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21 December 2022
Vermont Man Sentenced for Narcotics OffenseRead the Press Release
BOSTON – A Vermont man was sentenced on Dec. 14, 2022 in federal court in Boston for his role in a cocaine conspiracy.
Lorenzo Deconinck, 60, of Jamaica, Vt., was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to time served (approximately one day in prison) and two years of supervised release, with the first six months of supervised release to be served in home confinement. In September 2019, Deconinck pleaded guilty to one count of conspiracy to distribute cocaine.
Deconinck conspired with David Cruz and others to distribute cocaine in Massachusetts. Specifically, between 2015 and 2016, Cruz obtained cocaine from sources in Mexico and transported it to the Springfield area via concealed compartments in a Nissan Juke. Deconinck then purchased more than 50 grams of cocaine from Cruz with the intent to distribute it.
Cruz previously pleaded guilty to drug and firearms offenses and is awaiting sentencing.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistance was provided by the Internal Revenue Service’s Criminal Investigations, the DEA’s Carlsbad (Calif.) Resident Office and Westfield (Mass.) Police Department. Assistant U.S. Attorneys Neil L. Desroches, Catherine G. Curley and Steven H. Breslow of Rollins’ Springfield Branch Office prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Unlicensed Group Home Owner Pleads Guilty to Medicaid Health Care and Wire Fraud SchemesRead the Press Release
RICHMOND, Va. – A Chester woman pleaded guilty today to charges of conspiracy to commit health care fraud, health care fraud, and wire fraud, all stemming from her operation of a Richmond metro-area health care services company.
According to court documents, between 2014 and 2021, Sharon Johnson, 58, owned and operated “Sharon Y. Johnson & Associates” (SYJA). Johnson’s company purportedly provided Medicaid-reimbursed services that included both Service Facilitator services—supervising a Medicaid recipient’s personal care plan and provider— and personal care services—home health care aid services designed to allow a recipient to remain at home, rather than entering a nursing home or group home. Johnson signed up numerous of her Service Facilitator clients, often without their awareness or informed consent, to receive personal care services from her company. Johnson utilized her personal residence in Chester—a single-story, three-bedroom, 1,326-square foot structure—as an unlicensed group home, housing up to a half-dozen Medicaid recipients, in addition to Johnson and another SYJA employee, at any given time.
Between 2014 and 2021, Johnson fraudulently billed Medicaid for personal care services purportedly provided to at least 14 of her patients, knowingly submitting timesheets to Medicaid that falsely claimed that certain SYJA aides had provided services, when, in fact, those purported SYJA employees had not provided home health care services to the patients in question. To execute this fraud scheme, Johnson and her co-conspirators created online patient portal accounts in the names of her patients, and thereafter assumed those patients’ identities when “approving” and routing billing requests for SYJA home health care services that had not, in fact, been provided.
Separately, Johnson also executed a scheme to defraud the Virginia Retirement System (VRS) of pension payments paid by the VRS to one of Johnson’s unlicensed group home residents. To obtain control over her patient’s financial affairs, Johnson submitted fraudulent documents to the VRS including a “Medical Power of Attorney” form, and, after her patient’s death, changed the direct deposit location of her now-deceased patient’s VRS pension payments to Johnson’s own bank account. VRS thereafter paid at least 8 monthly pension payments into Johnson’s bank account before belatedly confirming the patient’s death. Johnson, knowing she was not entitled to those VRS funds, spent those payments for her own purposes.
Johnson is scheduled to be sentenced on April 18, 2023. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office, made the announcement after U.S. District Judge Hannah M. Lauck accepted the plea. The Virginia Medicaid Fraud Control Unit assisted in the investigation.
Assistant U.S. Attorneys Thomas A. Garnett and Shea Gibbons are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-16.
United States Attorney’s Office Collects $246,498.00 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
U.S. Virgin Islands – United States Attorney Delia L. Smith announced today that the District of the Virgin Islands collected $246,498.00 in criminal and civil actions in Fiscal Year 2022. Of that amount, $244,898.00 was collected in criminal actions and $1,600.00 was collected in civil actions. Additionally, the District of the Virgin Islands worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $73,600.00 in civil cases pursued jointly by those offices.
“The primary incentive for most federal crimes is money,” stated U.S. Attorney Delia Smith. “By aggressively recovering illegal proceeds from criminals, the Justice Department fights to ensure, in a very literal sense, that crime does not pay. Even more importantly, we work tirelessly to recover money from defendants to make the victim of their crimes whole again.” The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to victims, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Virgin Islands, working with partner agencies and divisions, collected $820,902.00 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office for the District of Vermont Collects $1,597,621.03 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
Burlington, Vermont - U.S. Attorney Nikolas P. Kerest announced today that the District of Vermont collected $1,597,621.03 in criminal and civil actions in Fiscal Year 2022. Of this amount, $1,076,812.47 was collected in criminal actions and $520,808.56 was collected in civil actions.
Additionally, the District of Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $23,423.31 in cases pursued jointly by these offices.
“The District of Vermont’s attorneys prioritize keeping Vermonters safe, recovering financial losses sustained as the result of illegal conduct, and protecting precious taxpayer resources,” said United States Attorney Nikolas P. Kerest. “These efforts enabled us to achieve justice and recoup a significant amount of taxpayer dollars in Fiscal Year 2022.”The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the District of Vermont, working with partner agencies and divisions, collected $595,844 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Resolves ADA Complaint After Local Law Office Failed to Provide ASL InterpreterRead the Press Release
DETROIT – The United States Attorney’s Office for the Eastern District of Michigan settled a complaint regarding the failure of a local law office to provide free American Sign Language (ASL) interpretation services for a client who is deaf, in violation of the Americans with Disabilities Act (ADA). The settlement agreement resolves an investigation into the Julie B. Griffiths Law Office (now the Law Office of Griffiths & Willing), a family law practice located in Flint, Michigan. The complainant, who is deaf and whose primary language is ASL, alleged that they were repeatedly denied requests for an interpreter throughout the course of their representation. ASL is its own distinct language, with grammar and syntax that are unique from English. The settlement agreement requires the law practice to provide ASL interpreters and other auxiliary aids and services free of charge to ensure effective communication with their clients, as required by the ADA.
The ADA protects the rights of all individuals, regardless of disability, to fully and equally enjoy the benefits and services offered by places of public accommodation, including law offices. It requires places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication with its customers is effective. Such aids and services can include ASL interpreters for individuals who are deaf or hard of hearing and must be paid for by the place of public accommodation.
“The legal system can be confusing and overwhelming. People often seek legal counsel because they are faced with a challenging situation that requires making difficult, and hopefully informed, decisions. Effective communication between attorneys and their clients is critical to that process, and it is one of the many important protections that the Americans with Disabilities Act provides to individuals who are deaf or hard of hearing,” said U.S. Attorney Dawn N. Ison. “Individuals who have disabilities are entitled to the same access to legal services as others at no additional cost, and my office will continue to vigorously enforce the civil rights of all citizens in our district.”
Under the terms of the settlement, the Law Office of Griffiths & Willing will adopt new ADA policies and practices, train its staff on those policies, report any future complaints from individuals who have disabilities to the U.S. Attorney’s Office, and provide monetary compensation to the complainant. The Law Office of Griffiths & Willing will also write and circulate an article discussing the requirements of Title III of the ADA to raise awareness of this issue amongst local practitioners.
The investigation was led by AUSA Michael El-Zein of the U.S. Attorney’s Office for the Eastern District of Michigan, a member of the Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
U.S. Attorney’s Office Collected over $7 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
HAMMOND- U.S. Attorney Clifford D. Johnson announced today that the Northern District of Indiana collected $7,065,356.11 in criminal and civil actions in Fiscal Year 2022 (October 1, 2021 to September 30, 2022). Of this amount, $6,571,549.94 was collected in criminal actions and $493,806.17 was collected in civil actions.
Additionally, the Northern District of Indiana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,877,445.57 in civil actions pursued jointly by these offices.
United States Attorney Clifford D. Johnson said, “Most people, when thinking about the work of the U.S. Attorney’s Office, only focus on the federal criminal prosecutions that this office undertakes. While prosecuting criminal conduct is important, that action by itself does not completely advance public safety. A successful criminal prosecution also deprives criminals of any ill-gotten financial gains and uses those funds to compensate crime victims. I am very proud that my Office, last fiscal year, recovered over 6.5 million dollars from the criminals we prosecuted. Additionally, my Office, through its collections in civil cases, is returning nearly $500,000.00 to the federal treasury.”
In May, the Northern District of Indiana recovered $1,513,730 from Cleveland Cliffs for civil penalties in a Clean Water Act case as part of a settlement for a discharge during 2019 into the Burns Waterway leading into Lake Michigan that exceeded ammonia and cyanide limits and resulted in 3,000 dead fish, beach closures, and danger of tainted drinking water.
In July, the Northern District of Indiana recovered $385,715 from BP Products for stipulated penalties for Consent Decree violations in a Clean Air Act case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the Northern District of Indiana, working with partner agencies and divisions, collected $1,357,234 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Collects Nearly $33 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has collected nearly $33 million in criminal and civil actions in Fiscal Year 2022. Of this amount, $10.2 million was collected in criminal actions and $4.6 million was collected in civil actions.
The District of Oregon worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1 million in criminal and civil cases pursued jointly by these offices and $16.9 million in asset forfeiture actions.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The District of Oregon’s Financial Litigation Program staff deliver a valuable service to victims of crime, as well as a valuable return to the American people by holding accountable those who have profited from crimes committed in Oregon and beyond, and by collecting on other actions resulting in civil settlements,” said Katie de Villiers, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Division. “We take seriously our obligation to make crime victims as financially whole as possible, whether those victims are private individuals, large companies, or government agencies. Our annual collections figure is a testament to our team’s daily hard work and unwavering pursuit of justice.”
An example of the district’s collection efforts was in U.S. v. Kiraz et al. In early October 2022, the U.S. Attorney’s Office announced it had secured a full restitution payment totaling more than $600,000 from the former operators of two Portland-area strip clubs who were convicted at trial in 2016 for conspiring to defraud the IRS and Oregon Department of Revenue. On September 23, 2022, the Clerk of the Court for the District of Oregon received a payment of $608,217 from David, George, and Daniel Kiraz. The Kirazes had previously paid less than ten percent of their original $657,243 restitution order.
A second example is in U.S. v. Idaho Power Company. In late August 2022, the U.S. Attorney’s Office announced it had reached an agreement with the Idaho Power Company, a Boise, Idaho-based utility, wherein the company would pay $1.5 million to settle allegations by the U.S. relating to the May 2014 Powerline and August 2015 Lime Hill fires in Baker County, Oregon. Soon after, the company paid the $1.5 million settlement in full.
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The District of Oregon’s Financial Litigation Program (FLP) is part of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division. The mission and goal of FLP is to fairly achieve the maximum recovery of civil and criminal debts consistent with applicable laws, regulations, and Justice Department policies. FLP attorneys and support staff work with individuals subject to restitution orders to bring closure for crime victims and recoup losses incurred by United States taxpayers.
U.S. Attorney highlights Environmental JusticeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, is promoting information and resources to highlight environmental justice and assist the public in reporting criminal environmental violations.
In May, U.S. Attorney General Merrick B. Garland announced the launch the Justice Department’s new Office of Environmental Justice as well as the Department’s environmental justice enforcement strategy. This strategy will guide the Justice Department’s litigators, investigators and U.S. Attorneys’ Offices nationwide to advance the cause of environmental justice through the enforcement of federal laws. Developed by the Department’s Environment and Natural Resources Division (ENRD) in partnership with the Environmental Protection Agency, the strategy will ensure that the entire Department is using all available legal tools to promote environmental justice.
