Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 December 2022
Four Now Face Charges in St. Louis County Taxi Driver’s Shooting DeathRead the Press Release
ST. LOUIS – Four teens from St. Louis County, Missouri are now facing federal charges in the fatal shooting of a cab driver in Hazelwood in April.
Tywon Harris, now 19, Coron Dees, 19, and Jeremiah Allen, 18, were indicted in federal court in June on a robbery charge and a charge of aiding and abetting the commission of a murder.
Trishawn Jones, who was 17 at the time of the shooting and turned 18 a few weeks later, was added in a superseding indictment Wednesday and now faces the same charges. Harris and Dees were 18 at the time of the shooting.
Allen is also facing a charge of being an accessory after the fact.
The indictment accuses all four of involvement in the shooting death of Dewight Price, a driver for St. Louis County Cab, on April 24, 2022.
“Violent juvenile criminals are not beyond the reach of the federal criminal justice system. As the St. Louis area sees an increase in juveniles committing violent crime, they should know the United States Attorney’s Office will be here to investigate and prosecute them,” said U.S. Attorney Sayler A. Fleming. “Trishawn Jones is being accused of killing 54-year-old Dewight Price during a robbery less than three weeks before Jones turned 18, and after Price turned over all his money. I believe prosecuting a violent felony involving a gun under the juvenile system would not provide a range of punishment commensurate with this crime.”
In federal court, prior to indicting a juvenile, the U.S. Attorney’s Office must file charges under the Juvenile Delinquency Act and seek a court order to prosecute the juvenile as an adult.
A detention motion filed Wednesday says Harris used a fake name and address to hire a cab to take the teens to St. Louis County from downtown St. Louis following a party. During the ride, Harris redirected the cab to Hazelwood Central High School and planned the robbery with the other three teens, the motion says. When they arrived at the school, Dees and Jones demanded Price’s cash. After Price turned over the money, he tried to get out of the cab. Harris opened his door and struck Price with it, knocking Price to the ground. Jones then shot and killed Price, the motion says.
The robbery charge carries a potential penalty of up to 20 years in prison, a $250,00 fine or both. The aiding and abetting murder charge carries a potential penalty of 10 years to life in prison and the same fine. The accessory charge is punishable by up to 15 years in prison, a fine of $125,000 or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis County Police Department and the FBI.
Four Charged in Connection with Labor Trafficking, Forced Labor, and Immigration Offenses at Williamsburg Laundry FacilityRead the Press Release
NEWPORT NEWS, Va. – A 33-count indictment was unsealed today charging four people with joining together to defraud and commit offenses against the United States, including human trafficking of individuals from Central America, benefiting from forced labor, money laundering, and various other immigration-related offenses, such as harboring undocumented non-citizens.
According to allegations in the indictment, Ana Patricia Landaverde, 47, of Williamsburg, Jeffrey Dean Vaughan, 64, of Williamsburg, and George William Evans, 68, of Midlothian, engaged in a conspiracy to harbor, transport, and benefit from the employment of undocumented noncitizens at their commercial laundry business, Northstar Holdings of Virginia LLC, d/b/a Magnolia Cleaning Services, LLC. Between the first quarter of 2018 and the first quarter of 2022, the business’s wage records reflect approximately 121 employees with alleged invalid or mismatched Social Security Numbers and wage payments of more than $1.2 million to these employees.
The fourth unnamed defendant is alleged to have acted as an illegal supplier of fraudulent identification documents. Prospective employees without proper documentation to work in the United States were allegedly referred to this defendant to purchase a counterfeit permanent resident card and social security card.
As further set forth in the indictment, Landaverde, Vaughan, and Evans also allegedly engaged in human trafficking of labor from Central America and benefitting from forced labor. One victim is alleged to have been brought to the United States when she was only 13 years old and forced to work nights while also attending school during the day. Allegations also include another victim being made to work under threats of deportation, physical violence, and other misuse of law and process. This same victim was made to pay rent to live in the commercial laundry facility where she lacked access to a kitchen, shower, or bath.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security; Troy Springer, Acting Special Agent in Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement.
Assistant U.S. Attorneys Brian J. Samuels and D. Mack Coleman are prosecuting the case.
This investigation was conducted by the Hampton Roads Human Trafficking Task Force, a collaboration between federal, state, and local law enforcement and prosecutors, as well as non-governmental organizations, working together to combat human trafficking in the Hampton Roads Region.
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-92.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Fortune Telling Fraud Scheme Leads to Prison for OrchestratorsRead the Press Release
MIAMI – A family curse, fortune telling, and swindling a victim out of more than $3 million lands orchestrators in prison.
Michael Paul Guzman, 42, was sentenced to 38 months in prison and Samantha Stevens, 51, was sentenced to 30 months in prison by U.S. District Judge Darrin P. Gayles for orchestrating a fortune telling fraud scheme and money laundering.
According to court documents, Stevens was portraying herself as a psychic/fortune teller in 2012 when she met a victim in Miami. Stevens gained the victim’s trust and convinced her that a curse had been placed on her and her family. Stevens claimed she needed to perform rituals on large sums of money in order to lift the curse. Failure to do so—the victim was led to believe—would result in harm to her and her family.
Stevens and Guzman spent the victim’s money on vehicles, property, and casino gambling. The relationship between Stevens and the victim lasted several years. During this time, the victim was persuaded to give up more than $3 million. The scheme came to an end in 2016 when Stevens cut off communication with the victim after she no longer could pay for the rituals. Once Stevens severed the relationship, the victim contacted federal law enforcement.
In addition to the prison sentence, the defendants must pay $3.198 million in restitution to the victim.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Special Agent in Charge Matthew D. Line, Internal Revenue Service (IRS) Criminal Investigation, Miami Field Office, made the announcement.
IRS-CI, Miami Field Office, investigated the case. Assistant U.S. Attorney Thomas Haggerty prosecuted it and Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Willmar Attorney Sentenced to 18 Months in Prison for Bankruptcy FraudRead the Press Release
ST. PAUL, Minn.– A former attorney from Willmar has been sentenced to 18 months in prison, followed by one-year of supervised release and required to pay a $20,000 fine for fraudulent concealment of bankruptcy assets, announced United States Attorney Andrew M. Luger.
According to court documents, on November 3, 2015, Gregory Ronald Anderson, 63, a former attorney, prepared and filed a voluntary bankruptcy petition on behalf of his client, James Alan Rothers. Upon the filing of the petition, Anderson knew that Rothers’ assets, wherever located, became property of a “bankruptcy estate” to be used to pay Rothers’ creditors. Anderson also filed a set of Rothers’ bankruptcy schedules in which Rothers was required to disclose, under penalty of perjury, the full extent and value of all Rothers’ assets as of November 3, 2015. As Rothers’ bankruptcy attorney, Anderson had to certify that the petition filed with the bankruptcy court was true and accurate.
Prior to the bankruptcy filing, Anderson created fake liabilities to create the appearance that Rothers was insolvent when, in fact, Rothers could easily have paid all his creditors. Specifically, Anderson arranged to have a fictitious lawsuit filed against Rothers, and then instructed Rothers to default in that lawsuit. This created a judgment of approximately $608,000 against Rothers to further the appearance that he was insolvent. Anderson also created documents that made it appear that an Iowa company had loaned $240,000 to Rothers and that Rothers had to repay this loan. This loan was fabricated and created to bolster the appearance of Rothers’ insolvency.
Nevertheless, when Anderson filed Rothers’ bankruptcy petition on November 3, 2015, he certified that he had no knowledge that the information in Rothers’ schedules was incorrect. But, despite this certification, Anderson knew about the above-outlined efforts to make Rothers appear insolvent. Anderson also knew that Rothers had purposefully failed to disclose on his bankruptcy schedules $100,000 in gold coins, $686,000 on deposit in bank accounts for two companies, and $455,484 in uncashed checks. In fact, Anderson helped Rothers open one of the concealed bank accounts and received portions of his legal fees from the other.
Anderson was sentenced on December 7, 2022, in U.S. District Court by Judge Eric C. Tostrud. On August 8, 2022, Anderson pleaded guilty to one count of fraudulent concealment of bankruptcy asset. Anderson’s plea agreement also required his voluntary disbarment from the practice of law.
On November 7, 2019, James Alan Rothers pleaded guilty to one count of fraudulent concealment of bankruptcy assets in U.S. District Court before Judge Susan Richard Nelson. Rothers will be sentenced at 10:30 a.m. on December 13, 2022.
This case was the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Jordan L. Sing and former Assistant U.S. Attorney David J. MacLaughlin prosecuted the case.
Former San Antonio Lawyer Christopher John Pettit Indicted on Wire Fraud, Money LaunderingRead the Press Release
SAN ANTONIO – A federal grand jury in San Antonio returned an indictment Wednesday charging a former San Antonio attorney with wire fraud and money laundering.
According to court documents, Christopher John Pettit, 55, of San Antonio made numerous material misrepresentations to clients to influence certain financial decisions and transactions through his law practice Chris Pettit and Associates, PC. Through false representations via emails, text messages and letters, Pettit allegedly persuaded clients to deposit money with his firm for services such as living trusts, irrevocable trusts, wills and other estate planning services.
