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15 December 2022
Serial Fraudster Sentenced to 9 Years in Prison for Identity Theft and Bank FraudRead the Press Release
FLINT – A 37-year-old Flint Man was sentenced today to 9 years in federal prison for using the stolen identities of dozens of victims to commit identity theft and bank fraud, United States Attorney Dawn N. Ison announced.
Joining in the announcement was Special Agent in Charge John Marengo, U.S. Secret Service and Rodney M. Hopkins, Inspector in Charge, U.S. Postal Inspection Service Detroit Division. of the U.S. Postal Inspection Service.
U.S. District Judge Shalina D. Kumar sentenced Michael Johnson-Brown today to 9 years in prison following his guilty pleas to bank fraud, committed while on pretrial release, and aggravated identity theft charges.
According to court records, from 2017 to 2021, Johnson-Brown used stolen social security numbers and other personal information to open lines of credit, provided by banks for retail stores, in his victims’ names. Over four years, Johnson-Brown used the fraudulent credit accounts at retail stores to steal more than $422,000 worth of merchandise. He launched his scheme while on parole for identity theft and even continued doing it after he was arraigned on federal charges and released on bond. Johnson-Brown had a long history of cheating and deceiving people, having previously been convicted of eight fraud crimes between 2008 and 2016. He has three prior federal convictions for bank fraud and two state-court convictions for identity theft.
The case was investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and prosecuted by Assistant United States Attorney Blaine Longsworth.
Seattle man sentenced to ten years in prison for third sex offense involving childrenRead the Press Release
Seattle – A 44-year-old Seattle man was sentenced today in U.S. District Court in Seattle to ten years in prison for possession of images of child rape and abuse, announced U.S. Attorney Nick Brown. Jason Alan Legg was on probation for the rapes of two 13-year-olds when a Washington State Department of Corrections investigation determined he had electronic devices containing images of child rape and abuse. This was Legg’s third sentencing for sex crimes related to children. At the sentencing hearing U.S. District Judge James L. Robart said, “This is not a victimless crime. These are real people and it has tremendous impact on their lives… It is a pervasive destruction of their lives taking place at an early age.”
According to records filed in the case, in 1998 Legg was first convicted in the Middle District Georgia of shipping and transporting child pornography. He was sentenced to 41 months in prison. In 2004, he was convicted in King County, Washington, of two counts of rape of a child and possession of images of minors engaged in sexually explicit conduct. Legg admitted he used community chat lines to find minors who he could groom for sexual activity. Legg was sentenced to ten years in prison. He was ordered to be on probation for the rest of his life.
In December 2018, Legg’s Community Corrections Officer learned he had unapproved electronic devices. Legg had been ordered to have monitoring software on all his devices. A search of his apartment in Seattle turned up a cell phone that did not have monitoring software. Legg had also hidden a flash drive in a hockey mask in his apartment. On the phone and the flash drive were some 44 images of child rape and sex abuse.
Legg pleaded guilty in July 2022. Both the prosecution and defense recommended the mandatory minimum sentenced of ten years in prison. Legg will be on federal supervision for 15 years following his prison term.
Judge Robart ordered Legg to pay $6,000 in restitution to the victims in the images he possessed.
The case was investigated by the Washington State Department of Corrections and Homeland Security Investigations.
The case was prosecuted by Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Schenectady County Felon Admits Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Jason Seminary, age 44, of Duanesburg, New York, pled guilty today to unlawfully possessing a firearm and ammunition.
The announcement was made by United States Attorney Carla B. Freedman and Guilderland Police Chief Daniel P. McNally.
Seminary admitted that on December 26, 2021, in Schenectady County, he possessed a loaded Ruger .22 caliber rifle. Guilderland Police Detectives located the rifle while executing a search warrant on a pickup truck Seminary had been driving. Seminary’s prior felony conviction, for burglary-second degree: causes physical injury, prevented him from legally possessing the rifle and ammunition.
Senior United States District Judge Frederick J. Scullin Jr. will sentence Seminary on April 15, 2023, at which time Seminary will face up to 10 years in prison and up to 3 years of post-imprisonment supervised release. Seminary also faces sentencing in Albany County Court on an unrelated charge of criminally negligent homicide; he has agreed that his state term of imprisonment, of 2 to 4 years, will run consecutive to his federal term of imprisonment.
This case was 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.
Savage Man Arrested, Charged with Possession of Machine Gun and Attempted Possession of Hand GrenadesRead the Press Release
MINNEAPOLIS – A Savage man has been arrested and charged in a federal criminal complaint for possession of a machine gun and for attempting to receive and possess unregistered destructive devices, specifically hand grenades, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on September 27, 2022, the FBI received a tip from a concerned citizen reporting disturbing behavior of a 20-year-old man, later identified as River William Smith.
The FBI Joint Terrorism Task Force investigation revealed evidence that Smith was preparing for a violent exchange with police. Smith stated he is “pro mass shooting,” sympathized with the Parkland school shooter, and expressed admiration for the individual charged with the recent shooting at a Colorado Springs LGBTQ nightclub. The FBI also discovered Smith had access to fully automatic rifles, handguns, suppressors, body armor and a Kevlar helmet. Smith stated that he was preparing to fight the police and was dedicated to dying in that fight. Smith asked a government informant for grenades and an illegal part to convert his AR-15 style rifle into a fully automatic machine gun. On December 14, 2022, under supervision of law enforcement, a meeting between Smith and a government informant was arranged. At the meeting, Smith purchased three hand grenades and four auto sears. Smith was arrested by law enforcement.
Smith is charged with one count of possession of a machine gun and one count of attempt to receive and possess destructive devices. He appeared today in U.S. District Court before Magistrate Judge David T. Schultz. Smith was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Manda Sertich and Andrew Winter, and Department of Justice Trial Attorney Justin Sher.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Saugus Woman Sentenced for Trafficking Counterfeit Percocet Pills Containing FentanylRead the Press Release
BOSTON – A Saugus woman was sentenced today in federal court in Boston for her role in a large-scale drug trafficking organization that manufactured and distributed hundreds of thousands of counterfeit Percocet pills containing fentanyl.
Nicole Benton, 46, was sentenced by U.S. District Court Judge Allison Burroughs to two years in prison and three years of supervised. In September 2021, Benton pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances and possessing a firearm in furtherance of a drug trafficking conspiracy.
Benton was arrested and charged by criminal complaint in June 2021 along with co-conspirators Vincent Caruso, Laurie Caruso and Ernest Johnson, as part of an investigation that began in 2020 in response to an increased number of shootings in communities north of Boston by street gangs whose violence was fueled by drug distribution.
Benton was a lower-level runner of a large drug trafficking organization (DTO) operated by Vincent Caruso, a self-admitted Crip gang member, that included Johnson and Vincent Caruso’s mother, Laurie Caruso, among others. The DTO sold counterfeit prescription pills containing fentanyl – produced using multiple large pill presses capable of generating thousands of pills per hour – to street gangs for further distribution on the North Shore of Massachusetts. A single counterfeit fentanyl pill allegedly retails between $10-$20, thereby generating millions of dollars in retails sales.
Benton distributed more than 100,000 pressed fentanyl pills on behalf of the organization. Based upon pills seized during the investigation, 100,000 pills would equate to more than 10 kilograms of fentanyl. During a search of Benton’s residence on June 30, 2021, approximately 40 grams of fentanyl pills and a firearm were seized.
In June 2022, Vincent Caruso was sentenced to 250 months (more than 20 years) in prison and five years of supervised release. Laurie Caruso was sentenced in June 2022 to nine years in prison and four years of supervised release. On May 20, 2022, Johnson pleaded guilty to one count of being a felon in possession of firearm and ammunition and is scheduled to be sentenced on Feb. 27, 2023.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Rhode Island Man Sentenced to Prison for Stealing and Selling Luxury Car Tires and RimsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL FARIAS, 57, of Providence, Rhode Island, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for stealing tires and rims from new vehicles at car dealerships in northeastern states and then selling the stolen items to individuals across the country.
According to court documents and statement made in court, between May 2015 and August 2018, Farias and others stole thousands of dollars’ worth of tires and rims from numerous luxury vehicles at car dealerships in Connecticut, Rhode Island, New York and Maine. The co-conspirators then sold the stolen goods to others around the U.S.
Farias was arrested on November 17, 2020. On November 10, 2021, he pleaded guilty to one count of interstate transportation of stolen property.
Farias, who is released on a $100,000 bond, is required to report to prison on April 14.
This matter was investigated by the Federal Bureau of Investigation, the Shelton, Milford, Waterbury, Stonington, Vernon, Darien, Westchester County (N.Y.), Bedford (N.Y.) and Portland (Maine) Police Departments, and the York County (Maine) Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
Readout of U.S.-EU Justice and Home Affairs MinisterialRead the Press Release
U.S. Attorney General Merrick B. Garland today attended the U.S.-EU Justice and Home Affairs Ministerial co-hosted by Secretary of Homeland Security Alejandro N. Mayorkas at the Department of Homeland Security’s St. Elizabeths Campus. European Union participants included Commissioner for Home Affairs Ylva Johansson, Commissioner for Justice Didier Reynders, Deputy Prime Minister and Minister of Interior of the Czech Republic Vit Rakusšan, and Minister of Justice of the Czech Republic Pavel Blažek.
The participants discussed Russia’s unprovoked and unjustified invasion of Ukraine, commended the Ukrainian people’s determination to fight for their country, and underscored the horrifying human suffering and economic devastation caused by the invasion. They agreed to continue their close cooperation in response to Russia’s aggression.
The officials shared perspectives on current and emerging threats, including international and domestic terrorism, violent extremism, ransomware and other forms of cybercrime, organized crime, and the harm from illegal narcotics, including synthetic drugs such as fentanyl and methamphetamine. To counter these threats, they affirmed their intent to share additional information and leverage their law enforcement authorities collectively and individually.
The Ministers issued a communiqué at the end of the Ministerial and plan to meet again in Stockholm in June.
Providence Man Sentenced in Scheme to Defraud Home DepotRead the Press Release
PROVIDENCE – A Providence man who admitted to participating in a conspiracy that defrauded Home Depot out of more than one half-million dollars in tools and building supplies was sentenced today to one year and a day in federal prison, announced United States Attorney Zachary A. Cunha.
According to charging documents, Luiyi Taveras-Garcia, 35, participated in a wide-ranging scheme that used stolen or fraudulently created business credit accounts to defraud Home Depot of $600,000 in building, roofing, electrical, plumbing and other contractor supplies at stores in Rhode Island, Massachusetts, and New Hampshire.
Additionally, at the time of his guilty plea to conspiracy to commit wire fraud, Tavares admitted to a federal judge that he also purchased construction materials for use in his roofing business from another member of the conspiracy who allegedly obtained those materials from Home Depot with the use of stolen credit information.
At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Tavares-Garcia to 12 months and one day of incarceration; three years of federal supervised release; and he was ordered to pay restitution in the amount of $46,749 to Citibank, who provided lines of customers to Home Depot customers.
A second defendant charged in this matter, Abel Bier Romero, 29, of Cranston, is awaiting trial on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by the United States Secret Service New England Cyber Fraud Task Force, with the assistance of the Smithfield Police Department.
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Pittsburgh Man Sentenced to 25 Years for Trafficking Cocaine and Shooting an ATF Special Response Team MemberRead the Press Release
PITTSBURGH, PA – United States Attorney Cindy K. Chung announced today that Dion Williams has been sentenced in federal court to 20 years (240 months) on his conviction of violating the federal narcotics and firearms laws and for assaulting a federal agent with a dangerous weapon, and to an additional five years (60 month) for violating the terms of his supervised release for a previous drug crime conviction.