The U.S. Attorney’s Office (USAO) enforces federal laws that protect communities against harm caused by environmental crime, pollution and climate change. The USAO works in conjunction with federal, state, local and Tribal government partners to address human health and environmental harms that disproportionately affect overburdened and underserved low-income communities, communities of color, and Tribal and Indigenous communities.
The district’s Environmental Justice Coordinator receives reports of environmental violations within the district and engages in outreach to promote greater public participation in environmental justice efforts. Additionally, the Environmental Justice Coordinator is a member of the Environmental Crimes Task Force, a group convened by the New Mexico Environment Department (NMED) and the U.S. Environmental Protection Agency (EPA) to increase federal, Tribal and state cooperation in investigating and prosecuting criminal violations of environmental laws.
"Low-income communities and communities of color have disproportionately borne the burden of environmental crime," said U.S. Attorney Uballez. "Through the Environmental Crimes Task Force, we will bring fair treatment and meaningful involvement of underserved communities that have been historically marginalized and overburdened by systemic environmental violations, pollutions, climate change and abuse of natural resources."
Information available on the website includes an explanation of what environmental justice is and examples of what constitutes criminal environmental violations. The website also provides links to additional resources and partnering agencies, as well as contact information for reporting criminal environmental violations.
Anyone who wants to report known or suspected environmental violations within the District of New Mexico can email the district’s Environmental Justice Coordinator at [email protected].
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Two New Jersey Men Charged with Conspiring to Distribute Cocaine and FentanylRead the Press Release
NEWARK, N.J. – Two New Jersey men have been charged with possessing with intent to distribute approximately one kilogram of cocaine and approximately 100 grams of fentanyl, U.S. Attorney Philip R. Sellinger announced today.
Carlos Ovidio Gonzalez, 35, of Newark, and Hector Martinez, 31, of North Bergen, New Jersey, are charged by complaint with one count of conspiring to distribute and possess with intent to distribute cocaine and fentanyl. Gonzalez is also charged with one count of being a previously convicted felon in possession of three firearms and ammunition. They had their initial appearances by videoconference on Dec. 20, 2022, before U.S. Magistrate Judge Jessica S. Allen and were both detained.
According to documents filed in this case and statements made in court:
On Dec. 19, 2022, Gonzalez and Martinez conspired to distribute approximately one kilogram of cocaine and 100 grams of fentanyl and were arrested shortly after they arrived at an agreed-upon location in Kearny to complete the sale. After their arrests, a search of Gonzalez’s home and an apartment also uncovered two loaded firearms, an unloaded firearm, ammunition, drug packaging materials, and suspected heroin, cocaine, oxycodone, and Xanax pills. Gonzalez had previously been convicted, in New Jersey Superior Court, Morris County, of first-degree drug distribution, second degree weapons possession during a controlled substance offense, and second degree possession of a firearm for an unlawful purpose, and was sentenced in 2009 to 30 years in prison.
The count of possession with intent to distribute cocaine and fentanyl carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and fine of up to $5 million. The felon in possession of a firearm charge carries a potential maximum penalty of 15 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and officers with the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to the charges. He also thanked Newark Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Camila A. Garces of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Mexican Men Found Guilty of Smuggling Undocumented Non-Citizens on Panga Boat that Landed on Santa Barbara County BeachRead the Press Release
LOS ANGELES – A federal jury has found two Mexican men guilty of drug and alien trafficking charges after law enforcement caught them on a panga boat containing 45 pounds of methamphetamine and 11 undocumented non-citizens from Mexico on a Santa Barbara County beach, the Justice Department announced today.
Jorge Muñoz-Muñoz, 26, of Ensenada, Mexico, and Roel Aranzubia-Álvarez, 43, of Sinaloa, Mexico, were found guilty on Tuesday afternoon of one count of conspiracy to bring non-citizens into the United States, 11 counts of alien smuggling, 11 counts of alien smuggling for private financial gain, and one count of aiding and assisting an alien convicted of an aggravated felony to enter the United States.
Muñoz-Muñoz also was found guilty of one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, one count of conspiracy to import methamphetamine, and one count of importation of methamphetamine. Aranzubia-Álvarez was found not guilty of the drug-related charges.
According to evidence presented at their five-day trial, on the morning of September 27, 2021, law enforcement sighted a panga boat adrift off the coast of Santa Barbara County. The vessel, which was having engine trouble, ultimately made landfall at Arroyo Quemada Beach, approximately 25 miles west of Santa Barbara.
The investigation in this matter revealed that there were 15 people on the boat, including several crewmembers, and that Aranzubia-Álvarez was the boat’s captain. Two black bags that contained a total of 40 vacuum-sealed and plastic wrapped bindles, totaling approximately 45 pounds, were thrown off the boat by passengers at Muñoz-Muñoz’s direction and later were recovered by law enforcement.
Law enforcement also later confirmed that all occupants of the boat were undocumented non-citizens. Based on interviews with the passengers, it was determined that the passengers arrived at a beach in Ensenada, Mexico to board a panga that would smuggle them into the United States for a price of approximately $15,000 each.
Both defendants have been in federal custody since their arrest in September 2021.
United States District Judge Dale S. Fischer scheduled an April 10 sentencing hearing, at which time Muñoz-Muñoz will face a statutory maximum sentence of life in federal prison, and Aranzubia-Álvarez will face a statutory maximum sentence of 15 years in federal prison.
Homeland Security Investigations investigated this matter. United States Customs and Border Protection, the Santa Barbara County Sheriff’s Office, and the California Department of Parks and Recreation provided substantial assistance.
Assistant United States Attorney Haoxiaohan Cai and Justice Department Trial Attorney Siobhan M. Namazi, both of the General Crimes Section, are prosecuting this case.
Two Men Charged in Bank Robbery ConspiracyRead the Press Release
ALBANY, NEW YORK – Luke Kenna, age 43, of Johnstown, New York, and Michael Brown, Jr. a/k/a. “Doc Grimson,” age 40, of Exton, Pennsylvania, have been charged by criminal complaint for conspiring to commit bank robbery, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that between November 14 and November 26, 2022, Kenna and Brown agreed to and planned to commit an armed bank robbery at a bank branch in Johnstown, and that Kenna, as part of that conspiracy, conducted surveillance of the bank and purchased items, including weapons, to commit the robbery.
The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charge carries a maximum sentence of 5 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Kenna appeared today in Albany, before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending trial.
Last week, Brown made an initial appearance in Philadelphia, in the United States District Court for the Eastern District of Pennsylvania, and was ordered detained and transported to the Northern District of New York.
This case was investigated by the FBI Albany Field Office’s Joint Terrorism Task Force (JTTF), which includes FBI Special Agents, and federal, state and local investigators, including from the New York State Police. The FBI’s Philadelphia Field Office and New York State Police Special Investigations Unit also provided assistance. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
Two Biotech Firms and Their Co-Founder to Pay $10 Million to Resolve Allegations of Mischarging Federal GrantsRead the Press Release
SAN FRANCISCO – Two biotechnology companies and their co-founder will pay more than $10 million to the United States to resolve allegations under the False Claims Act that they engaged in improper billing to federal grants, announced United States Attorney Stephanie M. Hinds, Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge L. Scott Moreland of the Major Procurement Fraud Field Office of the Department of the Army Criminal Investigation Division (Army CID), and Special Agent in Charge Bryan Denny of the Western Field Office of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS).
Dr. Paul Andrew Rhodes co-founded two technology companies, iSense, LLC (iSense) and Specific Diagnostics, Inc. (Specific). iSense, a Florida-based company with offices at one time in Mountain View, designs and develops applications for colorimetric sensor arrays. Specific, headquartered in San Jose, designs antimicrobial susceptibility tests. Dr. Rhodes, iSense, and Specific entered into a settlement agreement to resolve allegations by the United States that the firms mischarged federal grants by billing for costs incurred by another business and by billing for compensation in amounts exceeding authorized federal limits. The settlement also resolves allegations of backdating services and cost-sharing agreements and knowingly presenting a backdated agreement to the United States.
The total amount of the settlement to be paid is $10,068,875. Of that amount, iSense will pay $4,000,000, Specific will pay $4,000,000, and Dr. Rhodes will pay $2,068,875.
“This office continues to combat fraud wherever it lurks in Silicon Valley,” said U.S. Attorney Stephanie M. Hinds. “Federal awards for biotech research are a critical aspect of this country’s strategy to promote and support innovation and research. Regrettably, some recipients mislead auditors and divert funds to enrich themselves – misconduct that we will tirelessly pursue.”
“Recipients of HHS-provided awards are expected to be responsible, honest stewards of the funds,” stated Steven J. Ryan, Special Agent in Charge with HHS-OIG. “Our agency and law enforcement partners readily and thoroughly investigate allegations of improper claim submission related to these awards.”
“The settlement restores credibility to the federal acquisition process by resolving allegations that the contractor improperly billed the Department of Defense and others for disallowed, unreasonable, or mischaracterized costs,” said Bryan D. Denny, Special Agent in Charge of the DCIS Western Field Office. “DCIS and its law enforcement partners will continue our collective efforts to root out all forms of procurement and contracting irregularities affecting the federal procurement process that waste invaluable taxpayer resources.”
“Today’s announcement highlights our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to protect the financial interests of the United States Army and the United States Government as a whole,” said Special Agent in Charge L. Scott Moreland, Army CID.
This settlement agreement resolves multiple allegations. First, the settlement agreement resolves allegations that from January 1, 2015, to December 31, 2019, iSense, owned primarily by Dr. Rhodes, knowingly misallocated to itself costs incurred by Specific, which was partially owned by Dr. Rhodes. In one example, the United States alleges that in 2016 iSense shared space with Specific but the costs for that space were allocated to iSense and submitted for payment under DOD grants. Similarly, iSense shared a controller with Specific; however, the United States alleges the controller’s salary was allocated to iSense and submitted for payment under DOD grants. The United States also alleges that iSense and Dr. Rhodes knowingly submitted backdated cost-sharing agreements with Specific to the federal government.
The settlement agreement further resolves allegations relating to National Institutes of Health grants in which iSense submitted the costs for employee work hours from July 1, 2014, to June 30, 2019, in amounts that exceeded the applicable salary cap and otherwise overcharged for hours worked by employees. Specific is alleged to have engaged in similar conduct from February 1, 2017, to December 31, 2018, and the settlement agreement also resolves those allegations.
Lastly, the settlement agreement resolves allegations that from February 1, 2018, to July 28, 2020, Specific and Dr. Rhodes knowingly submitted backdated services agreements with iSense as properly dated.
Assistant U.S. Attorney Benjamin J. Wolinsky handled this matter for the government. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California, HHS-OIG, DCIS, and the Major Procurement Fraud Field Office of Army-CID.
The investigation and resolution of this matter illustrates the government’s emphasis on combating fraud in federal grants. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at (800) 447-8477 and to the Department of Defense at (800) 424-9098.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Two Armed Robbers Each Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Noland Rheubotton, age 57, of Baltimore, Maryland, yesterday to10 years in federal prison, followed by three years of supervised release, for an armed commercial robbery and for brandishing a firearm during a crime of violence.
On November 29, 2022, Judge Gallagher sentenced co-defendant James Featherstone, age 60, of Baltimore, to 10 years in federal prison, followed by five years of supervised release, for the same crime.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry Trabert of the Aberdeen Police Department; and Chief Teresa Walter of the Havre de Grace Police Department.
According to their guilty pleas, on December 22, 2019, Rheubottom and Featherstone entered a gas station convenience store in Aberdeen, Maryland. The defendants brandished handguns and robbed the store of cash and lotter scratch-off tickets. Rheubottom and Featherstone also robbed a store employee of cash before they fled in a silver Toyota Corolla.