The indictment alleges that, using client wired funds, Pettit opened accounts as the trustee, providing himself the ability to access and move the money to his own account. Other fraudulent schemes alleged in the indictment include falsely promising to invest client money in high percentage return bonds and instead wiring the funds to his personal account, and falsely representing himself as a Qualified Intermediary and encouraging clients to wire millions of dollars from asset sales into his own account. According to court documents, Pettit would use his victimized clients’ funds to pay other client debts as well as support an extravagant lifestyle.
Pettit is charged with five counts of wire fraud and three counts of engaging in monetary transactions in property derived from specified unlawful activity. The defendant made his initial court appearance today before U.S. Magistrate Judge Richard B. Farrer of the U.S. District Court for the Western District of Texas. If convicted, he faces a maximum penalty of 20 years in prison and a fine not to exceed $250,000. Pettit would also be ordered to forfeit all the money, obtained directly and indirectly, for which he is found liable from the counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney for the Western District of Texas and Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office made the announcement. The FBI is investigating the case. Assistant U.S. Attorneys Robert Almonte and Kelly Stephenson are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Former Prattsville Town Supervisor Sentenced for Grant FraudRead the Press Release
ALBANY, NEW YORK – Kory O’Hara, age 45, the former Town Supervisor of Prattsville, New York, was sentenced today to 1 year of probation, and ordered to pay a $5,000 fine and $24,915 in restitution to the State of New York, for committing wire fraud in connection with a grant extended to Prattsville in the wake of Hurricane Irene.
The announcement was made by United States Attorney Carla B. Freedman; New York State Comptroller Thomas P. DiNapoli; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); John Pias, Special Agent in Charge of the Detroit Field Office, Department of Homeland Security, Office of Inspector (DHS-OIG); and Christina Scaringi, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region (HUD-OIG).
In August 2011, Hurricane Irene caused significant damage to Prattsville, resulting in the issuance of millions of dollars in rehabilitation grants to Prattsville and its residents. As Town Supervisor, O’Hara entered into various grant agreements, including with the New York State Housing Trust Fund Corporation.
In pleading guilty, O’Hara admitted that between 2013 and 2015, he obtained false invoices from a Prattsville-based modular home business, Moore’s Homes, purporting to reflect construction work on O’Hara’s automotive garage, O’Hara’s Service Station, which Moore’s Homes did not perform. O’Hara issued checks to Moore’s Homes reflecting payment on the invoices, but Moore’s Homes returned all of the money.
O’Hara, who was Town Supervisor at the time, then submitted the false invoices and fully reimbursed checks to Prattsville and the New York State Housing Trust Fund Corporation to fraudulently obtain $24,915 in grant proceeds under the New York Main Street Program.
This case was investigated by the Office of the New York State Comptroller, Division of Investigation; FBI; DHS-OIG; and HUD-OIG, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Former Missouri University Official Admits Possessing Child PornographyRead the Press Release
ST. LOUIS – A former official at a Missouri university pleaded guilty Thursday to a federal possession of child pornography charge.
Neil Anthony Outar, 44, of Rolla, could face up to 20 years in prison, a $250,000 fine or both at his sentencing hearing, set for March 14.
The investigation began when the Phelps County Sheriff’s Department received a CyberTip about child pornography being uploaded to a Gmail account between Nov. 2, 2020, and Dec. 23, 2021. A detective determined the IP address used to upload the images was serviced by the Missouri University of Science and Technology, and traced the IP address to Outar, who was the university’s chief diversity officer at the time, Outar’s plea agreement says.
On Feb. 9, 2021, court-authorized searches were conducted of Outar’s home and office. Outar told detectives that he viewed child sexual abuse material. Investigators found child pornography in two of Outar’s email accounts, and determined that child pornography had been deleted from Outar’s home and work computers.
The case was investigated by the Phelps County Sheriff’s Department and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Former Missouri Prison Guard Indicted on Civil Rights, Child pornography ChargesRead the Press Release
ST. LOUIS – A former correctional officer at a Missouri prison was indicted Wednesday on a civil rights charge and two counts of possession of child pornography.
Carl Hart, 36, of Farmington, was a corrections officer at the Eastern Reception, Diagnostic and Correctional Center in Bonne Terre at the time of the alleged assault, the indictment says.
The indictment says that on Oct. 28, 2021, Hart deprived an inmate of the right to be free from unreasonable force by assaulting him while he did not pose a threat to anyone. The inmate was injured, the indictment says.
The indictment also says Hart possessed child pornography between roughly April 21, 2018, and June 29, 2022.
Hart is also facing three child pornography charges in St. Francois County Circuit Court.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI and the Missouri State Highway Patrol. Assistant U.S. Attorney Christine Krug is prosecuting the case.
Former Financial Aid Director of Texas College Indicted for Student Financial Aid FraudRead the Press Release
A Shreveport, Louisiana mother and son are among those indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Angela Speech, 43; her son, Jeremy Marshall, 24; Devonaire Jones, 35; and Camyl Lewis, 24, were indicted by a federal grand jury on Nov. 16, 2022, and charged with multiple counts of student financial aid fraud. Speech and Marshall made initial appearances before U.S. Magistrate Judge John D. Love on Dec. 7, 2022.
According to the indictment, between August 2019 and February 2020, Speech was the director of financial aid at Texas College in Tyler. According to its website, Texas College is a historically black private college founded by Christian Methodist Episcopal Church ministers in 1894. Speech allegedly used her access to students’ financial aid accounts to trigger financial aid payments to Marshall, Jones, Lewis, and others that they were not entitled or eligible to receive. Altogether, Speech and these students, aided and abetted by each other and others, knowingly and willfully misapplied, stole, and obtained by fraud, false statement, and forgery funds, assets, and property provided and insured under the Pell Grant Program, the William D. Ford Federal Direct Loan Programs, and other federal subsidized and unsubsidized loan programs.
If convicted, the defendants each face up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being investigated by the U.S. Department of Education—Office of Inspector General and the U.S. Secret Service and prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Lucas Machicek.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Former Federal Contractor Sentenced to 42 Months and $172,500 fine for Bribery Involving Millions in U.S. DOD ContractsRead the Press Release
FAIRBANKS – A former government contractor and owner of Best Choice Construction LLC (Best Choice) was sentenced to 42 months in prison followed by two years of supervised release and a criminal fine of $172,500 by Senior U.S. District Court Judge Ralph R. Beistline for conspiracy and bribery of a public official.
According to court documents, Ryan Dalbec, 44, of Mesa, Arizona, agreed to pay over $460,000 in bribes to former U.S. Air Force contracting official, Brian Lowell Nash II, in exchange for confidential bidding information on over $8,250,000 in U.S. Department of Defense contracts at Eielson Air Force Base and Joint Base Elmendorf-Richardson (JBER). The confidential bidding information Nash provided helped Dalbec and Best Choice win some of those contracts, including a $6,850,000 construction contract related to the F-35 aircraft program at Eielson Air Force Base. Dalbec and his wife, Raihana Nadem, also helped Nash launder the bribery proceeds through family members and third-party bank accounts to conceal the nature and source of the funds. Dalbec previously pleaded guilty to the charges on September 2, 2022.
Judge Beistline commented that Dalbec’s conduct was motivated by greed and his activity was premediated and likely would have continued had he not been caught. In addition to the other penalties, Judge Beistline ordered Dalbec to pay $16,296.80 in restitution to Eielson Air Force Base.
Nash was previously sentenced in November to serve 30 months imprisonment and ordered to forfeit $47,000 in unlawful gains.
Nadem pleaded guilty to a felony for related misconduct and is scheduled to be sentenced on December 16, 2022.
The Federal Bureau of Investigation (FBI) and the Air Force Office of Special Investigations (AFOSI) conducted the investigation leading to the indictment in this case.
This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
###
Former Chairman of Health Care Company Board of Directors Pleads Guilty to Selling Unregistered SecuritiesRead the Press Release
BOSTON – The former chairman of the Massachusetts-based company Arch Therapeutics, Inc. pleaded guilty yesterday to three felony securities offenses, two of which concerned his undisclosed sale of over $1.3 million worth of company shares.
Avtar Singh Dhillon, 61, of Long Beach, Calif., pleaded guilty to one count of willful failure to disclose stock sales, one count of aiding and abetting the sale of unregistered securities and one count of touting compensation nondisclosure conspiracy. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for April 18, 2023. Dhillon was arrested and charged by criminal complaint in August 2021. He was subsequently charged by an Information on Sept. 30, 2022.
Dhillon and his then attorney, Daniel V. Martinez, placed 2.75 million Arch Therapeutics shares that Dhillon beneficially owned into a limited liability company that Martinez created. Dhillon and Martinez then worked together to sell the shares in the open market without a valid exemption under the relevant securities laws and to distribute the approximately $1.34 million in proceeds. The proceeds were distributed primarily to third parties for Dhillon’s benefit, with a small portion distributed to Martinez directly. Dhillon thereafter willfully failed to report the stock sales to the U.S. Securities & Exchange Commission and the investing public, as he was required to do.
