorney Erek Barron stated, “I have consulted and discussed these plans with Baltimore Mayor Brandon Scott, who provided ideas regarding strategy and implementation. I have also been in close communication with Baltimore Police Commissioner Michael Harrison who welcomed these new initiatives and our ongoing partnership.”
As discussed at the press conference, as part of our continued partnership with federal, state, and local law enforcement, we are initiating a Feeder Route Task Force, which draws upon the federal resources of the United States Attorney’s Office in tandem with the Maryland State Police, the Maryland Transportation Authority Police, Anne Arundel County Police and Baltimore County Police. If you are driving with a gun or drugs on a Maryland road know that task force members will be on the lookout. Prosecutors in the United States Attorney’s Office will screen any related traffic stops for potential federal prosecution.
One of the cornerstones of the Department of Justice’s Project Safe Neighborhoods is Community Outreach and Prevention. U.S. Attorney Barron, Governor Hogan, and Secretary Green of the Department of Public Safety and Correctional Services also announced a new strategy focusing on a “knock and talk” initiative involving unannounced home visits to parolees by a team that includes law enforcement and a social worker, to provide opportunities for education and job training and to connect parolees and their families with needed services while in their communities.
In addition, the U.S. Attorney’s Office is sponsoring and attending reentry events for returning citizens; participating in call-ins for those at risk of re-offending; and engaging the community members and youth through gang and internet safety training.
“All of us in law enforcement are committed to trying new and innovative ways to reduce violent crime. As we end 2022, we must continue to focus on preventing and reducing violent crime,” U.S. Attorney Barron concluded.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Man Pleads Guilty to Federal Charge for Illegal Possession of a Firearm in a School ZoneRead the Press Release
Baltimore, Maryland – Malcolm Goods, age 31, of Baltimore, Maryland, pleaded guilty yesterday to a federal charge for illegal possession of a firearm within a school zone.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Goods’ guilty plea, on September 12, 2021, Baltimore Police officers received a call for an armed person at the intersection of Pennsylvania and Cumberland Avenues in Baltimore. The person was carrying a gun, wearing a white construction hat and orange safety vest, and riding a bicycle. An officer monitoring a closed-circuit television camera located an individual, later identified as Goods, matching that description in the 600 block of Cumberland Avenue.
When officers arrived on scene, Goods got on a bicycle and rode on the sidewalk for a few blocks. Near the 1600 block of N. Carey Street, officers pulled over next to Goods told Goods to stop. They needed to speak with him because riding his bicycle on the sidewalk was prohibited by a local ordinance. The area is about one block away from Sandtown-Winchester Achievement Academy, a Baltimore public elementary and middle school. Goods initially agreed to stop, then rode away on the bicycle.
After briefly losing sight of Goods, officers found him knocking on someone’s front door and placed him into custody. An officer saw the grip of a firearm in Goods’ waistband and recovered a.40 caliber pistol with an obliterated serial number, loaded with 15 rounds of ammunition. During his arrest, including after he was read his Miranda rights, Goods made several spontaneous, incriminating statements which indicated that he was aware that he possessed a firearm.
Goods and the government have agreed that, if the Court accepts the plea agreement, Goods will be sentenced to two years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 3, 2023 at 2:00 p.m.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Brandon Moore and Special Assistant U.S. Attorney Sarah Simpkins, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Thursday 10 November 2022
Wormleysburg Man Sentenced for Theft from Federal Courthouse Construction SiteRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Gontaryk, age 47, of Wormleysburg, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Jennifer P. Wilson, to 18 months of imprisonment, to be followed by a three-year term of supervised release. Judge Wilson also ordered Gontaryk to pay $9,919.61 in restitution.
According to United States Attorney Gerard M. Karam, Gontaryk stole $9,919.61 worth of construction materials belonging to the United States from the site of the U.S. Courthouse being constructed in Harrisburg, Pennsylvania on October 11, 2021. The following day, he sold copper and brass construction materials that he had stolen at a metal scrapyard located in Pottsville, PA.
Gontaryk also faces an additional pending charge for stealing and retaining construction materials from the courthouse construction site in March 2022. Gontaryk has pleaded not guilty to that offense and is awaiting trial.
The case was investigated by the U.S. Department of Homeland Security, Federal Protective Service. Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Wood County Constable Federally Indicted for Use of Excessive ForceRead the Press Release
SHERMAN, Texas – A federal grand jury has returned an indictment charging an East Texas law enforcement official with federal violations in the Eastern District of Texas.
Kelly Jason Smith, 46, was named in the indictment returned by a federal grand jury on Nov. 10, in Sherman, Texas, charging him with deprivation of rights under color of law.
According to the indictment, on July 25, Smith, the Wood County Precinct 2 Constable, directed his police dog to bite a suspect who did not pose a threat that warranted use of the police dog. These actions resulted in unnecessary bodily injury to the suspect.
If convicted, Smith faces up to 10 years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Brit Featherston for the Eastern District of Texas and FBI Acting Special Agent in Charge James J. Dwyer made the announcement.
The FBI Dallas Field Office is investigating the case and the case is being prosecuted by Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas.
A grand jury indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Wichita Man Sentenced for Felon in Possession of a FirearmRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced on November 8, 2022 to 24 months in prison for illegally possessing a firearm. On August 22, 2022, William McGold, 47, of Wichita pleaded guilty to one count of possession of a firearm by a prohibited person.In April 2021, Sedgwick County Sheriff’s deputies pulled McGold over in a traffic stop. McGold was unable to produce a driver’s license, and deputies discovered that the vehicle he was driving had been reported as stolen. McGold was arrested, and the vehicle was searched. During the search, deputies discovered a safe under the driver’s seat, and a key to the safe was located on McGold’s key chain. When the safe was opened, deputies found a loaded firearm, which McGold admitted was his.
McGold was prohibited from possessing a firearm due to his prior felony conviction.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Sedgwick County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Alan Metzger prosecuted the case.
OTHER SENTENCINGS
Raul Galindo-Martha, 41, of Mexico, pleaded guilty to re-entry of a removed alien and was sentenced to 46 months. U.S. Immigration and Customs Enforcement (ICE) investigated the case. Assistant U.S. Attorney Alan Metzger prosecuted the case.
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Waxahachie Woman Charged in $1.2 Million Paycheck Protection Program, Economic Injury Disaster Loan Program FraudRead the Press Release
A Waxahachie woman who allegedly defrauded pandemic-era financial programs out of more than $1.2 million has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Annette Bryant, 63, was indicted last Tuesday on one count of wire fraud, eight counts of making false statements to a bank, and one count of engaging in monetary transactions in property derived from unlawful activity. She made her initial appearance before U.S. Magistrate Judge Toliver on Monday.
According to the indictment, Ms. Bryant – the sole owner and operator of a number of limited liability companies, including Processing Services, Inspirational Tax Services LLC, Neighborhood TX Inspections LLC, JJ&JJ Remodeling and Roofing LLC, and JAM Business and Tax Services – fraudulently applied for and obtained six Paycheck Protection Program (PPP) loans totaling $848,586 and four Economic Injury Disaster Loan (EDIL) Program loans totaling $359,500. She also allegedly attempted to obtain two additional PPP loans worth $411,160 that were never funded.
The indictment alleges that Ms. Bryant included false statements in PPP loan applications submitted to financial institutions administering PPP, including InterBank, Comerica, Regions Bank, and others. She allegedly inflated her businesses’ employee counts, inflated their payroll, and even lied about the number of businesses she owned. She also allegedly included false statements in EIDL loan applications submitted to the Small Business Administration, misrepresenting her businesses’ gross revenues.