United States District Judge Stephanie L. Haines imposed the sentence on Williams, 46, formerly of Pittsburgh, Pennsylvania.
The court was previously advised that beginning in 2019, agents with the FBI and other agencies investigated drug trafficking activity in Pittsburgh’s Hill District neighborhood, and elsewhere. As part of that investigation, agents conducted court-authorized interceptions of telephonic communications over two telephones used by a co-defendant between February 2020 through May 2020. During this period, agents intercepted Williams communicating regarding the purchase and redistribution of cocaine. In connection with his guilty plea, Williams admitted that the amount of cocaine that was attributable to him, through his conduct and through the foreseeable conduct of co-conspirators, was between 500 grams and two kilograms.
The court was also previously informed that on June 18, 2020, an ATF Special Response Team (SRT) arrived at Williams’ residence to execute search warrants on the building and to arrest Williams on the indictment charging Williams with conspiracy to distribute cocaine. After the SRT operators loudly and repeatedly announced themselves, including through the PA system of an ATF SRT vehicle, one of the ATF agents on the SRT team rammed open a door to the structure. The door swung back shut, and the agent had to try breach it again. After the agent breached the door the second time, Williams, who was inside the building, shot the SRT operator one time through the shoulder. Fortunately, the operator was quickly taken to a hospital and was not fatally injured. After Williams shot the agent, he apparently disassembled the firearm and hid different components of it in the residence; the disassembled firearm was later found underneath the basement steps of the residence, while the magazine and ammunition were recovered hidden in a false ceiling on the second floor. Williams did not immediately surrender but rather, was taken into custody, without further incident, several minutes after the shooting.
“Convicted felon Dion Williams will spend the next 25 years in prison for shooting an ATF agent, for conspiring to traffic cocaine, and for violating the terms of his supervised release for a previous federal drug conviction,” said U.S Attorney Chung. “Removing violent criminals from the community is a top priority of this office.”
“This attack on one of our agents illustrates the direct correlation between drug trafficking and firearms violence,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Division. “By working with our local, state, and federal partners, we strive to maintain public safety and make sure these types of violent individuals are taken off our streets.”
“Today, Mr. Williams will finally face the consequences for his blatant disregard for our ATF partner and the community,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Williams’ actions that day further demonstrate the connection between violence and drug trafficking. Mr. Williams is a career criminal who thrived on selling dangerous drugs. The FBI is committed to working with our law enforcement partners to pursuing the worst and most violent offenders who continue to terrorize our neighborhoods.”
Assistant United States Attorneys Jerome Moschetta and Doug Maloney prosecuted this case on behalf of the government.
The narcotics investigation was conducted by the Federal Bureau of Investigation’s Greater Pittsburgh Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, which led the multi-agency investigation that included the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations), the Allegheny County Sheriff’s Office, and the Pennsylvania Office of the Attorney General. That prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation that led to the prosecution of Williams for his involvement in the shooting of the ATF agent.
Pittsburgh Man Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH, PA. A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh for violating various federal child exploitation laws, United States Attorney Cindy K. Chung announced.
The six-count Indictment, returned on Dec. 6, 2022, and unsealed today, named Jacob Lexso, 41, as the sole defendant.
According to the Indictment, Lexso is alleged to have distributed material depicting the sexual exploitation of a minor on or about Sept. 22, 2020, and on or about Sept. 24, 2020. Lexso is also alleged to have received material depicting the sexual exploitation of a minor on or about Sept. 22, and Sept. 24, 2020. On or about June 24, 2022, Lexso is alleged to have possessed material depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
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.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physician and Office Manager Agree to Pay over $420,000 to Settle Kickback Allegations Involving New Jersey, Texas and South Carolina LaboratoriesRead the Press Release
WASHINGTON – Vijesh Patel, M.D. and his office manager and wife Laju Patel, both of Port Neches, Texas, have agreed to pay $422,789 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing, and both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
“Kickbacks can undermine a physician’s medical judgment, result in unnecessary testing, and increase health care costs borne by taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue physicians, laboratories, and others responsible for schemes that violate rules intended to safeguard the integrity of federal health care programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Dr. and Mrs. Patel received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Patel’s referrals to three laboratories:
- Texas Laboratory. From December 2016 to July 2018, Dr. Patel allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Indus MG LLC (Indus) in return for ordering laboratory tests from True Health Diagnostics LLC (True Health), a clinical laboratory in Frisco, Texas. The Indus MSO’s payments to Dr. Patel allegedly were disguised as investment returns but in fact were based on, and offered in exchange for, his referrals to True Health.
- New Jersey Laboratory. From August 2018 to August 2021, Dr. Patel allegedly received thousands of dollars in kickbacks disguised as investment returns from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from RDx Bioscience, Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey. RDx allegedly funded remuneration to Dr. Patel in the form of volume-based commissions paid to an independent contractor recruiter, Corum Group LLC, which used an associated company, Avior, to pay kickbacks to Dr. Patel and other physicians in return for their referrals. In addition, fom December 2018 to August 2022, Mrs. Patel allegedly received kickbacks from RDx in the form of commercially unreasonable fees to purportedly collect urine specimens for testing that Dr. Patel referred to RDx.
- South Carolina Laboratory. From August 2019 to December 2021, Dr. Patel allegedly received hundreds of dollars per month in inflated space rental payments in return for ordering laboratory tests from Labtech Diagnostics LLC (Labtech), a clinical laboratory in Anderson, South Carolina. Labtech’s rental payments allegedly were for a commercially unreasonable amount of space and excessive days and time.
“Patients deserve to know that the decisions their health care providers are making are based solely on their medical needs, not on some profit-making scheme,” said U.S Attorney Philip R. Sellinger for the District of New Jersey. “Our office will continue to pursue anyone responsible for actions that have the potential to corrupt the medical decision-making process.”
“This settlement demonstrates the Eastern District of Texas’s firm and continued commitment to pursuing all persons responsible for engaging in kickback schemes that inevitably harm the taxpayers, increase costs to care, and decrease access to health care,” said U.S Attorney Brit Featherston for the Eastern District of Texas. “We remain vigilant in our pursuit to put a stop to those who partake in kickback schemes of this kind and to hold them accountable for the collective harm they caused.”
“Patients should be able to trust that their doctor’s medical recommendation is in their best interest and not influenced by the doctor’s financial gain,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Our office has and will continue to hold accountable those that give and receive illegal kickbacks, both to maintain the public’s trust in the healthcare system and to ensure taxpayer money is properly spent.”
“Health care providers engaging in kickback schemes corrupt the provider-patient relationship and impose hidden costs on the health care system,” said Assistant Special Agent in Charge Susan A. Frisco with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Alongside our law enforcement partners, our agency is committed to safeguarding the integrity of federal health care programs by holding individuals who unlawfully bill the programs accountable for their actions.”
“Today’s outcome demonstrates the steadfast determination of the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our investigative partners to root out fraud perpetrated against TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling for the DCIS Southwest Field Office. “DCIS remains focused on protecting and preserving valuable taxpayer dollars by holding those accountable who attempt to defraud the DoD.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Eastern District of Texas, District of New Jersey, and District of South Carolina, with assistance from HHS-OIG and DCIS. To date, the United States has recovered over $32 million relating to conduct involving True Health or MSO kickbacks to physicians in Texas, including False Claims Act settlements with 34 physicians, two health care executives, one office manager, and one laboratory. In addition, the United States has filed a lawsuit under the False Claims Act against former True Health CEO Christopher Grottenthaler and others, which is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). A defendant who violates the act is liable for three times the amount of the government’s losses plus applicable penalties.
The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Kruti Dharia for the District of New Jersey, Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas, and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Parkersburg Man Sentenced to Prison for Federal Tax CrimeRead the Press Release
CHARLESTON, W.Va. – Christopher Daniels, 52, of Parkersburg, was sentenced today to one year in prison, to be followed by one year of supervised release, for filing a false federal income tax return. Daniels previously paid the $280,088 in ordered restitution. He was also ordered to pay a $75,000 fine.
According to court documents and statements made in court, from at least 2013 through at least 2020, Daniels owned and operated Accedia Moving Services LLC. Daniels admitted that he falsely claimed or inflated business expenses to report a taxable income loss of $18,898 on his 2017 U.S. Individual Income Tax Return. Daniels admitted his business should have reported a profit of $187,771 for tax year 2017.
Daniels further admitted that he reported false information on his U.S. Individual Income Tax Return forms for tax years 2016 through 2019. Daniels reported taxable income losses totaling $164,491 for those tax years when he should have reported income totaling $410,459. The income taxes owed and due total $148,653.
Daniels admitted to failing to properly withhold $119,417.46 in employment taxes, including federal taxes and the employer-due portion of Social Security and Medicare taxes. Daniels also admitted to failing to pay $12,018 in West Virginia Workers’ Compensation premiums on those unreported wages.
Daniels admitted that the total amount of tax liability that he wrongly withheld from state and federal entities is approximately $280,088.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Internal Revenue Service-Criminal Investigation.
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Kathleen Robeson prosecuted the case. Assistant United States Attorney Jessica Nathan of the U.S. Attorney Office’s Financial Litigation Unit coordinated restitution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-126.
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Owner of Durable Medical Equipment Companies Arrested for $17 Million Kickback ConspiracyRead the Press Release
A New York woman was arrested today for allegedly offering and paying illegal health care kickbacks and money laundering.
According to court documents, Alexandra Stchastlivtseva, 52, of New York, owned several durable medical equipment companies. Stchastlivtseva allegedly offered and paid kickbacks and bribes to several purported telemedicine companies and marketing companies in exchange for completed doctors’ orders of medically unnecessary orthotic braces and continuous glucose monitors for Medicare beneficiaries. Stchastlivtseva and her co-conspirators allegedly concealed the fraud by entering into sham contracts and producing false invoices characterizing the kickbacks and bribes as payments for “marketing.” In total, Medicare paid more than $17.3 million based on false and fraudulent claims that Stchastlivtseva allegedly submitted and caused to be submitted to Medicare. Stchastlivtseva and others then laundered the proceeds of the kickback scheme.
Stchastlivtseva is charged in an indictment filed in the District of New Jersey with conspiracy to defraud the United States and to offer and pay health care kickbacks, five counts of offering and paying health care kickbacks, and conspiracy to commit money laundering. She is scheduled for her initial court appearance today. If convicted, she faces a maximum penalty of five years in prison on the count of conspiracy to defraud the United States and offer and pay health care kickbacks, ten years in prison on each count of offering and paying health care kickbacks, and ten years in prison on the count of money laundering conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI Criminal Investigative Division, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Acting Special Agent in Charge Susan Frisco of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Operator of San Gabriel Valley Employment Staffing Company Pleads Guilty to Criminal Charge for Failing to Pay over Payroll Taxes to IRSRead the Press Release
LOS ANGELES – A Diamond Bar man pleaded guilty today to a federal criminal charge for deliberately failing to pay more than $200,000 for one three-month period’s payroll taxes that were owed by a San Gabriel Valley employment staffing company.
Robinson Rin Yang, 54, a.k.a. “Robert Mora,” a.k.a. “David Lee,” pleaded guilty to one count of willful failure to pay over employment taxes.
According to his plea agreement, from March 2016 to March 2020, Yang operated B&S Staffing, a Covina-based staffing service business. From mid-2017 until the end of 2019, B&S accrued large unpaid employment tax liabilities, failed to make timely employment tax deposits, and repeatedly failed to timely file quarterly employment tax returns with the IRS. Notably, B&S did not file -- until February 2019 – employment tax returns for the periods ending June 30, 2017 through December 31, 2018.
After these tax returns were filed, B&S again fell into non-compliance with its reporting obligations. B&S did not file – until September 2020 – employment tax returns for the quarterly tax periods ending March 31, 2019, through December 31, 2019.