Martinez was also charged and has agreed to plead guilty to one count of sale of unregistered securities. Martinez’s plea hearing is scheduled for Dec. 15, 2022.
Separately, Dhillon also participated in a securities conspiracy involving the nondisclosure of compensation paid to a subscription newsletter analyst. Specifically, Dhillon agreed with others to cause Emerald Health Pharmaceuticals (EHP), a life sciences company in San Diego, to indirectly compensate a subscription newsletter analyst to tout a securities offering by EHP without the analyst or the newsletter disclosing the compensation, as required under securities laws. Dhillon was both a one-time board member of and an indirect shareholder in EHP, which raised tens of millions of dollars in the securities offering.
The charge of willful failure to disclose sales provides for a sentence up to 20 years in prison, three years of supervised release and a fine of $5 million. The charge of sale of unregistered securities provides for a sentence up to five years in prison, three years of supervised release and a fine of $10,000. The charge of touting compensation nondisclosure conspiracy provides for a sentence up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement. Valuable assistance was provided by SEC’s headquarters, Boston and Los Angeles regional offices. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Bangor Man Faces up to 20 Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A former Bangor resident pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Wayne Smith, 31, along with others, trafficked methamphetamine and fentanyl in Penobscot County and Aroostook County. His participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia and other items.
Smith faces up to 20 years imprisonment and will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives, investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: 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.
# # #
Florida Man Charged with Conspiring to Pay Kickbacks and Commit Health Care Fraud in $64 Million SchemeRead the Press Release
NEWARK, N.J. – A Florida man was charged for his role in conspiracies to pay illegal kickbacks and to commit health care fraud that caused at least $64 million in losses to federal health care benefit programs, Attorney for the United States Vikas Khanna announced today.
James D. Feeley, 45, of Navarre, Florida, is charged by complaint with one count of conspiracy to violate the federal Anti-Kickback Statute and one count of conspiracy to commit health care fraud. Feeley made his initial appearance before U.S. Magistrate Judge Wettre in Newark federal court and was ordered released on $400,000 unsecured bond.
According to documents filed in this case and statements made in court:
Feeley and his business partner owned and operated medical marketing companies in Ohio that paid for prescriptions from telemedicine companies, which were then sent to pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. From January 2016 to September 2020, Feeley and others worked with pharmacies, telemedicine companies, and doctors to unlawfully profit by paying kickbacks and bribes to telemedicine companies to generate prescriptions for their pharmacy clients to fill. The telemedicine companies, in turn, paid kickbacks and bribes to doctors so that they would sign high volumes of expensive prescriptions. The pharmacies then paid kickbacks and bribes to Feeley and his businesses for each referral. The kickback payments paid to Feeley’s businesses were a percentage of the reimbursements the pharmacies received from health care programs for filling the prescriptions generated by Feeley’s businesses.
Feeley arranged to purchase federal health care beneficiary information (also referred to as “leads”), which usually included beneficiaries’ personal and health insurance information, from various sources, including overseas call centers and data brokers. Feeley and others used this information to identify their targets for cold calling. Feeley and others targeted beneficiaries because they had insurance that would reimburse for expensive medications regardless of whether the beneficiaries had medical need for those products.
Feeley and others employed “sales representatives,” frequently high school students with no medical licenses or training, to call the beneficiaries. Feeley’s company often deceived beneficiaries into accepting medications by providing false and misleading information to the beneficiaries about the nature, cost, and efficacy of the medications they would receive.
Feeley and others knew that the prescriptions were not generated by genuine doctor-patient relationships because they knew the doctors were paid to generate prescriptions and often did not have any contact with beneficiaries. Feeley and his conspirators knew the prescriptions they arranged were false and fraudulent. Among other things, they complained to telemedicine companies when doctors did not approve prescription requests based on lack of medical necessity.
The health care fraud conspiracy count is punishable by a maximum of 10 years in prison and the kickback conspiracy count is punishable by a maximum of five years in prison
Attorney for the United States Khanna credited special agents of the Department of Defense, Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) under the direction of Acting Special Agent in Charge Susan Frisco; and the FBI’s Newark Field Office under the direction of Special Agent in Charge James E. Dennehy, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Hayden M. Brockett of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Felon driving stolen car sent to prison for possessing methRead the Press Release
CORPUS CHRISTI, Texas – A 52-year-old Corpus Christi resident has been ordered to federal prison following his conviction of possession with intent to distribute more than 50 grams of a mixture or substance containing meth, announced U.S. Attorney Jennifer B. Lowery.
Brian Edwards pleaded guilty July 26.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Edwards to serve 87 months in federal prison followed by four years of supervised release. At the hearing, the court heard additional evidence regarding Edwards’s criminal history which includes a prior federal conviction for felon in possession of a firearm as well as an aggravated assault on a peace officer. She also heard that he is a prior gang member. In handing down the sentence, the court noted his criminal history as well as the gun found in the stolen vehicle he was driving.
On Dec. 24, 2021, law enforcement observed Edwards exit a vehicle that was reported stolen and enter a store. Further investigation revealed he was in possession of approximately 57 grams of a substance containing meth.
A search of the vehicle also revealed a firearm in the driver side door.
Edwards will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Liesel Roscher prosecuted the case.
Federal Jury Convicts Tennessee Man of First Degree Murder in Death of His U.S. Army Soldier Wife at Fort CampbellRead the Press Release
Paducah, KY – Yesterday, a federal jury convicted a Clarksville, Tennessee man (formerly of Jacksonville, Florida) of first-degree murder, attempted murder, domestic violence resulting in death, violation of a protective order resulting in death, possession of a firearm by a prohibited person, and two counts of discharging a firearm during and in relation to a crime of violence.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Acting Special Agent in Charge Ronald Yeatts of the U.S. Army Criminal Investigation Division, Mid Central Field Office, made the announcement.
According to court documents and evidence presented at trial, Victor E. Silvers, 33, drove from his Clarksville, Tennessee residence to the Fort Campbell, Kentucky military installation on October 14, 2018. Silvers then shot his estranged wife, Brittney Silvers, three times, killing her. Silvers also shot another man, James Keating. Five days before the murder, Brittney Silvers had been granted a Domestic Violence Order of Protection that prohibited Silvers from being within 300 feet of her or committing violent acts against her. Due to the Domestic Violence Order of Protection entered against him, Silvers was prohibited from possessing a firearm. Brittney Silvers was a U.S. Army Soldier assigned to Fort Campbell, Kentucky at the time of her murder.
Sentencing for Silvers is scheduled for February 22, 2023, before a U.S. District Court Judge for the Western District of Kentucky. Silvers remains in custody pending sentencing. He faces a mandatory sentence of life imprisonment. There is no parole in the federal system.
This case was investigated by the FBI, ATF, and U.S. Army CID.
Assistant U.S. Attorneys Seth Hancock, Leigh Ann Dycus, and Raymond McGee prosecuted the case with the assistance of paralegal Christy Crockett.
###
Dubuque Couple Plead Guilty to Federal Fentanyl and Gun ChargesRead the Press Release
A man and woman who sold fentanyl in the Dubuque, Iowa area, pled guilty on November 30, 2022, and December 6, 2022, in federal court in Cedar Rapids.
Fallon Christina Murphy, age 25, pled guilty to conspiracy to distribute a controlled substance and Jose Soto-Guzman, age 47, pled guilty to distribution of a controlled substance near a protected location and possession of a firearm by a felon. In a plea agreement, Soto-Guzman admitted that between March and June 2022, he supplied heroin users in the Dubuque, Iowa area with fentanyl. Soto-Guzman admitted that during the conspiracy, he regularly traveled to La Crosse, Wisconsin, to purchase at least 4 grams of fentanyl from his source, which he then sold with Murphy in Dubuque. Between March and June 2022, investigators conducted five controlled purchases from Soto‑Guzman and Murphy. The drugs purchased contained fentanyl, but some of the fentanyl was mixed with heroin and some with methamphetamine. During one of the controlled buys in late June 2022, Soto-Guzman indicated to the undercover officer purchasing the drugs from him that he had customers who had overdosed.
Two days after that controlled buy, officers searched the Dubuque residence where Murphy and Soto‑Guzman had been staying. During the search, officers found a 9x19mm pistol that belonged to Soto‑Guzman. Soto‑Guzman has multiple prior felony convictions and is prohibited from possessing a firearm. Soto‑Guzman was taken into federal custody at the time of the search.
Evidence in a prior hearing showed that after Soto‑Guzman’s arrest, Murphy continued to obtain fentanyl from the La Crosse source for distribution in Dubuque. In late July 2022, Murphy traveled to La Crosse to purchase drugs, and upon her return to Dubuque, officers stopped the vehicle in which she was riding. When the police stopped her vehicle, Murphy concealed the drugs inside her body to avoid detection. Officers later recovered the drugs, which were determined to be nearly 10 grams of fentanyl.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Both defendants will remain in the custody of the United States Marshal pending sentencing. Murphy faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and a term of supervised release of at least 3 years and up to life following any imprisonment. Soto-Guzman faces a mandatory minimum sentence of 1 year’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $4,000,000 fine, and a term of supervised release of at least 6 years and up to life following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Nicole L. Nagin and Assistant United States Attorney Dan Chatham and was investigated by the Dubuque Drug Task Force as part of the Northern Iowa Heroin Initiative.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1022.