Ms. Bryant allegedly went so far as to send the financial institutions tax documents she claimed were submitted to the IRS but which were never actually filed. These sham forms, including IRS Form 1040 (Individual Income Tax Return), IRS Form 940 (Employer’s Annual Federal Unemployment Tax Return), and IRS Form 941 (Employer’s Quarterly Federal Tax Return) allegedly contained false information about her businesses and about her personal income.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Ms. Bryant is presumed innocent until proven guilty in a court of law.
If convicted, she faces up to 30 years in federal prison on each count of making a false statement to a bank, 20 years on the count of wire fraud, and 10 years on count of engaging in monetary transactions in property derived from unlawful activity. Upon conviction, she will be required to forfeit the financial proceeds of the scheme or property traceable to it.
The U.S. Treasury Inspector General for Tax Administration, the Dallas Field Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG), and the Small Business Administration’s Office of Inspector General (SBA-OIG) conducted the investigation. Assistant U.S. Attorneys Marty Basu and Fabio Leonardi are prosecuting the case.
Both the Paycheck Protection Program (PPP) and the expanded Economic Injury Disaster Loan (EIDL) Program were authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and other certain expenses; EIDL provided quickly-issued, partially-forgivable loans to small business to cover operational expenses, including accounts payable, as well as payroll, mortgages, and other bills.
Waterville Man Indicted for Conspiring to Provide Material Support to Terrorists, Possessing Unregistered Destructive DevicesRead the Press Release
BANGOR, Maine: A Waterville man was charged with conspiracy to provide material support to terrorists and possession of unregistered destructive devices, U.S. Attorney Darcie N. McElwee announced.
A federal grand jury charged Xavier Pelkey, 19, in a two-count superseding indictment returned on November 9. Pelkey was originally indicted on April 15, 2022.
According to the superseding indictment and other court records, between November 2021 and February 2022, Pelkey conspired with other individuals to conduct a violent attack on a Shia mosque in the Chicago area. The indictment also alleges that on February 11 of this year, Pelkey possessed destructive devices, specifically three homemade explosive devices that were not registered to him in the National Firearms Registration and Transfer Record.
If convicted, Pelkey faces up to 15 years in prison on the material support charge and 10 years in prison on the destructive device charge.
The FBI investigated the case.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Watertown Man Arrested in Connection with African Sports Investment Fraud SchemeRead the Press Release
BOSTON – A Watertown man was arrested today for allegedly defrauding investors who believed they were financing lucrative short-term sports ventures in Africa.
Adrian Kawuba, 33, was charged with one count of wire fraud. Kawuba will appear in federal court in Boston at 2:30 p.m. today before United States Magistrate Judge M. Page Kelley.
According to the charging documents, Kawuba told his investors that he would invest their money in short-term financing of sports ventures in Africa and elsewhere overseas and that he would personally guarantee their investments. It is alleged however, that Kawuba did not invest any of the funds he received from victim investors. Instead, Kawuba allegedly used the money to pay for luxury goods and to pay purported returns to his investors – in some instances paying back an investor’s earlier investment with money that investors had just sent Kawuba for a new investment.
The charge of wire fraud provides a sentence of up to 20 years in prison, up to three years of supervised release, a fine of $250,000 or twice the monetary loss or gain, whichever is greater, restitution and forfeiture. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Watertown Police Department provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterloo Man Who Bought Guns for Other People Sentenced to over Six Years in Federal PrisonRead the Press Release
A Waterloo man who purchased at least 38 guns for other people was sentenced November 8, 2022, to over six years in years in federal prison.
Joshua William Butler, age 35, from Waterloo, Iowa, received the prison sentence after a May 3, 2022 guilty plea to false statement during purchase of a firearm and possession of a firearm by a drug user.
Evidence at the plea and sentencing hearings showed that in 2020, Butler purchased at least 38 firearms from different retailers in the Waterloo and Cedar Falls area. When Butler filled out the forms to purchase the firearms, he indicated that the guns were for him and that he did not use controlled substances. However, it was later determined that Butler purchased the firearms for others. In January 2021, police officers searched Butler’s Waterloo residence. During their search, officers found a Glock 9mm firearm, ammunition, a 33-round extended magazine, marijuana, and 62 ecstasy pills. The Glock 9mm had a serial number that someone had attempted to scratch off. Officers also searched a storage unit belonging to Butler and found another gun. Officers believe that only ten of the firearms purchased by Butler have been recovered. The majority of the firearms were recovered in the Chicago area. Many of the firearms were recovered from people who were lawfully prohibited from possessing firearms, including one individual who was out on bond at the time for murder charges.
“Keeping guns out of the hands of criminals saves lives. Our partners in this case, the ATF, FBI, and the Waterloo Police Department, successfully devoted their time and effort to put an end to Butler’s illegal activities,” said United States Attorney Timothy Duax. “As a result, our community is safer. To those who would act as straw purchasers and provide guns to convicted criminals, I can only say look at Mr. Butler, and ask whether you want to share his fate. The United States Attorney’s Office, its law enforcement partners, and the law-abiding public are committed to enforcing our firearms laws, and keeping guns out of the hands of violent criminals.”
ATF Special Agent in Charge, Fred Winston said: “Firearms trafficking is never a victimless crime and this case highlights ATF’s commitment to restrict the flow of firearms to the violent criminals. There is no way to know the number of violent crimes that were prevented by disrupting Mr. Butler’s firearms trafficking scheme, but we do know that this investigation not only put a trafficker behind bars, but also made our communities safer by limiting criminals access to firearms.”
Butler was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Butler was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Kyndra Lundquist. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Waterloo Police Department, FBI Safe Streets Task Force, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2020.
Follow us on Twitter @USAO_NDIA.
Vladimir Natera Abreu Sentenced to 15 Years in Prison and Eight Years of Supervised ReleaseRead the Press Release
SAN JUAN, Puerto Rico – Vladimir Natera Abreu was sentenced to 15 years in prison for drug trafficking by United States District Court Judge Silvia Carreño Coll.
Defendant Natera-Abreu was one of the main leaders in the drug trafficking organization known as “Las FARC,” (Las FuerzasArmadas Revolucionarias de Cantera).
According to court documents, Natera Abreu pleaded guilty on August 9, 2022 to one count of conspiracy to possess with intent to distribute crack, heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Villa Kennedy, Las Casas, El Mirador and Las Margaritas Public Housing Projects, and other areas, and within 1,000 feet of schools and playgrounds located in the Municipality of San Juan, Puerto Rico. The object of the conspiracy was the large-scale distribution of controlled substances for significant financial gain and profit.
The defendant also pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime and one count of money laundering.
The defendant agreed to forfeit to the United States any drug proceeds or substitute assets derived from proceeds generated or traceable to the drug trafficking offense, to include: $75,947,040 in U.S. currency, and the real estate properties as described in Count seven of the indictment.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; Joseph González, Special Agent in Charge of the FBI, San Juan Field Office; and Special Agent in Charge of the DEA, Denise Foster made the announcement.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service, and the Puerto Rico Police Bureau (PRPB), San Juan Strike Force, were in charge of the investigation.