Aberdeen Police Department (“APD”) officers responding to the robbery spotted the silver Toyota Corolla. An APD officer attempted to detain the vehicle and occupants at gunpoint, but the vehicle fled and entered I-95. Police officers followed the vehicle and attempted to stop the vehicle while it was traveling on I-95. At one point, the vehicle swerved in attempt to strike one of the police vehicles. The suspect vehicle then exited I-95 and headed towards Havre de Grace. Havre de Grace police officers joined the pursuit. Ultimately, officers placed stop sticks in the roadway which deflated the Toyota’s tires. The defendants then drove the car into a police barricade and Rheubottom and Featherstone were taken into custody.
During the search of the Toyota Corolla, law enforcement officers recovered a Colt, .38 special revolver handgun, on the front passenger floorboard of the vehicle. A bag was also located in the vehicle, which contained Maryland lottery tickets, coin rolls, and loose cash. Law enforcement also recovered from the vehicle a Maryland driver’s license in Featherstone’s name, mail addressed to Featherstone, two cell phones, gloves, and a black hood.
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 FBI, the Aberdeen Police Department, and the Havre de Grace Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney John W. Sippel, Jr, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Thai Man Sentenced for Drug Trafficking and Firearm CrimesRead the Press Release
Acting United States Attorney Steven Russell announced that Kong Xiong, of Pak Chom, Thailand, was sentenced on December 20, 2022 by Chief United States District Judge Robert F. Rossiter, Jr., for distributing marijuana and selling firearms. Xiong received a sentence of 90 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
On March 18, 2021, Xiong met with a Bureau of Alcohol, Tobacco and Firearms confidential informant in Kansas City, Kansas, and purchased five pounds of marijuana and a firearm. On April 12, 2021, an ATF confidential informant made arrangements with Vue Fang to purchase marijuana and a firearm. Fang and Xiong arrived and met with the confidential informant in Omaha, Nebraska. While the confidential informant met with Fang to get the firearm, Xiong put three pounds of marijuana into the confidential informant’s car.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the ATF and the Omaha Police Department.
St. Augustine Man Sentenced to More Than Seven Years in Federal Prison for Distributing Child Sex Abuse MaterialRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Patrick Joseph McAloon (67, St. Augustine) to 7 years and 2 months in federal prison for distributing videos and images of children being sexually abused. The court also ordered McAloon serve a 10-year term of supervised release and pay $15,000 to victims of his offenses. McAloon had pleaded guilty on July 28, 2022.
According to court documents, in November 2021, agents from Homeland Security Investigations (HSI) received information from two individuals who had found a cellphone in a public restroom at a home improvement store in St. Augustine. The individuals turned the phone on in an attempt to determine the owner and return the phone. Upon viewing the phone’s photo gallery, they observed an image of a child who appeared to be 3 years old being sexually assaulted by an adult male. The individuals observed hundreds of additional files showing children being sexually abused. Soon after, the found phone rang and it was McAloon, requesting the return of his phone. When the individuals confronted McAloon about the abusive content, he claimed it was a wake-up call and offered the individuals $2,000 for the return of his phone. McAloon met with the individuals, paid them $2,000, and retrieved the phone. The individuals later contacted law enforcement to report the incident.
After a thorough investigation, HSI agents made contact with McAloon. He reported that he had since obtained a new phone and said that he is in touch with an individual in the Philippines to whom he sends money and who sends McAloon files showing the sexual abuse of children. McAloon acknowledged that there was probably child sexual abuse material on his new phone.
A forensic search of McAloon’s cellphone, which was seized by agents, yielded at least 194 files of child sexual abuse material and more than 450 files of child exploitation/age difficult material. Forensic analyses revealed that McAloon used a social media app to distribute child sexual abuse material, to include a video file he had sent to a certain app user on December 5, 2021, using username “Patrick,” depicting an adult male sexually abusing a young child.
“This predator fed his perversion through a steady stream of explicit imagery and videos of children being sexually abused,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Thanks to the dedication of our special agents and the concern of citizens who discovered the imagery, justice is served. Our communities are made safer for children when citizens recognize deviant behaviors and reach out to law enforcement.”
This case was investigated by Homeland Security Investigations (HSI). It was being prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Augustine Man Sentenced to More Than Seven Years in Federal Prison for Distributing Child Sex Abuse MaterialRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Patrick Joseph McAloon (67, St. Augustine) to 7 years and 2 months in federal prison for distributing videos and images of children being sexually abused. The court also ordered McAloon serve a 10-year term of supervised release and pay $15,000 to victims of his offenses. McAloon had pleaded guilty on July 28, 2022.
According to court documents, in November 2021, agents from Homeland Security Investigations (HSI) received information from two individuals who had found a cellphone in a public restroom at a home improvement store in St. Augustine. The individuals turned the phone on in an attempt to determine the owner and return the phone. Upon viewing the phone’s photo gallery, they observed an image of a child who appeared to be 3 years old being sexually assaulted by an adult male. The individuals observed hundreds of additional files showing children being sexually abused. Soon after, the found phone rang and it was McAloon, requesting the return of his phone. When the individuals confronted McAloon about the abusive content, he claimed it was a wake-up call and offered the individuals $2,000 for the return of his phone. McAloon met with the individuals, paid them $2,000, and retrieved the phone. The individuals later contacted law enforcement to report the incident.
After a thorough investigation, HSI agents made contact with McAloon. He reported that he had since obtained a new phone and said that he is in touch with an individual in the Philippines to whom he sends money and who sends McAloon files showing the sexual abuse of children. McAloon acknowledged that there was probably child sexual abuse material on his new phone.
A forensic search of McAloon’s cellphone, which was seized by agents, yielded at least 194 files of child sexual abuse material and more than 450 files of child exploitation/age difficult material. Forensic analyses revealed that McAloon used a social media app to distribute child sexual abuse material, to include a video file he had sent to a certain app user on December 5, 2021, using username “Patrick,” depicting an adult male sexually abusing a young child.
“This predator fed his perversion through a steady stream of explicit imagery and videos of children being sexually abused,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Thanks to the dedication of our special agents and the concern of citizens who discovered the imagery, justice is served. Our communities are made safer for children when citizens recognize deviant behaviors and reach out to law enforcement.”
This case was investigated by Homeland Security Investigations (HSI). It was being prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Spokane Valley Man Sentenced for Involvement in Shooting Death of Coeur d’Alene TeenRead the Press Release
COEUR D'ALENE – Dennen Trey George Fitterer-Usher, 24, of Spokane Valley, Washington, was sentenced this week to more than 14 years in federal prison for conspiracy to distribute a controlled substance and discharge of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Josh Hurwit.
According to court records, in 2021, Fitterer-Usher met Matthew James Holmberg, 20, of Spokane Valley, who was involved in distributing a variety of controlled substances, including fentanyl pills. Holmberg began bringing Fitterer-Usher to drug deals with him as an armed bodyguard.
On May 31, 2021, 18-year-old Gabriel Casper, Vadin Bartlett, 19, and Ashton Creech, 18, met Holmberg and Fitterer-Usher in their car, near Cherry Hill in Coeur d’Alene. Though Casper had arranged to purchase $300 worth of pills, he and the others were armed and arrived at the deal with the intent of robbing Holmberg. As planned, during the transaction, Casper attempted to steal the pills and Fitterer-Usher pulled his firearm and shot Casper six times. While Bartlett and Creech fled from the gun fire, Holmberg sped off with Casper still in the vehicle. Several blocks later, Casper was pushed from the moving car and left to die.
Casper was found lying in the middle of Coeur d’Alene Avenue, in Coeur d’Alene. Despite attempts by civilians and EMS to save him, Casper had been shot six times and ultimately succumbed to his wounds. Local, state, and federal officers began an immediate investigation into Casper’s death. Despite attempts by Fitterer-Usher and Holmberg to conceal the crimes, they were both eventually located and arrested.
“The sentence imposed for this crime—as well as the other multiple prosecutions arising from this investigation—shows that our office and our partners will spare no effort in seeking justice against those who commit violence and distribute drugs in our communities,” said U.S. Attorney Hurwit.
“We are grateful for all of our state, local, and federal partners who cooperatively worked together to bring to justice Mr. Fitterer-Usher after he so callously shot Gabriel Casper,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “This investigation should be a warning to anyone who believes they can bring harm to our communities by distributing deadly narcotics and using violence. We will bring all of our resources to bear against you and hold you accountable.”
“The shipment of illegal and dangerous narcotics and the violence associated with drug trafficking remains a plague on our streets,” said Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service’s Seattle Division. “The U.S. Postal Inspection Service remains steadfast in our commitment to work with our partners in federal, state, and local law enforcement to do everything we can to bring these drug dealers to justice and protect communities throughout Idaho and across the country.”
Senior U.S. District Judge B. Lynn Winmill sentenced Fitterer-Usher to 177 months in federal prison. Fitterer-Usher, upon completion of his prison time, was also ordered to serve an additional three years of supervised release.
Holmberg was also charged federally with conspiracy to distribute a controlled substance and discharge of a firearm in furtherance of a drug trafficking crime. He has pleaded guilty to both offenses and is set to be sentenced in front of Judge Winmill on February 6, 2023.
Bartlett and Creech were both prosecuted by the State of Idaho for attempted robbery. Bartlett was sentenced to a suspended sentence of five years fixed followed by seven years indeterminate and was placed on probation after completing a rider. Creech was sentenced to an imposed sentence of four years fixed followed by 11 years indeterminate and is currently serving his time in the Idaho Department of Correction.
As part of their investigation, officers learned that Holmberg had been selling fentanyl-laced pills for several months via social media websites, including SnapChat. Even after his arrest, officers continued to investigate Holmberg’s source of supply. This resulted in the arrest and prosecution of multiple individuals in Washington and Arizona who were involved in obtaining tens of thousands of fentanyl pills from a source in Mexico, via Arizona, and distributing those pills in Washington and North Idaho.
Fentanyl is a synthetic opioid that is 50-100 times stronger than morphine. Pharmaceutical fentanyl was developed for severe pain management and prescribed in the form of transdermal patches or lozenges. While prescription fentanyl can be diverted for misuse, most cases of fentanyl-related overdoses in the U.S. are linked to illegally made fentanyl that is sold through illicit drug markets for its heroin-like effect.
Idaho in general has seen a massive influx of these pills in the last several years. The pills are mass-produced by criminal drug networks and falsely marketed as legitimate prescription pills. The pills are made to look like prescription opioids such as oxycodone (Oxycontin, Percocet), hydrocodone (Vicodin), and alprazolam (Xanax); or stimulants like amphetamines (Adderall). It is difficult to tell the difference between an authentic pill and a counterfeit pill.
U.S. Attorney Hurwit commended the cooperative efforts of the Coeur d’Alene Police Department, Kootenai County Prosecuting Attorney’s Office, Kootenai County Sheriff’s Office, Liberty Lake Police Department, U.S. Postal Inspection Service, Bureau of Indian Affairs, U.S. Border Patrol, Drug Enforcement Administration, and Idaho State Police which led to charges. He also commended the work of other agencies who participated and assisted in the investigation of the sources of supply, which resulted in the arrest and conviction of multiple individuals in Washington and Arizona. Agencies who assisted include the U.S. Attorney’s Office for the District of Eastern Washington, Lakewood Police Department, Medford Police Department, Siskiyou County Sheriff’s Office, Centralia Police Department, Chehalis Police Department, Shoshone County Sherriff’s Office, Washington Department of Corrections, United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, DEA Centralia Post of Duty, and certain DEA Task Forces: JNET, Tucson Strike Force, and Phoenix Group 16 DEALERS.
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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South Texas Primary Care Doctor, Staff Sentenced for Unlawful PrescriptionsRead the Press Release
DEL RIO, Texas – A licensed primary care physician along with three members of his clinical staff and his office manager were sentenced Thursday for unlawful distribution of controlled substances and Medicaid fraud.