Follow us on Twitter @USAO_NDIA.
Drug trafficker operating out of Alpharetta home sentenced to 25 years in federal prisonRead the Press Release
ATLANTA - Giovani Orozco Ramirez has been sentenced for drug trafficking activities that put large quantities of methamphetamine, heroin, cocaine, and firearms within reach of his young children.
“The defendant, besides dealing deadly illegal drugs, showed a reckless disregard for his children’s safety by keeping these drugs and loaded guns within their plain sight,” said U.S. Attorney Ryan K. Buchanan. “This investigation successfully put an end to his dangerous crimes.”
“Drug distribution delivers misery to communities everywhere. DEA’s mission is about removing the supply before it gets to the consumer. This defendant will no longer be able to distribute the poison that destroys our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“This is another example as to why partnerships with our federal law enforcement agencies are so vital toward the fight to eradicate illicit drugs from the Communities we serve. We are extremely grateful for the initial work by the DEA and the dedication of the U.S. Attorney’s Office to see this case through to a very successful prosecution. Stopping this criminal element and their nexus goes a long way to strengthening the Quality of Life for us all,” said Chief Mark Mitchell, Johns Creek Police Department.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On April 26, 2017, agents began surveillance at Orozco Ramirez’s home in Alpharetta, Georgia. Orozco Ramirez drove to a meeting in Johns Creek, Georgia to show a potential customer one kilogram of methamphetamine out of a larger quantity that Orozco Ramirez planned to sell. Orozco Ramirez asked for two hours to coordinate a 22-kilogram methamphetamine transaction. Orozco Ramirez left the meeting location and drove back to his home.
Later that day, agents executed a federal search warrant at Orozco Ramirez’s home. Orozco Ramirez’s four minor children were in the hallway of the home. As agents began the search, they realized that the home did not have any working electricity. Co-defendant Brayan Razo Bermudez was in the lower level of the home.
In various locations throughout the house, agents found a total of more than 22 kilograms of methamphetamine, 1.2 kilograms of heroin, and 1.8 kilograms of cocaine. The methamphetamine had a purity of 98 percent and, at an agreed price of $9,200 per kilogram, was worth more than $200,000. Next to the drugs were four fully loaded firearms, including an AR-15 rifle, a shotgun, a pistol, and a revolver. In the house, agents also found another pistol and $53,797 in cash. Neither Orozco Ramirez nor Razo Bermudez were lawfully present in the United States.
Additional investigation revealed that Razo Bermudez and another co-conspirator, Eduardo Reyes Gonzalez, were working together to launder drug proceeds by structuring deposits into bank accounts. Razo Bermudez would deposit funds into a series of bank accounts in the Atlanta area, while Reyes Gonzalez would make withdrawals in McAllen, Texas from those same accounts. The purpose of these transactions was to deliver drug proceeds while disguising the nature, source, and ownership of the money.
Giovani Orozco Ramirez, 31, of Guerrero, Mexico, has been sentenced to 25 years in prison to be followed by five years of supervised release. On June 17, 2022, a jury convicted Orozco Ramirez of the offenses of conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine, heroin, and cocaine; possession with intent to distribute methamphetamine on premises where minors are present; possession of a firearm in furtherance of a drug trafficking offense; and possession of a firearm by an illegal alien.
In addition to Orozco Ramirez, the following defendants pleaded guilty and have been sentenced:
- Bryan Razo Bermudez, 34, of Michoacan, Mexico, was sentenced to 17 years of imprisonment, followed by five years of supervised release. He pleaded guilty to the offenses of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine on premises where minors are present, possession of a firearm in furtherance of a drug trafficking offense, and money laundering conspiracy on February 21, 2019.
- Eduardo Reyes Gonzalez, 28, of McAllen, Texas, was sentenced to one year, six months of imprisonment, followed by three years of supervised release. He pleaded guilty to money laundering on June 5, 2018.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Nicholas N. Joy prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Conway Woman Sentenced to More than a Decade in Federal Prison for Role in Fentanyl Overdose DeathRead the Press Release
FLORENCE, SOUTH CAROLINA — Ashia Rhene McCray, 22, of Conway, was sentenced to more than 10 years in federal prison after pleading guilty to possessing with intent to distribute, and distributing, a quantity of fentanyl, with death resulting.
“As we have seen across South Carolina and the rest of the country, deadly drugs have deadly consequences,” said U.S. Attorney Adair F. Boroughs. “As this case makes clear, those who bring poison into our communities face grave consequences for the death and destruction they sow. I want to especially thank our federal and state partners who brought this fentanyl distributor to justice.”
“Last year, more than 100,000 people died of drug poisoning, many of which were caused by fentanyl – that’s more than the highest match attendance at this year’s World Cup,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration Atlanta Field Division. “This Defendant unfortunately contributed to this staggering statistic and will therefore spend a lengthy amount of time behind bars.”
“Once again, the collaboration between local and federal law enforcement partners has succeeded in taking dangerous drugs, and the people that sell them, off our streets,” said Chief Joe R. Hill of Horry County Police Department. “Together, we are able to bring many more resources to bear upon this problem, and we are so appreciative of these partnerships.”
Evidence presented to the Court showed that on October 24, 2021, McCray sold purported Roxicodone pills to another individual at a home in Conway. Shortly thereafter, the purchaser died of an accidental drug-induced cardiac arrythmia. Pills consistent with those sold to the Victim by McCray were recovered from the Victim’s wallet. Those pills lab tested positive for fentanyl, which was also found in the Victim’s system. Subsequent investigation determined that the fentanyl in the Victim’s system was the cause of the Victim’s death.
United States District Judge Joseph Dawson, III, sentenced McCray to 135 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by Horry County Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
Convicted Felon Sentenced to Federal Prison for Illegal Possession of a Firearm and Violating his Federal Supervised ReleaseRead the Press Release
Jackson, TN – Lavokeous Ivory, 29, has been sentenced to seven years imprisonment for being a felon in possession of a firearm and violating his federal supervised release. United States Attorney Kevin G. Ritz announced the sentence today.
On August 6, 2021, officers with the Milan Police Department were dispatched to a residence for an unwanted person call. The caller advised dispatch that the suspect, Lavokeous Ivory, was beating on her windows and front door and demanding that she let him in. One of the responding officers saw a man walking near the home who matched the description of the suspect. After telling the officer his name, Ivory started walking away and then started running from the officer. Ivory ran around the house and the officer followed him on foot.
While running, a pistol dropped from Ivory's waistband. Ivory stopped to pick up the pistol, and then tried to throw it on the roof of the home. While throwing the gun, it discharged, and the bullet hit the side of the house. The officers then attempted to detain Ivory, and while doing so Ivory picked up the gun. After other officers arrived on the scene, Ivory dropped the gun and was arrested.
Ivory had been previously convicted of a felony and was on federal supervised release at the time of this offense for illegally possessing two firearms on separate dates in February 2016. As a result of his prior felony convictions, Ivory is prohibited by federal law from possessing firearms and ammunition.
On November 30, 2022, United States District Judge J. Daniel Breen sentenced Ivory to 70 months imprisonment for his illegal possession of a firearm on August 6, 2021, to be followed by three years of supervised release. Judge Breen also determined that Ivory violated the terms of his federal supervised release by illegally possessing the firearm and imposed a 14-month prison sentence in that case, to run consecutively to the 70-month sentence for a total of 84 months imprisonment. There is no parole in the federal system.
This case was investigated by the Milan Police Department and the ATF.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Josh Morrow, who prosecuted the case.
###
For more information, please contact Public Information Officer Cherri Green at 901-544-4231 or [email protected]. Follow@WDTNNews on Twitter for office news and updates.
Central American Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced yesterday to over two months in federal prison.
Rigoberto Batz-Tinio, age 45, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after an October 17, 2022 guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Batz-Tinio admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Batz-Tinio was previously deported in March 2004. On September 16, 2022, immigration officials learned Batz-Tinio had illegally returned to the United States and found Batz-Tinio at the Allamakee County Jail following his conviction for operating a motor vehicle while intoxicated.
Batz-Tinio was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Batz-Tinio was sentenced to 76 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Batz-Tinio is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1033.
Follow us on Twitter @USAO_NDIA.
Career Criminal Sentenced to over 12 Years in Federal Prison for Illegal Gun Possession and Methamphetamine TraffickingRead the Press Release
EVANSVILLE – Luke Smith III, 48, of Evansville, Indiana, was sentenced to 151 months in federal prison after pleading guilty to possession of a firearm and ammunition by a prohibited person and possession with intent to distribute methamphetamine.