Yang admitted he was aware of B&S’s tax situation, but willfully failed to pay over to the IRS all the employment taxes due and owing, including income taxes and Social Security and Medicare taxes withheld from employee wages. Instead, Yang repeatedly used his control over B&S to direct payments from the corporate bank account, which he controlled, for his personal benefit.
For example, in July 2018, for the quarterly tax period ending on June 30, 2018, Yang willfully failed to account for and pay over approximately $221,108 in B&S payroll taxes.
In total, B&S accrued approximately $2,791,783 in unpaid employment taxes during this 2½-year period. Yang has agreed to pay this amount in restitution to the IRS.
Yang further admitted that from 2017 to 2019, to frustrate IRS collection actions against him regarding his personal income taxes – and to conceal the true extent of how much money he made – he did not pay himself a salary from B&S. Instead, Yang caused weekly checks to be issued from B&S’s corporate bank account to a business named “Advanced Business Konsulting,” and deposited these checks into an account held in the same name and which he controlled.
In addition, Yang used B&S funds for the down payment and monthly mortgage payments on his purchase of a home, but kept the property titled in the name of another person to conceal Yang’s ownership of the property. Yang also directed payments from the corporate bank accounts of B&S to pay for personal expenses, including a portion of his daughter’s college tuition, and funding for Yang’s other business interests, including a failed construction business and a failed restaurant.
Despite the fact Yang earned hundreds of thousands of dollars from his operation of B&S during each of the calendar years 2017 through 2019, he failed to timely file federal income tax returns for those years.
United States District Judge George H. Wu scheduled a February 27, 2023 sentencing hearing, at which time Yang will face a statutory maximum sentence of five years in federal prison.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney James C. Hughes of the Major Frauds Section is prosecuting this case.
Ohio Man Sentenced to 87 Months in Prison for Possessing Carfentanil He Intended to SellRead the Press Release
PITTSBURGH, PA - A resident of Akron, Ohio, was sentenced by a federal judge in Pittsburgh on a charge of drug trafficking, United States Attorney Cindy K. Chung announced today.
On Dec. 14, 2022, U.S. District Judge Nora Barry Fischer sentenced Oshay Love, 30, to 87 months of imprisonment with four years of federal supervised release to follow. Love was also ordered to pay a special assessment of $100 and forfeit property, namely over $700 in U.S. currency and a Chevy Blazer that was derived from or used in the commission of his federal offense.
On August 17, 2022, Love pleaded guilty to One Count of possessing with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of carfentanil, a Schedule II controlled substance. Love’s charge was based upon his conduct on July 23, 2019 whereby he traveled from Ohio to the Western District of Pennsylvania to sell carfentanil, which is a fentanyl analog and considered to be about 100 times more potent than fentanyl and 10,000 more potent than morphine. Love was apprehended by law enforcement before being able to distribute this substance in this district. When being apprehended, Love attempted to evade arrest by fleeing in his vehicle, damaging multiple police vehicles, and jumped off a cliff before he was apprehended, which factored into his sentence.
Assistant United States Attorney Nicole A. Stockey prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Monroeville, Elizabeth, and Wilkinsburg police departments conducted the investigation leading to the Indictment in this case.
Office Manager and Her Son Charged in Federal Financial and Health Care Fraud InvestigationRead the Press Release
PROVIDENCE – The former office manager for a Pawtucket dermatologist’s office and her son are facing federal charges following a joint federal and state law enforcement embezzlement, fraud, and health care fraud investigation, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that Tianna Keller, 66, of South Easton, MA, used her position as office manager, her authority to sign office documents, and her position as benefits manager to orchestrate schemes to enrich herself, her son, and a friend.
According to court documents, Keller allegedly defrauded the practice of approximately $490,000. She allegedly did this by giving herself unauthorized salary increases totaling approximately $185,061; adding family members and a friend to the payroll and providing them with unauthorized gross wages totaling approximately $46,703; failing to deposit nearly $108,000 in patient cash payments; issuing dozens of checks payable to herself and others, signing the name of the medical practice’s owner without his permission; and using company funds and credit cards as payment for her rent, a daughter’s tuition, restaurant, grocery, retail and other personal and travel expenses; and personal services.
Additionally, it is alleged that Keller authorized continued enrollment and payment for family medical insurance coverage for her son, Brandyn Coffman, 30, of New Braunfels, TX, and his family, even after his self-termination as a data clerk at the medical practice, authorizing payment of nearly $40,000 for this coverage. It is alleged that Blue Cross Blue Shield paid more than $14,000 in claims submitted by Coffman and his family. It is further alleged that Coffman made false statements to law enforcement, claiming he was unaware of the coverage and that he “didn’t even think to use the plan.”
The criminal complaint also alleges that Keller, who was receiving temporary disability insurance (TDI) payments at the time of her termination from the medical practice, continued to collect TDI even after she began employment elsewhere; as a result she fraudulently collected $11,847.
Tianna Keller is charged with conspiracy to commit health care fraud, health care fraud, wire fraud, and aggravated identity theft; Brandyn Coffman is charged with conspiracy to commit health care fraud, health care fraud, and making materially false statements to agents.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Ronald R. Gendron.
The matter was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the Rhode Island State Police Financial Crimes Unit.
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Ocenture LLC and Carelumina LLC Settle Allegations of False Claims for Unnecessary Genetic TestingRead the Press Release
Ocenture LLC, a privately held company headquartered in Jacksonville, Florida, and its subsidiary, Carelumina LLC (collectively, “Ocenture”), have agreed to pay $3 million to resolve allegations that they caused the submission of false claims to Medicare by paying and receiving kickbacks in connection with genetic testing samples.
The United States alleged that Ocenture participated in a genetic testing fraud scheme with other marketers and clinical laboratories. As part of the alleged scheme, Ocenture solicited genetic testing samples from Medicare beneficiaries directly and through other marketers. Ocenture then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for the laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture.
“The Anti-Kickback Statute prohibits paying or receiving remuneration for referring services paid for by federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of these programs by knowingly engaging in illegal kickback schemes that distort physician decision-making and waste taxpayer dollars.”
“Kickback schemes corrupt the clinical judgments of providers and may lead to unnecessary medical services paid for by taxpayers,” said U.S. Attorney for the Middle District of Florida Roger Handberg. “The resolution of this civil case confirms our district’s resolve in protecting our federal health programs from these fraudulent practices.”
“Entities involved in kickbacks that bilk Medicare funds threaten the program’s fiscal stability and abuse patients’ trust,” said Special Agent in Charge Omar Pérez-Aybar for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our partners, HHS-OIG without relent investigates providers that allegedly distort the practice of genetic testing to defraud federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Improta and Peter Brandt, two marketers who were approached by Ocenture to participate in the alleged kickback scheme. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Improta, et al. v. Ocenture, et al., Civil Action No. 3:19-cv-358 (M.D. Fla.). As part of today’s resolution, Messrs. Improta and Brandt will receive approximately $570,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Laurie A. Oberembt and Assistant U.S. Attorney Ronnie S. Carter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Ocenture LLC and Carelumina LLC Settle Allegations of False Claims for Unnecessary Genetic TestingRead the Press Release
Jacksonville, FL - Ocenture LLC, a privately held company headquartered in Jacksonville, Florida, and its subsidiary, Carelumina LLC (collectively, “Ocenture”), have agreed to pay $3 million to resolve allegations that they caused the submission of false claims to Medicare by paying and receiving kickbacks in connection with genetic testing samples.
The United States alleged that Ocenture participated in a genetic testing fraud scheme with other marketers and clinical laboratories. As part of the alleged scheme, Ocenture solicited genetic testing samples from Medicare beneficiaries directly and through other marketers. Ocenture then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for the laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture.
“The Anti-Kickback Statute prohibits paying or receiving remuneration for referring services paid for by federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of these programs by knowingly engaging in illegal kickback schemes that distort physician decision-making and waste taxpayer dollars.”
“Kickback schemes corrupt the clinical judgments of providers and may lead to unnecessary medical services paid for by taxpayers,” said U.S. Attorney for the Middle District of Florida Roger Handberg. “The resolution of this civil case confirms our district’s resolve in protecting our federal health programs from these fraudulent practices.”
“Entities involved in kickbacks that bilk Medicare funds threaten the program’s fiscal stability and abuse patients’ trust,” said Special Agent in Charge Omar Pérez-Aybar for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our partners, HHS-OIG without relent investigates providers that allegedly distort the practice of genetic testing to defraud federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Improta and Peter Brandt, two marketers who were approached by Ocenture to participate in the alleged kickback scheme. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Improta, et al. v. Ocenture, et al., Civil Action No. 3:19-cv-358 (M.D. Fla.). As part of today’s resolution, Messrs. Improta and Brandt will receive approximately $570,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Laurie A. Oberembt and Assistant U.S. Attorney Ronnie S. Carter.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Norteño Gang Member Sentenced to 15 Years for Conspiracies to Commit Assaults and Murders in Monterey County JailRead the Press Release
SAN JOSE – Jorge Jasso was sentenced today to 180 months (15 years) in federal prison following his convictions for multiple conspiracies involving gang violence in the Monterey County Jail, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by United States District Judge Beth L. Freeman.
Jasso is the last of 15 gang members who were charged, convicted, and sentenced in this case for wide ranging criminal conspiracies involving violence and drug trafficking.
On June 7, 2022, Jasso, age 30, of Soledad, California, was convicted by a federal jury of all charges against him. The charges consisted of engaging in a racketeering (RICO) conspiracy; engaging in a conspiracy to commit murder in aid of racketeering; and engaging in a conspiracy to commit assault with a dangerous weapon in aid of racketeering.
In the same jury trial, Jasso’s co-defendant Vincent Gerald Garcia was convicted of the same charges. Garcia was sentenced on November 1, 2022, to 306 months (25 years, 6 months) in federal prison.
Trial evidence showed that Jasso was an active member of the Norteño street gang beginning in 2007. From at least May 2012 to September 2013, Jasso was incarcerated in the Monterey County Jail. During a portion of that time in jail, Jasso was a squad leader in his Norteño housing pod. Garcia, Jasso’s co-defendant, was also incarcerated there and held the position of Regiment Commander for the prison gang Nuestra Familia (“NF”). NF was in charge and controlled the criminal activities of gang inmates throughout the Monterey County Jail. The Norteño street gang is affiliated with and subordinate to the NF, and Norteño gang members pledge loyalty to the NF. Evidence showed that inside prisons and local jails, all members and affiliates of the NF, including Norteños, worked together to maintain gang structure and to follow the gang’s rules.
Trial evidence showed that Jasso conspired with other gang members to engage in attempted murders and assaults that took the form of “removals.” A removal refers to the removal of a gang member from the gang and consists of an organized attack upon the targeted victim. Any gang member in a Norteño housing unit who committed a serious violation of the rules could be subject to a removal. A removal first had to be authorized by the NF leader of the jail. The removal was then planned by the Norteño in charge of the housing unit and executed by the unit’s Norteño gang members. In the attack, one or more “hitters” stabbed the victim. The hitters were immediately followed by at least two “bombers.” Bombers viciously beat the victim. The beating by the bombers inflicted further injury to the target and continued a chaotic distraction, allowing time for the hitters to hide their weapons and wash off.
The trial focused on ten removals in the Monterey County Jail between December 2012 and April 2014. Most of the removals occurred in “K-Pod,” a cell block of housing units in Monterey County Jail that housed active Norteño members and associates exclusively. Three of the removals occurred in the jail’s main yard, during the recreation period for inmates who were housed in the lockdown pods for Norteños.