Assistant U.S. Attorneys Alberto López-Rocafort, Joseph L. Russell, R. Vance Eaton, and María L. Montañez-Concepción prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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U.S. Postal Service Mail Carrier Pleads Guilty to Stealing from CustomersRead the Press Release
Assistant U. S. Attorney Andrew Sherwood (619) 546-9690
NEWS RELEASE SUMMARY – November 9, 2022
SAN DIEGO – Former U.S. Postal Service mail carrier Breanna Wares pleaded guilty in federal court, admitting that she stole approximately $2,700 worth of gift cards, cash and jewelry from customers.
According to her plea agreement, Wares stole these items from approximately 20 customers along her route near Camp Pendleton at the Brooks Street Station in Oceanside. Most of the addresses on her route were located on the U.S. Marine Corp Base Camp Pendleton and many of the victims were active members of the military.
A customer along Wares’ route reported that she mailed two gift cards to two different people and neither person received them. This report prompted agents from the Office of Inspector General to launch an investigation and discover that there were several other complaints of missing mail along Wares’ route.
Through the course of the investigation, agents determined that Wares unlawfully redeemed over 30 Target gift cards that had been placed in the mail, totaling more than $1,400. During a search of Ware’s personal vehicle, agents discovered more than 40 gift cards valued at more than $1,300. Agents also found sheets of stamps, jewelry, foreign currency, rifled and unrifled First Class Mail greeting card envelopes. Agents also found a Trader Joe’s gift card in Wares’ wallet.
When interviewed by agents from the Office of Inspector General, Wares admitted to stealing mail from customers for over a year.
Wares has agreed to pay restitution to her victims and a condition of her felony guilty plea is that she is prohibited from working in the mail, package, receipt and/or delivery industry.
“The defendant stole from those who entrusted their confidence in the delivery system,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office is committed to working with the U.S. Postal Service to protect the integrity of the system and bring justice to the victims of these crimes. Grossman thanked the prosecution team and the U.S. Postal Service Office of Inspector General for their excellent work on this case.
“The U.S. Postal Service employs over 630,000 men and women who are dedicated public servants,” said U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Executive Special Agent-in-Charge Glenn San Jose. “For over two centuries, the Postal Service has honored its fundamental commitment to protect the sanctity of the U.S. Mail. Today’s guilty plea demonstrates that theft of U.S. Mail, committed by a Postal Service employee, will not be tolerated. The public we serve can rest assured that the Postal Service Office of Inspector General, U.S. Attorney’s Office, and our partner law enforcement agencies, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
DEFENDANTS Case Number 22cr1465
Breanna Wares Age: 39 San Diego, CA
SUMMARY OF CHARGES
Theft of Mail by Postal Employee – Title 18, U.S.C., Section 1709
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
United States Postal Service - Office of Inspector General
U.S. Attorney's Office Reaches ADA Settlement with Portland Motel Lacking Accessible Entrances or Guest RoomsRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has reached a settlement with Studio 6, a Portland motel, to resolve allegations that the motel lacked accessible entrances, rooms, and other facilities.
The settlement resolves an Americans with Disabilities Act (ADA) complaint filed by an individual with a mobility impairment who alleged that Studio 6 did not have an available guest room to accommodate persons with mobility-related disabilities, including wheelchair users; had no accessible entrances or internal routes from the motel’s lobby to its guest rooms; and that the motel’s only accessible parking space was being used for other purposes and its reservation service failed to sufficiently identify and describe the property’s accessible guest rooms.
Under the ADA, inns, hotels, and motels may not exclude individuals with disabilities by failing to provide accessible accommodations and accurately describing their accessible features in enough detail to reasonably permit individuals with disabilities to assess whether a property will meet their accessibility needs.
Under the settlement agreement, Studio 6 has agreed to make certain modifications to improve accessibility at its property, including installing an exterior wheelchair ramp to the main entrance, providing three accessible guest rooms and parking spaces, altering the lobby area and first floor to increase overall accessibility, and conducting annual ADA staff training.
“Our office is committed to working with any property owners, public or private, to help obtain compliance with the ADA,” said Natalie Wight, U.S. Attorney for the District of Oregon.
Studio 6 cooperated with the U.S. Attorney’s Office during this investigation.
The United States was represented in this matter by Michael Jeter and Joshua Keller, Assistant U.S. Attorneys for the District of Oregon.
Individuals in Oregon who believe their civil rights may have been violated may submit complaints online by visiting https://civilrights.justice.gov. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).
U.S. Attorney's Office Joins Effort to Crackdown on Violent Crime in DenverRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado joined the Downtown Denver Partnership, Denver Mayor Michael Hancock and the City and County of Denver, the Denver Police Department, the Colorado Attorney General, and RTD to announce an infusion of resources to address both immediate health and safety concerns in the center city while targeting root problems and long-term solutions.
Comments from U.S. Attorney Cole Finegan as made at Public Safety News Conference in Denver on November 10, 2022:
Good afternoon. The United States Attorney’s Office here in Colorado is proud to be part of this effort to address the rise in violent crime, here in downtown Denver and across the state. When I came into this role nearly a year ago, we tried to figure out, is there a way that our office can help? What we have come up with is a creative and innovative solution to work together and help each other make Denver a safer place to live, work and visit.
The U.S. Attorney’s Office prosecutes the most serious offenders, who are most involved with violent crime in our community. We are focusing on violent criminals who carry or use firearms. Just yesterday, two separate federal juries returned guilty verdicts for felons who were caught with guns.
State differs from federal law and allows certain felons to still carry weapons. Federal law makes it illegal for a felon to possess a firearm or ammunition. Violators can face up to ten years in prison and a $250,000 fine.
Federal law also creates mandatory minimum sentences of between five and ten years in prison for possessing, brandishing, or discharging a firearm during the commission of violent crimes or drug crimes.
We have powerful tools in federal law, and we are not afraid to use them.
Take for example the gunman who forced his way into Children’s Hospital in September. Initially, he was charged at the state level, but was released on bond. We were able to charge him under federal law, and he is being held in jail pending his trial. He is charged with being a felon in possession of a gun, and possession of a machine gun.
Another example from just down the street: Two felons were involved in a shootout in September of 2018, at the corner of 15th and Market. An innocent bystander was hit and seriously wounded by the gunfire. Both defendants were charged with being felons in possession of firearms and ammunition. Armando Durete was convicted after trial and Nickie Rico pled guilty to the charge. Rico was sentenced to more than 8 years in prison. Durete was sentenced to 10 years in prison.
So, we have a federal law that will allow us to charge, detain, and prosecute felons and other dangerous criminals who are caught with a gun. But we have a challenge in making full use of federal law. We have a dedicated team of prosecutors working on violent crime, and we want to do more. Now, thanks to the Mayor, City Attorney, and funding from the Denver City Council, we are in the process of hiring four special prosecutors, who will be designated as "Special Assistant United States Attorneys”. These additional prosecutors will help us make sure we have the resources to charge as many of these dangerous criminals, as possible.
This should send a powerful message to criminals: We are bringing federal criminal charges against felons with guns and criminals using guns in crimes of violence or drug trafficking. Additional special prosecutors for the U.S. Attorney’s Office, funded by the City and County of Denver, will help us make sure we take these violent criminals off the streets and send them to prison for a long time.
We appreciate you helping us spread the message.
