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Thursday 3 November 2022
Thirty-Four-Year-Old Houston Man Pleads Guilty to Trafficking 13-Year-Old Female into the New Orleans Area to Perform Commercial Sex ActsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RANDI LEWIS (a/k/a “Teddy,” a/k/a “Teddy P.”), age 34, from Houston, Texas, pleaded guilty on November 2, 2022 before United States District Judge Lance M. Africk to Count 2 of the indictment pending against him, charging LEWIS with sex trafficking of a child under the age of 14, in violation of Title 18, United States Code, Section 1591(a) and 1591(b)(1). The charges stem from LEWIS’S role in bringing a thirteen-year-old female from Houston to New Orleans for the purpose of her engaging in commercial sex acts in June 2021.
According to court documents, LEWIS met his co-conspirator, Chelsea Gee, a female born in 2003, in about late 2019 or early 2020. LEWIS recruited Gee to engage in commercial sex acts under his direction, and she complied. LEWIS also instituted a series of rules Gee was to follow, including how to behave, what to wear, with whom she was allowed to interact (i.e., look at and speak to), and how much she was expected to earn from engaging in commercial sex acts daily. LEWIS routinely tracked Gee’s location using a location sharing cellular phone application. LEWIS also regularly engaged in sexual acts with Gee.
Together, LEWIS and Gee met the minor victim, who was thirteen years old, in the Houston, Texas area not later than June 21, 2021. At LEWIS’s direction, Gee recruited the minor victim to perform commercial sex acts also under LEWIS’s direction. Soon thereafter, Gee introduced the victim to LEWIS. After the victim agreed, LEWIS arranged for he, Gee, and the victim to travel to New Orleans on a Greyhound bus for the purpose of his co-conspirator and the victim to engage in commercial sex acts. Between June 22, 2021, and June 24, 2021, Gee and the victim performed multiple commercial sex acts in the New Orleans area. LEWIS required the minor victim to turn over all, or most, of the money she earned from commercial sex acts to LEWIS. LEWIS and Gee gave the minor victim instruction and guidance on matters related to the successful performance of commercial sex activities, including ways to behave, what to wear, how to identify and avoid law enforcement, and how to best solicit and engage in commercial sex activities under LEWIS’S direction.
Acting at LEWIS’S direction, Gee and the minor victim solicited commercial sex “dates” in several ways. First, they walked along streets soliciting customers. Additionally, LEWIS created and caused to be created advertisements on an online classified ad service commonly used to advertise sexual services in exchange for money, through which LEWIS received telephone calls, text messages, and messages via social media applications inquiring about, scheduling, and arranging prostitution calls with his co-conspirator and the minor victim. LEWIS arranged for sexually explicit pictures of the minor victim to be used in the advertisements. LEWIS and his co-conspirator also gave the minor victim illicit and mood-altering drugs, including marijuana, to numb her senses, control her behavior, and/or to encourage her to engage in commercial sex acts. Law enforcement authorities recovered the minor victim at a hotel in Terrytown, Louisiana, on June 24, 2021.
LEWIS faces a mandatory minimum term of imprisonment of fifteen (15) years and up to a maximum term of life in prison, a fine of up to $250,000.00, a lifetime of supervised release after imprisonment, and a mandatory $100 special assessment fee. LEWIS may also be required to register as a sex offender and make restitution payments to the minor victim. Sentencing has been scheduled for March 8, 2023, at 2:00 pm before Judge Africk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Ten defendants charged in Augusta-area drug trafficking operationRead the Press Release
AUGUSTA, GA: Ten people have been indicted in an Augusta-area drug trafficking conspiracy linked to another large-scale drug trafficking prosecution.
As described in the newly unsealed indictment in USA v. Fields et. al, the investigation parallels the indictments in USA v. Wheatley et. al, together dubbed Operation Wheat Fields, and describes a conspiracy to transport and distribute large amounts of methamphetamine and heroin in the areas of Richmond and Emanuel counties in Georgia, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Each defendants faces a conspiracy charge that carries a maximum statutory penalty of up to life in prison, and there is no parole in the federal system.
“Illegal drug trafficking operations generate misery in our communities and produce significant illicit funds and generate rivalries that fuel violent crime,” said U.S. Attorney Estes. “By closely collaborating with our law enforcement partners, we will continue to identify, disrupt and dismantle these organizations and make our citizens safer.”
Operation Wheat Fields is an Organized Crime Drug Enforcement Task Forces investigation that identified a pipeline of illegal drugs from Mexico routed through Atlanta and into the greater Augusta area, facilitated by defendants that included those housed in Georgia prisons who used contraband devices to communicate via text message and Facebook. The investigation led to multiple searches and evidence seizures from residences, vehicles, and hotel rooms.
Those charged in the October 2022 indictment in USA v. Fields, et. al, include:
- Justin Wayne Fields, 39, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; three counts of Distribution of Methamphetamine; and 11 counts of Use of Communication Facility, related to the use of a cell phone or Facebook Messenger to facilitate the conspiracy;
- Joshua Brooks Woodward, a/k/a “Jay Wood,” 30, of Augusta, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; and five counts of Use of a Communication Facility;
- Elizabeth Sarah Hagan, 38, of Augusta, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; Possession of Methamphetamine; and four counts of Use of a Communication Facility;
- Coley Alexander Greene, a/k/a “Henry Jones,” 30, of Wrens, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; and three counts of Use of a Communication Facility;
- James Edmund Beasley, 34, of Grovetown, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; Possession with Intent to Distribute Heroin; and three counts of Use of a Communication Facility;
- Cameron Ruth Young, 35, of Grovetown, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; Possession with Intent to Distribute Heroin; and Use of a Communication Facility;
- David Marshall Hood, 45, of Kite, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; two counts of Distribution of Methamphetamine; Possession with Intent to Distribute Methamphetamine; and Use of a Communication Facility;
- James Richard Faircloth, 39, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; five counts of Distribution of Methamphetamine; Possession with Intent to Distribute Methamphetamine; and three counts of Use of a Communication Facility;
- Leann Nicole Faircloth, 39, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; and three counts of Distribution of Heroin; and,
- Casey Alton Henry, 45, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; two counts of Distribution of Methamphetamine; and Use of a Communication Facility.
All of the defendants charged in the indictment have appeared before a magistrate in U.S. District Court.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
In the related prosecution in USA v. Wheatley et al., lead defendant Jayson Dwayne Wheatley, 41, of Augusta, awaits sentencing after pleading guilty Sept. 23 to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine. Two other defendants also await sentencing after pleading guilty to related charges, and the remaining four defendants are presumed innocent unless and until proven guilty.
The case was investigated under the 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.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer.
Operation Wheat Fields is being investigated by the Georgia Bureau of Investigation; the Swainsboro Police Department; the Emanuel County Sheriff’s Office; the Richmond County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; and the Columbia County Sheriff’s Office, and is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney and Criminal Division Chief Patricia G. Rhodes.
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Taylorsville, N.C. Woman Is Sentenced to Eight Years in Prison for Embezzling More Than $15 Million from Former EmployerRead the Press Release
CHARLOTTE, N.C. – Donna Osowitt Steele, 53, of Taylorsville, N.C., was sentenced today to eight years in prison for embezzling more than $15 million from her former employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Steele to serve three years under court supervision after she completes her prison term and to pay $17,189.748.26 in restitution. Steele previously pleaded guilty to wire fraud in connection with the scheme.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2013 to January 2020, Steele executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S.-based subsidiary of a foreign company that manufactures carbide products. Steele began working for Victim Company A’s shipping department in 1999. Over the next 20 years, Steele was promoted to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020.
Court records show that, while serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for a family wedding, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company owned by the defendant. Steele also issued and caused to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A’s bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A’s bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A’s bank accounts to her personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.
According to court documents, over the course of the scheme, Steele embezzled more than $15 million from Victim Company A. As a result of Steele’s embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, employees not being paid on time, and/or employees having their insurance cancelled without warning. Court records show that, in an effort to hide the fraudulent scheme, Steele limited communications and interactions between the employees and the owners of Victim Company A. Steele also convinced employees that company owners should be feared and lied to employees about the true nature of Victim Company A’s financial trouble.
On January 12, 2022, Steele pleaded guilty to wire fraud. She is currently released on bond and will be ordered to report the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.
Assistant United States Attorney Maria Vento of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Tampa Man Sentenced to More Than 3 Years in Federal Prison for CyberstalkingRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Dominique Dragan (29, Tampa) to three years and one month in federal prison, followed by three years supervised release, for cyberstalking two victims. Dragan had pleaded guilty on May 25, 2022.
According to court documents, from approximately January 2020 through July 2021, Dragan engaged in a course of conduct with the intent to harass and intimidate multiple victims. Using Instagram, Dragan cyberstalked, harassed, and threatened the victims with a series of continuous messages. He made specific threats to kill the victims, including by stating, “I can’t wait to hear the bones in your neck break,” “I’m gonna put a bullet in your forehead,” and “I can’t wait to murder you.” Dragan also included racially charged language and warned the victims not to report his threats to law enforcement. Dragan’s conduct placed the victims in reasonable fear of serious injury and death.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
Syracuse Man Indicted on Firearms ChargeRead the Press Release
SYRACUSE, NEW YORK – Cedric L. Hudson, Jr., 36, of Syracuse, New York, is charged in a federal indictment filed today alleging he possessed a firearm and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Acting Superintendent Steven A. Nigrelli.