According to court documents, Dr. Alfonso Luevano, 53, of Carrizo Springs prescribed large amounts of controlled substances, primarily Schedule II opioids, on a regular basis with little or no medical examination. He also directed mid-level practitioners to provide patients with prescriptions using prescription pads that he had pre-signed. According to data from the Texas prescription management program, Luevano and his mid-level practitioners issued at least 20,000 controlled substance prescriptions between March 2016 and March 2018. Hydrocodone alone comprised at least 50 percent of the prescriptions. The investigation also revealed several instances of Luevano prescribing patients a potentially lethal combination of an opioid, a benzodiazepine and a muscle relaxer. These illegal prescriptions resulted in multiple patient overdoses, at least two of which were fatal.
Dr. Luevano was sentenced to 121 months in prison followed by three years of supervised release and a $10,000 fine. He also agreed to forfeit his Texas medical license and to sell his medical office building to pay the restitution and fine.
Nurse practitioners Sara Barker, 47, and Rafael Santana, 49, along with licensed physician’s assistant Richard Marquez, 62, were also sentenced. Each had previously pleaded guilty to facilitating the unlawful prescriptions by seeing patients and then directing that the pre-signed prescription pads be filled out with controlled substances. Barker was sentenced to 18 months in prison; Santana received a one-year sentence; and Marquez received two years. Each will also pay a $5,000 fine.
In addition, office manager Ofelia Martinez, 53, was sentenced on a single count of conspiracy to commit health care fraud. In her plea agreement, Martinez admitted that she had overbilled the Texas Medicaid program for the appointments conducted by the mid-level practitioner defendants by billing them as if Dr. Luevano had personally performed the appointment. Martinez was sentenced to 30 months in prison and ordered to pay $127,421 in restitution to the Medicaid program. Dr. Luevano also agreed in his plea to be jointly and severally liable for that same amount.
“The rampant and unchecked distribution of unnecessary opioid prescriptions by medical practitioners throughout the country has caused an untold amount of harm over the years,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Not only did the defendants here cause hundreds of thousands of pills to be distributed into a vulnerable community, but they also charged the cost to federal insurance plans. As shown by this case, the Justice Department continues to take the issue seriously and will pursue criminal action against medical professionals where warranted.”
“Luevano’s excessive prescribing of opioids, often times without the benefit of a medical examination, had a total disregard to patient safety and the law,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s Houston Division. “In just one year, Luevano illegally prescribed thousands of opioids in our communities. Relentless efforts by our Diversion investigators, Special Agents and prosecutors ended Luevano’s greed that has contributed to the ongoing opioid epidemic. DEA will continue to bring to justice those who misuse their prescribing authority for personal gains.”
The DEA’s Drug Diversion Control Division and the Texas Attorney General’s Medicaid Fraud Control Unit investigated the case.
Assistant U.S. Attorneys Justin Chung and Joshua Banister prosecuted this case with AUSA Antonio Franco handling the forfeiture component.
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South Bend Man Sentenced to 252 Months in PrisonRead the Press Release
SOUTH BEND – Kendrick Johnson, 38 years old, of South Bend, Indiana was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to possession with intent to distribute fentanyl, announced United States Attorney Clifford D. Johnson.
Johnson was sentenced to 252 months in prison followed by 5 years of supervised release.
According to documents in this case, Johnson sold drugs in the spring of 2021. In September of 2021, investigators executed search warrants. Between Johnson’s home and his storage unit, investigators found over 6 ½ kilograms of fentanyl, almost $800,000 cash, and three loaded firearms.
“My Office, together with our law enforcement partners, will investigate, prosecute and seek long sentences for those seeking to illegally distribute fentanyl on the streets of Northern Indiana,” said United States Attorney Clifford D. Johnson. “Those groups and persons that traffic this very dangerous and deadly drug should be on notice that our federal and state law enforcement will continue to focus our efforts on dismantling those groups and bringing those offenders to justice.”
“ATF is committed to working closely with our local, state and federal law enforcement partners to investigate illegal possession of firearms and narcotics trafficking activity that creates havoc in our communities,” said ATF Acting Special Agent in Charge of the Chicago Field Division Jeffrey L. Matthews. “I commend the United States Attorney’s office in the Northern District of Indiana for their continued partnership in prosecuting those responsible.”
“Drug traffickers who knowingly sell illicit fentanyl must be held accountable for their actions,” said Alfred A. Cooke, Assistant Special Agent in Charge of the Drug Enforcement Administration Merrillville District Office. “The DEA remains committed to working hand in hand with our state, local and federal partners to keep our communities safe.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of the LaPorte County Drug Task Force, the LaPorte County Sheriff’s Office, and the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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.
Solano County Hells Angels Member Pleads Guilty to Possessing Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Jaime Alvarez, 52, of Vallejo, California, pleaded guilty yesterday to unlawfully possessing a firearm after being convicted of a felony crime, United States Attorney Phillip A. Talbert announced.
According to court documents, on December 8, 2021, law enforcement executed a search warrant at Alvarez’s home as part of an investigation into a brutal beating at the clubhouse for the Vallejo chapter of the Hells Angels Motorcycle Club. Specifically, in October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Alvarez and other club members based on perceived infractions of the Hells Angels’ rules.
During the December 2021 search of Alvarez’s Vallejo home, law enforcement found several firearms, including a Glock 27 .40 SW caliber handgun. Alvarez has prior felony convictions, which prohibit him from possessing firearms.
This case is the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vallejo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt are prosecuting the case.
Alvarez is scheduled to be sentenced on March 7, 2023, by U.S. District Judge Dale A. Drozd. Alvarez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Six sent to prison after traffic stops yield kilos of methRead the Press Release
CORPUS CHRISTI – The final member of a of a Corpus Christi drug trafficking organization has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Jesse Soliz, 40, Joshua Cadena, 30, Matthew Cadena, 34, all of Corpus Christi, and Luis Reyes-Camacho, 36, a citizen of Mexico unlawfully in the United States, pleaded guilty July 22, 2021, while Yvette Hernandez, 39, and Julio Rodriguez, 52, also of Corpus Christi, entered their pleas Sept. 24, 2021, and March 23, 2022, respectively.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Matthew Cadena to a 135-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted the significant quantity of drugs involved and roles Matthew and Joshua Cadena held as mid-level distributors who worked under Soliz.
Judge Ramos previously sentenced the other four for their respective involvement in the conspiracy. Notably, Luis Reyes-Camacho, who was identified as the supplier of the illegal drugs, and Jesse Soliz, who managed the local distribution network, received 324 months and 235 months, respectively.
In March 2020, law enforcement initiated an investigation into a drug trafficking operation in the Corpus Christi area involving meth and heroin. This resulted in the identification and arrest of multiple individuals ranging from street level dealers to mid-level suppliers.
On April 10, 2020, authorities conducted a traffic stop and identified Matthew Cadena and Hernandez as the driver and passenger, respectively. Because Cadena did not have a valid driver’s license, Cadena was arrested and his vehicle impounded. Inside the car, they discovered approximately 60 grams of meth the center console.
In January 2021, law enforcement learned Jesse Soliz, Joshua Cadena, Matthew Cadena and their associates were going to receive a large shipment of illegal narcotics, believed to be meth and heroin, from an unknown individual that resided outside of the Corpus Christi area. Upon surveilling Soliz’s residence, law enforcement observed Luis Reyes-Camacho arrive in a vehicle. Soliz walked out of the garage as Reyes-Camacho retrieved a large bag from the vehicle. Both then entered the residence. A short time later, several individuals exited the garage and drove away in multiple vehicles.
Law enforcement stopped Rodriguez and Joshua Cadena in a vehicle in which they later found two clear baggies containing approximately 60 grams of meth. During a simultaneous stop, a K-9 alerted to the front engine of a vehicle in which Reyes-Camacho was driving. Soliz was the passenger. A subsequent search resulted in the discovery of two kilograms of meth.
Authorities also discovered an additional three kilograms of meth in the residence of Soliz as well as a kilogram of heroin, approximately $26,000, a Sig Sauer 9mm pistol and ammunition.
Matthew Cadena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation Smoke’M Out with the assistance of Texas Department of Public Safety and the Corpus Christi Police Department. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Six Co-Conspirators Sentenced for over $2.8 M Retail Financing FraudRead the Press Release
RICHMOND, Va. – Six individuals were sentenced recently to approximately 31 combined years in prison for taking part in a conspiracy to defraud several retail financing providers through various schemes involving the use of the names and other personal identifying information of over 1,000 identity theft victims.
According to court documents, between April 2017 and January 2022, Wael Jibawi, 28, of Palos Heights, Illinois; Mohammad Jibawi, 27, of Tinley Park, Illinois; Mahmoud Aljibawi, 40, of Oak Forest, Illinois; Alaelddin Aljibawi, 37, of Orland Park, Illinois; Jamel Eljebawe, 48, of Tinley Park, Illinois; and Yanal Khrisat, 28, of Burbank, Illinois, conspired to defraud at least six retail financing providers of at least $2.8 million.
During that period, the defendants opened and maintained several retail furniture stores in and around the Chicago area, which they used to establish merchant relationships with the targeted financing providers. These relationships enabled defendants to submit financing applications in the names of customers. Instead, the defendants submitted applications in the names of identity theft victims then used the approved accounts to charge the financing providers for purchases that did not actually occur. Over 1,000 identity theft victims have been identified to-date.
Additionally, in February 2018, several of the defendants used social engineering to gain access to merchant accounts belonging to other businesses and change the bank accounts designated to receive payments owed to those businesses by one retail financing provider. The defendants then submitted the affected businesses’ customer accounts for funding, causing the financing provider to deposit money that the defendants were not actually owed into accounts that they had opened and controlled.
The defendants’ respective sentences for their role in the scheme are as follows:
Defendant
Charges
Sentence
Wael Jibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
132 months
Mohammad Jibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
87 months
Mahmoud Aljibawi
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
58 months
Alaelddin Aljibawi
Conspiracy to Commit Wire and Bank Fraud
Wire Fraud
48 months
Jamel Eljebawe
Conspiracy to Commit Wire and Bank Fraud
Wire Fraud
31 months
Yanal Khrisat
Conspiracy to Commit Wire and Bank Fraud
Accessing Protected Computer in Furtherance of Fraud
Wire Fraud
21 months
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Kaitlin G. Cooke and Carla Jordan-Detamore prosecuted the case.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website. Additional resources regarding identity theft include the Department of Justice’s Identity Theft Website, the Social Security Administration’s Fraud Prevention and Reporting Website, and the IRS’s Identity Theft Central.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-141.
San Antonio Felons Charged with Stealing Firearms During Truck BurglariesRead the Press Release
SAN ANTONIO – A group of felons were indicted Thursday, charged with burglarizing numerous Ford pickup trucks and stealing firearms and other items.
According to court documents, Alejandro Arias, 24; Andrew Riojas, 24; Victor Valenciana, 28, Aureliano Villarreal, 26; and Richard Hernandez, 24, all from San Antonio, were part of a burglary crew that targeted Ford pickup trucks between July 2021 and January 2022. The group allegedly targeted Ford pickup trucks parked in high-traffic areas such as the parking lots of retail locations, malls and restaurants, stealing firearms and other high-value items, and occasionally stealing the trucks themselves. The indictment alleges that, to evade law enforcement detection, the defendants rented vehicles, applied stolen license plates to them, and traveled to the burglary locations. All five defendants are now in custody.