Two Defendants Sentenced for Conspiring to Distribute Ketamine to Aid in Kidnapping of Slidell Teenager, Resulting in His DeathRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on November 9, 2022, U.S. District Court Judge Jane Triche Milazzo sentenced WILLIAM HARRISON FARRIS (“FARRIS”), age 43, of New Orleans, and KACIE DOUCET (“DOUCET”), age 41, of Larose, Louisiana, for their participation in a scheme to drug and kidnap an 18-year-old Slidell resident, resulting in the teenager’s death. FARRIS was sentenced to serve 87 months in prison, followed by two years of supervised release, along with a $100 mandatory special assessment fee. DOUCET was sentenced to serve 88 months in prison, followed by two years of supervised release, along with a $100 mandatory special assessment fee.
Both defendants previously pleaded guilty to one count of Conspiracy to Distribute Ketamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(E), and 846. According to court records, FARRIS and DOUCET conspired with co-defendant Leilani Aspuria, along with Carlos Mario Cantu-Cox and Christopher Cantu-Cox (who were charged in a separate case), to kidnap the teenage victim and transport him to Texas against his will. The Cantu-Coxes were a married couple based in the Houston area who distributed methamphetamine in New Orleans. At the time of his kidnapping, the victim owed money to the Cantu-Coxes and was deliberately trying to avoid the two men.
FARRIS, who was a drug customer of the Cantu-Coxes and was aware that the Cantu-Coxes were trying to find the victim, knew that DOUCET was connected to the victim on Facebook. At the direction of FARRIS, DOUCET contacted the victim over Facebook on multiple occasions and suggested that they meet for a sexual encounter.
FARRIS and DOUCET were aware that DOUCET’s offer of a sexual encounter with the teenage victim was a ruse, and that the real purpose of picking up the victim was to provide him with a cocktail of powerful drugs and thus render him incapacitated so he could be delivered to the Cantu-Coxes, who were staying at a hotel in downtown New Orleans. The Cantu-Coxes supplied the drug cocktail, as well as instructions on how to mix the drugs with alcohol so that it could be administered to the victim without him knowing what he was taking.
To accomplish the scheme, FARRIS and DOUCET enlisted the help of Aspuria, the only one of the three with a car. On February 23, 2016, DOUCET and Aspuria picked up the victim from his grandfather’s home in Slidell. DOUCET gave the victim the Cantu-Coxes’ drug cocktail, which the couple referred to as an “elixir.” DOUCET, Aspuria, and the victim then drove around New Orleans for a number of hours, waiting for the victim to pass out. FARRIS, who was not in the car, assisted by serving as the intermediary between DOUCET, who was texting updates of the victim’s condition, and the Cantu-Coxes, who were waiting at the hotel.
At one point, DOUCET and Aspuria drove to the back of the hotel and attempted to deliver the victim to the Cantu-Coxes and FARRIS, who were waiting outside with a wheelchair. The victim was barely awake but not yet unconscious. When the car arrived, FARRIS attempted to pull the victim out of the car, but the victim woke up and became aggressive. DOUCET and Aspuria then drove off with the victim and continued to wait for the victim to pass out.
Later, DOUCET and Aspuria again drove to the hotel with the victim, who at that point was unconscious in the back seat. The Cantu-Coxes produced two needles containing ketamine. Aspuria injected one of the needles into the victim’s body, while DOUCET and FARRIS watched without objection. The victim did not move when he was injected, and no one checked to determine whether the victim was still breathing after the injection.
At that point, the teenager’s body was transferred to the Cantu-Coxes’ car, and the Cantu-Coxes began driving back to Texas. Somewhere near the Louisiana-Texas border, the Cantu-Coxes realized that the victim was no longer breathing. The Cantu-Coxes continued driving to their home in Pasadena, Texas and parked in their driveway. Because it was still daylight, they left the victim’s body in the car. At nightfall on February 24, 2016, the Cantu-Coxes drove to a bridge over Sims Bayou in the Houston area and put the victim’s body into the bayou. The victim’s body washed to the shore a week later. The Cantu-Coxes later paid FARRIS a quantity of methamphetamine for his efforts in capturing the victim.
On February 5, 2020, Judge Milazzo sentenced Leilani Aspuria to ten years of imprisonment. On June 29, 2021, U.S. District Court Judge Wendy Vitter sentenced Carlos Mario Cantu-Cox and Christopher Cantu-Cox to twenty years of imprisonment.
U.S. Attorney Duane A. Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Houston Police Department, and the Drug Enforcement Administration. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Two Defendants Charged for Nationwide Online Marketing Scheme That Fraudulently Enrolled Customers in Credit Monitoring Monthly SubscriptionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the indictment of MICHAEL BROWN and ANDREW LLOYD for wire fraud charges in connection with a nationwide online marketing scheme to post fake advertisements for rental properties across the United States on a classified advertisements website. The purpose of the scheme was to fraudulently induce potential customers to enter their credit card information on credit monitoring websites owned by BROWN and obtain a credit report under false pretenses in order to automatically enroll the customers in a monthly membership for credit monitoring services. BROWN was arrested at Newark Liberty International Airport in New Jersey on October 27, 2022, after he arrived on a flight from Mexico and was detained pending trial. LLOYD was arrested earlier today in Pennsylvania and will be presented in the United States District Court for the Western District of Pennsylvania later today. The case is assigned to United States District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “Online scams have spiraled out of control, to the point where nearly every online interaction must be approached with weariness of its validity. Nevertheless, as alleged, Michael Brown and Andrew Lloyd gave their victims no opportunity to suspect a scam as they enrolled thousands of victims to a nearly $30 a month fee using seemingly reputable websites and deceptive practices. I commend the efforts of this Office and our law enforcement partners in prosecuting these scams that have become a near-daily frustration, and today’s arrests show that we will continue to zealously investigate consumer fraud.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, the defendants operated a complex scheme, using phony advertisements to trick victims into unknowingly enrolling in a monthly credit monitoring service. The FBI remains steadfast in our efforts to investigate and eliminate online scams and hold the fraudsters accountable in the criminal justice system.”
According to allegations in the Indictment filed in Manhattan federal court:[1]
MICHAEL BROWN owned and operated Credit Bureau Center, LLC, formerly known as MyScore LLC (“MyScore”), a Delaware limited liability company which provided credit reports and credit monitoring services via the websites eFreeScore.com, FreeCreditNation.com, and CreditUpdates.com, among other sites (collectively, the “MyScore Websites”). ANDREW LLOYD was an affiliate that worked with a co-conspirator (“CC-1”), the owner of an affiliate marketing company, to drive potential customers to the MyScore Websites. In affiliate marketing, a seller of goods or services such as MyScore uses other firms or individuals known as “affiliates” to market the seller’s goods or services by attracting customers to the seller’s websites. BROWN contracted with CC-1 in order to increase customer traffic to the MyScore Websites.
From at least in or about 2014 through at least on or about January 10, 2017, BROWN, LLOYD, and CC-1 engaged in a nationwide online marketing scheme to post fake advertisements for rental properties across the United States on a classified advertisements website (the “Advertising Website”). The purpose of the scheme was to fraudulently induce prospective renters to enter their credit card information on the MyScore Websites and obtain a credit report under false pretenses in order to automatically enroll them in a monthly membership for credit monitoring services.
The advertisements used in the scheme typically contained photos of the rental properties and showcased properties in desirable locations for below-market prices in order to attract interest. The advertisements were posted for rental properties in metropolitan areas across the United States, including, among other locations, New York City, Miami, Atlanta, Houston, Los Angeles, and San Diego. In actuality, the rental properties did not exist as advertised or were not actually available for rent through the posts on the Advertising Website. The advertisements also did not disclose the specific address of the rental properties but instead contained a contact email address inviting prospective renters to contact the property owner if they were interested in the rental property.