Hudson was previously charged by a federal criminal complaint and made his initial appearance on October 21, 2022, before United States Magistrate Judge Andrew T. Baxter. Hudson is detained without bail pending a trial. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Hudson carries a maximum sentence of 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. 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.
This case is being investigated by Federal Bureau of Investigation (FBI), and the New York State Police (NYSP), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Onondaga County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Richard Southwick as 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.
Sully County Men Convicted of Crop Insurance FraudRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that James Garrett, age 68, and Levi Garrett, age 44, of Sully County, South Dakota, were found guilty of three counts of False Statement in Connection with Federal Crop Insurance, as a result of a federal jury trial in Pierre, South Dakota. The defendants were found not guilty on four other crop insurance fraud charges and two charges of Major Fraud Against the United States. The verdict was returned on October 31, 2022.
The charges carry a maximum penalty of 30 years in custody and/or a $250,000 fine, five years of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
The defendants were indicted by a federal grand jury in October of 2021.
In 2018, the defendants falsely certified to a crop insurance company that they planted 2,200 acres of sunflowers in Sully County. In fact, the defendants did not plant sunflowers, and they wrongfully received a total indemnity from the insurance company of $495,048. In 2019, James Garrett falsely certified he planted 47.5 acres of corn in Sully County. In fact, no corn was planted, and he wrongfully received a total indemnity from the insurance company of $484,405.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General and the U.S. Department of Agriculture, Risk Management Agency. Assistant U.S. Attorneys Cameron J. Cook and Alexis A. Warner prosecuted the case.
A presentence investigation was ordered, and a sentencing date has not been set. The defendants were released pending sentencing.
Stratford Doctor Pleads Guilty to Health Care Fraud and Illegal Kickback OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, announced that ANANTHAKUMAR THILLAINATHAN, MD, 44, of Stratford, waived his right to be indicted and pleaded guilty today in Hartford federal court to health care fraud and kickback offenses.
According to court documents and statements made in court, Thillainathan is a medical doctor and the owner and president of MDCareNow LLC, a medical practice with offices in Stratford and Milford. MDCareNow has been a participating provider enrolled as both an internal medicine group and as a behavioral health clinician group in the Connecticut Medicaid program. Between approximately June 2019 and May 2022, Thillainathan submitted or caused to be submitted to Connecticut Medicaid approximately $839,724 in fraudulent claims for psychotherapy services that he knew patients did not receive from his employees. Thillainathan knew that the billed psychotherapy Current Procedural Terminology (CPT) codes, which identify the nature and complexity of the services provided, were not supported by medical records provided by his employees, and that the services were not provided. The investigation revealed that Thillainathan submitted fraudulent claims to Medicaid for reimbursement that falsely represented his employees had rendered 60-minute psychotherapy sessions when, in fact, his employees only had very brief conversations with patients, had only left a voicemail for patients, or had no contact with patients at all.
In pleading guilty, Thillainathan also admitted that, in violation of his Connecticut Medical Assistance Program (CTMAP) provider agreement, he paid a third-party “patient recruiting” company for each Connecticut Medicaid patient the company recruited and provided with transportation to MDCareNow for medical services. Thillainathan paid the patient recruiting company approximately $100 per patient for an initial visit to MDCareNow and approximately $40 per patient for any subsequent visit. Between approximately November 2019 and May 2021, Thillainathan paid the patient recruiting company for the recruitment of approximately 1,018 Connecticut Medicaid patients, and Connecticut Medicaid reimbursed MDCareNow a total of approximately $1,071,328 for services provided to these patients.
Thillainathan pleaded guilty to one count of health care fraud and one count of kickbacks involving federal health care programs, offenses that carry a maximum term of imprisonment of 10 years on each count. He is scheduled to be sentenced by U.S. District Judge Stefan R Underhill in Bridgeport on January 26, 2023. As part of his plea, Thillainathan has agreed to pay $1,674,880 in restitution.
Thillainathan, a citizen of Sri Lanka and a lawful permanent resident of the U.S., is released on a $100,000 bond pending sentencing.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services.
The matter is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Elena L. Coronado.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
St. Louis County Man Sentenced to 22 Years for Multiple RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday sentenced a man from St. Louis County, Missouri to 22 years in prison for the armed robbery of four stores and for trying to rob a fifth.
Demetrius Smith, 35, pleaded guilty July 25, just before his jury trial was set to begin, to four robbery counts and one attempted robbery. He admitted committing armed robberies of a T-Mobile store in Creve Coeur on Nov. 15, 2018, a MetroPCS in Bridgeton on Nov. 21, 2018 and a Bucky’s Express gas station and a QuikTrip in Maryland Heights on Nov. 24, 2018. He also tried to rob a 7-Eleven in St. Louis County on Nov. 24, 2018.
A total of six separate employees were present during the robberies, including a woman who was grabbed, threatened and forced to her knees by Smith, Assistant U.S. Attorney Jason Dunkel said during Thursday's sentencing hearing.
Smith used his cell phone to call the stores before the robberies to see if a manager was present, because he thought a manager was more likely to be able to access the safe. He then walked by the stores, waiting for a moment when there were no customers and only a single employee in the store before robbing it. If a customer came in during the robbery, he abandoned the robbery and fled.
On November 26, 2018, police from the Overland Police Department located Smith at his apartment as they were investigating the robbery of the Bucky’s Express. Police searched the car that Smith rented and used during the robberies and found a duffel bag, gloves and clothing that he used at some of the robberies and the firearm he used in all five robberies.
In addition to the prison time, Judge White ordered Smith to pay $25,370 in restitution.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Overland Police Department, the Bridgeton Police Department, the Creve Coeur Police Department, the Maryland Heights Police Department and the St. Louis County Police Department. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Six People Indicted for Retaliatory Kidnapping PlotRead the Press Release
DETROIT – Four individuals were arrested today on charges of kidnapping and conspiracy to commit kidnapping in November 2021 when the defendants are alleged to have kidnapped and beaten an individual they wrongly believed participated in a carjacking, announced United States Attorney Dawn N. Ison.
U.S. Attorney Ison was joined in the announcement by Special Agent in Charge Paul Vanderplow, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The six individuals were charged in an October 12, 2022, indictment which was unsealed today.
Charged were:
Cortez Blake, 21, Detroit, MI
Karamoh Turner, 21, Detroit, MI
Semaj Ayers, 20, Detroit, MI
Maijah Greene, 22, Detroit, MI
Shatonnia Kimbrough, 19, Detroit, MI
Armond Williams, 20, Detroit, MI
As alleged in the indictment, beginning on November 14, 2021, and continuing into November 15, 2021, the defendants joined other unnamed individuals in the kidnapping and beating of a person as part of an organized effort to extract information about a carjacking the conspirators wrongly believed the person took part in. The victim of the carjacking, Cortez Blake, is alleged to have participated in the kidnapping conspiracy.
Four of the defendants will be making their appearance in federal court today.
If convicted, the defendants each face up to life in prison, a $250,000 fine, and up to five years of supervised release.
“The coordinated effort to victimize and seek retaliation in this case is stunning,” said U.S. Attorney Ison. “This is a clear example of what we see too often: violence causing more violence, and it has to stop. Today’s arrests should send a clear message to those thinking about carrying out street justice – it will not be tolerated.”
“Criminal groups who violently terrorize our communities will be aggressively pursued, and eradicated from our communities,” said ATF Special Agent in Charge Paul Vanderplow. “We are proud of the collaborative effort with the U.S. Attorney’s office, our Federal, State of Michigan, and Local partners resulting in getting these violent gang members off our streets.”
The United States Attorney’s Office and the ATF are focused on prosecuting those individuals who are using firearms to commit violent acts against people in the Eastern District of Michigan. The strategy is a part of the United States Attorney’s Office’s Project Safe Neighborhoods (PSN) initiative. PSN continues to be the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them. PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.
These charges are just some of the tangible results of this joint effort. The United States Attorney’s Office and our law enforcement partners will continue to work together to reduce violence in our communities. Along with ATF, this case has been investigated with the assistance of the Office of Inspector General – U.S. Department of Labor, the United States Marshals Service, the Detroit Police Department’s Gang Intelligence Unit, and the Michigan Department of Corrections.
An indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Serial Burglar Sentenced to 42 Months in PrisonRead the Press Release
MADISON, WIS. – Chief Judge James D. Peterson of the Western District of Wisconsin sentenced Ahmeeshadye Curtis, 36, Madison, Wisconsin to 42 months in federal prison for conspiring to transport and transporting stolen goods worth over $5,000 across state lines. Judge Peterson ordered the federal sentence be served consecutive to the 30-month state sentence Curtis is currently serving for burglary-related crimes in Ohio. Curtis was convicted following a four-day trial in federal court in Madison.
The government presented evidence at trial that from November 2019 through December 24, 2019, Curtis conspired with Carl Carter, 39, also of Madison, to commit seven burglaries and attempt another of stores in Iowa, Ohio, Minnesota, and Wisconsin, and to travel across state lines with the stolen merchandise. The stolen merchandise included cell phones (primarily Apple iPhones), other electronics, and jewelry. Two of the burglaries occurred in Janesville, Wisconsin on November 28, 2019.
At sentencing, Judge Peterson described the burglaries as “high-level property crimes” and emphasized the impact the crimes had not only on the owners of the stores, but on the workers of the stores who no longer felt that they worked at a safe and secure location. Curtis’ criminal history, which included numerous other thefts and a burglary in Ohio that occurred after Curtis was federally indicted and failed to report to jail in this case, also played a role in the significant sentence.
Carter pleaded guilty to the conspiracy charge and was sentenced on January 4, 2021, to 30 months in federal prison.