Evidence showed that Jasso played the role of a bomber in at least three removals. On December 2, 2012, one gang member, referred to as Victim-1, was removed in Monterey County Jail’s K-16 housing unit. During the removal, Victim-1 was stabbed over 20 times in the chest and back by a hitter. Immediately thereafter Jasso and another gang member punched and kicked the victim to inflict as much injury as possible, allowing the hitter to escape being caught by guards with the stabbing weapon. On February 25, 2013, another person,Victim-2, was also removed from the K-16 housing unit. The hitter in that removal stabbed Victim-2 in the head and face using a shank made from an electrical outlet plate sharpened into a stabbing instrument. Immediately thereafter the bombers – Jasso and another gang member – punched and kicked the victim to allow the hitter to escape. The wounds to Victim-2 required eight staples to his scalp and numerous stitches to his face and hand.
On April 29, 2013, Victim-3 was removed in the K-16 housing unit. As part the removal plan, Jasso falsely assured Victim-3 that Norteño leadership would not be punishing Victim-3 for his infraction, a tactic designed to cause Victim-3 to let his guard down and become an easier target. During the ensuing removal, the hitter stabbed Victim-3 repeatedly in the head. The bombers, which included Jasso, then descended upon Victim-3. As a result of the removal, Victim-3 suffered lacerations to his head requiring ten staples, a torn earlobe requiring seven sutures, and a facial droop.
Jasso was in custody at the time of his sentencing hearing and will begin to serve his sentence immediately.
The 15 defendants now convicted in this case are listed below with their charges and sentences:
Johnny Magdaleno
18 U.S.C. § 1962(d) – Racketeering Conspiracy
360 months imprisonment
Vincent Gerald Garcia
18 U.S.C. § 1962(d) - Racketeering Conspiracy
18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
306 months
imprisonment
Rodney Luis Romero
18 U.S.C. § 1962(d) – Racketeering Conspiracy
216 months
imprisonment
Ramon Montoya
18 U.S.C. § 1962(d) – Racketeering Conspiracy
120 months
imprisonment
Michael James Rice
18 U.S.C. § 962(d) - Racketeering Conspiracy
156 months
imprisonment
Alberto Cervantes
18 U.S.C. § 962(d) - Racketeering Conspiracy
18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
Custodial time already served, plus 5 years of supervised release with 730 days on home confinement
Alejo Alex Alegre, IV
18 U.S.C. § 1962(d) – Racketeering Conspiracy
120 months
imprisonment
Carlos Cervantes
18 U.S.C. § 1962(d) – Racketeering Conspiracy
120 months
imprisonment
Alberto Moreno
18 U.S.C. § 1962(d) – Racketeering Conspiracy
84 months
imprisonment
Steven Anthony Dorado
18 U.S.C. § 1962(d) – Racketeering Conspiracy
84 months
imprisonment
Michael Abraham Cazares
18 U.S.C. § 1962(d) - Racketeering Conspiracy
18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
96 months
imprisonment
Jeffrey Lopez
18 U.S.C. § 1962(d) – Racketeering Conspiracy
84 months
imprisonment
Juan Alvarez
18 U.S.C. § 1962(d) – Racketeering Conspiracy
120 months
imprisonment
Erik Lopez
18 U.S.C. § 1962(d) – Racketeering Conspiracy
120 months
imprisonment
Jorge Jasso
18 U.S.C. § 1962(d) - Racketeering Conspiracy
18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
180 months
Assistant U.S. Attorneys Stephen Meyer and Neal Hong prosecuted the case at trial with the assistance of Christine Tian, Mimi Lam, Laurie Worthen, Susan Krieder, Lynette Dixon, and Elise Etter. The prosecution is the result of an investigation by the FBI with assistance from the Monterey County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Salinas Police Department, the Soledad Police Department, and the Fresno Police Department.
New Britain Man Pleads Guilty to Federal Offenses Stemming from Robbery and Carjacking SpreeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that CHRISTIAN LUIS VELEZ-RUIZ, 25, of New Britain, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to federal robbery, carjacking, and firearm offenses.
According to court documents and statements made in court, in a crime spree spanning from September 2021 into December 2021, Velez committed 28 armed robberies of convenience stores and six armed carjackings, among other offenses, throughout Connecticut. He continued committing the robberies after the FBI’s announcement of a $25,000 reward in November 2021 for information leading to Velez’s arrest and conviction.
On December 17, 2021, law enforcement located Velez in his vehicle in a parking lot in New Britain. Velez attempted to escape by ramming police vehicles and he ultimately fled on foot. A K9 pursuit ensued, and Velez was captured after he attempted to steal another vehicle. He has been detained since his arrest.
Velez, who has taken responsibility for all of the offenses he committed during his crime spree, pleaded guilty to one count of carjacking, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. The carjacking occurred on September 2, 2021, when Velez stole at gunpoint a 2020 white Jeep Grand Cherokee from the driveway of a victim in Southington. One of the robberies occurred on September 26, 2021, when Velez robbed at gunpoint a store located at a Sunoco gas station in Bristol. Velez pistol-whipped the store employee and stole U.S. currency and cigarettes from the store. The other robbery occurred on October 7, 2021, when Velez robbed at gunpoint a store located at a Citgo gas station in Southington. Velez brandished a pistol at the store employee and stole cash and cigarettes from the store.
Judge Nagala scheduled sentencing for March 24, at which time Velez faces a mandatory minimum term of imprisonment of 14 years and a maximum term of life imprisonment.
This matter is being investigated by the FBI, the Connecticut State Police, the Greater Hartford Regional Auto Theft Task Force, and the New Britain, Waterbury, Berlin, Bristol, Cromwell, East Hartford, Enfield, Farmington, Glastonbury, Manchester, Meriden, Middletown, Newington, Norwich, Plainville, Southington, Windsor, Wolcott, and Woodbridge Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Nevada Resident Returned to United States from Mexico in Connection with Federal Drug Charges Involving over 1,000 Pounds of MethamphetamineRead the Press Release
RENO – A Reno man was returned to the United States from Mexico where he was arrested on a federal warrant for drug trafficking violations. On December 13, 2022, the defendant made his initial appearance in the Southern District of California and was ordered detained.
In June 2022, a federal grand jury in Reno charged Nassrollah Behmard, also known as “Benny” and “Michael Holt,” 64, with conspiracy to distribute and possess with intent to distribute methamphetamine, six counts of distribution of a methamphetamine, and conspiracy to money launder. Behmard’s next court date is December 27, 2022.
In 2014, Behmard fled to Mexico to avoid being arrested for his involvement in Washoe County drug trafficking case. In March 2022, the FBI learned that Behmard, who was still in Mexico, was conspiring with co-conspirators located in Reno and Los Angeles to distribute of multi-pound quantities of methamphetamine in the Reno. From March 2022 to June 2022, Behmard was responsible for distributing over 140 pounds of methamphetamine.
On June 6, 2022, Behmard arranged with co-conspirator Ramon Guadalupe Sanchez Maldonado to deliver 100 pounds of methamphetamine from Los Angeles to Reno. Law enforcement successfully intercepted the methamphetamine and traced it back to a clandestine lab located in the Los Angeles area. Law enforcement dismantled the lab and seized approximately 1,000 pounds of methamphetamine.
In June 2022, Behmard and co-conspirators Owen Eugene Dick, 58, Melissa Ann Longo, 46, Ramon Guadalupe Sanchez Maldonado, 51, and Jesus Sanchez Vargas, 22, were charged with conspiracy to distribute methamphetamine and related offenses including money laundering. All except for Behmard, who was still in Mexico at the time, were arrested in July 2022.
If convicted, Behmard faces a maximum statutory penalty of life in prison. There is a 10-year mandatory minimum term of imprisonment.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI Northern Nevada Safe Streets Task Force, comprised of FBI, Reno Police Department, Carson City Sheriff’s Office, Nevada Gaming and Control Board, Nevada Department of Corrections, and Douglas County Sheriff’s Office, investigated the case with assistance by the FBI Los Angeles Field Office, the San Bernardino Police Department, DEA, and ATF. Assistant U.S. Attorney Andolyn Johnson is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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NE Georgia Woman Indicted for Bomb Threat Against Athens Democratic Campaign OfficeRead the Press Release
MACON, Ga. – A federal grand jury returned an indictment yesterday charging a northeast Georgia woman with threatening to bomb the Athens-Clarke County Democratic Committee Campaign headquarters in Athens, Georgia, earlier this month and lying to federal investigators.
Jessica Diane Higginbotham aka Jessica Harriod, 35, of Elberton, is charged with one count of communicating a bomb threat and one count of making false statements. If convicted of communicating a bomb threat, Higginbotham faces a maximum sentence of ten years imprisonment and a $250,000 fine. If convicted of making false statements, she faces a maximum sentence of five years imprisonment and a $250,000 fine.
Higginbotham is currently in state custody; she will have an initial appearance in front of a U.S. District Court magistrate judge at a later date.
The indictment alleges that Higginbotham made a threat to bomb the Athens-Clarke County Democratic Committee Campaign building in Athens, Georgia, on Dec. 3 and lied to federal agents on Dec. 4 about her knowledge of a specific email address and the use of the TextNow communication application on her Samsung cellphone, both of which belong to her.
The case was investigated by the FBI, the U.S. Capitol Police, the Athens-Clarke County Police Department and the Elbert County Sheriff’s Office.
Assistant U.S. Attorney Will R. Keyes is prosecuting the case.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Multi-Convicted Felon with “Ghost” AR-15 Pistol Sentenced to 8 Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Keo Ibua Mike (29, Ocala) to eight years in federal prison for possessing a firearm and ammunition as a convicted felon. Mike had pleaded guilty plea on August 23, 2022.
According to court documents, on November 7, 2019, law enforcement officers arrested Mike on outstanding warrants at a house in Ocala that smelled strongly of marijuana. Investigators obtained a search warrant and recovered methamphetamine, crack cocaine, and MDMA from inside the home. They also discovered three loaded firearms in the attic—a handgun, an AR-15 “ghost” pistol (with no manufacturer markings), and an AK-47 rifle. A photograph from Mike’s social media account showed him holding the AR-15 pistol hours before the arrest (see photos below):
DNA testing by FBI later conclusively linked Mike to the firearms. Mike’s prior criminal record includes a state felony conviction for aggravated assault with a firearm (2009) and a federal conviction for possession of a firearm and ammunition by a convicted felon (2014). As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Ocala Police Department, the Unified Drug Enforcement Strike Team (UDEST), and the Federal Bureau of Investigation. It was being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Missouri Valley Man Sentenced to 14 Years in Federal Prison for Sexual OffensesRead the Press Release
COUNCIL BLUFFS, IA – Quinn Matthew Sorensen, age 23, of Missouri Valley, was sentenced on Tuesday, December 13, 2022, to 168 months in prison following his plea of guilty to Transportation of a Minor and Coercion and Enticement of a Minor. Sorenson will be required to register as a sex offender. He was ordered to 12 years of supervised release following his release from prison.
In March 2022, a school resource officer at Millard West High School was provided information from other students that a female freshman student was dating Sorenson. Sorensen was corresponding with several teenage girls at the high school through text messages and Snapchat. Sorenson picked up one female student in Omaha, Nebraska and transported her to his apartment in Missouri Valley. Sorenson encouraged high school freshmen to date him and engage in sexual acts. Sorenson also provided students alcohol and marijuana.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation and Sarpy County Sheriff’s Office investigated this case and the Missouri Valley Police Department assisted in the execution of a search warrant.