When prospective renters inquired about the rental properties posted on the Advertising Website by responding to the advertisements, they received a form email purporting to be from the property owner requiring the prospective renter to obtain a copy of their credit report, and referring the prospective renter to one of the MyScore Websites to obtain a credit report, before scheduling a tour of the property. The form email typically described purported features of the advertised property and falsely informed the prospective renter, in substance and in part, that he or she was the second person to respond to the advertisement, that the first responder no longer needed the property, and that the property owner was ready to lease the property to the prospective renter with flexible terms and had just completed all new renovations.
Once a prospective renter clicked on the hyperlink in the form email from the purported property owner to obtain a copy of their credit report, the prospective renter was directed to the “landing page” of one of the MyScore Websites. The landing page of the MyScore Websites typically featured a large banner that stated, in substance and in part, “Get Your Free Credit Score and Report” with significantly smaller text referencing an unspecified “7-day trial” and a “Monthly membership of $29.94 automatically charged after trial.” In order to get the credit report, prospective renters were required to enter identifying information and credit card information through a series of webpages. Once the prospective renter entered credit card information, the prospective renter was charged $1.00 and was automatically enrolled in a monthly membership for credit monitoring services with recurring charges of typically $29.94 per month until the membership was cancelled.
When prospective renters responded to the purported property owner asking to schedule a tour of the advertised property now that they had a copy of their credit report, there was typically no response, as the property was not actually available for rent as advertised and the scheme had succeeded in fraudulently generating a monthly membership subscription for MyScore. Many prospective renters who obtained a credit report from the MyScore Websites as a result of the scheme did not realize that they had been automatically enrolled in MyScore’s membership until they discovered the monthly charges on their credit card statements. Some prospective renters also had difficulties canceling the membership when they contacted MyScore’s customer service department.
BROWN, LLOYD, and CC-1 continued to execute the scheme through at least on or about January 10, 2017, despite numerous complaints during the course of the scheme from customers and consumer organizations about the fraudulent nature of the rental advertisements on the Advertising Website, the automatic enrollment of customers in MyScore’s monthly membership with recurring charges without their knowledge, and the difficulties in cancelling the monthly membership.
In total, the scheme caused over approximately 2.7 million unique visits to the MyScore Websites and generated approximately $6.8 million in revenue from approximately 169,000 customers who were automatically enrolled in MyScore’s monthly membership for credit monitoring services through the scheme.
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BROWN, 37, who was residing in Mexico, and LLOYD, 30, of Beaver, Pennsylvania, were each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI. Mr. Williams also thanked the Federal Trade Commission for their assistance with the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sagar K. Ravi is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Three New York City Correction Officers Charged with Fraud for Lying to Stay on Sick Leave for over a YearRead the Press Release
Two criminal complaints were unsealed today in federal court in Brooklyn charging three correction officers employed by the New York City Department of Correction (DOC) at Rikers Island with federal program fraud. Correction Officers Steven Cange, Monica Coaxum and Eduardo Trinidad were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) announced the charges.
“As alleged, in the midst of an ongoing staffing crisis at Rikers Island, the defendants defrauded New Yorkers by fraudulently obtaining their full salaries while taking over a year of sick leave. These correction officers abandoned their oath to protect inmates and put the safety of their fellow correction officers at risk” stated United States Attorney Breon Peace. “Today’s arrests demonstrate that this Office remains committed to rooting out corruption at Rikers Island and protecting New Yorkers from public officials who steal their tax dollars.”
“As alleged, the defendants deliberately violated their oath when they participated in an elaborate scheme to defraud our community. The FBI and our partners are committed to disrupting these fraudulent scams and holding the public officials who perpetuate them accountable,” stated FBI Assistant Director-in-Charge Driscoll.
DOI Commissioner Jocelyn E. Strauber said, “As charged, these New York City Correction Officers feigned illness and submitted false medical documentation to take sick leave during a staffing crisis, defrauding the City of New York of hundreds of thousands of dollars. Today’s arrests hold these Correction Officers accountable for the shameful dereliction of duty alleged in the Complaints. I thank the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their continuing partnership and efforts to bring to justice those whose misconduct jeopardizes the safety and stability of the City’s jails.”
As alleged in one complaint, New York City Correction Officer Steven Cange fraudulently obtained more than $160,000 in salary by being on sick leave from March 2021 to the present. Although Cange claimed that he suffered from symptoms of vertigo and side effects from the COVID-19 vaccine, evidence obtained by law enforcement demonstrates that Cange was able to work. During his sick leave, Cange submitted more than 100 fraudulent medical notes to DOC demonstrating that he was at physical therapy or another medical provider when records subpoenaed from those providers demonstrate that Cange was not at those appointments. Law enforcement also observed Cange engaging in normal life activities with no apparent difficulty.
As alleged in a separate complaint, New York City Correction Officer Monica Coaxum fraudulently obtained more than $80,000 in salary by being on sick leave from March 2021 to May 2022, and her fiancée, Correction Officer Eduardo Trinidad, fraudulently obtained more than $140,000 in salary by being on sick leave from June 2021 to November 2022. Although Coaxum claimed to suffer from multiple injuries, evidence collected by investigators shows that she was able to work. During her sick leave, Coaxum submitted nearly 50 fraudulent medical notes to DOC stating that she had gone to a medical appointment at times law enforcement determined she was elsewhere. Additionally, evidence shows that on some occasions where Coaxum claimed to be injured and at home, she was traveling and at parties. When approached by law enforcement, Coaxum admitted to forging some medical documents.
Trinidad likewise obtained more than $140,000 by claiming to be too injured to work for over a year. Although he went to medical appointments with DOC wearing some combination of a sling, cane, and/or boot, photographic and video evidence during the same period showed Trinidad doing normal life activities like home improvement work, bowling and traveling abroad, without any difficulty or help from equipment like a boot, sling or cane.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorneys Philip Pilmar and Andrew Grubin.
The Defendants:
STEVEN CANGE
Age: 49
Brooklyn, NYE.D.N.Y. Docket No. 22-MJ-1204
MONICA COAXUM
Age: 36
Harrison, NYEDUARDO TRINIDAD
Age: 42
Yonkers, NYE.D.N.Y. Docket No. 22-MJ-1203
Stroudsburg Man Sentenced to 24 Months’ Imprisonment for Heroin and Fentanyl TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 10, 2022, United States District Court Judge Robert D. Mariani sentenced Keith Parson, age 50, of Stroudsburg, PA, to 24 months’ imprisonment and a 3-year term of supervised release, for Possession with Intent to Distribute Heroin and Fentanyl.
According to United States Attorney Gerard M. Karam, from approximately November 2020 until November 2021, in Monroe County, Parson distributed street level quantities of a substance containing heroin and fentanyl, including from his residence in Stroudsburg. On November 10, 2021, a search warrant was executed at Parson’s residence and authorities located approximately 5 grams of a substance containing heroin and fentanyl, along with packaging materials and other items consistent with both drug use and distribution.
The matter was investigated by the Federal Bureau of Investigation (FBI) and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant U.S. Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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St. Joseph Man Sentenced to 15 Years for Meth, Heroin Trafficking and Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was sentenced in federal court today for possessing methamphetamine and heroin to distribute and illegally possessing firearms.
Matthew J. Crossfield, 40, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
On June 1, 2022, Crossfield pleaded guilty to two counts of possessing methamphetamine with the intent to distribute, one count of possessing heroin with the intent to distribute, and two counts of possessing firearms in furtherance of drug-trafficking crimes.