The case was investigated by the Federal Bureau of Investigation; the Janesville, Wauwatosa, West Allis, Wausau, and Everest Metro Police Departments in Wisconsin; the Creston and Cedar Falls Police Departments in Iowa; the Cuyahoga Falls Police Department in Ohio; the Minnetonka and Woodbury Police Departments in Minnesota; and the Rockton Police Department in Illinois. The prosecution was handled by Assistant U.S. Attorneys Zachary Corey and David Reinhard.
Schuylkill County Man Sentenced to 93 Months’ Imprisonment for Drug Trafficking and Firearm OffensesRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Walter Gray, age 37, of Ashland, Pennsylvania, was sentenced yesterday to 93 months’ imprisonment by United States Chief District Court Judge Matthew W. Brann for drug trafficking and firearm offenses.
According to United States Attorney Gerard M. Karam, Gray previously pleaded guilty to one count of possession with the intent to distribute fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking offense. In June of 2020, Gray failed to appear in Schuylkill County Court for previous drug and firearm charges and an arrest warrant was issued.
In April of 2021, members of the Pennsylvania State Police Fugitive Task Force and United States Marshals executed an arrest warrant for Gray at an Airbnb rental property in Snyder County, Pennsylvania. Gray was found in possession of fentanyl, drug paraphernalia, a Glock 21 .45 caliber pistol, various pistol magazines and pistol ammunition, small quantities of other controlled substances, and over $7,000 in cash.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshals Service, the Pennsylvania State Police, the Schuylkill County District Attorney’s Office, the Snyder County District Attorney’s Office, the Schuylkill County Drug Task Force, and the Frackville Borough Police Department. Assistant United States Attorney James M. Buchanan prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun
violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Schenectady County Felon Indicted for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Jason Seminary, age 44, of Duanesburg, New York, was ordered detained today following his indictment last week for unlawfully possessing a firearm and ammunition on December 26, 2021.
The announcement was made by United States Attorney Carla B. Freedman and Guilderland Police Chief Daniel P. McNally.
The indictment charges Seminary, a previously convicted felon, with possessing a loaded Ruger .22 caliber rifle on December 26, 2021, in Schenectady County.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Seminary was arraigned on November 1 and, following a detention hearing held today before United States Magistrate Judge Daniel J. Stewart, ordered detained pending trial.
This case is being investigated by the Town of Guilderland Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Town of Rotterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Salem, Iowa Man Pled Guilty to Possession of Child PornographyRead the Press Release
DAVENPORT, Iowa — On Friday, October 7, 2022, Jason Robert Wesely, age 39 of Salem, Iowa, pled guilty in federal court to Possession of Child Pornography. Wesely is scheduled to be sentenced on February 28, 2023. A federal judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on or about June 4, 2020, Wesely knowingly possessed visual depictions of child pornography. Wesely knew that the visual depictions were of minors engaging in sexually explicit conduct, the depictions included minors who had not attained 12 years of age, and the visual depictions had been shipped or transported in interstate or foreign commerce by any means including by computer and cellular phone. Wesely used his phone and a DVD to commit the crime. IP addresses connected to a social media account used in the crime were tracked to Wesely’s residence in Salem, as well as his workplace at the National Guard in Mount Pleasant, Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Homeland Security Investigations.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexual abused are encouraged o call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Ponte Vedra Beach Man Pleads Guilty to Tax Evasion and Agrees to Pay IRS More Than $1.9 Million in RestitutionRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Patrick Brian Hines has pleaded guilty to willful evasion of the payment of taxes. Hines faces a maximum penalty of 5 years in federal prison and has agreed to pay restitution to the IRS in the amount of $1,927,077.90.
According to the plea agreement, Hines owned and operated telecommunication companies from 2004 through 2011. In April 2011, after several lawsuits against the entities and Hines, the entities filed for bankruptcy. In 2012, a new telecommunication company was established in Hines’s wife’s name. Hines operated the company through nominees for his personal benefit from 2012 through 2018, during which time the company generated more than $4 million in revenue. The Federal Communications Commission issued a forfeiture order for the previous entities and Hines to pay $1.6 million. In addition, in 2016, the California
Public Utilities Commission filed a complaint against Hines and his companies, which resulted in a finding that Hines was responsible for $9.8 million plus interest, which remains outstanding. Hines used multiple nominee owners for the new company in an attempt to distance himself from the company, and to evade and defeat the payment of income taxes and other obligations.
From 2012 through 2018, Hines arranged for $2.5 million to be spent on personal expenses from nominee accounts, to include $38,000 in personal training sessions, dues for two private clubs, $275,000 in mortgage payments for a multimillion-dollar residence, and tuition for his children’s private schooling.
Hines and his spouse continued to reside in a house on Ponte Vedra Boulevard until it was sold in May 2016 for $5.3 million. Hines and his spouse personally benefitted over $1.79 million through the sale of the residence. Hines had outstanding taxes due to the IRS for tax years 2010, 2011, and 2014. Beginning as early as November 28, 2011, the IRS sent Hines collection notices of his unpaid taxes, yet Hines failed to pay. Despite advice from his accountant to pay his taxes, Hines claimed to be “broke” and living off of the proceeds from the sale of the house. On June 29, 2016, Hines filed an IRS Form 433-A, in which he falsely claimed to have no income, but was supported by his spouse who gave him $3,479 per month, even though he knew that he had received the personal benefit of at least $2 million from 2012 through 2018. Hines has accrued penalties and interest as a result of his delinquent taxes, resulting in total outstanding balance of $1,927,077.90.
“Spending money on personal trainers, private schools and private clubs instead of fulfilling legal tax obligations is a disgrace and a theft from the American public," said Brian Payne, IRS-CI Special Agent in Charge. “Hines’ plea should help reassure honest taxpayers that those who are not paying their fair share will be held responsible.”
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Pittsford Man Sentenced for Trafficking Fentanyl, Cocaine, and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Scott Chandler, 47, of Pittsford, Vermont, was sentenced today to serve one year and one day of imprisonment for possessing with intent to distribute fentanyl, cocaine, and cocaine base. United States District Judge Geoffrey W. Crawford also ordered Chandler to serve a three-year term of supervised release after his incarceration.
According to court records, Chandler was first suspected of drug distribution activity in the spring of 2020. On May 24, 2020, Chandler was stopped by a Vermont State Trooper while he was driving his truck north from Massachusetts into Vermont on I-91. After a canine alerted to Chandler’s truck, the truck was seized pending a state search warrant. While the truck was impounded, Chandler was detected surveilling the impound lot at the Vermont State Police barracks, and suspected of plotting to enter the lot to access the seized truck. VSP Troopers attempted to approach Chandler, resulting in Chandler fleeing the area on a motorcycle at a high rate of speed. Chandler crashed the motorcycle and was apprehended. A search of Chandler’s truck resulted in the seizure of approximately 600 bags of fentanyl, approximately 13 grams of cocaine, and approximately 1 gram of cocaine base.
Chandler participated in the Rutland Federal Drug Court from June of 2021 until June of 2022 but did not successfully complete the program. Chandler was dismissed from the Rutland Federal Drug Court after his arrest for Grand Larceny in Bennington County, Vermont. The Grand Larceny case remains pending in Vermont Superior Court.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police and the Federal Bureau of Investigation.
The prosecutor was Assistant United States Attorney Jonathan Ophardt. Chandler was represented by Natasha Sen, Esq.
Pine Ridge Man Found Guilty of First Degree MurderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that Colton Bagola, age 29, of Pine Ridge, South Dakota, was found guilty of First Degree Murder and Discharge of a Firearm During the Commission of a Crime of Violence following a federal jury trial in Rapid City, South Dakota. The verdict was returned on October 28, 2022.
The murder charge carries a mandatory sentence of life imprisonment and/or a $250,000 fine.
Bagola was indicted by a federal grand jury in January of 2020.
The conviction stems from Bagola shooting a 30-year-old male in the back of the head and killing him, on December 17, 2019, at Pine Ridge.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Gina Nelson prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Philadelphia Man Pleads Guilty to Gas Station Carjacking Near Lincoln Drive and WissahickonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Shamire Young, 20, of Philadelphia, PA, entered a plea of guilty before United States District Court Judge Nitza I. Quiñones Alejandro to the charge of carjacking stemming from an incident which occurred in the Germantown section of Philadelphia in March 2022, during which he and three other individuals stole a vehicle and fled in it.
According to court documents, in the early morning hours of March 11, 2022, the victim pulled into a gas station on Wissahickon Avenue near Lincoln Drive and went inside the shop while a second victim, his passenger, remained in the vehicle. Moments later, a dark colored vehicle pulled up alongside the victim’s parked vehicle, and three men get out brandishing handguns. When the victim attempted to return to his vehicle, the assailants forced him into a cluster of nearby trees and forced the second victim out of the vehicle and into the same group of trees. After physically assaulting the victim, the assailants got back into both vehicles, two in each, and sped away down Lincoln Drive toward I-76.
Shortly after the incident, the victim’s stolen vehicle, owned by a local dealership and on loan to the victim, was located using the dealership’s tracking technology in the Kingsessing section of the city. The Philadelphia Police Department conducted a forensic analysis of evidence found inside the vehicle, and identified the defendant as one of the carjackers.
“Our Office is committed to supporting the Philadelphia Police Department in its work to investigate and deter violent crime, which includes our partnership on the joint carjacking task force,” said U.S. Attorney Romero. “If you commit a violent offense like a gunpoint carjacking, federal authorities will soon be knocking at your door.”