Each are charged with multiple counts, including conspiracy to receive and possess stolen firearms, felon in possession of a firearm, and possession of a stolen firearm. The defendants have each made their initial court appearances and await trial, currently scheduled for January 2023. If convicted, they each face a maximum penalty of five years in prison on the conspiracy to possess stolen firearms count and a maximum penalty of 10 years on the remaining counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Field Division made the announcement.
The ATF, Department of Homeland Security Investigations, and San Antonio Police Department are investigating the case.
Assistant U.S. Attorney Brian Nowinski is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Safford Man Sentenced to 60 months for Child Exploitation OffensesRead the Press Release
TUCSON, Ariz. – Last week, Richard Lee Molinar, 44, of Safford, Arizona, was sentenced by United States District Judge Scott H. Rash to 60 months in prison for child exploitation offenses. Molinar earlier pleaded guilty to Possession of Child Pornography. Upon release, Molinar will be placed on lifetime supervised release with sex offender conditions and will be required to register as a sex offender.
On July 7, 2021, Molinar was charged by a six-count indictment that alleged he received, possessed, and distributed child pornography between March 1, 2020, and April 1, 2021. Molinar pleaded guilty to count one of the indictment on June 23, 2022, which charged that on or about April 1, 2021, he possessed child pornography. Molinar admitted to possessing a phone which he used to access, download, save, and view images and 13 videos depicting minor children, many under the age of 12, who were engaged in sexually explicit conduct. Molinar received and distributed these images and videos using Facebook Messenger.
“Project Safe Childhood aims to protect the public long-term from the actions of defendants who seek to exploit children,” said United States Attorney Gary Restaino. “Because of this conviction, and the diligence of our partners at Homeland Security Investigations, the defendant will be subject to stringent conditions for the rest of his life with respect to the use of the internet and participation in chat rooms and other forms of social networking.”
“HSI will not tolerate the exploitation of children and will continue to use our unique investigative authorities to bring to justice anyone who attempts to violate our children,” said Special Agent in Charge Scott Brown, HSI Arizona.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorneys Rebecca S. Garvey and Carin C. Duryee, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-01599-SHR-BGM
RELEASE NUMBER: 2022-227_Molinar# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Richmond Contractor Sentenced to over 1 Year for Violating Federal Lead Paint Laws and Obstructing JusticeRead the Press Release
INDIANAPOLIS- Jeffrey Delucio, 54, of Richmond, Indiana, was sentenced to 16 months in federal prison for violating the Toxic Substance Control Act, specifically the provisions of the Act concerning lead paint renovations, and for obstructing justice by fabricating records to obstruct a federal grand jury.
According to court documents, Delucio operated Aluminum Brothers Home Improvements in Richmond, Indiana, which received federal grant money from the U.S. Department of Housing and Urban Development (HUD) to mitigate lead paint hazards in older low-to-middle income homes. Lead-based paint is the leading cause of lead poisoning in children, which can result in permanent developmental and health problems. Because of lead’s toxicity, federal law requires contractors renovating homes with lead-based paint to take certain precautions while working to protect themselves and those living in and around the homes under construction.
Delucio admitted in federal court that he and other Aluminum Brothers workers he supervised failed to follow these laws while conducting multiple the HUD-funded renovations in Richmond. As a result, lead-based paint chips were scattered throughout the properties and were not cleaned up timely or properly as work was being conducted. One of the residences was inhabited by a child with elevated blood lead levels, which had prompted the renovation work at that property to begin with.
Delucio further admitted that he failed to train his workers on lead-safe work practices and then falsified documents to conceal his conduct. Delucio’s company was subpoenaed by a federal grand jury for business records, including records of employee training on lead-safe work practices. In an effort to impede federal criminal investigators, including those from HUD and the Environmental Protection Agency (EPA), Delucio fabricated training records for each of his employees and supplied the false documents to EPA and HUD agents.
“Mr. Delucio put his community, employees, and the environment at risk, including a medically vulnerable child” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “These regulations are in place to ensure the health of Hoosiers for generations to come. We will continue working with the EPA, IDEM, and HUD to prosecute those who do not uphold their responsibility to preserve the environment and the safety of citizens.”
“The defendant created risks by not only failing to follow lead-safe work practices, but also falsely representing to the government their employees had received training,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal investigation program. “Today’s sentencing demonstrates that individuals who intentionally violate environmental laws will be held responsible for their crimes.”
“Protecting families and communities from lead-based paint hazards is one of HUD OIG’s top priorities,” said Special Agent in Charge Machelle Jindra. “HUD OIG is committed to seeking criminal penalties for those who willfully disregard lead-based paint safety regulations and other violations of Federal law related to HUD programs.”
“This wasn’t simply a situation of an environmental crime. Mr. Delucio’s behavior had real-life health implications for families in Wayne County,” IDEM Commissioner Brian Rockensuess said. “We’re pleased that this investigation has led to a conviction, preventing him and his company from causing further harm.”
The EPA, Indiana Department of Environmental Management (IDEM), and U.S. Department of Housing and Urban Development (HUD) investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon and included a $1,000 fine. As part of the sentence, Judge Hanlon ordered that Delucio be supervised by the U.S. Probation Office for 2 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Kathryn E. Olivier who prosecuted the case.
This case was prosecuted as part of the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy. As the Attorney General of the United States announced on May 5, 2022, the Department’s Environmental Justice Strategy seeks to provide timely and effective remedies for systemic environmental violations and contaminations and for injury to natural resources in underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities. The Department’s Office of Environmental Justice Members of the public who have concerns about environmental justice matters in the Southern District of Indiana can report them to the U.S. Attorney’s office via email to [email protected].
Ravenna CPA Charged with Embezzling More Than $1 Million from Employer and Submitting False Tax ReturnsRead the Press Release
CLEVELAND – Michael Harman, 45, of Ravenna, Ohio, was charged today in a six-count Bill of Information with devising a scheme to defraud his employer out of more than $1 million, money laundering, and submitting false tax returns to the IRS.
According to court documents, the defendant was a Certified Public Accountant (CPA) and was employed as a controller within his company. As a controller, some of the defendant’s responsibilities included processing payroll adjustments.
Court documents state that from 2016 to August 2020, the defendant devised a scheme to embezzle more than $1 million from his employer and used the funds for personal use, including child support payments in the State of New York and moving expenses. The defendant is accused of executing the scheme by using a series of unauthorized wire transfers, fictitious checks, and fraudulent charges on his employer’s credit cards.
In addition, the defendant is charged with failing to report income earned from the scheme on his tax returns for the tax years 2016, 2017, 2018, and 2019.
This case was investigated by the Cleveland FBI, Akron Resident Agency and IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Aaron P. Howell.
Providence Man Admits to Wire Fraud Conspiracy, Identity Theft While on Federal Supervised Release for Sex TraffickingRead the Press Release
PROVIDENCE – A Providence man today admitted to a federal judge that he participated in a conspiracy to fraudulently submit online applications in his name and in the names of other persons to collect COVID-related unemployment benefits from at least seven states, and that he did so while serving a term of federal supervised release that followed his conviction and incarceration for sex trafficking, announced United States Attorney Zachary A. Cunha.
Mackenzy Scott, 26, pleaded guilty to conspiracy to commit wire fraud, seven counts of wire fraud, theft of government money, and four counts of aggravated identity theft.
According to information presented to the court and contained in court documents, beginning in March 2020, approximately four months after his release from Bureau of Prisons’ custody, and continuing to May 2021, Scott used his own name, and the names of others to carry out a scheme to submit fraudulent online applications for COVID-related, federally-funded unemployment benefits from state agencies in North Dakota, Massachusetts, Arizona, Nevada, Kentucky, Texas, Hawaii, Pennsylvania, Michigan, and Indiana. In each of these applications, Scott falsely claimed that he, and the other persons in whose names he submitted applications, were entitled to benefits and made false statements about employment and/or residence in the applications submitted to respective states.
Scott’s fraudulent activity was discovered in February 2021 by a United States Probation Officer during an investigation into alleged violations of the terms of his federal supervised release.
The case is being prosecuted by Assistant U.S. Attorneys Denise M. Barton and Stacey Erickson.
The matter was investigated by the FBI and the Department of Labor – Office of Inspector General.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Placerville Man Pleads Guilty to Possessing 27 Dogs for Use in Dog FightingRead the Press Release
SACRAMENTO, Calif. — Carlos Villasenor, 40, of Placerville, pleaded guilty today to possession of dogs for use in an animal fighting venture, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Villasenor operated a dog breeding business in which he bred dogs from a number of well-known and desirable dogfighting bloodlines. Villasenor transported dogs between California and Mexico for the purpose of dog fighting, trained dogs for dogfighting on his property in Placerville, and sold dogs to buyers primarily outside California.
In September 2020, the sound of dogfighting, with humans egging the dogs on, could be heard from Villasenor’s Placerville property. In June 2021, law enforcement agents executed a federal search warrant at Villasenor’s property and seized 27 pit bull type-dogs, one of whom had injuries to its face consistent with an attack from another dog. Agents also seized one chihuahua mix which was used as a “bait dog.” Approximately half the dogs were tethered by heavy chains, and spaced so that they could see one another, but not reach one another, in order to frustrate the dogs and foster aggression. Many of the dogs had untreated veterinary conditions. Numerous implements of the dog fighting trade were found on the property, including a breeding stand, treadmills, and veterinary supplies including skin staplers, antibiotics, syringes, and IV bags. In his plea agreement, Villasenor surrendered his interest in the dogs and property seized by law enforcement.
This case is the product of an investigation by the U.S. Department of Agriculture, with assistance from El Dorado County Animal Services. Assistant U.S. Attorney Audrey Hemesath is prosecuting the case.
Villasenor is scheduled to be sentenced by Judge William B. Shubb on March 20, 2023. Villasenor faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Peoria Felon Sentenced to 51 Months in Prison for Possession of a HandgunRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Eshayah Y. Aguirre, 21, of the 1600 block of North Great Oak Road, was sentenced on December 20, 2022, to 51 months in federal prison, to be followed by a three-year term of supervised release, for possessing a firearm as a felon.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in January 2022 Aguirre had been convicted of the felony offense of aggravated unlawful use of weapons in Peoria County Circuit Court. Aguirre was thereafter prohibited by federal law from possessing firearms due to his felony conviction.
Later on May 25, 2022, Peoria Police conducted a routine traffic stop of a Chevy Trailblazer where Aguirre was seated as a backseat passenger. During the traffic stop, Aguirre forced open the rear door of the Trailblazer, striking an officer in the head and knee with the door. Aguirre then fled on foot through a residential area and, during a chase with the officer only footsteps behind, reached into his waistband and pulled out a handgun equipped with an extended high-capacity ammunition magazine. Immediately after pulling out the gun, Aguirre tripped and fell, causing the firearm tumble across the ground in an area between houses. Police then arrested Aguirre and recovered the gun, a semi-automatic pistol with a magazine capable of holding up to 31 rounds of ammunition. The gun was loaded with a round in the chamber, ready to fire, and contained an additional 20 rounds of ammunition in the magazine. Aguirre admitted the gun was his, claiming he had found it on an earlier date and kept it for his own protection.
At the hearing, Judge Shadid found that, although Aguirre was a young man, he was being sentenced for his second gun case and the sentence imposed was necessary to protect the public from potential future crimes by Aguirre.
Aguirre was indicted in June 2022 and entered a guilty plea in August 2022. He has remained in the custody of the U.S. Marshals Service.
The statutory penalties for a possessing a firearm as a felon are up to 10 years’ imprisonment, up to five years of supervised release, and a possible fine of up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Aguirre 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.