St. Joseph police officers were called to a Dollar General Store on Dec. 11, 2019, in response to a theft that had just occurred. An officer checked the area where the thief had fled and saw Crossfield, who matched the description of the thief, walking into Oak Ridge Apartments. When Crossfield saw the officer, he immediately ran into an apartment building. The officer followed him into the building and caught up with him on the third floor. The officer ordered Crossfield to place his hands on the wall, but Crossfield started running with the officer in pursuit. The officer eventually caught up to Crossfield, tackled him to the ground, and detained him.
Crossfield had a loaded SCCY 9mm pistol in the front waistband of his jeans. Crossfield also had a fanny pack in his front left jacket pocket, which contained a plastic bag with approximately 10.9 grams of methamphetamine, a plastic bag that contained approximately 1.4 grams of heroin, and a plastic bag that contained 11.7 grams of heroin. Crossfield had another bag in his left front jeans pocket that contained approximately 14.1 grams of methamphetamine. His right front jeans pocket contained a bag with approximately 13.8 grams of marijuana and four suboxone strips.
On Jan. 13, 2021, investigators with the Buchanan County Drug Strike Force and the St. Joseph, Police Department were conducting surveillance on Crossfield, who had two active felony warrants for his arrest. They located Crossfield, who was driving a white PT Cruiser, in the area of Illinois Street and Stockyards Expressway in St. Joseph. When Crossfield pulled into the driveway at an Arby’s restaurant, a detective pulled in front of him and an investigator pulled behind him and activated his emergency lights. When Crossfield saw the detective pull in front of him, he attempted to get away by putting his car in reverse, striking the investigator’s patrol vehicle. After striking the patrol vehicle, Crossfield placed both hands in the air.
Investigators saw a loaded Taurus 9mm pistol with an extended magazine (that contained 25 rounds) in between Crossfield’s legs. officers took Crossfield into custody and found a loaded KelTec .22-caliber handgun in his back pocket. Crossfield also had a belt around his waist (under his shirt) that contained a plastic bag with approximately 2.1 grams of methamphetamine, a plastic bag with approximately 14.7 grams of heroin, a plastic bag with approximately 3.4 grams of heroin, and two plastic bags with approximately 20-25 ecstasy pills. Officers searched Crossfield’s vehicle and found two bags of marijuana and rolling papers, a bag of approximately 21.7 grams of methamphetamine, a bag with approximately 11.5 grams of methamphetamine, a bag with 1.6 grams of methamphetamine, a bag with 4.1 grams of methamphetamine, a jar with 92.4 grams of marijuana, and drug paraphernalia.
Crossfield told investigators he had been selling 10 ounces of heroin every eight days since approximately August 2020. He also admitted he had been selling drugs since he was released from prison in 2018.
This case was prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buchanan County Drug Strike Force, and the St. Joseph, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Seven Indicted for Trafficking Methamphetamine, Cocaine, and FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 24-count indictment today against seven defendants, charging them with drug trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
Cesar Losoya-Castrejon, 46, of Tulare, is charged with two counts of conspiracy to distribute methamphetamine and fentanyl, twelve counts of distribution of methamphetamine and fentanyl, one count of possession with intent to distribute methamphetamine, and one count of using a cellphone in aid of racketeering;
Arturo Farias-Zepeda, 52, of Atwater, is charged with one count of conspiracy to distribute methamphetamine, three counts of distribution of methamphetamine, and one count of using a cellphone in aid of racketeering;
Juan Cesar Valencia-Zepeda, 38, of Merced, is charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine;
Roberto Soria-Cuevas, 62, of Yettem, Tulare County, is charged with one count of distribution of methamphetamine;
Ricardo Rivas-Arredondo, 31, of Earlimart, Tulare County, is charged with one count of distribution of methamphetamine;
Jose Adan Chaidez Ojeda, 38, of Earlimart, is charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine; and
Julio Cesar Vargas-Birrueta, 30, of Yettem, is charged with one count of distribution of fentanyl and one count of possession with intent to distribute fentanyl.
According to court documents, between October 2021 and October 2022, Losoya-Castrejon, with the assistance of Farias-Zepeda, Valencia-Zepeda, Soria-Cuevas, Arredondo, and Chaidez Ojeda, distributed over 130 pounds of methamphetamine to a DEA confidential source.
On Oct. 12, 2022, agents uncovered an active methamphetamine conversion laboratory in Ducor, in Tulare County, that allegedly was used to convert liquid methamphetamine into crystal methamphetamine for distribution. Large quantities of crystal and liquid methamphetamine were seized in the laboratory. In total, law enforcement seized approximately 500 pounds of crystal methamphetamine and approximately 500 gallons of liquid methamphetamine from the conversion laboratory.
The case is the result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the San Joaquin County Metropolitan Narcotics Task Force, and the Tulare County Sheriff’s Office, the Tulare County High Intensity Drug Trafficking Area Unit (HIDTA). Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. All of the defendants also face a mandatory minimum sentence of 10 years in prison. 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.
Seffner Man Sentenced for Role in Construction-Related Wire and Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Ricky Gonzales to 48 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States. The court also entered an order of forfeiture in the amount of $500,731.13, the proceeds of the wire-fraud conspiracy. Gonzales had pleaded guilty to the charges on August 9, 2022.
According to court documents, Gonzales owned and managed a construction company that purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, the company that Gonzales operated was required to secure and maintain adequate worker’s compensation insurance coverage. Gonzales’ company had agreements with contractors and subcontractors to use workers purported to be Gonzales’ employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Gonzales or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Gonzales’ purported “employees” and other related expenses.
During the time period charged, Gonzales falsely and fraudulently represented in insurance applications that his company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Gonzales also falsely and fraudulently sent wire communications to numerous contractors representing that his company’s employees had full worker’s compensation coverage.
In reality, Gonzales’ company received and cashed more than $7,150,000 in checks from various construction contractors for these purported “employees”. These payroll figures far exceeded the very limited payroll figures that Gonzales had reported to his worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Gonzales’ company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well. As a result of this conspiracy, the IRS was unable to collect over $1,094,000 in employment taxes on these workers’’ wages.
“This criminal defrauded insurance companies out of thousands in premiums through undervalued workers’ compensation insurance policies, then profited off the backs of hundreds of non-citizen workers by renting those policies for a fee from their pay checks,” said HSI Tampa Assistant Special Agent in Charge John Dumas. “HSI special agents, alongside the Internal Revenue Service - Criminal Investigation, are committed to ensuring that all workers have the safety net of proper workman’s compensation insurance policy.”
“Gonzales and his conspirators used a shell of lies to evade their tax obligations and skirt workers’ compensation expenses. They short-changed not only the U.S. government but also honest hard-working construction companies,” said Brian Payne, IRS-CI Special Agent in Charge. “Employment tax and workers’ compensation schemes are rampant in Florida’s construction industry and will continue to be a top priority of IRS-CI.”
This case was investigated by the Homeland Security Investigations, the State of Florida Department of Financial Services, and the Internal Revenue Service-Criminal Investigation. It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Search Warrants Executed in Cook and Tift CountiesRead the Press Release
ALBANY, Ga. – Federal search warrants were executed at 13 locations in Cook and Tift Counties this morning in a joint law enforcement operation involving FBI, U.S. Postal Inspection Service, GBI, Cook Co. Sheriff’s Office, Lowndes County Sheriff’s Office, Adel Police Department and Hahira Police Department.