“These armed carjackings are terrifying for victims, targeted out of the blue while just going about their daily lives,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI, Philly PD, and our partners are committed to stopping such senseless acts of violence and we’ll use every tool we’ve got to put the criminals responsible behind bars, right where they belong.”
“ATF remains committed to keeping our streets safe from violent individuals,” said Eric DeGree, acting Special Agent in charge of ATF’s Philadelphia Field Division. “The result of this investigation is just another example of the strength of our carjacking task force, which is determined to investigate people committing serious gun offenses and holding them accountable.”
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michael R. Miller.
Peoria Man Sentenced to 136 Months in Prison for Distribution of MethamphetamineRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Andrew Scott Howard, 30, of the 1400 block of West Candletree Drive (formerly of the 1400 block of West Maywood Avenue), was sentenced on November 2, 2022, to 136 months in prison following his convictions on two counts of distributing 50 grams or more of methamphetamine, to be followed by five years of supervised release.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in July 2021, Howard sold 4 ounces of methamphetamine. The completed purchase netted 110.7 grams of actual methamphetamine that tested as 99% pure. Later, in August 2021, Howard again distributed methamphetamine. After analysis, the methamphetamine weighed 106 grams and tested 100% pure. A search warrant was issued early in September 2021 for Howard and his West Maywood residence. Agents found a Smith and Wesson M&P .45 caliber handgun in Howard’s bedroom on the nightstand. The firearm was loaded and had been previously reported stolen. The search also located $1,950 in drug proceeds in the pocket of a coat hanging on the bedroom door. Howard admitted receiving methamphetamine in pound quantities, for a total of 5 pounds.
Howard was indicted in September 2021 and pleaded guilty in June 2022. He has been in the custody of the U.S. Marshals Service since entering his guilty plea.
The statutory penalties for distribution of at least 50 grams of methamphetamine are not less than ten years and up to life imprisonment, not more than a $10 million dollar fine, and a minimum five-year to a maximum life term of supervised release.
The Federal Bureau of Investigation, with the assistance of the Macomb Police Department, investigated the case. Assistant U.S. Attorney Keith Hollingshead Cook represented the United States the prosecution.
Omaha Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA – An Omaha, Nebraska man, Ronald Wayne Reed II, age 37, was sentenced on Thursday, November 3, 2022, to 120 months in prison for Possession with Intent to Distribute Methamphetamine.
On March 28, 2021, the Mills County Sheriff’s Department received information that Reed and his co-defendant, Anisha Luna, were planning to deliver an ounce of methamphetamine to a confidential source at a McDonald’s parking lot in Glenwood, Iowa. Deputies surveilled the McDonald’s and saw Luna and Reed arrive in a car. After a probable cause search, deputies found over five grams of methamphetamine in possession of Luna and Reed, which they intended to distribute. Investigation showed that Luna and Reed had distributed over a pound of methamphetamine.
Anisha Luna, age 33 of Omaha, Nebraska, was sentenced on August 3, 2022 to 96 months in prison.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Mills County Sheriff’s Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement, and Southwest Iowa Narcotics Enforcement Task Force investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Northern District of Florida U.S. Attorney’s Office Announces Election Day ProgramRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida announced today that Assistant United States Attorney (AUSA) Andrew J. Grogan will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Grogan has been appointed to serve as the District Election Officer (DEO) for the Northern District of Florida, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” stated U.S. Attorney Coody. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
To respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Grogan will be on duty in this District while the polls are open. He can be reached by the public at 850-216-3838. In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (904) 248-7000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
North Little Rock Man Indicted for ArsonRead the Press Release
LITTLE ROCK— A North Little Rock man was indicted yesterday for setting fire to a local restaurant. Nathan James Hester, 37, was charged by a grand jury in a one-count indictment after an investigation revealed his attempt to set fire to Jim’s Razorback Pizza and his alleged involvement in 12 other fires.
Beginning in late September of this year, a series of approximately 13 fire events took place in the Oak Grove community of Pulaski County and extended into the neighboring city of Maumelle. These fires involved several homes, both occupied and unoccupied, including Hester’s mother’s residence; a church; and the pizza restaurant named in the indictment against Hester.
A complaint filed in federal court on October 25, 2022, alleged that on October 20, 2022, the manager of Jim’s Razorback Pizza in Maumelle was at work that morning when he smelled smoke. The manager walked outside to see the back wall was on fire. The initial investigation cites coals placed against the building as the source of ignition. Security video indicated a man wearing a head covering walking behind the building at the time the fire began. A witness identified the man in the video as Hester, and another witness reported seeing Hester nearby the scene around the time of the incident.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Maumelle Fire Department; Maumelle Police Department; Oak Grove Fire Department; and the Pulaski County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
North Carolina Felon Arrested for Trafficking More than a Dozen Firearms to New York for SaleRead the Press Release
Earlier today, in federal court in Brooklyn, Dwayne Pickett, also known as “Waynehead,” was arraigned before Judge James R. Cho on a three-count indictment charging him with unlawful firearms trafficking and being a felon in possession of firearms and ammunition. The indictment relates to Pickett’s sales and attempted sales of more than fifteen firearms that he trafficked from North Carolina to New York. Pickett was arrested on a complaint in September 2022. A federal grand jury returned the indictment on October 25, 2022. Pickett remains detained pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, John DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the charges.
“Another individual who is alleged to have come into our district for the sole purpose of selling over fifteen illegal firearms has been arrested and will be held accountable,” stated United States Attorney Breon Peace. “This office and our law enforcement partners will continue to work nonstop to prevent guns from being trafficked into our communities and protect those who call this district home from gun violence.”
“As alleged in the indictment, Pickett, a convicted felon, in concert with others, trafficked more than fifteen firearms to New York City. A large portion of these firearms were sourced through theft and burglary. This case demonstrates how the steady trickle of firearms into our communities originate from any number of sources, and sometimes make their way to our streets in only a matter of days. Pickett is in custody today thanks to the outstanding work of the ATF Joint Firearms Task Force, the NYPD Human Trafficking Unit, the NYPD 105th Field Intelligence Office and the U.S. Attorney’s Office EDNY. Our investigation and resolve continue,” stated ATF Special Agent-in-Charge DeVito.
As alleged, in September 2022, Pickett traveled from North Carolina to Jamaica, Queens, where he sold ten firearms for approximately $11,000. The firearms Pickett sold were handguns of various makes and models, eight of which had been previously reported stolen from a firearms dealer in North Carolina. After returning to North Carolina, Pickett continued to market firearms for sale, sending one potential buyer pictures of a variety of handguns and their sale prices.
In late September 2022, Pickett again traveled from North Carolina and planned to meet with a purchaser for another guns for cash transaction. Pickett was arrested upon arriving at the planned sale location, while carrying a duffle bag with five additional handguns and assorted ammunition.
Pickett’s criminal history includes felony convictions that bar him from possessing firearms. The defendant is not a licensed firearms dealer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. This case is also being investigated by the Firearms Trafficking Strike Force, announced in June 2021, and designed to share information and otherwise collaborate across districts where firearms trafficking schemes cross state lines or jurisdictional boundaries to focus enforcement against entire trafficking networks, from the places where guns are unlawfully obtained to the areas where they are used to commit violent crimes.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Kaitlin McTague is in charge of the prosecution. Law Clerk Beth Ann Bentley of the Office’s Asset Recovery Section is assisting on forfeiture matters.
The Defendant:
DWAYNE PICKETT (also known as “Waynehead”)
Age: 27
Statesville, North CarolinaE.D.N.Y. Docket No. 22-CR-486 (NM)
New Orleans Woman Sentenced for Social Security Fraud Spanning More Than Three DecadesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on November 2, 2022, U.S. District Court Judge Lance M. Africk sentenced BETTY ARRINGTON, a/k/a “Betty Callie Arrington,” a/k/a “Betty Francis C Miller,” a/k/a “Betty Miller” (“ARRINGTON”), age 73, to three years’ probation, of which she must serve six months of home detention. ARRINGTON was also ordered to pay restitution in the amount of $164,270.90.
ARRINGTON had pleaded guilty to one count of Theft of Government Funds, in violation of Title 18, United States Code, Section 641. According to court records, ARRINGTON engaged in a 35-year multifaceted scheme to defraud the Social Security Administration (“SSA”). From 1984 through 2019, ARRINGTON intentionally used a Social Security number (“SSN”) not assigned to her by the Commissioner of the SSA in order to conceal her employment and earnings. In 1997, ARRINGTON applied for and began receiving disability payments through the SSA. ARRINGTON’s use of another person’s SSN to conceal her ongoing work, along with her false statements to the SSA attesting that she qualified for disability benefits, allowed her to fraudulently obtain benefits totaling approximately $164,270.90.
U.S. Attorney Duane A. Evans praised the work of the Social Security Administration Office of Inspector General for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Brandon Long.
Nevada Man Sentenced to 25 Years in Federal Prison for Sexually Abusing a ChildRead the Press Release
PORTLAND, Ore.—A Nevada man was sentenced to federal prison today for repeatedly sexually abusing a young child across multiple states for years.
Albert Wayne Welling, 60, was sentenced to 300 months in federal prison followed by a lifetime term of supervised release.
According to court documents, over a period of several years, Welling, who was employed as an interstate truck driver, repeatedly sexually abused and assaulted a child beginning when the child was in kindergarten. The child would accompany Welling on interstate trips and stayed in hotels with him in Oregon, Nevada, and other states. During these trips, Welling abused the child daily or every other day at hotels, in his truck or in other locations in multiple states. During the period of abuse, Welling acted as if he was in an adult sexual and romantic relationship with the child, giving the child gifts and allowing the child to use a debit card he funded. In exchange for these gifts, Welling would tell the child “you owe me.” The child bravely disclosed Welling’s abuse in September 2020.