Peoria Felon Sentenced to 30 Months in Prison for Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Anthony Derrell Morris, 22, of the 1600 block of North Great Oak Court, was sentenced on December 20, 2022, to 30 months’ imprisonment, to be followed by three years of supervised release, for possessing a firearm as a felon.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in May 2022 the Peoria Police Department located a 2016 Honda Fit that had been reported stolen the previous day. Police conducted surveillance and saw Morris approach the car and enter the driver’s seat. When police converged on the vehicle, an officer on the passenger side saw a firearm tucked between Morris’s right leg and the center console, with the grip of the gun in plain sight. Morris had previously been convicted of the felony offense of possession of stolen motor vehicle and was prohibited from possessing a firearm or ammunition. The gun, a .380 caliber pistol, was loaded and had previously been reported as stolen. Morris was placed into custody without incident. He admitted that he illegally obtained the firearm the day prior to his arrest.
Morris was arrested and indicted in May 2022 and pleaded guilty in August 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of a firearm by a felon at the time of Morris’ offense were up to 10 years’ imprisonment, up to five years of supervised release, and a possible fine of up to $250,000.
“The United States Attorney’s Office will continue to work diligently with its federal and local law enforcement partners to seek swift and certain accountability for felons that possess firearms in our community”, said Assistant U.S. Attorney, Ronald L. Hanna.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Morris 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.
Pawtucket Man Admits Role in Counterfeit Check Fraud ConspiracyRead the Press Release
PROVIDENCE – A Pawtucket man admitted to a federal judge on Tuesday that he conspired with others to deposit and cash counterfeit checks created using stolen business and personal banking information, announced United States Attorney Zachary A. Cunha.
Maximilian Mwah, 29, admitted that he and others, including Richard Kobi, 27, of Providence, recruited individuals who would allow counterfeit checks to be deposited into their bank accounts. Once the checks were deposited, the funds were quickly withdrawn from ATMs and bank tellers. In one instance, Mwah arranged with Koboi to locate a look-alike who matched the description of an actual bank account holder. The look-alike was provided with a picture ID and the account holder’s banking information and used them to successfully make a withdrawal.
Mwah pleaded guilty on Tuesday to conspiracy to commit bank fraud and to bank fraud. He is scheduled to be sentenced on March 16, 2023. His sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Koboi pleaded guilty on April 27, 2022, to conspiracy to commit bank fraud, ten counts of bank fraud, and being a felon in possession of a firearm. He was sentenced to thirty-six months in federal prison; three years of federal supervised release; and ordered to pay restitution totaling $31,928, the actual loss to banks attributed to his criminal conduct.
Cases related to this bank fraud conspiracy are being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the FBI, United States Secret Service, ATF, Rhode Island State Police, Providence Police Department, and Delaware State Police.
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Omaha Man Sentenced to 130 Months for MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Larry D. Brooks, 60, of Omaha, Nebraska, was sentenced today in federal court in Omaha. United States District Judge Brian C. Buescher sentenced Brooks to 130 months in prison for one count of possession with intent to distribute 50 grams or more of methamphetamine (actual). After serving his sentence, Brooks will be placed on supervised release for 5 years. There is no parole in the federal system.
On or about February 6, 2021, in Omaha, officers with the Omaha Police Department observed a Red GMC Yukon being driven without illuminated taillights. The officers conducted a traffic stop on the vehicle. Brooks was driving the vehicle and there were no other occupants. After the stop, Brooks identified himself to the officers. During the search of the Brooks’s vehicle, officers located three (3) plastic baggies, which contained suspected methamphetamine and a digital gram scale. At the time of the traffic stop, Brooks knew the methamphetamine was in the vehicle and he intended to distribute some or all of the methamphetamine to another person.
Subsequent Nebraska Public Service Laboratory lab tests confirmed the suspected methamphetamine found in Brooks’s vehicle was methamphetamine and had a weight of 101.107 grams (3.56 ounces). Subsequent lab tests determined the recovered methamphetamine had a purity of 95%, for a minimum amount of actual methamphetamine of 90.996 grams
This case was investigated by the Omaha Police Department.
Oklahoma Inmate Sentenced to Serve Three Decades in Federal Prison for Drug Dealing from State PrisonRead the Press Release
OKLAHOMA CITY – Last week, EDUARDO ROSALES, 35, of Oklahoma City, was sentenced to serve 360 months in federal prison for his involvement in a methamphetamine distribution conspiracy, announced U.S. Attorney Robert J. Troester.
On December 4, 2019, a federal grand jury returned a 55-count Indictment charging Rosales and dozens of co-defendants with crimes related to a large-scale drug trafficking operation orchestrated from state prisons. According to the Indictment, the operation primarily focused on distributing methamphetamine using contraband cell phones from prison.
On August 3, 2021, Rosales pleaded guilty to Count 1 of a Superseding Information, alleging a drug conspiracy to distribute methamphetamine. The Indictment pertaining to Rosales was dismissed at sentencing pursuant to a plea agreement.
On December 15, 2022, Senior U.S. District Judge Stephen P. Friot sentenced Rosales to serve 30 years in federal prison after he completes his current state prison sentences. Judge Friot also ordered Rosales to serve 10 years of supervised release after his federal prison term. At the sentencing hearing, the court took into consideration that in 2019, Rosales used incarcerated associates, non-incarcerated associates, and contacts in Mexico to orchestrate a massive drug-trafficking ring that distributed methamphetamine throughout Oklahoma. In imposing the sentence, Judge Friot noted Rosales’ leadership role in the organization, his continued propensity to engage in criminal activity despite incarceration, the need for long-term incapacitation, and his criminal history.
Public records reflect that Rosales holds multiple felony convictions. He is currently serving a 15-year term of imprisonment with the Oklahoma Department of Corrections for 2016 convictions for trafficking in illegal drugs (methamphetamine), being a felon in possession of a firearm, and possession of a weapon while committing a felony in Oklahoma County District Court case CF-2016-9180. Additionally, in Oklahoma County District Court cases CF-2013-8251, CF-2014-6012, CF-2016-10038, and CF-2017-2838, Rosales holds felony convictions for possession of a controlled and dangerous substance (cocaine and marijuana) after sustaining a prior felony conviction, possession of proceeds after sustaining a prior felony conviction, and being a felon in possession of a firearm.
This case resulted from a nearly two-year investigation by the FBI Oklahoma City Field Office, the Oklahoma City Police Department, and the Oklahoma Department of Corrections—Security Threats Intelligence. The investigation ultimately led to the federal indictments of more than 40 defendants related to this drug trafficking enterprise. Rosales is the last defendant to be sentenced from the two Indictments stemming from this investigation.
This prosecution is also a part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Jason Harley, David McCrary, and Chelsie Pratt prosecuted the case.
North Providence Woman Sentenced for Defrauding the Federal Housing Administration, Business and Unemployment COVID Relief ProgramsRead the Press Release
PROVIDENCE – A North Providence woman convicted of defrauding multiple publicly-funded programs was sentenced on Tuesday to eighteen months in federal prison for making false statements when applying for a Federal Housing Administration (FHA)-backed mortgage, a Small Business Association (SBA) loan, and for fraudulently applying for government-funded COVID unemployment benefits, announced United States Attorney Zachary A. Cunha.
In March 2022, Juliana Martins, 53, admitted to a federal judge that, while simultaneously on federal supervised release for her role in a stolen identity and refund scheme, as well as state probation for an unrelated 2014 conviction for forgery and counterfeiting, Martins applied for an FHA-guaranteed loan. As part of the application process, she provided false explanations about gaps in her employment history, claiming that she was unemployed due to a “family emergency,” when in fact she had been incarcerated and serving an earlier federal sentence. claiming she was Martins also failed to disclose the fact that she was subject to a $385,533 federal restitution order.
Following the application, Martins and a co-borrower were issued an FHA-insured mortgage in the amount of $265,109.
Additionally, Martins admitted that in July 2020, she submitted a fraudulent application for a Small Business Administration (SBA) low-interest COVID-related Economic Injury Disaster Loan (EIDL), falsely claiming that she was an independent contractor in the health service business, and that her business had been impacted by the pandemic. Finally, Martins admitted that she fraudulently applied for and received COVID-related unemployment insurance benefits in April 2020, while she was in fact employed as an office manager. In total, Martins received over $40,000 in COVID relief benefits to which she was not entitled.
Martins pleaded guilty on March 2, 2020, to making a false statement on a loan application and theft of government property. Martins was sentenced on Tuesday by U.S. District Court Chief John J. McConnell, Jr., to eighteen months in prison and three years of federal supervised release. The defendant was ordered to pay restitution totaling $43,537.
The case was prosecuted by Assistant U.S. Attorneys G. Michael Seaman and Sandra R. Hebert.
The matter was investigated by the U.S. Department of Housing and Urban Development - Office of Inspector General; U.S. Department of Labor – Office of Inspector General; FBI; and Rhode Island State Police, with the assistance of the Rhode Island Department of Labor and Training Unemployment Insurance Fraud Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Noblesville Man Sentenced to over 10 Years in Federal Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS- Chakra Dasari, 34, of Noblesville, Indiana was sentenced to 121 months in federal prison for distributing and receiving child sexual abuse material.
According to court documents, in January of 2021, Indianapolis Metropolitan Police Department (IMPD) officers received information that Dasari had been using a cloud storage and file hosting application called Mega to store and exchange images of child sexual abuse. Dasari had sent the witness child sexual abuse material via Mega’s chat feature.
On May 11, 2021, investigators with the Indiana Crimes Against Children (ICAC) Task Force executed a search warrant at Dasari’s Noblesville residence. Investigators located an Apple iPhone on Dasari’s person that held 17 video files and 1 image file of child sexual abuse material. The iPhone also contained Telegram social media messages in which Dasari received material from an unknown Telegram user depicting toddlers and infants being made to engage in sexually explicit conduct with adults. Dasari possessed this child sexual abuse material between June of 2020 and May of 2021.
Dasari made multiple false statements to investigators during a recorded interview, denying that he had ever sent or received sexually explicit images or videos of minors. Dasari stated to police that he only “might have said certain things (I’m) not proud of” during his conversations with another Mega user.
United States Attorney for the Southern District of Indiana, Zachary A. Myers and IMPD Chief Randal Taylor made the announcement.
“The defendant joined others online to share heinous images depicting the sexual abuse of babies and toddlers,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who are gratified by the sexual exploitation of the most vulnerable of victims are a tremendous danger to our communities. The outstanding investigators of the Indiana ICAC Task Force will continue to work tirelessly with our U.S. Attorney’s Office to identify these criminals and send them to prison, where our children are out of their reach.”
ICAC and IMPD investigated the case. The sentence was imposed by U.S. District Judge James P. Hanlon. As part of the sentence, Judge Hanlon ordered that Dasari be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Dasari must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Kristina M. Korobov who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
New York Man Admits Role in Conspiracy to Distribute Fentanyl, Methamphetamine and Cocaine in New JerseyRead the Press Release
NEWARK, N.J. – A New York man admitted participating in a conspiracy to distribute fentanyl, methamphetamine and cocaine in New Jersey from locations in Manhattan, U.S. Attorney Philip R. Sellinger announced today.
Juan Carlos Merced Moreno, aka “Samuel,” 45, of Manhattan, New York, pleaded guilty by videoconference on Dec. 20, 2022, before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, 50 grams or more of a mixture and substance containing methamphetamine, and 100 grams or more of a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
Moreno admitted that from November 2020 through January 2021 he conspired with others to distribute and possess with intent to distribute fentanyl, methamphetamine, and heroin. He admitted participating in the conspiracy from locations in Manhattan and that some of the controlled substances were transported to New Jersey.
The conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum $5 million fine. Sentencing is scheduled for May 8, 2023.