Missouri Man Pleads Guilty to Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Andrew Neal, 22, of Columbia, Missouri, pleaded guilty to receipt of child pornography before Senior U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, who is handling the case, stated that between July 2018, and November 5, 2020, Neal received and attempted to receive sexually explicit images from three minor victims located in Lancaster, NY, San Francisco, California and Springfield, Missouri. Neal contacted the victims through Instagram and requested the sexually explicit images. If the victims did not comply, Neal threatened to share images previously sent by the victims with their Instagram followers. The victims initially complied but once they stopped, Neal did in fact share images with some of their Instagram followers.
The plea is the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for May 31, 2023, before Judge Skretny.
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Mexican Citizen Sentenced to 18 Months in Federal Prison for Immigration OffenseRead the Press Release
COUNCIL BLUFFS, IA – Hector Javier Torres Tapia, age 32, a Mexican citizen, formerly of Council Bluffs, was sentenced on Tuesday, December 13, 2022, to 18 months in prison following his plea of guilty to illegally reentering the country.
On May 21, 2022, Torres Tapia came to the attention of Immigration and Customs Enforcement (ICE), following on a traffic stop by the Council Bluffs Police Department. ICE Officers arrested Torres Tapia three days later. In 2015, Torres Tapia was convicted of Possession with Intent to Distribute Methamphetamine in the Nebraska District Court for Douglas County.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Department of Homeland Security, Immigration and Customs Enforcement investigated the case.
Massachusetts Man Sentenced for Wire Fraud and Illegally Exporting Defense Articles to TurkeyRead the Press Release
A Massachusetts man was sentenced yesterday to 33 months in prison followed by two years of supervised release for a scheme to illegally export defense technical data to foreign nationals in Turkey in connection with the fraudulent manufacturing of parts and components used by the U.S. military, in violation of the Arms Export Control Act. The U.S. Department of Defense (DOD) later determined that some of the parts were substandard and unsuitable for use by the military.
On Aug. 10, 2022, Arif Ugur, 53, of Cambridge, pleaded guilty to two counts of wire fraud, two counts of violating the Arms Export Control Act and one count of conspiring to violate the Arms Export Control Act.
“The defendant willfully defrauded the Department of Defense and gave access to controlled defense information to individuals in a foreign country for personal gain,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This type of brazen disregard for our export control laws threatens our military readiness and technological advantage and will not be tolerated by this department.”
According to court documents, in 2015, Ugur, founded and was the sole managing partner of the Anatolia Group Limited Partnership (Anatolia), a domestic limited partnership registered in Massachusetts. Beginning in approximately July 2015, Ugur bid on and acquired numerous contracts to supply the DOD with various parts and components intended for use by the U.S. military. Many of these contracts required that the parts be manufactured in the United States. Both in bids submitted to DOD and in subsequent email communications with DOD representatives, Ugur falsely claimed that Anatolia was manufacturing the parts in the United States. In fact, Anatolia was a front company with no manufacturing facilities whatsoever. Unbeknownst to DOD, Ugur contracted with a company in Turkey to make the parts and then passed them off to DOD as if they had been manufactured by Anatolia in the United States. Because they had not been manufactured in the United States in accordance with the contacts, Ugur failed to allow DOD to inspect the parts prior to delivery to the U.S. military. Many of the parts were substandard and some could not be used at all.
To enable the Turkish company to manufacture the parts, Ugur shared technical specifications and drawings of the parts with his co-conspirators overseas, some of whom were employees of the Turkish company. Ugur also provided his overseas co-conspirators with access to DOD’s online library of technical specifications and drawings. Because of their military applications, many of these parts were designated as Defense Articles under the International Traffic in Arms Regulations (ITAR) and the United States Munitions List (USML). Thus, an export license was required to export the parts and related technical data (blueprints, specifications, etc.) from the United States to Turkey. Ugur knew of these restrictions, but nonetheless exported technical data controlled under the ITAR and USML to employees of the Turkish manufacturer without an export license.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Rachael S. Rollins for the District of Massachusetts; Special Agent in Charge Patrick J. Hegarty of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Matthew B. Millhollin of Homeland Security Investigations in Boston; and Acting Special Agent in Charge Rashel Assouri of the U.S. Department of Commerce Office of Export Enforcement, Boston Field Office made the announcement.
Assistant U.S. Attorneys Jason A. Casey and Timothy H. Kistner for the District of Massachusetts prosecuted the case.
Marion County Man Indicted on Federal Drug and Gun ChargesRead the Press Release
Louisville, KY – A federal grand jury returned an indictment on November 16, 2022, charging Christopher Wiser with possessing with the intent to distribute cocaine and methamphetamine, and with being a felon in possession of a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Wally Brady of the Lebanon Police Department made the announcement.
According to the indictment, Christopher Wiser, 31, of Lebanon, Kentucky, was charged with one count of possessing with the intent to distribute cocaine and methamphetamine and possessing a firearm by a convicted felon. Wiser has three prior felony convictions in Marion Circuit Court for cocaine trafficking.
The defendant made his initial court appearance yesterday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Wiser faces a maximum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF and the Lebanon Police Department.
This case is being prosecuted by Assistant United States Attorney Josh Porter.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Pleads Guilty to Voluntary Manslaughter on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore.—On December 14, 2022, a resident of the Umatilla Indian Reservation pleaded guilty after he repeatedly struck a fellow resident of the reservation with his fists, causing the person’s death.
Tom Redhawk Tias, 22, pleaded guilty to one count of voluntary manslaughter.
According to court documents, on January 26, 2021, Tias contacted law enforcement to report an unresponsive adult. Officers responded to the scene on the Umatilla Indian Reservation and located a deceased adult who multiple witnesses said Tias admitted to hitting. In an interview with law enforcement, Tias confirmed these accounts. The victim, who had an active Tribal protection order against Tias, was later determined to have died due to blunt force trauma to the head and neck.
On February 10, 2021, Tias was charged by criminal complaint with voluntary manslaughter. Later, on March 16, 2021, a federal grand jury in Portland indicted Tias on the same charge.
Tias faces a maximum sentence of 15 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 10, 2023, by Chief U.S. District Court Judge Marco A. Hernández.
As part of the plea agreement, Tias has agreed to pay restitution in full to the decedent’s next of kin his victim’s next of kin as identified by the government and ordered by the court.
This case was investigated by the FBI and Umatilla Tribal Police Department. Assistant U.S. Attorney Pamela Paaso is prosecuting the case.
Long-Time Employee of Local Construction Firm Sentenced to Prison for EmbezzlementRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Pamela Smith (60, Winter Park) to three years in federal prison for wire fraud. As part of her sentence, the court also entered an order of forfeiture in the amount of $500,000, the proceeds of the offense. The court also entered an order of forfeiture for Smith’s residence, which was substantially remodeled using stolen funds, as a substitute asset. Smith had pleaded guilty on April 18, 2022.
According to court documents and statements made in court, Smith was employed as an office manager for a family-owned construction company for 27 years. As part of her duties, Smith was responsible for handling the company’s payroll and had access to the company’s business accounts. Dating back to at least 2008, Smith made payments on multiple personal credit cards directly from the company’s business bank accounts without her employer’s permission. Beginning in 2013, Smith altered her payroll to increase her weekly salary without her employer’s permission. She began with a $1,000 per week increase, and, by the time her employer discovered the fraud, she was embezzling $2,000 per week. In total, Smith stole at least $700,000 from her employer. She used the funds to purchase cars, renovate her home, and otherwise live above her means. Smith took numerous steps to conceal her criminal activity, including transferring money between business bank accounts, limiting access to the company’s monthly banking statements, and altering the company’s general ledger.
This case was investigated by the United States Secret Service and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Rachel K. Jones. The forfeiture of assets is being handled by AUSA James Muench.
Local man sentenced for carjacking and gun crimeRead the Press Release
HOUSTON – A 20-year-old Houston man has been ordered to federal prison following his conviction of one count of carjacking and one count of discharging a firearm during a crime of violence, announced U.S. Attorney Alamdar S. Hamdani.
Keiffer Frederick Edwards pleaded guilty Sept. 23.
Today, U.S. District Judge Keith Ellison ordered Edwards to serve 71 months for the carjacking. He also received 120 months for the discharging of a firearm offense which must be served consecutively to the underlying carjacking offense. The total 191-month sentence will be immediately followed by five years of supervised release.
On April 28, the victim drove his vehicle to a gas station located at 407 Farm to Market Road 1960 in Houston. While in the parking lot, Edwards approached and attempted to enter the driver’s door of the victim’s vehicle. After a brief struggle, Edwards shot the victim several times, fled the scene in the victim’s vehicle. Law enforcement apprehended him a short time later.
The victim was reported to have 18 gunshot wounds, but medical personnel treated him, and he survived his injuries.
Edwards has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Harris County Sheriff’s Office, Mont Belvieu and Houston Police Departments and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney John Michael Lewis is prosecuting the case.
KC Man Sentenced for Stealing, Illegally Possessing Firearm Used in KillingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing the firearm he stole from his victim and used to kill him.
Larry D. Bradley, 54, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On May 11, 2022, Bradley was found guilty at trial of being a felon in possession of a firearm, stealing a firearm, possessing a stolen firearm, and receiving a firearm while under indictment for a felony. Bradley has been in federal custody since his arrest on July 9, 2021.
On March 20, 2020, officers with the Kansas City, Mo., Police Department were dispatched to a residence on a reported shooting. Upon arrival, officers located Thomas Willett, who was suffering from a fatal gunshot wound, on the floor of the residence. Officers learned that in the heat of an argument, Bradley had shot Willett with a Glock .40-caliber handgun then fled from the residence with the firearm. With the assistance of a police dog, they were able to find Bradley hiding inside a trailer. Bradley no longer had the firearm, so officers asked him where the firearm was located. Bradley led the officers to a tire where he had hidden the firearm. Bradley later admitted that he had stolen the firearm from Willett a couple of days before the shooting.
According to testimony during Bradley’s trial, a conflict arose between Bradley and Willet because he was unwilling to support Bradley’s heroin habit. Bradley had pulled a knife on Willet a few days earlier, and stated several times that he wanted to hurt Willett.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm. Bradley has prior felony convictions for first-degree robbery and second-degree robbery. It is also illegal for anyone who is under indictment for a felony to receive a firearm. At the time he stole the firearm, he was under indictment for the felony possession of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sarah J. Rasalam. It was investigated by the Kansas City, Mo. Police Department.
Project Safe Neighborhoods
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.
Justice Department Secures Settlement in Race Discrimination Lawsuit Against Public Housing Authority and Property Owners in AlabamaRead the Press Release
BIRMINGHAM, Ala. – The Justice Department announced today that the U.S. District Court for the Northern District of Alabama has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination by the Housing Authority of Ashland, Alabama. The consent decree also resolves the department’s claims against Southern Development Company of Ashland, Ltd., Southern Development Company of Ashland #2, Ltd., and Southern Development Company LLC, the private owners and agent of two of the eight low-income housing communities managed by the Housing Authority.
“Racial steering is a patently unlawful practice that destabilizes communities, fuels racial tensions, and perpetuates modern day racial segregation in communities across the country,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “Racial steering violates federal law, and runs contrary to the principles of equal housing opportunity that animated the work of Dr. Martin Luther King, Jr., who fought to bring an end to practices that locked Black people out of certain communities. This resolution should send a strong message to housing providers — both public and private — that they will be held responsible when they engage in unlawful conduct that violates the Fair Housing Act.”
“The consent decree entered today ensures access to housing opportunities for individuals and families without fear of discrimination,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “My office will continue to devote resources to vigorously pursue housing providers who deny equal housing opportunities to applicants or separate tenants based on their race.”
The lawsuit, filed in December 2020, alleged that since at least 2012, the defendants maintained largely segregated housing and steered residents to different housing communities based on race. For example, the defendants steered Black applicants away from four overwhelmingly white communities (known as Ashland Heights I, Ashland Heights II, East Side, and Clay Circle) that are located in predominately white neighborhoods to two predominantly Black communities (known as West Side and Pine View) that are located in predominately Black neighborhoods.