On October 15, 2020, a federal grand jury in Eugene returned an indictment charging Welling with aggravated sexual abuse of a child. Later, on July 21, 2022, charges of traveling to engage in illicit sexual conduct with a minor, coercing and enticing a minor, and transporting a minor with intent to engage in criminal sexual activity were added by superseding indictment.
On July 26, 2022, after a stipulated facts bench trial before U.S. District Court Judge Michael J. McShane, Welling was found guilty on all counts on which he was tried: coercing and enticing a minor, traveling with intent to engage in illicit sexual conduct with a minor, and transporting a minor with intent to engage in criminal sexual activity.
This case was investigated by the FBI Eugene Resident Agency with assistance from the Cottage Grove Police Department. It was prosecuted by Jeffrey S. Sweet and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon, in coordination with the Lane County District Attorney’s Office.
If you or someone you know is in immediate danger, please call 911.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nettleton Man Pleads Guilty to Making Threats of ViolenceRead the Press Release
Jackson, Miss. – A Nettleton man pled guilty to making threats in interstate commerce, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
James Curry, Jr., 48, pled guilty on November 1, 2022, in U.S. District Court in Jackson.
According to court documents and statements made in court, in September 2020, Curry made multiple phone calls to Conduent in which he threatened to kill Conduent employees and any law enforcement who attempted to intervene. Conduent is the debit card provider for the U.S. Department of Employment Security.
Curry is scheduled to be sentenced on February 16, 2023, and faces a maximum penalty of 5 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Kimberly Purdie is prosecuting the case.
Native of Mexico Indicted on Illegal Reentry ChargeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Farias Aquino-Vargas, age 43, of Mexico, was indicted by a federal grand jury on a charge of illegal reentry.
According to United States Attorney Gerard M. Karam, the indictment alleges that Aquino-Vargas was removed from the United States on December 7, 2020, through Brownsville, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on September 12, 2022, Aquino-Vargas was encountered in York, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Pennsylvania State Police. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
The maximum penalty under federal law for this offense is 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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NYCHA Superintendents Plead Guilty to Accepting BribesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LEROY GIBBS and JULIO FIGUEROA each pled guilty to accepting bribes for awarding no-bid contracts at the New York City Housing Authority (“NYCHA”) facilities at which they served as superintendents. GIBBS pled guilty before United States Magistrate Judge Gabriel W. Gorenstein on October 7, 2022, and will be sentenced by United States District Judge Colleen McMahon on January 25, 2023. FIGUEROA pled guilty today before United States District Judge Denise L. Cote and will be sentenced by Judge Cote on February 9, 2023.
U.S. Attorney Damian Williams said: “Leroy Gibbs and Julio Figueroa betrayed the trust placed in them by the New York City Housing Authority by accepting bribes in exchange for awarding no-bid contracts. Gibbs and Figueroa now stand convicted of federal felonies and will face sentencing for their crimes.”
According to the Complaints, Informations, and statements made in court:
In February 2020, GIBBS, who was then employed as the Resident Buildings Superintendent at Douglass Houses in New York, New York, solicited and accepted approximately $2,000 in bribes from a confidential informant (the “CI”) in exchange for awarding no-bid contracts to the CI worth a total of approximately $9,950 from NYCHA for work at that NYCHA facility.
Between July 2021 and August 2022, FIGUEROA, who was then employed as the Assistant Resident Buildings Superintendent at the Ft. Independence St.-Heath Ave. Houses in the Bronx, New York, solicited and accepted approximately $6,000 in bribes from the CI in exchange for awarding no-bid contracts to the CI worth a total of approximately $46,622 from NYCHA for work at that NYCHA facility.
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GIBBS, 58, of Bay Shore, New York, and FIGUEROA, 45, of East Stroudsburg, Pennsylvania, each pled guilty to one count of solicitation and receipt of a bribe, which carries a maximum sentence of 10 years in prison. Under the terms of their plea agreements, GIBBS agreed to forfeit $2,000 and make restitution in the amount of $2,000, and FIGUEROA agreed to forfeit $6,000 and make restitution in the amount of $6,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation, the United States Department of Housing and Urban Development’s Office of Inspector General, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Catherine Ghosh and Robert B. Sobelman are in charge of the prosecution.
Mobridge Man Indicted for Distribution and Possession of Child PornographyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Charles Evyn Russell, age 35, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 28, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July of 2021 and April of 2022, in Mobridge, Russell knowingly distributed and possessed child pornography.
The charges are merely accusations and Russell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI, the South Dakota Division of Criminal Investigation, the Mobridge Police Department, and the North Dakota Bureau of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Russell was released on bond pending trial. A trial date was set for January 3, 2022.
Mission Man Indicted for Aggravated Sexual Abuse of a ChildRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact With a Child.
David Paxton, age 69, was indicted in May of 2022. He appeared before U.S. Magistrate Judge Mark Moreno on October 27, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 24, 2017, and July 31, 2021, in Todd County, South Dakota, Paxton knowingly engaged in, and attempted to engage in, a sexual act with a child under the age of 12. The indictment further alleges that between May 29, 1988, and March 19, 1992, in Todd County, Paxton knowingly engaged in, and attempted to engage in, sexual acts or sexual contact with three other children, who were under the age of 12.
The charges are merely accusations and Paxton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Paxton was released on bond pending trial. A trial date has been set for December 13, 2022.
Minneapolis Woman Indicted for Her Role in a Drug Money Laundering ConspiracyRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis woman for running a drug money laundering conspiracy on behalf of a large-scale fentanyl and marijuana dealer, announced U.S. Attorney Andrew M. Luger.
According to court documents, between December 2018 and August 2019, Phouvanh Keokaythinh, 36, knowingly conspired with others to conduct financial transactions that involved the proceeds of fentanyl and marijuana trafficking. As part of the conspiracy, Keokaythinh kept large amounts of cash drug proceeds for Lyndon Swarn, a large-scale fentanyl and marijuana dealer, at her family residence in Bloomington. At any given time, Keokaythinh stashed up to $80,000 at the residence. Swarn’s drug income was generated from the production and sale of illegal fentanyl-laced Oxycodone pills, as well as the production and sale of large amounts of marijuana.
According to court documents, Keokaythinh used cash from Swarn’s drug proceeds to purchase a farm property in Ironwood, Michigan. Swarn and his associates used this property to illegally grow large amounts of marijuana. Keokaythinh and others laundered drug proceeds into a bank account owned by L&S Management LLC, a shell company used for the purchase, maintenance, and upkeep of the property in Ironwood. Keokaythinh also directed others to maintain a credit card that was used for Swarn’s personal spending and other expenses related to the drug trafficking conspiracy. Between January 2017 and March 2019, Keokaythinh and others used drug proceeds to make approximately $117,782.72 in payments on the credit card.
According to court documents, on January 31, 2020, Keokaythinh willfully and knowingly made false statements in an application for a passport. In the application, Keokaythinh falsely claimed that she had lost her passport while on a trip to Los Angeles when, in reality, she knew that her passport had been seized by law enforcement on October 23, 2019, during the execution of a search warrant at the Ironwood property.
Keokaythinh is charged with one count of money laundering conspiracy, one count of concealment money laundering, and one count of false statements in application for a passport. She made her initial appearance in U.S. District Court on October 31, 2022, before Magistrate Judge Tony N. Leung.
On June 2, 2022, Swarn was convicted in Hennepin County of aiding and abetting first-degree murder in relation to the New Year’s Eve 2019 kidnapping and murder of a local real estate agent. On May 17, 2021, Swarn was convicted in U.S. District Court for possession with intent to distribute more than 33,000 fentanyl-laced Oxycodone pills.
This case is the result of an investigation conducted by the FBI, the Drug Enforcement Administration, the Minneapolis Police Department, and the Hopkins Police Department, with assistance from the Hennepin County Attorney’s Office.
Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Middle Schoolers Participate in Mock Trial During Recent Field Trip to U.S. Attorney’s OfficeRead the Press Release
MIAMI - Staff from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida recently hosted middle school students from Jane S. Roberts K-8 Center in Miami for a legal field trip.
The students, who were part of the school’s Student Government Association, saw inmate testimonial videos and participated in a mock trial in a federal courtroom. The videos showed impassioned pleas from inmates urging viewers to make better choices.
“I wasted my life … I wasted it,” said one former gang member, currently incarcerated and serving 25 years to life for murder.
Pre-COVID-19, inmates spoke to students in person. However, the messages—even over video—were powerful. Approximately 92 percent of those prosecuted in federal court either plead guilty or are convicted.
“I think this is eye opening,” said Jaclyn Marrero, an intensive reading teacher at Jane S. Roberts K-8 Center. “It gives our students a feel for what life truly is about. It teaches them morals, values, and integrity. It’s important to understand how the real world operates versus what they see on television.”
Sometimes it comes down to a single choice that can have a lasting impact.
“Bad decisions can have negative consequences that affect your life for years,” said Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith. “Every day you must decide whether to be a good person or a bad person. As you get older, we encourage you all to make smart choices.”
The students then rode up to the eleventh floor and borrowed a courtroom for the mock trial. This is the sixth year that USAO-SDFL has hosted this activity.
“We used to take students up to an empty federal courtroom to see how imposing they are, but then we thought it was a perfect location for a life lesson,” said Smith. “Students could play all the roles in a trial and learn more about the criminal justice system.”