According to court documents and evidence introduced in court, on November 22, 2019, law enforcement officers learned that Smith was selling drugs, was just released from prison, and was known to carry a gun. Officers located Smith and initiated a traffic stop of his vehicle. Officers searched Smith’s vehicle and found a pill bottle in the middle console, which contained 2.5 grams of methamphetamine.
Officers continued to search Smith’s vehicle and found plastic wrap, baggies, several rounds of .380 and 9mm ammunition, and a 9mm pistol. Smith was searched and officers found a digital scale and a single round of 9mm ammunition on his person. During transport to the jail, Smith admitted to officers that they’d find his DNA on the firearm and that he handled the gun daily.
Smith has previous felony convictions in state court for battery resulting in bodily injury to a pregnant woman and robbery. Smith is prohibited from possessing firearms and ammunition by federal law due to his felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
FBI investigated the case and the Evansville Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Smith be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CEO of Raleigh Healthcare Company Sentenced to 80 Months in Prison for Multi-Million Dollar Healthcare FraudRead the Press Release
RALEIGH, N.C. – A Raleigh CEO will serve 80 months in prison for Healthcare Fraud.
Tanya Grant, 51, was sentenced today for a health care fraud scheme carried out between 2017 and 2021 through two companies she controlled – Carolina Rehab Products Inc. (CRP), also known as Atlantic Brace, in Raleigh; and Blue File DME, LLC (Blue File), in Dunn. These companies were licensed to supply durable medical equipment, such as neck and back braces, to Medicare beneficiaries. Grant pled guilty to the charge on July 6, 2022.
“This defendant was motivated by greed, scheming to steal millions in taxpayer dollars meant for senior citizens and the needy,” said U.S. Attorney Michael Easley. “She used her fraud to fuel her lavish lifestyle, including a vacation home, luxury cars, jewelry, and a boat. Health care fraud like this costs taxpayers billions of dollars each year. We will use every avenue to root it out and bring offenders to justice.”
To carry out the scheme and enrich herself, the investigation showed that Grant purchased lists of Medicare patient names from companies overseas. She then billed Medicare for purportedly supplying these patients with durable medical equipment. In many cases, Medicare was billed even though no equipment was shipped. Medicare was also billed by Grant’s companies for supplying medical equipment to 422 deceased individuals. When audited by Medicare contractors, the evidence showed that Grant forged physician orders if no such order existed in her files to support her billings.
In total, Grant caused CRP and Blue File to bill Medicare for more than $50 Million in durable medical equipment between 2014 and 2021, of which Medicare paid Grant more than $17 Million. Grant used these funds to purchase a home in Raleigh, a townhome in Florida, a Porsche, several Range Rovers, several Jeeps, boat, jewelry, art, and electronics, as well as amassing more than a million dollars in cash and investments. These assets have been seized by the government to be used to recover the stolen funds.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle sentenced Grant. The United States Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation, investigated the case. Assistant U.S. Attorneys William M. Gilmore and Karen Haughton prosecuted the case.
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 No. 5:21-cr-00253-BO .
###
Burlington County Businessman Sentenced to Five Years in Prison for Defrauding over 75 Victims of More Than $2.7 Million in Nationwide Scheme to Sell Pesticides Falsely Billed as Registered with EPA and Approved to Kill CoronavirusRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man who sold more than $2.7 million worth of pesticides he falsely claimed were registered with the Environmental Protection Agency as being effective against coronavirus, was sentenced today to 60 months in prison, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division announced.
Paul Andrecola, 63, of Maple Shade, New Jersey, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), wire fraud, and presenting false claims to the United States. Judge Kugler imposed the sentence today in Camden federal court.
“Paul Andrecola’s scheme profited on the fears of the American people during the height of concerns about transmission of COVID-19,” U.S. Attorney Sellinger said. “Our office is dedicated to protecting public health and prosecuting to the full extent of the law fraudsters who commit such egregious criminal acts.”
“The defendant committed a brazen fraud in the midst of a global pandemic and sought to profit from people’s fears of contracting the coronavirus,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) said. “This sentence shows that these crimes are serious and will be vigorously prosecuted by the Department of Justice.”
“Today’s sentence holds the defendant accountable for perpetrating the largest pandemic fraud case related to the sale of unregistered pesticides charged nationwide,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This case underscores EPA’s commitment to hold violators accountable for placing the public at risk by failing to ensure the integrity and safety of their products.”
According to documents filed in this case and statements made in court:
FIFRA regulates the distribution, sale, and use of pesticides to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The EPA is responsible for regulating the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce.
Under FIFRA, all pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA. Before pesticide products can legally make claims that they can kill a particular pathogen, such as SARS-CoV-2 (coronavirus), the claim must be authorized by EPA based on a review of data. In March 2020, at the beginning of the global pandemic, the EPA created a list of EPA-registered products that it deemed to be effective against coronavirus, titled “List N: Disinfectants for Use Against SARS-CoV-2.” The EPA has continued to update this list since its creation.
Andrecola, who controls two companies and is employed by a third company, all based in in Mount Laurel, New Jersey, manufactured various disinfectant products, including liquids and wipes, under the brand name “GCLEAN.” GCLEAN products were unregistered pesticides under FIFRA and none of the products were on EPA’s List N. Andrecola placed another company’s EPA registration numbers on his company’s products and falsely marketed that his products were EPA-approved to kill coronavirus by creating numerous false documents to support his claims. Andrecola, or others at his behest, would provide this falsified documentation to potential customers representing that various sanitizer and wipe products in the names GCLEAN or GC200 were EPA-registered products List N to persuade them to purchase the unregistered pesticide products.
From March 2020 through May 2021, Andrecola used these fraudulent representations to make more than 150 sales of unregistered pesticides for a profit of more than $2.7 million. The purchasers of these unregistered pesticides included a police department in Delaware, a fire department in Virginia, a medical clinic in Georgia, a janitorial supply company in New York, a school district in Wisconsin, and numerous U.S. Government agencies, including the U.S. Marshal’s Service, Moody Air Force Base, the U.S. Department of Veterans Affairs, and the National Forest Service.
In addition to the prison term, Judge Kugler sentenced Andrecola to three years of supervised release and forfeiture of $2.74 million – the proceeds from the sale of the illegal product. The defendant is also responsible to make full restitution for all losses resulting from his commission of the charged crimes.
U.S. Attorney Sellinger credited special agents of the U.S. EPA Criminal Investigation Division, under the direction of Special Agent in Charge Tyler Amon with the investigation leading to today’s sentencing. He also thanks the U.S. EPA Office of the Inspector General Eastern Region under the direction of Special Agent in Charge Nicolas Evans; Homeland Security Investigations Newark Field Office under the direction of Special Agent in Charge Ricky J. Patel; Defense Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Patrick Hegarty; Naval Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Michael Wiest; and the Mount Laurel Police Department under the direction of Chief Stephen Riedener, for their assistance in this investigation.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorneys Adam C. Cullman and Matthew D. Evans of the Environmental Crimes Section of the U.S. Department of Justice.
Brooke County man sentenced for failure to register chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher J. Schragl, of Follansbee, West Virginia, was sentenced today to 18 months of incarceration for failing to update his sex offender registry, United States Attorney William Ihlenfeld announced.
Schragl, 46, pleaded guilty in June 2022 to one count of “Failure to Register.” Schragl, a person required to register as a sex offender, failed to update his registration from May to December to 2021 in the Northern District of West Virginia.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The United States Marshals Service, West Virginia State Police, Texas Rangers, and the Nevada State Police investigated.
U.S. District Judge John Preston Bailey presided.
Birmingham Man Sentenced to 10 Years in Prison on Firearm ChargeRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced today for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
United States District Court Judge Madeline H. Haikala sentenced Joseph Ryan Byram, 39, for being a felon in possession of a firearm. Byram received 120 months in prison followed by three years of supervised release. Byram is prohibited from having a firearm because of prior felony convictions. Byram was convicted in the Circuit Court of Jefferson County, Alabama, of the offenses of Burglary, First Degree in August 2001, and Theft of Property, Third Degree in April 2014, convicted in the Circuit Court of Bibb County, Alabama, of the offense of Robbery, First Degree in October 2014, and convicted in the Circuit Court of Tuscaloosa County, Alabama, of the offense of Assault, Second Degree in April 2018.
On July 25, 2021, Jefferson County Sheriff’s deputies were dispatched to a home in Adger, AL, on a report that Byram was holding a victim against her will in the basement. Byram allowed the deputies inside the residence to verify. Deputies made contact with a female inside the residence, who was later identified as the victim. Deputies immediately observed the victim to have a swollen right eye along with bruises on several parts of her body. The victim began asking for help and informed deputies that Byram was in possession of a firearm up until their arrival and that he repeatedly beat her over the course of three days. After searching the residence, Jefferson County Sheriff detectives recovered a revolver.
The case is a 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.
The ATF investigated the case, along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorneys Darius Greene, Brittany Byrd, and Daniel McBrayer prosecuted the case.