In investigating and litigating this case, the department conducted over 100 interviews with former and current tenants and other longtime residents of the Ashland area. The tenants and residents repeatedly highlighted the deep psychological stigma and harm suffered by hundreds of Black families who have lived in segregated housing for generations.
Under the court-approved decree, the defendants are required to pay $275,000 in damages to 23 current or former tenants who were allegedly harmed by the defendants’ conduct and pay a civil penalty to the United States; implement policies and procedures to remedy the alleged segregation and to ensure nondiscrimination, transparency, and consistency in processing applications and offering units to applicants; contact a group of approximately 145 individuals who are disproportionately Black who applied to Ashland Heights I or II but were not placed on the waiting list(s), and offer them spots on the waiting list based on their original dates of application if they still qualify; undergo fair-housing training; and submit periodic compliance reports to the Justice Department.
This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals may report housing discrimination by calling the Justice Department at 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report discrimination by contacting HUD at 1-800-669-9777, or by filing a complaint online.
Justice Department Secures Settlement in Race Discrimination Lawsuit Against Public Housing Authority and Property Owners in AlabamaRead the Press Release
The Justice Department announced that the U.S. District Court for the Northern District of Alabama has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination by the Housing Authority of Ashland, Alabama. The consent decree also resolves the department’s claims against Southern Development Company of Ashland Ltd., Southern Development Company of Ashland #2 Ltd., and Southern Development Company LLC, the private owners and agent of two of the eight low-income housing communities managed by the Housing Authority.
“Racial steering is a patently unlawful practice that destabilizes communities, fuels racial tensions, and perpetuates modern day racial segregation in communities across the country,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “Racial steering violates federal law, and runs contrary to the principles of equal housing opportunity that animated the work of Dr. Martin Luther King, Jr., who fought to bring an end to practices that locked Black people out of certain communities. This resolution should send a strong message to housing providers — both public and private — that they will be held responsible when they engage in unlawful conduct that violates the Fair Housing Act.”
“The consent decree entered today ensures access to housing opportunities for individuals and families without fear of discrimination,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “My office will continue to devote resources to vigorously pursue housing providers who deny equal housing opportunities to applicants or separate tenants based on their race.”
The lawsuit, filed in December 2020, alleged that since at least 2012, the defendants maintained largely segregated housing and steered residents to different housing communities based on race. For example, the defendants steered Black applicants away from four overwhelmingly white communities (known as Ashland Heights I, Ashland Heights II, East Side, and Clay Circle) that are located in predominately white neighborhoods to two predominantly Black communities (known as West Side and Pine View) that are located in predominately Black neighborhoods.
In investigating and litigating this case, the department conducted over 100 interviews with former and current tenants and other longtime residents of the Ashland area. The tenants and residents repeatedly highlighted the deep psychological stigma and harm suffered by hundreds of Black families who have lived in segregated housing for generations.
Under the court-approved decree, the defendants are required to pay $275,000 in damages to 23 current or former tenants who were allegedly harmed by the defendants’ conduct and pay a civil penalty to the United States; implement policies and procedures to remedy the alleged segregation and to ensure nondiscrimination, transparency and consistency in processing applications and offering units to applicants; contact a group of approximately 145 individuals who are disproportionately Black who applied to Ashland Heights I or II but were not placed on the waiting list(s), and offer them spots on the waiting list based on their original dates of application if they still qualify; undergo fair-housing training; and submit periodic compliance reports to the Justice Department.
This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals may report housing discrimination by calling the Justice Department at 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report discrimination by contacting HUD at 1-800-669-9777, or by filing a complaint online.
Justice Department Finds Alaska Unnecessarily Segregates Children with Behavioral Health Disabilities in InstitutionsRead the Press Release
The Department of Justice announced today that it found reasonable cause to believe that the State of Alaska violates the Americans with Disabilities Act (ADA) by failing to provide community-based services to children with behavioral health disabilities, relying instead on segregated, institutional settings — specifically, psychiatric hospitals and psychiatric residential treatment facilities. This finding comes at the conclusion of the department’s investigation into whether Alaska subjects children with behavioral health disabilities to unnecessary institutionalization in violation of Title II of the ADA.
“Each year, hundreds of children, including Alaska Native children in significant number, are isolated in institutional settings often far from their communities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Most of these children could remain in family homes if provided appropriate community-based services. We look forward to working with Alaska to bring the State into compliance with federal law and prevent the unnecessary institutionalization of children.”
Children who are segregated in psychiatric residential treatment facilities commonly stay there longer than six months, and some of them are sent to states as distant as Texas and Missouri, thousands of miles from their families.
The department’s investigation found that Alaska’s system of care is heavily reliant on institutions and that key community-based services and supports needed to serve children with behavioral health disabilities in family homes, such as home-based family treatment, crisis services and therapeutic treatment home services, are often unavailable. As a result, many children with behavioral health disabilities, including a substantial number of Alaska Native children, are forced to endure unnecessary and unduly long admissions to psychiatric hospitals and psychiatric residential treatment facilities both within Alaska and in states across the country.
With today’s announcement, the department has concluded its third investigation in 2022 involving the unnecessary institutionalization of children with behavioral health disabilities.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jury convicts Las Cruces man on federal firearm violationRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury on Dec. 12 returned a guilty verdict on Derris Deshune Carpenter. The jury convicted Carpenter, 40, of Las Cruces, New Mexico, for being a felon in possession of a firearm.
On April 29, Carpenter was travelling on Interstate 25 north of Las Cruces when he approached a Border Patrol checkpoint. Before reaching the checkpoint, Carpenter turned around in an area that was not designated for turning, and proceeded south. U.S. Border Patrol Agents pursued Carpenter and stopped him. Inside the vehicle’s glove compartment, agents located a 9mm handgun.
At the time, Carpenter had previously been convicted of possession with intent to distribute a controlled substance in 2011. As a previously convicted felon, Carpenter cannot legally possess firearms or ammunition.
Carpenter will remain in custody pending sentencing, which has not been scheduled. He faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from U.S. Border Patrol. Assistant United States Attorneys Randy M. Castellano and Christopher McNair are prosecuting the case.
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Jury Finds All Three Defendants Guilty in Murderous FeudRead the Press Release
WASHINGTON –Following a nine-week long trial, a D.C. Superior Court jury returned verdicts finding Derek B. Turner, 31, Ronnika M. Jennings, 44, and Duan M. Hill, 33, guilty of multiple felony offenses arising out of a violent gang feud between two neighborhoods in Southeast Washington, D.C. in 2016-2017. The defendants were charged in a multiple-count conspiracy case that included two separate murders, multiple shooting offenses, and multiple obstruction of justice offenses.
Late Wednesday afternoon, the jury returned the following verdicts: against Turner for Conspiracy to Kill and Assault, Conspiracy to Obstruct Justice, two counts of First Degree Premeditated Murder While Armed, three counts of Assault With Intent to Kill While Armed, four counts of Possession of a Firearm During a Crime of Violence, seven counts of Obstruction of Justice, and four counts of Unlawful Possession of a Firearm (Prior Conviction); against Jennings for four counts of Accessory After the Fact and one count of Obstruction of Justice; and against Hill for Conspiracy to Obstruct Justice and two counts of Obstruction of Justice.
Sentencing is scheduled for March 10, 2023.
In 2016-17, a dispute ensued between Wahler Place and Trenton Park crews, rival groups located in Southeast. In less than a year, 16 serious violent crimes, including four homicides, arose directly from the dispute, and at least 12 other serious crimes of violence, including at least three homicides, were part of the investigation. The government’s case showed that Wahler Place members engaged in a violent crime conspiracy targeting members of Trenton Park. Turner, also known as Fats, was a member of Wahler Place and was charged with the January 7, 2017 murder of Devin Hall and the March 1, 2017 murder of Andrew McPhatter, as well as several non-fatal shootings. The jury convicted Turner in both murders, as well as the February 17, 2017 attempted murders of rivals Raheem Osborne, Joseph Tyler, and Andrew McPhatter (before he was the victim of the later homicide). In the course of committing the charged offenses, defendant Turner utilized defendant Jennings, a civilian clerk in MPD’s Seventh District, to provide him with confidential police information to assist him and others in their criminal activities. Jennings was convicted of three counts of Accessory After the Fact in the February 17, 2017 attempted murder, as an Accessory After the Fact in McPhatter’s murder, and on one count of Obstruction of Justice. Hill was convicted of multiple counts of obstruction of justice in connection with a conspiracy to recruit an associate of Turner to take criminal responsibility for the firearm that Turner used to commit the two charged murders as well as three charged attempted murders.
In announcing the verdict, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department, specifically Det. Charles Fultz and Det. Jeffrey Weber, as well as Special Agent Samuel Ward from the Bureau of Alcohol, Tobacco and Firearms. He also expressed appreciation for the assistance provided by the U.S. Marshals Service, the Capital Area Regional Fugitive Task Force, and the District of Columbia Department of Forensic Sciences. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Paralegal Specialists Kelly Blakeney, LaShone Samuels and Stephanie Siegerist; Supervisory Paralegal Specialist Tasha Harris; Investigative Analyst Zachary McMenamin; Supervisory Victim/Witness Advocate Jennifer Clark; Victim/Witness Security Specialist Robert Cephas; Supervisory Victim/Witness Security Specialist Lesley Slade; Supervisory Victim Witness Service Coordinator Katina Adams-Washington; Supervisory Litigation Technology Specialist Leif Hickling; Litigation Technology Specialist Maisha Treadwell; Litigation Technology Specialist Thomas Royal; Special Agents Durand Odom and Mark Crawford; former Assistant U.S. Attorneys Dineen Baker and Sara Vanore; Appellate Section Deputy Chief John Mannarino; Homicide Deputy Chief Laura Bach; and Assistant U.S. Attorney AUSA Erin DeRiso.
Finally, he commended the work of Assistant U.S. Attorneys Michael Truscott and Kevin Flynn, who investigated and prosecuted the case.
Jury Convicts Hampton Recidivist of Possessing Assault Rifle, Fentanyl and Other Illicit ItemsRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man on charges of conspiracy, drug and firearm charges.
According to court records and evidence presented at trial, on November 15, 2021, Jonathan C. Long, 39, of Hampton, was arrested for failing to appear on a federal supervised release violation. A search of the residence that had been leased by his then girlfriend, now wife, revealed distribution quantities of fentanyl, cocaine base, hundreds of vials for distribution to users, five cell phones, and three firearms, including an assault rifle. Over 100 rounds of ammunition were also located that included armor piercing and hollow point bullets. An additional cell phone and round of ammunition were located in another residence previously used by Long. Evidence extracted from cell phones and jail communications revealed the scope of Long’s drug dealing, his efforts to avoid apprehension by law enforcement from April through November 2021, and his location during this time. One of the firearms recovered had been purchased for Long, who was a prohibited person as a convicted felon, in April 2021, by one of his drug addict customers from a pawn shop in Hampton.
Long was convicted of all five counts in the indictment, including drug conspiracy, possession of over 40 grams of fentanyl with intent to distribute, possession of firearms in furtherance of a drug trafficking crime, possession of firearms by a convicted felon, and maintaining a drug premises. He faces a mandatory minimum term of 35 years in prison when sentenced on April 24, 2023. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark Talbot, Chief of Hampton Police, made the announcement after U.S. District Judge Roderick C. Young accepted the verdict.
Assistant U.S. Attorneys Brian J. Samuels and Julie Podlesni and Special Assistant U.S. Attorney Grace H. Bowen are prosecuting the case.