The young men and women jumped at the chance to be prosecutors and defense attorneys, with six on each side. One swore in witnesses as the clerk and 16 students made up the jury. The case involved a death due to hazing. Litigators studied the case, stood at the microphone, and did their best to sway the jury. Assistant U.S. Attorney Jeremy Thompson presided as judge.
In the end, the prosecutors were too much for the defense team. The defendant was found guilty on all counts.
“We hope to teach the students to be good people to their families, friends, communities, and country,” said Smith. “If we reached only one student today, then it was time well spent.”
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Mexican National Sentenced for East Texas Firearms ViolationRead the Press Release
TYLER, Texas – A Mexican national was sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Angel Emmanuel Solano-Calvillo, 32, of Mexico, pleaded guilty on April 19, 2022, to being an illegal alien in possession of a firearm and was sentenced to 46 months in federal prison on Nov. 2, 2022, by U.S. District Judge J. Campbell Barker.
According to information presented in court, on Jan. 11, 2022, Solano was stopped by officers with the Jacksonville Police Department for a traffic violation. During the traffic stop, it was revealed that Solano was an undocumented Mexican citizen in possession of an AR-style rifle, a 9mm pistol, approximately 800 rounds of ammunition, a tactical vest with six 30-round magazines, methamphetamine with distribution paraphernalia, a police scanner, an inert hand grenade, two drones, and portable handheld radios. Following his arrest, Solano admitted his unlawful immigration status and confessed to his participation in distributing methamphetamine. Solano was indicted on Jan. 20, 2022 and charged with federal firearms violations.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Homeland Security Investigations – Tyler Field Unit, the Cherokee County Sheriff’s Office and the Jacksonville Police Department and was prosecuted by Assistant U.S. Attorney Lucas Machicek.
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McLaughlin Man Found Not Guilty of Assault and Threatening Law EnforcementRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a McLaughlin, South Dakota, man was acquitted of Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Threatening a Federal Law Enforcement Officer.
Richard Todd Steele, age 42, was indicted by a federal grand jury in September of 2021.
The charges related to an alleged incident that occurred on June 13, 2021, in Corson County, South Dakota.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency, and the U.S. Attorney's Office prosecuted the case.
Mascoutah, Illinois, Woman Sentenced to 18 Months in Prison for Mail FraudRead the Press Release
SPRINGFIELD, Ill. – A Mascoutah, Illinois, woman, Paula Klaustermeier, 56, of the 900 block of West South Street, was sentenced on November 2, 2022, to 18 months in federal prison for committing three counts of mail fraud. Klaustermeier also was ordered to pay $137,363.47 in restitution to the United States Department of Labor.
At the sentencing hearing, the government presented evidence that beginning in November 2006 and extending until January 2013, Klaustermeier regularly and systematically defrauded the United States Department of Labor, Office of Worker’s Compensation Program (OWCP), by submitting modified and wholly fabricated medical records, as well as over 1,500 fraudulent reimbursement claims for traveling to medical appointments. Among other fraudulent assertions, Klaustermeier claimed she was traveling almost daily to YMCA facilities for medical treatment reasons. These were facilities, however, to which she did not belong and which she did not visit. For at least 950 of the claims, she stated she was attending warm water therapy at a YMCA in Belleville, Illinois; however, the address she supplied for the YMCA for reimbursement purposes was her parents’ residence.
At the hearing, U.S. District Judge Sue E. Myerscough determined Klaustermeier defrauded the government out of $137,363.47 by submitting fraudulent medical and travel benefit claims. Judge Myerscough noted Klaustermeier had taken money that could have been provided to other individuals in need and that she had refused, at each and every turn, to take any responsibility for her actions.
On January 3, 2017, a grand jury returned an indictment charging Klaustermeier with three counts of mail fraud, in violation of 18 U.S.C. § 1341. On March 6, 2020, following a trial, the jury returned guilty verdicts as to each of the three counts of mail fraud.
The statutory penalties for mail fraud are not more than 20 years in prison, not more than three years of supervised release, and up to a $250,000 fine.
“Paula Klaustermeier fraudulently obtained more than $56,000 in FECA benefits by submitting hundreds of false travel reimbursement requests to OWCP, claiming she completed aquatic therapy sessions at numerous medical facilities, including a non-existent therapy center at her parents’ house, when she did not do so. Today’s sentencing affirms the U.S. Department of Labor, Office of Inspector General’s commitment to working with our law enforcement partners and OWCP to protect the integrity of DOL’s benefit programs,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
The Office of the Inspector General for the Department of Labor and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the prosecution.
Man Who Kidnapped Son and Took Him to Lebanon Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington today sentenced Ali Hussein Salamey (40, Dearborn, Michigan) to two years in federal prison for passport fraud and aggravated identity theft. Salamey had pleaded guilty on June 7, 2022.
According to court documents, Salamey and R.S. had a child together, D.S., who was born in September 2014. Despite court orders prohibiting either parent from obtaining a passport for D.S. or taking the child out of state without leave of the court, Salamey applied for Lebanese travel documents from the Lebanese Embassy in Washington, D.C. for D.S. To do so, Salamey submitted a fraudulent maternal consent form on which he had forged R.S.’s signature. The embassy denied the application. Salamey then attempted to obtain travel documents from the Lebanese Consulate in Michigan. This time, Salamey submitted a fraudulent judgment of paternity that he had altered to make it appear as if the court had awarded him (rather than R.S.) sole parental responsibility. This time, the Lebanese consulate issued a Lebanese passport for D.S.
On August 25, 2018, Salamey used the fraudulently acquired passport to take D.S. to Beirut, Lebanon. Lebanon is not a party to the Hague Convention, which obligates member countries to return children abducted abroad; nor does it have an extradition treaty with the United States. Salamey and D.S. remained in Lebanon for the next 10 months. Eventually, the Lebanese government agreed to help return the child to the United States. D.S. and Salamey returned to the United States on June 21, 2019, at which time the child was returned to R.S. and Salamey was arrested.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Man Sentenced to Seven Years in Federal Prison for Illegally Possessing Loaded Gun on a Chicago StreetRead the Press Release
CHICAGO — A man who illegally possessed a loaded handgun on a Chicago street and tried to flee from police has been sentenced to seven years in federal prison.
BRANDON ELLIS, 30, of Chicago, illegally possessed the firearm in the early morning hours of August 15, 2021. Ellis was observed via a Chicago Police Department (CPD) surveillance camera lifting his shirt to brandish a weapon in his waistband to another individual. When CPD officers approached and directed defendant to stop, he ran from the officers. Officers recovered a semiautomatic pistol from defendant’s waistband. The pistol was previously reported stolen.
Ellis pleaded guilty earlier this year to a federal charge of illegal possession of a firearm. This is Ellis’s third conviction for illegally possessing a firearm in the last five years, having completed a term of imprisonment on federal charges less than four months prior.
U.S. District Judge Ronald A. Guzman on November 2, 2022, imposed an 84-month prison sentence.
“By carrying a gun as a convicted felon in a high-crime area—and then brandishing that gun—he affirmatively created a volatile and potentially deadly situation on a street filled with people” Assistant U.S. Attorney Vikas Didwania argued in the government’s sentencing memorandum. “The law must make clear—through the sentence this Court imposes—that Ellis cannot break the rules with impunity; that this Court will protect the public from him; and that he will be punished severely until he stops.”
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Lower Brule Woman Sentenced for Assault of a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that a Lower Brule, South Dakota, woman convicted of Assaulting a Federal Officer was sentenced on November 1, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Chassidy Crazy Bull, age 20, was sentenced to seven months in federal prison, followed by three years of supervised release, $7,968.10 in restitution, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Crazy Bull was indicted for Assaulting a Federal Officer by a federal grand jury in March of 2022. She pleaded guilty on July 19, 2022.
On September 21, 2021, Crazy Bull went on a 15-minute-high speed chase with Bureau of Indian Affairs law enforcement through the communities of Lower Brule and West Brule, South Dakota. At the end of the pursuit, Crazy Bull rammed her vehicle into the patrol vehicle of one of the officers involved in the pursuit. The officer suffered a knee injury.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency and Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Crazy Bull was immediately remanded to the custody of the U.S. Marshals Service.
Long Island Woman Sentenced to Prison for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Rhasha Wright, age 30, of Roosevelt, New York, was sentenced today to 24 months and a day in prison for scheming with New York State prisoners to defraud pandemic-related unemployment insurance programs.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of the New York State Department of Labor (NYSDOL).
Wright previously pled guilty to conspiracy to commit mail fraud and aggravated identity theft. She admitted to conspiring with co-defendants Reginald Thornton and Lord Paulin, two inmates at the Bare Hill Correctional Facility in Malone, New York, to defraud the NYSDOL by submitting false unemployment insurance claims to NYSDOL in Paulin’s name and in the name of another Bare Hill prisoner. Prisoners were not eligible to receive unemployment insurance benefits.
United States District Judge Glenn T. Suddaby also sentenced Wright to serve 1 year of post-release supervision and ordered her to pay $11,696 in restitution to the State of New York..
Thornton previously pled guilty to participating in two prison-based unemployment insurance fraud conspiracies and was sentenced to 51 months in federal prison, to be served after his state prison term ends. Paulin was sentenced to 19 months in federal prison, to be served after his state sentence ends. A fourth defendant, Briana Garland, previously pled guilty to conspiring with Thornton to submit a fraudulent claim in Thornton’s name and is awaiting sentencing.