Search warrants were executed in Cook County, Georgia:
- 908 Lavind Way, Adel
- 611 West 6th Street, Adel
- 304 South Martin Luther King Drive South, Adel
- 609 West 6th Street, Adel
- 307 South Martin Luther King Drive South, Adel
- 418 South Martin Luther King Drive South, Adel
- 817 Turkey Drive, Adel
- 306 South Oak Street, Adel
- Cook County, Georgia, Parcel 0016104 (also known as 1041 and 1011 Antioch Greggs Road, Adel)
- 2301 South Hutchinson Avenue, Adel
- 1100 South Gordon Avenue, Apartment B, Adel
- 157 Deerfield Drive, Sparks
A search warrant was executed in Tift County, Georgia:
- 1319 Ty Omega Road, Lot 9, Tifton
This morning’s operation resulted in the seizure of 14 firearms: two assault rifles, one rifle, one shotgun and ten pistols. In addition, 3.2 kilograms of methamphetamine, 725 grams of cocaine, 288.8 grams of cocaine base, 74.4 grams of MDMA, 81.6 grams of suspected fentanyl, 9.8 kilograms of THC and 1,000 miscellaneous prescription pills were found.
Three individuals were taken into state custody and are facing state charges: Calvin James Smith, Sr., 54, of Adel, is charged with possession of firearm by a convicted felon; Joe Smith, 52, of Sparks, is charged with possession of methamphetamine with intent to distribute, trafficking methamphetamine and felony possession of a firearm during the commission of a crime; and Justin Thompson, 35, of Adel, is charged with unlawful street gang activity. A state warrant has been issued for the arrest of Calvin James Smith, Jr., 33, of Tifton, for trafficking methamphetamine, possession of cocaine, possession of methamphetamine with intent to distribute, possession of cocaine with intent to distribute and manufacturing/sale/possession of 28 grams or more of MDMA.
All defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. This is an ongoing investigation.
Russian and Canadian National Charged for Participation in Lockbit Global Ransomware CampaignRead the Press Release
NEWARK, N.J. – A Russian and Canadian national has been charged with participating in the LockBit global ransomware campaign, U.S. Attorney Philip R. Sellinger, Deputy Attorney General Lisa O. Monaco, Assistant Attorney General Kenneth A. Polite, and FBI-Newark Special Agent in Charge James E. Dennehy announced today.
Mikhail Vasiliev, 33, of Bradford, Ontario, Canada, is charged by complaint unsealed today in Newark federal court with conspiring with others to intentionally damage protected computers and to transmit ransom demands in connection with doing so. He was arrested Nov. 9, 2022, is awaiting extradition proceedings to bring him to the District of New Jersey.
“International ransomware threats like LockBit are the most pressing cybercrime challenge facing law enforcement today,” U.S. Attorney Sellinger said. “These attacks cause disruption and damage to their victims that far exceed the dollar figures of ransom demands or payments, which are themselves significant. However, the United States is up for this challenge and will use all legal means to find the perpetrators of these attacks and bring them to justice.”
“This arrest is the result of over two-and-a-half-years of investigation into the LockBit ransomware group, which has harmed victims in the United States and around the world,” Deputy Attorney General Lisa O. Monaco said. “It is also a result of more than a decade of experience that FBI agents, Justice Department prosecutors, and our international partners have built dismantling cyber threats. Let this be yet another warning to ransomware actors: working with partners around the world, the Department of Justice will continue to disrupt cyber threats and hold perpetrators to account. With our partners, we will use every available tool to disrupt, deter, and punish cyber criminals.”
“Cyber criminals who damage protected systems, exploit privileged information, or hold for ransom important files and data are a threat to our way of life,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI will not stand idly by while companies and government entities are bled dry or while their systems are corrupted by these criminal opportunists. We will utilize every tool in our arsenal – including our global partnerships – to shut down these types of schemes.”
According to documents filed in this case and statements made in court:
LockBit is a ransomware variant that first appeared as early as January 2020 and has been deployed against over 1,000 victims in the United States and around the world. LockBit members have made at least $100 million in ransom demands to those victims and have extracted tens of millions of dollars in actual ransom payments from those victims. The FBI has been investigating the LockBit conspiracy since in or around March 2020. Vasiliev participated in the LockBit campaign by conspiring with others to intentionally damage protected computers and to transmit ransom demands.
The charge of conspiring to intentionally damage protected computers and to transmit ransom demands is punishable by a maximum of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the scheme, whichever is greatest.
U.S. Attorney Sellinger credited the Newark Cyber Crimes Task Force, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked FBI Atlanta, FBI Pittsburgh, FBI Miami, the FBI’s Legal Attaché-Ottawa, the Jersey City Police Department, New Jersey State Police, New Jersey Office of Homeland Security and Preparedness, and members of the U.S. Attorney’s Office for the Northern District of Georgia and of the U.S. Attorney’s Office for the Western District of Pennsylvania for their assistance. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vasiliev’s arrest.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold of the Cybercrime Unit in Newark and by Trial Attorney Jessica C. Peck of the Computer Crime and Intellectual Property Section in Washington, D.C.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 7, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Stanford Points At Him, age 56, was sentenced to credit for time served through November 22, 2022, followed by five years of supervised release, and ordered to pay $100 special assessment to the Federal Crime Victims Fund.
Points At Him was indicted for Failure to Register as a Sex Offender by a federal grand jury in June of 2022. He pleaded guilty on August 8, 2022.
Points at Him was convicted of Sexual Abuse of a Minor in July 1997. As a result of this conviction, he is required to register as a sex offender every six months and update his registration within three business days of relocation or changing employment. Points At Him last registered in April of 2021 and failed to complete his bi-annual registration as required. Points At Him was non-compliant with his registration requirements until he was arrested on February 8, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Points At Him was immediately remanded to the custody of the U.S. Marshals Service.
Rockland Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Rockland man has been arrested on child pornography charges.
Donald J. Caruso, 40, was charged with one count of distribution of child pornography and one count of possession of child pornography. Caruso was arrested on Nov. 7, 2022 and, following an initial appearance in federal court in Boston on Nov. 8, 2022 before U.S. District Court Magistrate Judge Paul G. Levenson, was detained pending a detention hearing scheduled for Nov. 17, 2022.
According to the charging documents, a federal investigation determined that the user of an account on an online communication platform was distributing child sexual abuse material (CSAM). The user – who was later identified as Caruso – allegedly disseminated links to an undercover agent to folders containing CSAM. It is alleged that a preliminary forensic analysis of devices seized from Caruso’s residence on Nov. 4, 2022 revealed that they contained CSAM.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to a lifetime 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; Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigation’s in New England; Rockland Chief of Police Nicholas Zeoli; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Indicted on Drug and Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Scott Deisinger, age 51, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 9, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in custody and/or a $5,000,000 fine, lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In August of 2022, in Rapid City, Deisinger, a previously convicted felon who is prohibited from possessing firearms, was found in possession of three 9mm semi-automatic pistols as well as methamphetamine, which was found after Deisinger came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charges are merely an accusation and Deisinger is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Deisinger was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Indicted for First Degree Murder, Assault, and Child AbuseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for First Degree Murder, Assault with a Dangerous Weapon to a Child, Assault Resulting in Serious Bodily Injury to a Child, and Child Abuse.
Noah Virgil White Lance, III, age 33, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 9, 2022, and pleaded not guilty to the Indictment.