U.S. Attorney Sellinger credited members of the Department of Homeland Security, Homeland Security Investigations, New York City Airport Border Enforcement Security Taskforce under the direction of Ivan J. Arvelo; special agents from Homeland Security Investigation, Newark, under the direction of Special Agent in Charge Ricky J. Patel; members of the New York Police Department, under the direction of Commissioner Keechant Sewell; and investigators and assistant prosecutors from the Hudson County Prosecutor’s Office, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Michigan City Man Sentenced to 444 Months in PrisonRead the Press Release
SOUTH BEND –Rico Marion, 44 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to conspiracy to distribute fentanyl and possession of a firearm in furtherance of drug trafficking, announced United States Attorney Clifford D. Johnson.
Marion was sentenced to 444 months in prison followed by 5 years of supervised release.
According to documents in the case, from June through mid-August 2021, Marion conspired with others to distribute fentanyl in the Michigan City area. Marion sold pills purporting to be oxycodone that were actually fentanyl and he possessed numerous firearms during the length of the conspiracy. In August 2021, Marion and a co-defendant were caught traveling back to Michigan City with over a kilogram of fentanyl pills.
“Today’s 37 year sentence was imposed on Mr. Marion for his role in distributing hundreds of grams of fentanyl to the streets of Northern Indiana,” said United States Attorney Clifford D. Johnson. “Fentanyl is 50 times more potent than heroin and 100 times more potent than morphine meaning as little as 2 milligrams can kill. Our federal, state and local law enforcement partners are focused on dismantling organizations that distribute this deadly illicit drug.”
“The sentence imposed reflects the commitment of the DEA, alongside our local and federal law enforcement and prosecution partners, to hold fentanyl traffickers accountable while keeping Hoosiers safe and healthy,” said Alfred A. Cooke, Assistant Special Agent in Charge of the Drug Enforcement Administration-Merrillville District Office.
“This sentence is an excellent example of how law enforcement partnerships are a force multiplier in investigating and prosecuting cases that have a large impact on the community,” said ATF Acting Special Agent in Charge of the Chicago Field Division Jeffrey L. Matthews. “I commend the efforts of all the investigators, agents and prosecutors who worked together to hold this defendant accountable.”
This case was investigated by the Drug Enforcement Administration (including the Chicago Field Division, the Merrillville District Office, the Amarillo Resident Office and the Albuquerque District Office) with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the LaPorte County Drug Task Force, an Indiana HIDTA Initiative and the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Kimberly L. Schultz and Joel Gabrielse.
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.
Mexican National Charged with Smuggling Firearms into MexicoRead the Press Release
DEL RIO, Texas – A federal grand jury in Del Rio returned an indictment last week charging a Mexican national with conspiring and attempting to smuggle firearms and ammunition into Mexico from the United States.
According to court documents, Jose Jesus Hernandez-Valle, 54, conspired with others to smuggle a 9mm pistol, a .40 caliber pistol, and more than 200 rounds of ammunition and other related firearm accessories into Mexico. The firearms were discovered and seized by Border Patrol Agents at the Del Rio International Port of Entry on Nov. 2.
Hernandez-Valle is charged with one count of conspiracy to smuggle goods from the U.S. and one count of smuggling goods from the U.S. The defendant is scheduled to make his initial court appearance Dec. 29 before U.S. Magistrate Judge Collis White of the U.S. District Court for the Western District of Texas. If convicted, he faces a maximum penalty of five years in prison on the conspiracy count and 10 years in prison for the smuggling goods count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Acting Special Agent in Charge Craig Larrabee of the Department of Homeland Security Investigations (HSI) San Antonio Division made the announcement.
HSI and the U.S. Border Patrol are investigating the case.
Assistant U.S. Attorneys Zachary Bird and Alex Brown are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mexican National Charged with Possession, Smuggling Firearm into MexicoRead the Press Release
DEL RIO, Texas – A federal grand jury in Del Rio returned an indictment last week charging a Mexican national with smuggling goods from the United States and possessing a firearm.
On Dec. 4, 2022, U.S. Customs and Border Protection (CBP) Officers encountered Santos Lozano-Martinez, 36, at the Camino Real International Bridge Number Two in Eagle Pass. During the inspection of Lozano-Martinez’s vehicle, a firearm and ammunition were discovered. Lozano-Martinez is accused of illegally possessing and smuggling from the U.S. into Mexico an Anderson AM-15 rifle, 20 rounds of 30.06 caliber Winchester ammunition, 50 rounds of .45 caliber Winchester ammunition and 131 rounds of .223 caliber Remington ammunition.
Lozano-Martinez is charged with one count of smuggling goods from the United States and one count of being an alien in possession of a firearm. The defendant is scheduled for his initial court appearance on Dec. 29 before U.S. Magistrate Judge Collis White of the U.S. District Court for the Western District of Texas. If convicted, he faces a maximum penalty of 10 years in prison on the count of smuggling goods from the U.S. and up to 15 years of imprisonment on the count of alien in possession of a firearm. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas; Acting Special Agent in Charge Craig Larrabee of the Department of Homeland Security Investigations (HSI) San Antonio Division; and Special Agent in Charge Jeffrey C. Boshek II of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Division, made the announcement.
HSI, CBP and ATF are investigating the case.
Assistant U.S. Attorneys Zachary Bird and Alex Brown are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mexican Citizen Sentenced to 4 Months for Illegal Re-entry into the United StatesRead the Press Release
SYRACUSE, NEW YORK – Salvador Hernandez-Hernandez, age 32, of DeKalb, Illinois, was sentenced today to serve 4-months in prison following his conviction for illegally reentering the United States following a prior deportation, announced United States Attorney Carla B Freedman and U.S. Border Patrol Swanton Sector Chief Patrol Agent Robert N. Garcia.
As a part of his prior guilty plea, Hernandez admitted that he was removed from the United States in July 2008, and that sometime after his removal he unlawfully reentered the United States without permission. On October 9, 2022, United States Border Patrol Agents stopped a vehicle that Hernandez was driving near Fort Covington, New York. Hernandez admitted that he had no legal right to be in the United States.
This case was investigated by the United States Border Patrol and was prosecuted by Assistant U.S. Attorney Jessica N. Carbone.
Many, Louisiana Man Convicted of Dog Fighting is Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Charles Calvin Akins, 52, of Many, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to 15 months in prison, followed by 2 years of supervised release.
Akins was charged in a federal indictment in February 2022 and pleaded guilty to the charge of possession of a dog for use in an animal fighting venture. This charge is a result of an investigation by law enforcement agents with the Federal Bureau of Investigation (FBI) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into illegal activities of Akins. Akins is a convicted felon, having been convicted of a felony charge of carnal knowledge of a juvenile in 1988, as well as misdemeanor convictions for aggravated assault and unauthorized use of a movable in 2016.
On January 19, 2022, agents with the ATF obtained a federal search warrant for Akins’ residence in Many, Louisiana. While planning the execution of the search warrant, agents observed 15 pit bull type dogs in the backyard of Akins’ residence. The dogs were chained in close proximity to each other but outside of biting reach and each dog had access to a small wooden structure. During the execution of the search warrant, agents observed the dogs, their chains, and their plywood structures. Each structure was surrounded by a circular path or “chain path.” The chain paths appeared to be worn dirt that the dogs would traverse around their plywood structures due to the restrictions of their chains.
Inside a nearby shed was a homemade treadmill with a small, dog-sized running belt made of wooden slats. These treadmills are commonly used by dog fighters to train and condition their dogs for fights. Inside another shed, agents found a pistol next to a large toolbox containing a large metal spring device, metal scale, and animal medications, as well as several heavy metal chains and metal stakes, a dog-breeding device and numerous carpet pieces. All of these items are commonly used by dog fighters to train and strengthen their dogs’ bite, weigh game dogs as they train and prepare them for upcoming fights, and for strength conditioning of the game dogs. Pieces of carpet are also commonly used by animal fighters to line fighting pits and provide traction for their game dogs. The dogs were seized and given behavioral and medical assessments. Several of the dogs had scars and wounds around the back legs, neck and rear, and displayed dog-aggressive behavior toward other dogs.
Akins admitted to owning and possessing the 15 dogs at his residence, along with the dog-fighting equipment found there. He also admitted that the dogs were possessed for use in dog-fighting events which would be conducted between at least two animals for purposes of sport, wagering, or entertainment, and that such dog-fighting events affected interstate commerce.
“Dog fighting is not only against the law, but an inhumane way of treating animals,” said U.S. Attorney Brandon B. Brown. “Individuals who participate in this type of activity should be aware that it is illegal to participate or wager in dog or cock fights. This office will continue to work with federal and local law enforcement agencies to put a stop to this kind of activity in the Western District of Louisiana.”
The case was investigated by the ATF and FBI and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
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Man from Acoma pleads guilty to sexual abuse in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Karl Shroulote, Sr., pleaded guilty to sexual abuse in Indian Country. Shroulote, 46, of Acoma, New Mexico, and an enrolled member of the Pueblo of Acoma, will remain on conditions of release pending sentencing, which has not been scheduled.
In his plea agreement, Shroulote admitted that on April 29, 2018, he sexually assaulted a victim, identified in court records as Jane Doe, while she was unconscious in his home on the Acoma Pueblo.
By the terms of the plea agreement, Shroulote faces between five years and three months and six and a half years in prison, and must register as a sex offender.
The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Acoma Police Department. Assistant United States Attorneys Alexander F. Flores is prosecuting the case.
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Man Sentenced to 28+ Years for Two St. Louis CarjackingsRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man who carjacked two people in 2021, including a grandmother and her granddaughter, to 28 years and 10 months in prison.
Darius Eubanks, 28, first stole a 2012 Chevrolet Malibu at gunpoint at a north St. Louis grocery store on the afternoon of June 27, 2021. He then unsuccessfully tried to kidnap someone at gunpoint before crashing the stolen vehicle at Labadie Avenue and North Sarah Street in north St. Louis.
Eubanks abandoned that vehicle and walked to a nearby market, where he pistol-whipped a woman who was placing her granddaughter into a 2005 Hyundai Sonata, knocking the woman to the ground. As the woman struggled to get her granddaughter out of the car, Eubanks began driving off.
Less than 30 minutes later, Eubanks was caught by police near his home in the 5000 block of Palm Avenue with a gun and the grandmother’s car keys.
In court Wednesday, the grandmother said she and her granddaughter were traumatized and that she would “never forgive” Eubanks.
Eubanks pleaded guilty in September to two carjacking charges and a charge of brandishing a firearm during a crime of violence.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI.
Man Sentenced to 18+ Years in Prison for Selling Fatal Dose of Fentanyl to St. Peters WomanRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who sold the fentanyl that killed a St. Peters, Missouri woman in 2020 to 18 years and four months in prison.
Nathan Matson, 27, of O’Fallon, Missouri, met with the victim in the driveway of her home on July 4, 2020 and sold her ten capsules containing fentanyl for $100.
When the victim contacted Matson to ask him what he sold her, Matson lied and said it was morphine, according to a sentencing memorandum. Knowing that she was in distress, Matson could have contacted the victim’s family or called 911 but did not.
The woman’s mother discovered her daughter dead in her bedroom the next day.
The St. Peters Police Department investigated and both Matson and his co-defendant, Jason Post, admitted their role to police.
In court Wednesday, the victim’s sister said Matson, “took advantage of someone who trusted him.” She said her sister would still be alive if she’d never met Matson.
The victim’s mother said, “I can’t understand why Nathan Matson would give my daughter a drug that would kill her and drive away, knowing what was going to happen.”
The sentencing memo says Matson tested positive for opiates 25 times since he was charged, suggesting he must have been selling fentanyl to support his own drug addiction even after the 2020 death.
Matson pleaded guilty in August to a fentanyl distribution charge.
Post, 30, of O’Fallon, Missouri, pleaded guilty in February to aiding and abetting in the distribution fentanyl and was sentenced in July to eight years in prison. He drove Matson to St. Louis to purchase the fentanyl, and then drove Matson to the victim’s house. He was rewarded with five capsules of fentanyl.