This investigation was also conducted by the FBI’s Peninsula Safe Streets Task Force, a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department, Newport News Police Department, and United States Postal Inspection Service. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or www.fbi.gov/tips.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-37.
Jack Vicars Sentenced to 27 Months for Embezzling Nearly $350,000Read the Press Release
GREENEVILLE, Tenn. – On December 15, 2022, Jack D. Vicars, 49, currently of Bluff City, TN, was sentenced to 27 months in federal prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Vicars agreed to plead guilty to an information charging him with one count of wire fraud in violation of 18 U.S.C. § 1343 and one count of subscribing a false tax return in violation of 26 U.S.C. § 7206(1). Following Vicars imprisonment, he will be on supervised release for three years. Vicars was also ordered to pay restitution totaling $344,650.00 on account of his theft and $33,699.44 on account of unpaid taxes.
According to filed court documents, Vicars began working as a project manager for a large construction company in Johnson City, TN, and by 2018, he was promoted to the position of vice president. As part of his position and duties, he routinely oversaw projects and reviewed and approved invoices submitted by subcontractors working on those projects. Eventually, Vicars formed his own company and began submitting fraudulent invoices from his company for fictitious work that was not performed. Vicars would then use his position and authority to approve those invoices, resulting in payments issued by his employer to Vicars’ company. Vicars then used the money he stole to pay for personal expenses like his personal credit cards. The fraud took place over a period spanning from 2016 through February 2021. In total, Vicars stole $344,650 from his employer. Vicars also filed a false tax return in 2019, in which he failed to disclose money he had stolen, resulting in understated income and an unpaid tax liability of $33,699.14.
This prosecution was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. This investigation was led by FBI Special Agent Reanna O’Hare and IRS CI Special Agent Jimmy Cline.
Assistant United States Attorney Mac D. Heavener represented the United States.
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Investigation dismantles Butte drug trafficking organization with ties to the Sinaloa CartelRead the Press Release
BUTTE — A multi-agency undercover investigation into a large-scale drug trafficking organization that had ties to the Sinaloa Cartel and brought massive quantities of methamphetamine, counterfeit oxycodone pills containing fentanyl and heroin to Butte for redistribution has resulted in the federal convictions of 22 persons, U.S. Attorney Jesse Laslovich announced today.
U.S. Attorney Laslovich, along with federal, state and local law enforcement partners, discussed the dismantling of the Butte drug trafficking network at a news conference at the Montana Highway Patrol office in Butte. Led by the Drug Enforcement Administration and Montana Department of Justice’s Division of Criminal Investigation, with assistance from numerous federal, state and local law enforcement agencies, the investigation was one of the largest federal drug trafficking probes in Montana in recent years.
According to court documents and statements in court, the investigation, which began in 2019 with a tip about a suspicious package containing money being sent to California, led to federal convictions in Montana of 22 individuals from Montana, California and Mexico. Three of the drug traffickers, Humberto Villareal and Ricardo Ramos Medina, both of Culiacan, Sinaloa, Mexico, and Heriberto Tavares, of Anaheim, California, had ties to the Cartel.
Today in Missoula, U.S. District Judge Dana L. Christensen sentenced Helena resident Michael Robert Lee, 25, to 46 months in prison for his conviction on possession with intent to distribute meth in relation to the investigation. Lee is one of two remaining defendants indicted in the overall investigation to be sentenced. Defendant Tavares, an associate of Villareal and Medina, is pending sentencing in February for his guilty plea in October to possession with intent to distribute meth.
“Far too often, we believe that cartel-related activity in America is limited to southern border states, but as these cases show, we have significant issues facing us in Montana, including in an area where I grew up,” U.S. Attorney Laslovich said. “These cases also show that our office will pursue cartel-related activity without fear or hesitation. Individuals associated with this network brought staggering amounts of methamphetamine, fake oxycontin pills laced with fentanyl, and heroin from Mexico and into Montana for distribution. This years-long investigation and prosecution shut down the flow of these dangerous drugs, held suppliers and local dealers accountable, and saved lives in Montana communities. The success of this collaborative enforcement action would not have been possible without the dedication, cooperation, and hard work of all of our law enforcement partners to hold offenders accountable and to keep Montanans safe. Our work does not end with the conclusion of these cases, but rather is just beginning.”
“The Sinaloa Cartel is one of two primary cartels responsible for flooding the United States with fentanyl and methamphetamine,” said Special Agent in Charge of the DEA Rocky Mountain Division Brian Besser. “This investigation has revealed the extent to which the Sinaloa Cartel has extended its reach into Montana; however, the law enforcement agencies, at the local, state and federal level, have demonstrated via the results of this case that we will continue to attack these networks at every level to save lives and protect our communities from the scourge of illicit drugs.”
“The shipment of illegal and dangerous narcotics remains a plague on our streets. The U.S. Postal Inspection Service remains steadfast in our commitment to work with our partners in law enforcement to do everything we can to bring these drug dealers to justice and protect communities across Montana and the country,” said Assistant Inspector in Charge (AIC) Jarrod Resendez, of the U.S. Postal Inspection Service.
“There’s no question that Mexico is the source of illegal drugs pouring into our state. These cases – which are the culmination of years of investigative and prosecutorial work – put that to rest,” Montana Attorney General Austin Knudsen said. “Our DCI narcotics agents and Highway Patrol troopers work closely with federal and local partners every day, and I’ll continue our work to strengthen those partnerships to keep drugs out of Montana and put traffickers behind bars.”
“I am very grateful for the multi-jurisdictional approach and the cooperation between local, state and federal law enforcement. These are lengthy, labor-intensive and detailed operations,” Butte Silver Bow Sheriff Ed Lester said. “This investigation was very successful in that a significant number of defendants were indicted. It puts drug traffickers on notice that Southwest Montana is a very dangerous place to do business.”
In court statements, the government estimated that the overall drug trafficking network was responsible for bringing 2,043 pounds of meth and 722,000 fentanyl-laced pills from Mexico to Butte for redistribution, with approximately $2.98 million laundered in drug proceeds. During the investigation, law enforcement seized 65 pounds of methamphetamine, which is the equivalent of 235,560 doses, more than 2,000 counterfeit oxycontin pills containing fentanyl and three pounds of heroin. Law enforcement also seized $32,875 in cash and 19 firearms.
The government said Mexico suppliers brought drugs on rail and by individuals across the border at ports of entry to stash houses in Southern California. The traffickers then transported multi-pound quantities by vehicle and through the mail to Butte. From Butte, local dealers trafficked the drugs to Missoula, Helena, Great Falls, Bozeman, Billings and Wolf Point for street-level distribution. The dealers then laundered drug proceeds through the mail, cash shipments and wire transactions back to the Mexico suppliers.
Montana defendants convicted:
Charles Clement, 36, of Butte – Conspiracy– 54 months in prison
Steve Shipe, 52, of Butte – Conspiracy – 60 months in prison
Jeremy Rivers, 45, of Butte – Possession with the Intent to Distribute – 60 months in prison
Dale Johnson, 27, of Butte – Possession with the Intent to Distribute – 46 months in prison
Michael Robert Lee, 25, of Helena – 46 months in prison
James Starcevich, 25, of Butte – Conspiracy – 5 years of supervision, 1 day in prison
Charles Petty, 34, of Butte – Possession with the Intent to Distribute – 120 months in prison
MaryJane Galloway, 37, of Butte – Deceased prior to sentencing
Shawn Miller, 33, of Butte – Possession with the Intent to Distribute – 60 months in prison
Josh Schroeder, 40, of Butte – Conspiracy – 188 months in prison
David Shaver, 34, of Butte – Conspiracy – 54 months in prison
David Viers, 59, of Butte – Possession with the Intent to Distribute – 12 months in prison
Opal Cox, 40, of Great Falls – Conspiracy – 144 months in prison
Travis Soderberg, 47, of Butte – Possession with the Intent to Distribute – 96 months in prison
Deric Sherman, 55, of Butte – Possession with the Intent to Distribute – 78 months in prison
Anthony Lamere, 33, of Butte – Possession with the Intent to Distribute – 84 months in prison
Gloria Lucero, 54, of Great Falls – Possession with the Intent to Distribute – 64 months in prison
Clayton Cleland, 40, of Butte – Conspiracy – 54 months in prison
California defendants convicted:
Oscar Luna, 32, Bakersfield – Conspiracy – 72 months in prison
Heriberto Tavares, 29, Anaheim – Possession with Intent to Distribute, sentencing set for February 21, 2023
Mexico defendants convicted:
Humberto Villareal, 34, Culiacan, Sinaloa – Possession with the Intent to Distribute – 204 months in prison
Ricardo Ramos Medina, 34, Culiacan, Sinaloa – Conspiracy – 96 months in prison
Assistant U.S. Attorney Ryan G. Weldon prosecuted the cases.
The Drug Enforcement Administration and Montana Department of Justice’s Division of Criminal Investigation led the investigation, with assistance from the U.S. Postal Inspection Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol, the Southwest Montana Drug Task Force, Butte Silver Bow Law Enforcement and Butte Silver Bow County Attorney’s Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
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Individual from Chicago Sentenced to 48 Months in PrisonRead the Press Release
SOUTH BEND –Shanell Medina-Hipolite, 24 years old, of Chicago, Illinois, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to possession with intent to distribute fentanyl, announced United States Attorney Clifford D. Johnson.
Medina-Hipolite was sentenced to 48 months in prison followed by 5 years of supervised release.
According to documents in the case, in October 2019, law enforcement conducted a traffic stop on Medina-Hipolite’s car on the toll road. A search of the vehicle resulted in the seizure of over a kilogram of fentanyl.
This case was investigated by the Drug Enforcement Administration with the assistance of the Hobart Police Department. The case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Indictment Charges 5 Men with Fentanyl Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned an indictment charging the following five individuals with fentanyl trafficking offenses:
ADDELY ROSARIO-RAMIREZ, aka “Tata,” 24, a citizen of the Dominican Republic
LUIS ELVIS HERNANDEZ-RIVAS, aka “Compa,” 43, a citizen of the Dominican Republic
HUGO IVAN RAMIREZ-BELLOZO, 32, a citizen of Mexico
JUAN GONZALEZ-REYES, aka “Chinbala,” 32, of Hartford
MARIO PASCUAL-AQUINO, 42, of TorringtonThe indictment was returned on November 30, 2022. On December 13, the five defendants appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and pleaded not guilty to the charges. Rosario-Ramirez, Hernandez-Rivas and Ramirez-Bellozo are detained, and Gonzalez-Reyes and Pasqual Aquino are released on $100,000 bonds.
As alleged in court documents, the DEA’s Hartford Task Force has been investigating a Hartford-based drug trafficking organization involved in the distribution of a large amount of fentanyl and other narcotics, and the transportation and laundering of cash proceeds from their drug trafficking activity.
It is alleged that, in April 2021, Rosario-Ramirez provided more than $56,000 in suspected narcotics proceeds to an uncover law enforcement officer. It is further alleged that, in January 2022, investigators coordinated a motor vehicle stop of a minivan Rosario-Ramirez was driving and seized $92,000 from a hidden compartment in the minivan. Hernandez-Rivas was a passenger in the minivan at the time of the traffic stop.
On November 16, 2022, investigators executed a court-authorized search warrant at an apartment on Putnam Heights in Hartford and seized more than a kilogram of fentanyl, items used to process and package narcotics, and a loaded .40 caliber semi-automatic handgun. Rosario-Ramirez, Hernandez-Rivas, Ramirez-Bellozo, and Pascual-Aquino, all of whom were present in the apartment, were arrested at that time. Gonzalez-Reyes was arrested after he arrived at the apartment as the search warrant was being executed, and investigators found an additional quantity of fentanyl on his person.