The penalty upon conviction is mandatory life in custody and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between November 9 and November 13, 2022, at Mission, in Todd County, South Dakota, White Lance killed a minor victim while engaged in the perpetration or attempted perpetration of child abuse. The Indictment also alleges that White Lance assaulted and abused the minor victim and abused another minor victim during the same time frame.
The charges are merely accusations and White Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
White Lance was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Port Arthur Man Guilty of Glock Switch ViolationsRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Frankie Malik Cunningham, 23, pleaded guilty to possession of a machine gun and possession of a firearm in furtherance of a drug trafficking crime. Cunningham entered his guilty plea today before U.S. District Judge Marcia A. Crone.
According to information presented in court, on May 17, 2022, law enforcement officers arrived at a Port Arthur residence where Cunningham was located to serve an outstanding felony warrant. They received consent to search from the owner of the residence and located Cunningham in a bedroom. In the bedroom with Cunningham, they also located two Glock pistols, a rifle with a drum magazine, a pound of suspected marijuana, and several Hydrocodone pills. One of the pistols was outfitted with a “Glock Switch.” A Glock Switch is a device used to convert a standard, legal handgun into a fully automatic machine gun.
At the time, Cunningham was under felony indictment for possession of a controlled substance. Federal law prohibits the possession of a firearm or ammunition while under felony indictment.
Cunningham was indicted by a federal grand jury on July 6, 2022. He faces up to 15 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 Port Arthur Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service and the Jefferson County Sheriff’s Office. This case is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman with assistance from the Jefferson County District’s Attorney’s Office.
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Plaquemines Parish Man Pleads Guilty to Drug Trafficking and Firearm OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – ERIC METZ, age 39, a resident of Plaquemines Parish, Louisiana, pled guilty on November 1, 2022, before U.S. District Judge Susie Morgan to conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine, and methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, and possession of a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), announced U.S. Attorney Duane A. Evans.
According to court documents, a DEA investigation revealed that METZ was involved in a large narcotics distribution conspiracy in Plaquemines Parish. On June 5, 2021, Plaquemines Parish Sheriff’s Office deputies conducted a traffic stop on a vehicle driven by METZ in Belle Chasse, Louisiana. During the traffic stop, deputies established probable cause to search the vehicle. During the search, they discovered six clear plastic bags containing crack cocaine, a fully loaded FN, nine-millimeter, semi-automatic handgun, and $3,238.00 in U.S. currency.
For the drug conspiracy charge, METZ faces up to twenty years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. For possessing a firearm in furtherance of a drug trafficking offense, METZ faces a minimum of five years of imprisonment, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, up to five years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Physician and Medical Office to Pay over $2.6 Million to Settle False Claims Act and Kickback AllegationsRead the Press Release
United States Attorney Vanessa Roberts Avery and Connecticut Attorney General William Tong today announced that FEEL WELL HEALTH CENTER OF SOUTHINGTON, P.C. (formerly doing business as “Feel Well Health Center”) and KEVIN P. GREENE, M.D. (“Greene”) have entered into a civil settlement agreement with the federal and state governments and agreed to pay more than $2.6 million to resolve allegations that they violated the federal and state False Claims Acts by improperly billing federal and state healthcare programs, and that they received illegal kickbacks.
Greene is a physician and the principal member and owner of Feel Well Health Center (now doing business as “Confidia Health Institute”), a primary care medical practice with offices in Southington and Bristol. Greene also operated a medical practice in Indialantic, Florida until mid-2019.
The federal and state governments allege that Greene and Feel Well Health Center violated the federal and state False Claims Acts by improperly billing Medicare, Connecticut Medicaid, and the State of Connecticut Comptroller Healthcare Programs. Between April 2016 and January 2020, Greene and Feel Well Health Center submitted false claims for payment for medical visits when, in fact, the patients had received fitness-related services with no legitimate medical component at a gym they operated that was staffed by a medically unlicensed coach and yoga instructor. Greene and Feel Well Health Center created false medical records for these gym visits and attached false diagnoses in association with these claims.
In addition, the governments allege that between April 2016 and March 2020, Greene and Feel Well Health Center submitted false claims for services allegedly rendered by Greene in an office setting when he was not physically present in the office suite, including when he was out of the country, on vacation, or in a different office at the time. For instances where Greene and Feel Well Health Center submitted claims for alleged telemedicine, they did not meet applicable telemedicine requirements for office location or use an interactive telecommunications system.
It is also alleged that Greene and Feel Well Health Center also submitted false claims for medically unnecessary testing or procedures for neurofeedback, ultrasounds, and autonomic function testing between April 2016 and August 2021.
The governments further allege that Greene and Feel Well Health Center violated the Anti-Kickback Statute by receiving remuneration from Boston Heart Diagnostics Corp. in return for ordering from the company clinical laboratory services for Medicare patients. The payments were in the form of purported “processing and handling” fees between October 2012 and June 2014, and “speaker” fees, which were for rates greater than fair market value, between January 2017 and December 2018.
To resolve their liability, Greene and Feel Well Health Center agreed to pay $2,656,685.52, plus interest. Greene and Feel Well Health Center have also entered into a three-year billing Integrity Agreement with the U.S. Department of Health and Human Services designed to ensure future compliance with the requirements of federal healthcare programs.
“We allege in this case that Dr. Greene and his medical practice fraudulently billed federal and state healthcare programs for several years, and also received illegal kickbacks involving laboratory services ordered for Medicare patients,” said U.S. Attorney Avery. “Physicians and medical practices who participate in taxpayer funded healthcare plans have an obligation to bill for services honestly and accurately, and comply with other federal laws. Those who don’t will be held accountable.”
“Dr. Greene and Feel Well Health Center billed the state both for services he did not provide as well as for costly tests that were medically unnecessary,” said Attorney General Tong. “He falsified records and diagnoses to bill the state for fitness services with no legitimate medical component. He accepted illegal kickbacks for lab testing, enriching himself in violation of federal law. Our settlement forces him to pay $2.6 million, as well as commit to a series of rigorous oversight measures to ensure this unacceptable misconduct never happens again.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Sarah Gruber, and by Deputy Associate Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
The allegations resolved by today’s settlement stem from an investigation based on a critical analysis of Medicare claims data. People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Peoria Business Owner Sentenced to 24 Months for Tax EvasionRead the Press Release
PHOENIX, Ariz. – Sung Hwan Lee, 64, of Peoria, Arizona, was sentenced on October 26, 2022, by United States District Judge David G. Campbell, to 24 months in prison, followed by three years of supervised release. Lee previously pleaded guilty to Tax Evasion on March 23, 2022.
Lee owns and operates BBB Fashion, a chain of clothing stores in and around Phoenix and Tucson, Arizona. Between 2012 and 2016, Lee implemented a scheme to avoid paying taxes he owed on income earned through BBB Fashion. At Lee’s direction, his employees gave him the cash received from sales and then prepared false sets of records omitting the cash receipts. Through this cash-skimming scheme, Lee underreported his income for tax years 2012-2016 by $9,355,894, resulting in a tax loss of $3,696,786 to the federal government.
BBB Fashion’s bookkeeper, Young Bok Lee, previously pleaded guilty to Conspiracy to Defraud the United States. Young Bok Lee is scheduled to be sentenced December 1, 2022, by United States District Judge Susan R. Bolton.
IRS-Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorney Caitlin Noel, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00212-PHX-DGC
RELEASE NUMBER: 2022-207_Lee# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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