Billings man sentenced to five years in prison for possessing child pornographyRead the Press Release
BILLINGS — A Billings man who admitted to possessing hundreds of child pornography images was sentenced today to five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. Bessman also was ordered to pay $18,000 restitution to his victims.
Miles Edward Bessman, 49, pleaded guilty in July to possession of child pornography as charged in an indictment.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that an investigation of Bessman began in 2019 after law enforcement received two Cybertips indicating that a certain IP address had uploaded child pornography to Google. Investigators determined that the IP address was located at Bessman’s residence and executed a search warrant for Bessman’s Google account. A review of material collected from Bessman’s account found more than 800 images of child pornography. The material included videos and images of children engaged in sexually explicit conduct. Law enforcement officers executed a search warrant on Bessman’s residence in January 2020, collected electronic media and found files containing child pornography on his cell phone.
Assistant U.S. Attorneys Zeno B. Baucus and Benjamin D. Hargrove prosecuted the case, which was investigated by the FBI, the Montana Division of Criminal Investigation and the Billings Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
XXX
Armed Drug Dealer Sentenced to 12 Years in Federal Prison after Guns and Drugs Seized from Residence That was Home to Nine Minor ChildrenRead the Press Release
NEW BERN, N.C. – Dwayne Dantel Thomas, 43, of Greenville, North Carolina was sentenced today to 144 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute 40 Grams or More of Fentanyl, Possession with Intent to Distribute a Quantity of Methamphetamine, Cocaine, Fentanyl, and Heroin, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. On June 28, 2022, Thomas, pleaded guilty to the charges.
“Fentanyl and meth overdoses are causing far too many deaths,” said U.S. Attorney Michael Easley. “We are partnering with local law enforcement in every corner of Eastern North Carolina to prosecute illicit fentanyl dealers who put lives at risk. This defendant recklessly stored fentanyl and meth in a home with minor children, and police recovered a stolen gun kept in a minor child’s bedroom.”
According to court documents and other information presented in court, Thomas was responsible for trafficking over 400 grams of fentanyl in Greenville between April 2017 and May 2021. In March 2020, the Pitt County Sheriff’s Office received information that Thomas was selling fentanyl from a residence on Old River Road. Between January and April 2021, law enforcement conducted six purchases of fentanyl from Thomas at his residence, using a confidential informant. On April 8, 2021, the Pitt County Sheriff’s Office executed a search warrant at Thomas’ residence. There, law enforcement encountered Thomas, his wife, and nine of their minor children in the residence. Additionally, officers seized over an ounce of methamphetamine, and a mixture of heroin, cocaine, and fentanyl, 53 pills, and other drug paraphernalia. Officers found drugs, packaging materials, and digital scales throughout the residence and inside the bathroom. Additionally, officers seized six loaded firearms of various makes and calibers, including two stolen firearms, and one firearm with an altered front grip. At least one of the firearms was recovered from one of Thomas’ minor children’s rooms.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Pitt County Sheriff’s Office, Greenville Police Department, and FBI investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
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 No. 4:21-CR-52-FL.
###
Arizona Man Arrested for Point-Of-Sale Cyber IntrusionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of FOSTER COOLEY for charges in connection with a scheme to conduct cyber intrusions targeting a New York-based company that owns and operates hair salons in New York City, New Jersey, Colorado, and elsewhere, which resulted in the theft of over $400,000. COOLEY was arrested this morning and is expected to be presented today or tomorrow before a U.S. magistrate judge in the District of Arizona. The case is assigned to U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “Foster Cooley allegedly participated in a scheme to hack into a salon company’s point-of-sale provider and steal over $400,000 of credit card payments from its customers. And because Cooley was able to steal this money without stepping foot into one of the salons he stole from, his crimes went undetected for weeks. Hacks like this that compromise the integrity of our electronic payment systems cause great harm to businesses and consumers alike. Thanks to this Office’s teamwork with the FBI, Cooley is now facing serious criminal charges for his alleged cybercrimes.”
FBI Assistant Director in Charge Michael J. Driscoll said: "As alleged, the defendant hacked into the victim's business systems and diverted hundreds of thousands of dollars to his own bank accounts. The FBI's Cyber Task Force along with our law enforcement partners are committed to tracking down malicious hackers who target private businesses and ensuring they face the consequences for their actions. If your business is the victim of a cyber intrusion, please report it as soon as possible; the faster we are made aware, the sooner we can provide assistance."
According to the allegations in the Indictment unsealed today in Manhattan federal Court:[1]
In or about May 2022, FOSTER COOLEY perpetrated a scheme to conduct cyber intrusions and steal money from a New York-based company that owns and operates hair salons in New York City, New Jersey, Colorado, and elsewhere (“Victim-1”). COOLEY stole money from Victim-1 by obtaining unauthorized access to Victim-1’s account with Victim-1’s point-of-sale provider (the “Victim-1 POS Account”) and diverting credit card payments from Victim-1’s bank accounts to bank accounts controlled by COOLEY and others.
COOLEY obtained unauthorized access to the Victim-1 POS Account by obtaining usernames and passwords of Victim-1’s employees. Those credentials were stolen using a type of malicious software or malware that secretly steals, among other things, a victim’s usernames, passwords, and credit card information that have been saved in the victim’s internet browser. After COOLEY successfully gained unauthorized access to the Victim-1 POS Account, COOLEY changed the bank accounts designated to receive credit card payments from Victim-1’s hair salons to bank accounts controlled by COOLEY and others. As a result, credit card payments from Victim-1’s hair salons were fraudulently diverted to COOLEY and others.
In or about May 2022, for a period of approximately two weeks until the scheme was discovered by Victim-1, more than $430,000 in customer payments from Victim-1’s hair salons were fraudulently diverted to bank accounts controlled by COOLEY and others.
* * *
COOLEY, 23 of Chandler, Arizona, is charged with one count of computer fraud for causing damage to a protected computer, which carries a maximum sentence of 10 years in prison; one count of computer fraud for unauthorized access to a protected computer to further intended fraud and one count of receipt of stolen money, each of which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the FBI New York Cyber Task Force, the NYPD Cyber Task Force, and the FBI Field Office in Phoenix for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew K. Chan is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Architect of multi-million-dollar education fraud involving scuba dive shops sentenced to years in federal prisonRead the Press Release
SAVANNAH, GA: A defendant who supervised a scheme to defraud more than $6 million from the Department of Veterans Affairs (VA) education programs through scuba diving schools has been sentenced to more than four years in federal prison.
Kenneth Meers, 55, of Altamonte Springs, Fla., was sentenced to 54 months in prison after previously pleading guilty to Conspiracy to Commit Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Meers to pay restitution of $6,085,918.08, and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“The VA administers a robust program to provides educational benefits for those who have served their country, opening access to substantial career and enrichment opportunities for veterans,” said U.S. Attorney Estes, a retired U.S. Army Colonel. “Kenneth Meers and his co-conspirators circumvented the rules designed to protect that funding, purely for their personal enrichment, and they justly are being held accountable for their crimes.”
The six defendants charged in the case, all of whom have entered guilty pleas in U.S. District Court, are owners, managers, and/or instructors at Scooba Shack in Savannah and Richmond Hill, Ga., or at Diver’s Den in St. Marys, Ga. In those capacities, the individuals caused false submissions to be made to the Department of Veterans Affairs, misstating the businesses’ compliance with VA regulations, dates of students’ attendance, and hours of instructions, among other misinformation. Some of the defendants also participated in creating fictitious scholarship programs to provide the appearance that a required percentage of non-VA students participated in those classes. The businesses billed the VA up to more than $20,000 per veteran student enrollee for the classes.
Meers was a school certifying official and course director at Scooba Shack in Savannah and Richmond Hill, Ga., from about May 2018 to April 2021, and became a consultant at Diver’s Den in St. Mary’s, Ga., around May 2020 and an instructor from about June 2021 to February 2022. Meers prepared and submitted Scooba Shack’s application and course catalog for VA approval, and developed Diver’s Den’s program, knowing that those applications contained false information. He also directed other defendants to create the fake scholarships that were used to mask the percentage of students receiving VA education benefits.
Judith Lanoue, 59, and Robert Lanoue, 63, both of Savannah, operated Scooba Shack and were previously sentenced to prison after pleading guilty to related charges. They were also ordered to pay $3,228,921.53 in restitution. Their employee, David Anderegg, 42, of Richmond Hill, Ga., was previously sentenced to probation and ordered to pay $20,497 in restitution.
Two other defendants – Theresa Whitlock, 55, of St. Marys, Ga., and John Spyker, 39, of Yulee, Fla., await sentencing after entering guilty pleas. Whitlock operated Diver’s Den and served as a school certifying official, providing false information to the VA about Diver’s Den’s diving programs, and submitting claims to the VA for tuition payments totaling more than $1.1 million, while Spyker, a School Certifying Official and Director of Training at Diver’s Den, admitted submitting false and fraudulent information to the VA for tuition payments totaling $722,399.19.