The cases were investigated by USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL. The cases were prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Kissimmee Fugitive Sentenced to Three Years in Prison for Passport Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Milton Guillermo Segarra-Bartolomei (44, Kissimmee) to three years in federal prison, followed by three years of supervised release, for passport fraud and aggravated identity theft. Segarra-Bartolomei had pleaded guilty on June 28, 2022.
According to court documents, Segarra-Bartolomei assumed a stolen identity and used it to obtain a U.S. Passport, and then to apply for his minor son’s passport. Segarra-Bartolomei assumed the stolen identity to avoid apprehension in Puerto Rico, where a warrant had been issued for his arrest for an attempted murder that occurred in 2006.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, Homeland Security Investigations, the Florida Highway Patrol, and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shannon Laurie.
Jerome Man Sentenced for Assault on a Forest Service Law Enforcement OfficerRead the Press Release
PHOENIX, Ariz. – Jonathan Kip Medford, 34, of Jerome, Arizona, was sentenced Monday, by United States District Judge Steven P. Logan to 27 months in prison, followed by three years of supervised release. Medford previously pleaded guilty to Assault on a Federal Law Enforcement Officer with Physical Contact and Infliction of Bodily Injury.
On February 15, 2022, Medford assaulted a USDA Forest Service law enforcement officer during a stop in the Coconino National Forest. The officer was investigating a minor traffic violation and an illegal camping violation. Medford, who was wanted on a state warrant and lied about his name during the encounter, failed to obey the officer’s instructions as the officer attempted to detain him. Rather than comply, Medford charged the officer causing them both to fall to the ground where a struggle ensued. After the struggle the officer freed himself and Medford fled the area on foot. Medford was apprehended the next day at a residence by officers from the Jerome Police Department.
The Forest Service conducted the investigation in this case, with assistance from the Yavapai County Sheriff’s Office, the Jerome Police Department, the Sedona Police Department, the Gila County Sheriff’s Office, the Arizona Department of Public Safety, and the National Park Service. The United States Attorney’s Office, District of Arizona, Flagstaff, handled the prosecution.
CASE NUMBER: CR-22-08051-PCT-SPL
RELEASE NUMBER: 2022- 202_Medford
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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.
Jackson Man Sentenced to 20 Years in Federal Prison for Assault on Federal Law Enforcement OfficerRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 20 years in prison for assault on a federal law enforcement officer, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Demario Lamar Cotton, 40, was sentenced on November 2, 2022, in U.S. District Court in Jackson.
According to court documents, on or about June 26, 2021, Cotton was in a vehicle fleeing law enforcement when he stopped and fired a rifle multiple times at law enforcement vehicles, causing bodily injury to a federal law enforcement officer who was in the performance of his official duties. Cotton was subsequently taken into custody and admitted to his illegal actions when he pled guilty on July 1, 2022.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Iowa Nurse Sentenced to Federal Prison for Stealing Pain Pill from Elderly Nursing Home ResidentRead the Press Release
An Iowa nurse who diverted narcotics from two Waterloo area nursing homes, including a pain pill from a 95-year-old who was suffering from chronic pain and dementia, was sentenced November 2, 2022, to a year in federal prison.
Matthew Daniel Bowlden, age 32, formerly of Waterloo and Centerville, Iowa, received the prison term after a May 18, 2022 guilty plea to one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge. Evidence presented in a plea agreement and at Bowlden’s sentencing showed that Bowlden worked at two nursing homes in the Waterloo area in 2019. Bowlden diverted narcotics from both nursing homes. For example, on his first shift at one of the nursing homes, in March 2019, Bowlden was working in the nursing home’s “dementia unit” and removed an oxycodone pill that another nurse had placed within a plastic cup. The pain pill in the cup was intended for a 95-year-old resident of the nursing home’s dementia unit who suffered from chronic pain. Bowlden consumed the pill and threw the plastic cup away in the trash.
Bowlden has eight prior convictions extending back to 2013. Bowlden’s prior convictions include operating while intoxicated, interference with official acts, receiving stolen property specifically a firearm, tampering with a motor vehicle, possession of marijuana, and escape or attempted escape from custody. Bowlden previously served time in a Missouri prison before he was released and violated the terms of his parole by committing crimes in Iowa. Bowlden was investigated on three separate occasions by the Iowa Board of Nursing, which ultimately suspended Bowlden’s nursing license in 2019 with leave to reinstate it after one year. As a result of Bowlden’s federal conviction, Bowlden is required to forfeit his nursing license to the United States.
Bowlden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Judge Williams observed at Bowlden’s sentencing hearing that Bowlden’s conduct with respect to the 95-year-old resident was “highly aggravating” and an “egregious violation” of the trust placed in him as a licensed nurse. Bowlden was sentenced to 12 months and one day in prison. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
In 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/
Bowlden was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2025.
Follow us on Twitter @USAO_NDIA.
Iowa Man Sentenced to 84 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Dillan Boydston, 39, Waukon, Iowa was sentenced today by U.S. District Judge William M. Conley to 84 months in prison for conspiracy to distribute methamphetamine. Boydston pleaded guilty to this charge on July 20, 2022.
During the course of a long-term, multi-agency investigation, law enforcement officers obtained evidence that Christopher Fernette, Carl Rabe, and Dillan Boydston distributed significant amounts of methamphetamine in western Wisconsin. Investigators also learned that Fernette purchased methamphetamine from multiple people, including a source-of-supply in Minnesota and an individual named Pa Yang.
On April 3, 2021, investigators followed Fernette and Boydston as they crossed into Wisconsin from Minnesota. When the car stopped at a tavern in Ferryville, a deputy from the Crawford County Sheriff’s Office approached Fernette and asked for permission to pat him down for weapons. Fernette consented to the pat down but attempted to hide a small plastic baggie in his hand. When the deputy questioned Fernette about the object in his hand, Fernette tossed the baggie and became combative. A fight ensued and the deputy eventually detained Fernette.
After the altercation, the deputy located the baggie which contained a personal use amount of methamphetamine. The deputy also found a discarded black canvass tool bag that contained approximately three pounds of methamphetamine. The deputy used his canine partner to sniff the car that Fernette had been driving. When the canine alerted, investigators searched the car and found $17,200 in cash.
During post-arrest interviews, Fernette and Boydston admitted that they traveled to Minnesota and purchased the three pounds of methamphetamine from Boydston’s source-of-supply. Fernette told investigators that he and Boydston planned to split the methamphetamine with Rabe in Wisconsin. Boydston also explained that he received methamphetamine as payment from Fernette for arranging the drug deals.
On June 29, 2022, Judge Conley sentenced Fernette to 10 years in prison for possession of methamphetamine with intent to distribute. Judge Conley also ordered Fernette to forfeit the $17,200 found in the car.
On October 20, 2021, an investigator from the Richland-Iowa-Grant Drug Task Force arrested Rabe after witnessing a drug transaction between Rabe and another person in Lancaster, Wisconsin. The investigator searched Rabe’s car and found 425 grams of methamphetamine. Rabe pleaded guilty in the Western District of Wisconsin to possession of methamphetamine with intent to distribute. Judge Conley sentenced Rabe to 96 months in prison on July 20, 2022.
On February 18, 2021, officers in Onalaska, Wisconsin arrested Yang following a traffic stop where she admitted to possessing approximately 100 grams of methamphetamine. Yang pleaded guilty in Western District of Wisconsin to possession of methamphetamine with intent to distribute. Her sentencing hearing is scheduled for November 17, 2022.
The charges against Boydston, Fernette, Rabe, and Yang were the result of an investigation conducted by the Crawford County Sheriff’s Office, Prairie du Chien Police Department, Richland-Iowa-Grant Task Force, Dakota County (Minnesota) Drug Task Force, Iowa Division of Criminal Investigation, and the Wisconsin Division of Criminal Investigation. Assistant U.S. Attorney Chadwick M. Elgersma is prosecuting this case.
Indianapolis Man Sentenced to 5 Years in Prison for Armed Fentanyl TraffickingRead the Press Release
INDIANAPOLIS – Bradley Cagle, 27, of Indianapolis, was sentenced to five years in federal prison after pleading guilty to possession with intent to distribute a mixture or substance containing a detectable amount of fentanyl and carrying a firearm during and in relation to a drug trafficking offense.
According to court documents, on October 27, 2020, Cagle was driving a car in Indianapolis, when the Indianapolis Metropolitan Police Department (IMPD) initiated a traffic stop. Officers located a loaded 9mm semiautomatic handgun on Cagle’s person. Officers also located a baggie containing 7.33 grams of fentanyl in Cagle’s pocket. Two other baggies containing a total of around 22 grams of fentanyl were found in Cagle’s car. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
On that same day, law enforcement officers executed a search warrant at Cagle’s home in Indianapolis, and found a baggie containing 22.8 grams of fentanyl, an AK47-style rifle, two handguns, and ammunition.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
DEA and the IMPD investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Cagle be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Patrick G. Gibson and Barry A. Glickman who are prosecuting the case.
Idaho Man Sentenced to over Three Years for Smuggling AmmunitionRead the Press Release
TUCSON, Ariz. – Adrian Guadalupe Valdez, 45, of Wendel, Idaho, was sentenced last week by United States District Judge Scott H. Rash to 42 months in prison for smuggling ammunition from the United States into Mexico. Valdez previously pleaded guilty to the Smuggling of Goods from the United States.