The indictment charges Rosario-Ramirez, Hernandez-Rivas, Ramirez-Bellozo, Gonzalez-Reyes and Pascual-Aquino with conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Rosario-Ramirez, Hernandez-Rivas, Ramirez-Bellozo, and Pascual-Aquino are also charged with possession with intent to distribute 400 grams or more of fentanyl, which also carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Gonzalez-Reyes is also charged with possession with intent to distribute 40 grams or more of fentanyl, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hassan Chokr Charged with Lying on A Federal Firearms Form When Seeking to Buy Three FirearmsRead the Press Release
DETROIT – Hassan Chokr, the man who threatened preschoolers, parents, and other individuals outside a Jewish synagogue in Bloomfield Hills, Michigan, has been charged in a federal criminal complaint with lying on a federal firearms form when he sought to buy a shotgun, a rifle, and a semi-automatic pistol, United States Attorney Dawn N. Ison announced today.
Joining in the announcement were Special Agent-in-Charge James A. Tarasca, Federal Bureau of Investigation, and Special Agent in Charge Paul D. Vanderplow, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division.
Chokr, 35, of Dearborn, Michigan, is charged with attempting to purchase three firearms on December 2, 2022, at a federal firearms licensee in Dearborn, Michigan. In seeking to make the purchases, Chokr filled out a federal firearms form. On that form, Chokr falsely claimed that he had not been previously convicted of a felony. He also falsely claimed that there were no felony charges currently pending against him. However, Chokr was convicted in 2017 of Felony Financial Transaction Device – Stealing/Retaining Without Consent. He also has a charge of Assault with a Dangerous Weapon (Felonious Assault) currently pending against him in state court. After Chokr submitted the firearms form at the gun store, his purchase was denied by the National Instant Criminal Background Check System (NICS), and the firearms were not transferred to Chokr. The three weapons that Chokr sought to purchase were as follows: a Landor Arms, 12-gauge shotgun; a Del-ton, 5.56mm rifle; and a Glock, 9mm semi-automatic pistol.
Chokr is currently charged by the Oakland County Prosecutor’s Office with ethnic intimidation based on his conduct outside of the Jewish synagogue on December 2, 2022. The events at the Dearborn gun store that are the subject of the criminal complaint took place later in the day after the incident at the synagogue.
The defendant faces a maximum of ten years in prison and a $250,000 fine if convicted of the offense.
A criminal complaint is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Frances Carlson, the Deputy Chief of the Public Corruption and Civil Rights Unit of the U.S. Attorney’s office.
Hartford Gang Member Sentenced to 54 Months in Prison for Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EDIL RAMOS, also known as “E,” 40, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 54 months of imprisonment, followed by five years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, this matter stems from an FBI Northern Connecticut Gang Task Force and Hartford Police Department investigation into drug trafficking and related criminal acts committed by members and associates of the Los Solidos and Latin Kings street gangs in Hartford’s South End. Between February and April 2020, investigators made five controlled purchases of crack cocaine and fentanyl from Ramos, a member of Los Solidos. Most of the drug sales occurred at Ramos’ residence on Wethersfield Avenue.
Ramos was arrested on April 8, 2020. On that date, a search of his residence revealed a 9mm firearm, a loaded firearm magazine, approximately 1,400 bags of fentanyl, a distribution quantity of crack cocaine, and $33,062 in cash.
Ramos has been detained since his arrest on April 8, 2020. On March 28, 2022, he pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine base (“crack”), and one count of possession of a firearm by a felon.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hart County Man Indicted by Federal Grand Jury for Transmitting Threats in Interstate CommerceRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky returned an indictment on December 14, 2022, charging a Hart County man with transmitting threats in interstate commerce. The man was initially charged with this offence on November 22, 2022, by a federal criminal complaint.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to the complaint, Joshua O. Morrison, 30, of Horse Cave, Kentucky, transmitted a threat in interstate commerce. Specifically, the criminal complaint affidavit states that on November 20, 2022, at approximately 6:17 a.m., the Kentucky State Police (“KSP”) received a complaint regarding threats transmitted that morning via Facebook Messenger. The complainant did not know the sender, but stated she found the message disturbing and thought it should be reported. The Facebook message stated “Don’t go to church or school I’ma do a mass shooting. I’m coming to bowling green Kentucky to do a mass shooting also.”
KSP identified Morrison as the individual who sent the messages, and they went to his residence in Horse Cave, KY and located him. Morrison was advised of his Miranda rights and admitted to sending the messages, but repeatedly claimed he did not intend to carry out his threat. Morrison advised he knew what messages he sent, he verified the Facebook account that sent the messages was his own, and he admitted that he sent the messages.
On November 20, 2022, Morrison was arrested by KSP and on November 28, 2022, he was taken into federal custody. The defendant made his initial court appearance on November 28, 2022, before a U.S. Magistrate Judge in the Western District of Kentucky. The defendant remains in federal custody. If convicted, he faces a maximum sentence of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The FBI Louisville Field Office’s Bowling Green Resident Agency and the Kentucky State Police are investigating the case.
Assistant U.S. Attorney Madison Sewell, Chief of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Hardy County woman admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Tara Lynn Crawford, of Wardensville, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Crawford, 40, pleaded guilty today o one count of “Unlawful Possession of a Firearm.” Crawford, a person prohibited from having a firearm because of prior felony convictions, admitted to having a .22 caliber rifle in October 2020 in Hardy County.
Crawford faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Rapids Man Pleads Guilty to Covid-19 Relief FraudRead the Press Release
Kurtis VanderMolen Obtained Paycheck Protection Program Loans for a Fake Company and Used the Money for a BMW Convertible and Other Personal Expenses
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Kurtis James VanderMolen, 50, of Grand Rapids, Michigan pleaded guilty to bank fraud and money laundering in connection with a scheme to obtain approximately $170,000 in Paycheck Protection Program (“PPP”) loans for a company that did not exist. Bank fraud carries a maximum penalty of thirty years’ imprisonment; money laundering carries a maximum of ten years’ imprisonment.
In July 2020, VanderMolen submitted a PPP loan application to a New Jersey bank for a fake company, Breakout Strategies Corporation. VanderMolen claimed that Breakout Strategies had eleven employees and sent the bank fraudulent bank records and fake payroll records to make it appear as though Breakout Strategies was a real business. VanderMolen received approximately $100,641 in his first PPP loan, which he used for personal expenses, including a BMW 650i convertible. In February 2021, when VanderMolen ran out of his initial PPP loan proceeds, he applied for a second PPP loan on behalf of Breakout Strategies and again submitted fraudulent bank records, fake payroll records, and false tax documents to make it appear as though Breakout Strategies was a real company. VanderMolen obtained approximately $69,361 from the second PPP loan that he used for personal expenses, including for his wedding aboard a boat in Florida.
“This was federal aid that was intended to support our country’s critical small businesses, not to buy luxury cars or pay for wedding expenses,” said U.S. Attorney Mark Totten. “My office will continue to aggressively prosecute COVID-19 relief fraud using all available remedies.”
“The Paycheck Protection Program was a critical lifeline for Michigan’s small businesses, and the FBI will not tolerate people taking advantage of that program to enrich themselves,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “This kind of fraud may have prevented honest business owners from getting the help they needed to weather the early days of the pandemic. The FBI remains committed to finding people who commit fraud and holding them accountable for their crimes.”
This case was investigated by the FBI and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam Townshend is prosecuting the case.
Anyone with information about attempted frauds involving COVID-19 relief can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline (1-866-720-5721) or through the Center’s Web Complaint Form (https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form).
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Goldsboro Methamphetamine Trafficker Sentenced to 106 Months in PrisonRead the Press Release
WILMINGTON, N.C. – A Goldsboro, North Carolina man was sentenced today to 106 months in prison for Conspiracy to Possess with Intent to Distribute 500 grams or more of a mixture and substance containing a detectable amount of Methamphetamine and Possession with Intent to Distribute 50 grams or more of a mixture and substance containing a detectable amount of Methamphetamine. Brandon Phillips pled guilty to the charges on May 17, 2022.
According to court documents and information presented at the sentencing hearing, On August 5, 2020, a deputy with the Wake County Sheriff’s Office in Raleigh, North Carolina stopped a vehicle in which Mr. Phillips was a passenger. While conducting the traffic stop, the deputy observed Mr. Phillips moving around in the car as if trying to hide something. After walking around the vehicle, a K-9 alerted to the presence of narcotics in the vehicle. A search by law enforcement ultimately led to the seizure of approximately 495.3 grams of crystal methamphetamine, $3,033 in U.S. currency, and drug paraphernalia.
Two related defendants have previously been sentenced:
- Jason Michael Hyland (7:20-CR-130-M): sentenced to 134 months’ imprisonment.
- Ashley Carol Shackelford (7:20-CR-130-M): sentenced to 90 months’ imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Drug Enforcement Administration, the Duplin County Sheriff’s Office, and the Wake County Sheriff’s Office investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:21-CR-21-M.
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Gibson Man Sentenced for Conspiring to Stage Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that HENRY RANDLE (“RANDLE”), age 66, of Gibson, Louisiana, was sentenced on December 14, 2022 for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to court documents, on May 17, 2017, RANDLE, along with participants Damian Labeaud (“Labeaud”), Mario Solomon (“Solomon”), Ryan Wheaten (“Wheaten”), and Dakota Diggs (“D. Diggs”), staged an automobile collision with a tractor-trailer in the vicinity of U.S. Highway 90 East and Calliope Street in New Orleans. Labeaud purposely drove the vehicle into a tractor-trailer and then fled the scene with Solomon. RANDLE falsely reported to the New Orleans Police Department that he had been driving and that the tractor-trailer was at fault. Shortly thereafter, Labeaud and Solomon went on to stage a second accident in the vicinity of Louisa Street and Chickasaw Street with Bernell Gale (“Gale”), Troy Smith (“Smith”), Marvel Francois (“Francois”), and another passenger. After the staged collision, RANDLE, Wheaten, and D. Diggs made claims for personal injuries. The victim insurance companies paid out approximately $10,000.00 for these fraudulent claims. In addition to RANDLE, Labeaud, Solomon, Wheaten, Gale, Smith, and Francois were also charged and pled guilty.
U. S. District Court Judge Lance M. Africk sentenced RANDLE to serve twelve (12) months in prison, to be followed by three (3) years of supervised release with 100 hours of community service. RANDLE was also ordered to pay restitution in the amount of $11,000. Judge Africk also imposed a $100 mandatory special assessment.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni, Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit, Assistant U.S. Attorney Edward J. Rivera, and Assistant U.S. Attorney Brandon S. Long.
Georgia Inmate Is Convicted of Trafficking MethamphetamineRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville has convicted Alfonso Roman Brito, 43, of trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the three-day trial which ended on Wednesday.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), Sheriff Banks Hinceman of the Burke County Sheriff’s Office, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence introduced at trial and witness testimony, in 2019, HSI, the DEA, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office were investigating a Drug Trafficking Organization (DTO) operating in the Catawba County, Burke County, and surrounding communities. Trial evidence established that Brito was an inmate in the Georgia Department of Corrections and was coordinating the shipments of multiple kilograms of methamphetamine from the Atlanta area into the Western District of North Carolina. According to information presented at trial, between 2019 and into the fall of 2021, Brito orchestrated the delivery of more than 100 kilograms of methamphetamine from Georgia into North Carolina.
The federal jury convicted Brito of conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine, which carries a maximum term of life in prison and a $10,000 fine. Brito remains in federal custody. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King commended the DEA, HSI, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the Caldwell County Sheriff’s Office, the Newton Police Department, the Hickory Police Department, and the Georgia Department of Corrections for their assistance in the investigation.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville is prosecuting the case.