“Safeguarding Post-9/11 GI Bill education benefit funds is a priority, and our investigators work diligently to ensure this vital program is not exploited for financial gain and greed. This significant sentence holds the defendant accountable and highlights the severity of the penalties of such fraudulent activities,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG remains committed to working with our law enforcement partners to hold accountable those who would defraud VA’s programs and services.”
“This sentencing sends a strong message to those who defraud programs that benefit our veterans,” stated Special Agent in Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work closely with our investigative partners and the U.S. Attorney’s Office to ensure individuals who selfishly enrich themselves at the expense of our veterans and military personnel are brought to justice.”
The case was investigated by the Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service, and is being prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Alaska Man Sentenced to 78 Months for Years-Long Fraud and Identity TheftRead the Press Release
FAIRBANKS – Jared Wilkes Post, 26, of Fairbanks was sentenced by Senior U.S. District Judge Ralph R. Beistline to 78 months of imprisonment and ordered to pay at least $100,000 in restitution for defrauding banks and other victims of over $100,000 through a sophisticated check kiting and identity theft scheme.
According to court documents, between 2017 and 2021, Post and his co-conspirator committed bank fraud and aggravated identity theft and defrauded multiple banks and individuals of at least $100,000. Post contacted individuals he called “Plays” via social media and convinced them to share their bank account information under the false pretense that Post needed to deposit a legitimate check into the “Play’s” account. Post then offered the “Play” a portion of the deposited check in return for use of their bank account. Once the check posted in the account, Post would withdraw or transfer the funds electronically or direct the “Play” to transfer the funds to him via a cash app or Western Union.
In reality, the checks Post and his co-conspirator deposited were stolen and fraudulently altered, and they withdrew the funds prior to the banks’ flagging the checks as fraudulent. Post and his co-conspirator discussed stealing the checks from the elderly and other victims they viewed as susceptible to “scams.” Once Post withdrew the cash the banks, the “Plays,” and the initial victim whose checks were stolen were left paying losses and overdraft fees.
“Elder abuse and financial fraud targeted at seniors is a serious crime against some of our nation’s most vulnerable citizens,” said U.S. Attorney S. Lane Tucker, District of Alaska. “Today’s sentence sends a strong message that fraudulent conduct on this scale will be met with serious consequences. Predators who target older citizens for fraud and financial scams are especially abhorrent and my office will continue to take aggressive action, pursuing all legal means to bring these criminals to justice.”
“Motivated by greed, the defendant and his co-conspirator operated a sophisticated check fraud scheme, targeting victims they perceived as vulnerable,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This scheme led to prison time and should serve as a message to anyone who would engage in this conduct to reconsider. The FBI and our law enforcement partners will continue to hold accountable those who commit such offenses.”
The FBI Anchorage Field Office, Alaska State Troopers, Fairbanks Police Department, Anchorage Police Department and the Vancouver, Washington, Police Department are investigating the case. The FBI’s Phoenix Field Office also assisted in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
Anyone who believes they may be a victim of this scheme and entitled to restitution may contact the FBI Anchorage Field Office at 907-276-4441. The District Court will hold a restitution hearing in 90-days to enter a final restitution order.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
###
Airline passenger with box cutter who caused flight to be diverted has been indictedRead the Press Release
ATLANTA - William Allen Liebisch has been charged with interfering with the duties of a flight crew after he brought a box cutter aboard a Fronter Airlines flight and told a fellow passenger that he wanted to stab someone, which required the pilot to make an emergency landing in Atlanta.
“People have the right to travel in peace and free from fear of their fellow passengers,” said U.S. Attorney Ryan K. Buchanan. “Passengers who disrupt flights with threats of violence will quickly learn that they will be answering for their conduct in federal court.”
“The FBI is committed to doing its part to prevent violence, intimidation, and threats of violence that endanger passenger and flight crew safety on commercial flights”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this indictment proves that the federal government takes all threats on aircrafts seriously and violators who disrupt travel will be prosecuted to the fullest extent of the law.”
“Unruly passenger behavior is unsafe and disruptive to the traveling public, as well as the flight crew,” said Todd Damiani, Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, Southern Region. “We will continue to work with our law enforcement partners to pursue and hold accountable those who choose to engage in such reckless activity while aboard commercial aircraft.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On November 11, 2022, Liebisch was a passenger aboard a Frontier Airlines flight from Cincinnati, Ohio, to Tampa, Florida. He passed through the Transportation Security Administration (TSA) security checkpoint in the Cincinnati airport, where TSA officers found a box cutter in his possession but mistakenly believed that they had rendered it inoperable by removing its blade.
Once the flight had taken off, Liebisch inserted a spare blade that was stored in the handle of the box cutter. A passenger saw Liebisch use the box cutter to clean his nails. Another passenger reported to two flight attendants that Liebisch said that he was going to stab someone. Because there were no law enforcement officers on the flight, one attendant asked two male passengers to assist. One passenger stood in the back nearby while the other took the seat of the passenger who made the report to the flight attendants. Both men and a flight attendant tried to keep Liebisch calm and under control for the remainder of the flight.
While this was happening, the captain made an emergency landing at the nearest airport, which was Hartsfield-Jackson Atlanta International Airport. Once the plane landed, the passengers were instructed to deplane immediately and to leave their belongings on the plane. Atlanta Police Department (APD) officers were at the gate but did not get on the plane to avoid antagonizing Liebisch, who was in the rear of the plane with the two male passengers. As the last passengers deplaned, Liebisch charged toward a flight attendant at the front of the plane while holding his box cutter. One of the passengers tackled him from behind, and APD officers rushed on the plane to subdue Liebisch. He stopped resisting as soon as they said they would use a taser on him if he did not comply. A subsequent search of his carry-on bag uncovered a second box cutter.
After Liebisch’s arrest, the plane was not able to continue its trip to Tampa until the following morning.
William Allen Liebisch, 42, of Cincinnati, Ohio, has been charged with interfering with the duties of a flight crew, and carrying a weapon aboard an airplane. The magistrate court ordered him to remain in custody pending trial. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Transportation Office of Inspector General.
Assistant U.S. Attorney Paul R. Jones is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
35-Year-Old Memphis Man Sentenced to 15 Years Imprisonment Arising out of Gun and Drug ChargesRead the Press Release
Memphis, TN – Tony Jackson, 35, has been sentenced to 15 years in federal prison for conspiracy to possess with intent to distribute one kilogram or more of heroin, being a prohibited person in possession of ammunition and a firearm, and conspiracy to commit money laundering. United States Attorney Kevin G. Ritz announced the sentencing today.
According to the information presented in court, in May 2017, members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating the criminal activities of Tony Jackson. Investigators identified Jackson as a heroin distributor who utilized the proceeds from such sales to acquire both residences and vehicles in other individuals’ names to conceal the source of his income.
Additionally, despite Jackson’s prohibited status, he was known to go armed. In April 2018, investigators with the Memphis Police Department responded to a shooting on East Waldorf and South Third, in which Jackson was observed in a neighboring business surveillance video exiting a vehicle and firing several rounds at the victim. A search of the area led to the recovery of a spent nine-millimeter shell casing.
In August 2019, a search of Jackson’s residence led to the recovery of a Glock 26 9mm pistol.
Jackson pled guilty on April 19, 2022.
On December 5, 2022, United States District Court Judge Mark S. Norris sentenced Jackson to 180 months imprisonment to be followed by 5 years’ supervised release. Jackson agreed to pay a money judgement in the amount of $56,000 which represents the proceeds from the distribution of narcotics.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Internal Revenue Service, and the Memphis Police Department Organized Crime Unit.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks, who prosecuted the case.
###
For more information, please contact Public Information Officer Cherri Green at 901-
544-4231 or [email protected]. Follow@WDTNNews on Twitter for office news and
updates.
7 December 2022
Zuni man sentenced to 10 years in prison for assault and firearms offensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Martin Eriacho was sentenced to 10 years in prison. Eriacho, 52, of Zuni, New Mexico, and an enrolled member of the Zuni Pueblo, pleaded guilty on Sept. 7 to assault with a dangerous weapon and brandishing a firearm in furtherance of a crime of violence.
Just after midnight on Jan. 9, 2021, Eriacho drove to a residential area on the Zuni Reservation. From inside his car, Eriacho discharged a firearm twice, drawing attention from nearby residents. Several residents began to investigate the gunshots, including the victim, identified as John Doe. As he walked outside his residence, John Doe saw Eriacho, who he did not know, in a gray vehicle. When John Doe was about twenty feet away from Eriacho, Eriacho fired two more shots, one of which struck Doe in the arm, causing several fractures that required surgery.
Upon his release from prison, Eriacho will be subject to three years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorneys Joseph Spindle and Zachary Jones prosecuted the case.
# # #
Worcester Man Pleads Guilty to Distributing Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Worcester man pleaded guilty on Dec. 5, 2022 to distributing fentanyl and methamphetamine.
Johanny Torres-Rojas, 56, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and one count of distribution of and possession with intent to distribute methamphetamine and fentanyl. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 31, 2023. Torres-Rojas was charged by criminal complaint in January 2020 and subsequently indicted by a federal grand jury in February 2020. Torres-Rojas was later charged in a superseding Information in November 2022 and pleaded guilty.