“Poisonings involving opioids jumped to more than 80,000 last year and are the leading cause of death for those ages 18 to 45,” said Special Agent in Charge Michael A. Davis, head of the Drug Enforcement Administration division that leads DEA investigations in Missouri. "The gravity of this problem is one reason the DEA and our law enforcement partners, like the St. Peters Police Department, take these investigations so seriously and why long sentences are appropriate.”
The St. Peters Police Department and the Drug Enforcement Administration investigated this case.
Madison Man Sentenced to 6 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Devin Crayton, 33, Madison, Wisconsin pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James Peterson to six years in federal prison for being a felon in possession of a firearm.
On or about January 11, 2022, Crayton was handling a firearm and discharged it in his girlfriend’s residence. Later that morning he was arrested. Officers obtained a warrant to search the house and found an unloaded Taurus 9mm handgun along with a magazine containing four live rounds. They also found a bullet hole from the upstairs hallway that travelled down into the living area, and a stolen police captain’s badge and handcuff case. Crayton is a convicted felon, has been to prison in Nevada, and is prohibited from possessing a firearm.
Crayton said that he likes “car shopping” (stealing from vehicles) and that the police badge was in a bag that he took. He also admitted that he was handling the gun when it discharged in the house. While the defendant said it was a negligent discharge and he only briefly handled it, a witness said that Crayton always carried the gun, that he had pointed it at her before, and that he fired it in the house to wake people up as he was trying to get methamphetamine.
Relevant conduct considered at sentencing included a March 27, 2022, arrest where the defendant was in possession of two handguns and a short barrel shotgun.
At sentencing Judge Peterson said that the most aggravating factor of the case was that after the defendant’s arrest in this case, he spent two months in jail on state charges and, after being released, immediately got more guns. The fact that he discharged the firearm was also concerning, and the court was skeptical of claims that this was a negligent discharge. Judge Peterson noted that at 33 years old, the defendant can no longer blame his conduct on a difficult childhood, and that he had a bad criminal record.
The charge against Crayton was the result of an investigation conducted by the Verona Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Lyndon Station Man Sentenced to 5 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kyle O. Luke, 27, of Lyndon Station, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to five years in federal prison for receiving child pornography. This prison term will be followed by 15 years of supervised release. Luke pleaded guilty to this charge on September 13, 2022.
In January 2022, agents executed a search warrant at Luke’s home based on a tip provided by the National Center for Missing and Exploited Children. During the search, agents seized numerous electronic devices. Agents interviewed Luke and he admitted that he accessed child pornography with his phone and that there may still be videos on that phone that had been sent to him on Snapchat.
At the time of the offense in this case, Luke was on supervision for attempted 2nd degree sexual assault and child enticement. Because Judge Conley found the defendant had a pattern of minimizing his sexually deviant conduct, three years of the sentence in this case will run consecutive to a five-year sentence the defendant is currently serving in that prior case.
The charge against Luke was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation and the Juneau County Sheriff’s Office. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Leader of Violent Brockton-Based Drug Crew Sentenced to Nearly 20 Years in PrisonRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for his role leading a wide-ranging drug trafficking conspiracy reaching from Boston to Brockton to Cape Cod.
Djuna Goncalves, 36, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 230 months, or more than 19 years, in prison and five years of supervised release. In October 2021, Goncalves pleaded guilty to conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone and marijuana; possession with intent to distribute 100 grams or more of heroin; possession with intent to distribute 40 grams or more of fentanyl, cocaine, cocaine base and marijuana; being a felon in possession of a firearm and ammunition; and possession of a firearm in furtherance of a drug trafficking offense.
“Djuna Goncalves was the leader of a violent drug trafficking operation that, for years, fueled serious and deadly crimes involving guns and including murders that plagued neighborhoods across our Commonwealth,” said United States Attorney Rachael S. Rollins. “This office will continue to prioritize protecting our communities by finding and prosecuting the drug traffickers and violent offenders who terrorize our neighborhoods. If you fall into that category, consider yourself warned.”
“Djuna Goncalves was the leader of a violent drug crew responsible for moving vast quantities of fentanyl and other deadly drugs throughout southeastern Massachusetts. While they turned a profit, people and their families were tormented by the forces of drug use and addiction,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations New England Field Office. “HSI is committed to dismantling and disrupting drug trafficking operations to stop the flow of drugs into New England. We’re proud to join our partners to announce today’s sentence.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and individuals like Mr. Goncalves who are responsible for distributing lethal drugs like fentanyl and heroin,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division. “Today’s sentence not only holds Mr. Goncalves accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
In the fall of 2018, law enforcement began investigating a violent Brockton drug crew headed by Djuna Goncalves. The investigation revealed that Djuna Goncalves worked with his brothers (and co-defendants) Cody and Tony Goncalves and others to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations in Brockton. The investigation also targeted several Boston-based drug suppliers to the Goncalves brothers. Large quantities of heroin, fentanyl, cash, a loaded handgun, and an AK-47 assault rifle were seized from Djuna Goncalves, who had previously been convicted of two prior drug distribution offenses.
In all, 17 defendants, including Djuna Goncalves, were indicted as part of a wide-ranging drug trafficking conspiracy. Djuna Goncalves was the last defendant to be sentenced.
U.S. Attorney Rollins; HSI SAC Millhollin; DEA SAC Boyle; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lawrence Woman Sentenced in Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence woman was sentenced in federal court in Boston yesterday for a drug trafficking offense in connection with her role in a fentanyl trafficking conspiracy.
Danybelkis Vasquez-Rodrigue, 28, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV, to 45 months in prison and three years of supervised release. On Aug. 30, 2022, Vasquez-Rodrigue was convicted following a five-day trial of one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
In November 2020, law enforcement began an investigation into Rodriguez-Ruiz, who had been identified as a Lawrence-based drug supplier. On Nov. 24, 2020, Rodriguez-Ruiz distributed nearly one kilogram of fentanyl to a cooperating witness. In exchange for the fentanyl, Vasquez-Rodrigue collected $42,000 from the cooperating witness. Through small payments to multiple individuals through local money remitting businesses, Vasquez-Rodrigue then transmitted those drug proceeds to the fentanyl supplier in Mexico.
On Sept. 9, 2022, Rodriguez-Ruiz was sentenced to 57 months in prison and three years of supervised release after previously being convicted of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl.
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 case was investigated by the FBI’s Strike Force including the Norfolk County Sherriff’s Office. Assistant U.S. Attorneys Alathea E. Porter and Stephen W. Hassink of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.Kodiak Man’s Murder Convictions Upheld by Court of AppealsRead the Press Release
ANCHORAGE – The Ninth Circuit Court of Appeals has upheld James Wells’ murder convictions which were handed down by a trial jury in October 2019 for the April 2012 murders of two U.S. Coast Guard (USCG) employees, Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle at a United States Coast Guard base on Kodiak Island, Alaska.
In February 2013, Wells was arrested for the murders of Hopkins and Belisle, who were both Wells’ co-workers at the USCG antenna maintenance facility, located at the USCG Communication Station (COMMSTA) on Kodiak Island. Wells was convicted in 2014 and the case was reversed for retrial by the Ninth Circuit Court of Appeals in December 2017. After a three-week retrial that ended in October 2019, a federal jury quickly convicted Wells of two counts of first-degree murder, two counts of murder of an officer or employee of the United States and two counts of possession and use of a firearm in relation to a crime of violence. Wells appealed. In a ruling issued last week, the Ninth Circuit Court of Appeals upheld Wells’ murder convictions, thus Wells sentence of life imprisonment remains in place. The court of appeals issued two separate rulings: 1) affirming the convictions and dismissing Wells’ arguments for a new trial and 2) the court remanded the sentencing court’s decision on valuing how restitution to the spouses of the men Wells murdered would be paid, along with upholding that Wells interview by investigators was done lawfully.
“The court’s ruling, solidly affirming Wells two murder convictions at trial, puts an end to this saga for the wives of Messrs. Belisle and Hopkins, the colleagues of the murdered men, the community of Kodiak and the United States Coast Guard,” said U.S. Attorney S. Lane Tucker. “Justice has been served. James Wells took the stand and attempted to explain away what he did that day, an explanation that was quickly rejected by the trial jury and by the court of appeals. Wells will spend the rest of his life in prison for the murder of these two men.”
“We are all relieved to bring final closure on this heinous and heartless crime. Our hearts continue to go out to the families and loved ones of the victims, and to the community of Kodiak for having the strength to endure this lengthy process,” said Paul Shultz, CGIS Special Agent in Charge, CGIS Northwest Region.
"I'm proud of the trial team's tireless efforts in the pursuit of justice on behalf of the Hopkins and Belisle families. Now with the Appellate Court's decision, comes a sense of some closure for all," said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office.
Evidence at trial established that on April 12, 2012, between 7:09 a.m. and 7:14 a.m., Wells had shot and killed Hopkins and Belisle with a .44 revolver while working at their duty stations in the Rigger Shop at COMMSTA. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing. Wells was due to arrive at the Rigger Shop the same time as Hopkins and Belisle, but instead left two phone messages for Hopkins and Belisle, noted to be after the victims’ time of death, stating Wells was running late due to a flat tire. Wells arrived to the Rigger Shop over an hour after his normal start time, immediately claiming to have had a flat tire.
USCG security videos captured Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white Dodge truck on his way toward the Kodiak Airport, and returning toward his residence at 7:22 a.m. However, a small blue SUV, owned by Wells, was captured on USCG security videos passing the Rigger Shop front entrance. The evidence showed Wells drove his white Dodge truck to the airport, where he swapped vehicles and drove Nancy Wells’ blue Honda CR-V to COMMSTA to commit the murders. There was a 34-minute period of time for which James Wells could not account and that unexplained discrepancy captured the attention of the interviewing agents. Additionally, a tire with a nail in it was seized and through extensive testing, the examiner concluded that the nail had been manually inserted into the tire, undermining the foundation of Wells’ alibi that he had picked up a nail while driving to work on the morning of the murders.
At Wells’ sentencing hearing after the second trial in 2019, U.S. District Judge Sharon L. Gleason made specific findings for the record that Wells threatened or unlawfully interfered with witnesses and that during the trial, Wells testified on several occasions in a “materially false manner.” The ruling of the Ninth Circuit equally found that Wells’ alibi at trial was not credible.
“I want to thank all of our partner agencies that were involved in the prosecution of this case through the decade of sentencing, retrial, and appeals,” said Rear Adm. Nathan Moore, 17th Coast Guard District, Commander. “Your continued dedication to this case ensured justice was met, and that James’ and Richard’s loved ones and our Coast Guard family can move one step closer to closure.”
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case, with support from the U.S. Coast Guard Investigative Service (CGIS), and the Alaska State Troopers (AST).
In 2019 the Deputy Criminal Chief Steven Skrocki prosecuted the case along with Assistant U.S. Attorney Christina Sherman, and U.S. Coast Guard Commander Kelly Stevens, who was appointed as a Special Assistant U.S. Attorney.
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Kansas Man Indicted on Cocaine and Firearms ChargesRead the Press Release
WICHTA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with crimes related to drug trafficking and firearms.
According to court documents, Clinton Bruner, 49, of Wichita was indicted on one count of possession with intent to distribute cocaine, one count of possession with intent to distribute cocaine base, one count of possession of a firearm in furtherance of drug trafficking crime, and one count of possession of a stolen firearm.
The Drug Enforcement Administration (DEA) is investigating the case.
Assistant U.S. Attorney Matt Treaster is prosecuting the case.
OTHER INDICTMENTS
Annali L. Vanarsdale, 19, of Wichita was indicted on one count of bank robbery. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorneys Mona Furst and Jason Hart are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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