On April 1, 2022, Valdez attempted to drive a vehicle from the United States into Mexico through the Nogales Port of Entry. At the Port, Customs and Border Protection Officers (CBPOs) stopped the vehicle for an outbound inspection. Valdez then ran from the vehicle in an attempt to flee into Mexico. Officers were able to stop and apprehend Valdez. During an inspection of the vehicle, CBPOs found a total of 17,500 rounds of 7.62x39mm and .223 caliber ammunition in the trunk.
The Department of Homeland Security, Homeland Security Investigations, and the U.S. Customs and Border Protection Agency conducted the investigation in this case. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-0891-TUC-SHR
RELEASE NUMBER: 2022-200_Valdez# # #
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.
Health department official admits to accepting bribes from vendorsRead the Press Release
HOUSTON – The former administrative and community outreach coordinator for the Houston Health Department (HHD) has pleaded guilty to bribery, announced U.S. Attorney Jennifer B. Lowery along with Assistant Attorney General Kenneth Polite Jr. of the Department of Justice’s (DOJ) Criminal Division.
Barry Barnes, 62, accepted bribes from three businesses in exchange for influencing the selection of each to perform services for the HHD.
“This office has an unyielding commitment to attack public corruption at any level. The people of the Southern District of Texas deserve an environment in which public officials are held to the highest standards,” said Lowery. “This prosecution should send a clear message that we will find and hold accountable any public official who abuses the public trust.”
From November 2019 until March 2021, Barnes engaged in a kickback scheme with a business owner and abused his position with the HHD to facilitate the selection of the business under the emergency purchase order process. Barnes subsequently submitted invoices to ensure this individual was paid for six lucrative marketing, advertising and media contracts, including three service contracts related to the COVID-19 global pandemic that federal COVID-19 relief funded. In exchange, Barnes received several cash payments from January 2020 to February 2021.
As part of his plea agreement, Barnes acknowledged that in December 2020, he selected another business owner to perform advertising services for the HHD. In return, Barnes received a portion of the funds. Barnes again engaged in the same scheme in January 2021 with yet another business. He received a kickback for assisting that business owner in obtaining a disbursement from the City of Houston for advertisement services performed for the HHD.
Barnes pleaded guilty to bribery concerning programs receiving federal funds and faces up to 10 years in prison and a $250,000 maximum possible fine. U.S. District Judge Sim Lake will impose sentencing Jan. 26, 2023.
He was permitted to remain on bond pending that hearing.
The FBI - Houston Field Office conducted the investigation. Assistant U.S. Attorney Sebastian A. Edwards and Trial Attorney Demetrius Sumner of DOJ’s Public Integrity Section are prosecuting the case.
Hannibal Man Accused of Making Pipe BombsRead the Press Release
ST. LOUIS – A man from Hannibal, Missouri appeared in court Thursday on charges accusing him of making and possessing pipe bombs.
Joshua Eugene Rickey, 33, was indicted October 26 on one felony count of possession of one or more unregistered destructive devices and one count of manufacturing one or more unregistered destructive devices.
The indictment accuses Rickey of manufacturing the pipe bombs between July 4 and August 14 and possessing bombs on August 14.
In a detention motion and in court Thursday, Special Assistant U.S. Attorney Nino Przulj said police learned about the pipe bombs after a domestic disturbance. Some were made of PVC pipe and others of galvanized pipe, and Przulj said Rickey was leaving them where they could do harm to others. Rickey had set one off and thrown another into a brush-filled trailer near his grandmother’s house. Investigators found pipe bombs of various sizes our in his home, the motion says, one of which had to be destroyed because it was not safe.
Rickey pleaded not guilty to the charges Thursday.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hannibal Police Department. Special Assistant U.S. Attorney Nino Przulj is prosecuting the case.
Grand Rapids Brothers Sentenced to Prison for Brazen Gun Store RobberyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten today announced that Joseph Woods, 33, and his brother, Johon Woods, 28, both of Grand Rapids, were each sentenced to a total of 84 months in prison for stealing 53 firearms from an area gun store. U.S. District Judge Jane Beckering also ordered a 3-year period of supervised release to follow each defendant’s term of incarceration.
“My office is focused on disrupting the escalating gun violence that is plaguing our communities,” said U.S. Attorney Mark Totten. “Together with our federal, state, local, and tribal law enforcement partners we will continue to pursue, arrest, and prosecute armed criminals and gun traffickers, like the Woods brothers.”
In the early morning hours of February 23, 2022, Joseph and Johon Woods broke into Al and Bob’s Sports, a licensed gun dealer located in Kent County. The pair scaled a 25-foot wall to gain access to the firearms section of the store, smashed multiple display cases, and grabbed a total of 53 firearms. The brothers then then cut the interior lock of a garage door to pile the guns into their getaway car. The store’s alarm alerted law enforcement of the robbery, who arrived on scene shortly after the break-in. Joseph sped away from the scene in their getaway car, leaving his brother Johon at the scene of the crime. To escape police, Johon stole a nearby Chevrolet Silverado pickup truck. He ultimately crashed this truck into the McDonald’s restaurant located across the street from Al and Bob’s Sports. Johon, who was on state parole at the time of the robbery, was quickly arrested by police. Inside the pickup truck, police found a pistol that was stolen from Al and Bob’s Sports. The next day police located Joseph Woods still driving the same getaway car. Inside of this car they discovered 14 of the firearms that the brothers stole from Al and Bob’s Sports. Although 21 firearms were recovered during the course of the investigation, there are still 32 firearms that have not been located. Law enforcement believe that these firearms were sold on the black market. Judge Beckering stated that this crime will have “an extraordinary contribution to the violence in our community.”
“Stopping the flow of illegal firearms into our communities is a top priority for ATF,” said, Assistant Special Agent in Charge Craig Kailimai, “This case demonstrates the excellent work of our agents and law enforcement partners in recovering this volume of stolen firearms before violent criminals had the chance to use them on our streets.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. This case was investigated by the Kent County Sheriff’s Office, Grand Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and prosecuted by Assistant U.S. Attorney Erin Lane.
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Georgia Man Indicted on Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Anthony Jermaine Robinson (31, Covington, Georgia) with conspiracy to commit bank fraud, seven counts of bank fraud, five counts of false representation of a Social Security number (SSN), and five counts of aggravated identity theft. If convicted, Robinson faces up to 30 years in federal prison for each count of bank fraud and conspiracy to commit bank fraud, a consecutive mandatory minimum penalty of 2 years’ imprisonment for each aggravated identity theft count, up to 5 years in prison on each false SSN representation count and payment of restitution to the victims he and his co-defendant, Kiana Fina Alphonse, defrauded.
According to court documents and public records, Robinson appeared in federal court today pursuant to a writ bringing him to Jacksonville from Georgia State Prison where he is serving a prison sentence for violating parole on a fraud related crime. The Court ordered Robinson detained pending trial. His trial is set for January 2023. Robinson’s co-defendant, Kiana Fina Alphonse (28, Covington, Georgia) appeared in federal court on September 27, 2022. Her trial is set for February 2023.
According to the indictment, Robinson and Alphonse obtained the personally identifiable information (PII) of multiple victims. They then obtained counterfeit driver licenses purportedly from Washington state and Delaware. The counterfeit driver licenses contained the PII of victims, but a picture of Alphonse. Using the PII, to include the SSN of victims, the counterfeit driver licenses, and documents created for fictitious businesses, Alphonse went to multiple banks and opened up business bank accounts in the name of various victims. These bank accounts were then utilized, as part of a scheme to defraud multiple victims with Robinson and Alphonse, among others, receiving the illicit proceeds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Columbia County Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Gadsden Marketer and Huntsville Businessman Plead Guilty in Multi-Million-Dollar Kickback and Health Care Fraud CasesRead the Press Release
TUSCALOOSA, Ala. – Two individuals pleaded guilty to charges today in related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Acting Special Agent in Charge Felix A. Rivera-Esparra, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
James Ewing Ray, 51, of Gadsden, pleaded guilty before Chief United District Court Judge L. Scott Coogler to one count of conspiracy to commit health care fraud. Ray owned Integrity Medical, LLC, a company through which he marketed health care items and services to medical providers. According to his plea agreement, between 2012 and 2018, Ray conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers. One of those services was electro-diagnostic testing provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Ray received per-patient payments from QBR for inducing medical providers to order tests from QBR.
John Hornbuckle, 52, of Huntsville, also pleaded guilty before Chief United States District Court Judge L. Scott Coogler to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. Between 2012 and 2018, Hornbuckle owned QBR. According to the plea agreement in Hornbuckle’s case, QBR billed insurers millions of dollars for electro-diagnostic testing that its technicians performed, regardless of whether there was a medical need for them. Hornbuckle caused QBR to pay medical providers a per-patient fee for the tests they ordered from QBR that were reimbursed by insurers, including Medicare and other government health care programs. The payments were disguised as hourly payments for the provider’s time and the time of the provider’s staff, but the provider was actually paid a fee per patient who received a test.
The Ray and Hornbuckle cases are related to another case that resulted in convictions earlier this year. After a multi-week trial in February, a jury convicted a Tennessee doctor and his wife of kickback and health care fraud charges (among others). Dr. Mark Murphy, 65, and his wife Jennifer Murphy, 65, both of Lewisburg, Tennessee, owned and operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Before the Murphys went to trial, a co-defendant, Brian Bowman, 41, of Attalla, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Dr. Murphy, Jennifer Murphy, and Brian Bowman are all awaiting sentencing.
The maximum penalty for kickback conspiracy is five years in prison. The maximum penalty for health care fraud conspiracy is ten years in prison.
Sentencing dates for Ray and Hornbuckle have not yet been scheduled.
The FBI and HHS-OIG investigated the case. Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting the case.