Between November 2019 and January 2020, Torres-Rojas distributed fentanyl to a confidential source in at least three controlled purchases. Specifically, on Nov. 20 and Nov. 26, 2019, Torres-Rojas distributed fentanyl pills to a confidential source at a Goodwill Store in Worcester. Later, on Jan. 13, 2020, Torres-Rojas distributed pills containing fentanyl and methamphetamine to the confidential source outside of the same Goodwill Store. In total, Torres-Rojas distributed approximately 835 grams of pills containing methamphetamine and 102 grams of pills containing fentanyl across the three purchases.
The charges of distribution of and possession with intent to distribute fentanyl and methamphetamine provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Worcester Police Department. Assistant U.S. Attorneys Lucy Sun and Samuel R. Feldman of Rollins’ Criminal Division are prosecuting the case.
Worcester Man Arrested for Sending Obscene Material to a Minor over Social MediaRead the Press Release
BOSTON – A Worcester man has been arrested and charged in connection with transferring obscene material to a 14-year-old minor.
Andrew James Gallagher, 28, was charged with one count of transfer of obscene material to a minor. Gallagher was arrested yesterday morning and, following an initial appearance in federal court in Worcester, was detained pending a detention hearing scheduled for Dec. 9, 2022.
According to the charging document, in April 2022, Gallagher contacted the victim using a social media platform. It is alleged that Gallagher asked, “are you underage at all?” to which the minor victim replied identifying himself as 14 years old. Gallagher then allegedly sent two obscene images of himself to the minor victim, expressed interest in meeting with the minor victim in person and asked the minor victim to send an explicit video of himself to Gallagher.
The charge of transfer of obscene material to a minor provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Worcester Police Chief Steven M. Sargent; and Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigation’s in New England made the announcement. Valuable assistance was provided by the Federal Bureau of Investigation, Omaha Division. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Allen Sams, of Jacksonsburg, West Virginia, was sentenced today to 18 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Sams, 36, pleaded guilty in June 2022 to one count of “Unlawful Possession of a Firearm.” Sams, a person prohibited from having a firearm because of a prior felony conviction, admitted to having a 20-gauge shotgun and nine rounds of 20-gauge ammunition in August 2021 in Tyler County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Allen Sams, of Jacksonsburg, West Virginia, was sentenced today to 18 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Sams, 36, pleaded guilty in June 2022 to one count of “Unlawful Possession of a Firearm.” Sams, a person prohibited from having a firearm because of a prior felony conviction, admitted to having a 20-gauge shotgun and nine rounds of 20-gauge ammunition in August 2021 in Tyler County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Waterbury Man Sentenced to 9 Years in Federal Prison for Drug Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LENWOOD GATLING, 39, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 108 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, between July and October 2020, a DEA New Haven Task Force investigation revealed that Gatling was using a storage unit he rented at a facility located on Meriden Road in Waterbury to store and distribute narcotics. Gatling was arrested on October 14, 2020. On that date, a court-authorized search of the storage unit revealed nine firearms, three of which were reported stolen; approximately 420 grams of fentanyl packaged in approximately 11,000 individual use bags; approximately 99 grams of heroin; approximately nine grams of cocaine; and approximately $30,000 in cash.
Gatling’s criminal history includes multiple felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gatling has been detained since his arrest. On May 2, 2022, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin, and one count of possession of a firearm by a felon.
The Drug Enforcement Administration New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
This case was prosecuted by Assistant U.S. Attorneys Patricia Stolfi Collins and Neeraj N. Patel.
Warren Man Pleads Guilty to Child Sexual Exploitation ChargeRead the Press Release
ERIE, Pa. – A resident of Warren, Pennsylvania pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
Vincent Dexter Swanson, 30, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from April 2020 to March 2021, Swanson possessed and accessed with intent to view visual images and videos in individual computer files depicting prepubescent minors engaging in sexually explicit conduct. As part of his guilty plea, Swanson agreed to a four-year jail sentence.
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 (CEOS), 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.
Judge Baxter scheduled sentencing for April 7, 2023, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Swanson on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Swanson.
Virgin Islands Man Sentenced to 20 Years for Drug Conspiracy, Miami Boat Captain Receives 9 YearsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Avery Lans (55, St. Thomas, U.S. Virgin Islands) to 20 years in federal prison for conspiracy to distribute cocaine. His coconspirator, Wayne Ellsworth Stout, Jr. (35, Miami), was sentenced to 9 years’ imprisonment. Lans’s sentence was enhanced based on the danger he caused during his attempted escape from law enforcement on June 1, 2022. After his arrest, HSI learned that Lans was convicted of second-degree murder in 1990 in the Virgin Islands and pardoned in 2014 after serving over 20 years of his 40-year sentence. Lans and Stout were indicted on June 15, 2022. Lans was convicted after a jury trial on October 3, 2022. Stout pleaded guilty on August 19, 2022.
According to evidence presented at trial, on June 1, 2022, Stout drove from Miami to Orlando and retrieved a duffle bag from a storage locker in the Edgewater area. Agents from Homeland Security Investigations (HSI) were conducting surveillance on Stout as he traveled from Miami to Orlando and as Stout left the storage locker and went to the parking lot of a restaurant in the Winter Park area. At approximately 1:45 p.m., Lans arrived and received the duffle bag in a short, 30-second meeting. After circling the block, Lans led HSI surveillance agents to the corner of Lee Road and Wymore Road, where he abruptly turned on to Wymore Road in an attempt to escape while dropping the duffle bag out of his passenger side window. After a brief high-speed chase, Lans was detained and the duffle bag was retrieved. It contained five kilograms of cocaine, wrapped in black tape with a marking on it.
When HSI agents searched the storage locker in Edgewater, they found three coolers containing 109 kilograms of cocaine, some of which contained the same black and gold marking as the five-kilogram bricks that Lans was carrying.
A kilogram of cocaine was estimated to be worth at least approximately $27,000. Lans was carrying $135,000 of cocaine when he unsuccessfully attempted to flee. The storage locker contained nearly $3 million of cocaine.
The United States referenced conversations between Lans and his conspirators on a phone that Lans had been carrying at the time of his arrest to show that Lans had numerous conversations about cocaine smuggling prior to June 1, 2022. The Court enhanced Lans’s sentence based on his broader involvement in cocaine distribution prior to the pick-up on June 1, 2022.
“Our highly skilled special agents continue to rely on their experience and resources to thwart the efforts of career criminals who attempt to distribute their poison into our communities,” said HSI Orlando Assistant Special Agent in Charge Dave Pezzutti. “These sentences are a testament to HSI and our partner law enforcement agencies commitment to work around the clock to locate and remove these illicit drugs off the streets and out of our communities.”
This case was investigated by Homeland Security Investigations (HSI), with assistance from the Orange County Sheriff’s Office, the Orlando Police Department, the Sunrise Police Department, and the Golden Beach Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Utah Man Pleads Guilty to Nine Counts of ExtortionRead the Press Release
SALT LAKE CITY, Utah – Leallen Blackhair, 45, of Fort Duchesne, Utah, pleaded guilty Monday Dec. 5, 2022 to nine counts of Extortion Under Color of Official Right as set forth in the indictment.
Blackhair waived his right to a trial and admitted to the facts of his criminal behavior, which interfered with or affected interstate commerce.
According to the Statement in Advance of Plea of Guilty, Mr. Blackhair was the Compliance Coordinator of the Energy and Minerals Department of the Ute Indian Tribe. Blackhair’s position included issuing fines to oil and gas businesses working on the Uintah and Ouray Reservation who were found in violation of their access permits and business licenses by his employer. Blackhair used his position to induce and attempt to induce multiple companies to pay him personally by offering to reduce a fine that would otherwise be assessed against them. Blackhair extorted sixty-six payments totaling $110,000, paid directly to and for the benefit of the defendant between August 2010 and May 2013.
The case is being prosecuted by Assistant United States Attorney Cy H. Castle for the District of Utah and investigated by the FBI’s Salt Lake City Field Office. Sentencing is scheduled for March 29, 2023.
Undécimo acusado se declara culpable en una estafa de $15 millones contra inmigrantes hispanohablantes en los EE. UU.Read the Press Release
Un hombre de California se declaró hoy culpable por conspirar con centros de atención telefónica con sede en Perú que estafaban a residentes estadounidenses de habla hispana amenazándolos falsamente con arrestarlos, deportarlos y otras consecuencias legales.
Según los documentos judiciales, Luis Rendón, de 60 años y residente en Harbor City (California), dirigía un centro de distribución que ayudaba a los operadores del centro de atención telefónica a ejecutar su plan de fraude desde Perú. Con la declaración de culpabilidad de Rendón, ya son once los acusados que se han declarado culpables en relación con un plan de fraude transnacional por $15 millones cuyo objetivo era estafar a residentes hispanohablantes de los EE. UU. amenazándolos fraudulentamente con consecuencias legales si no pagaban por productos de aprendizaje de inglés que nunca solicitaron o abonaban falsas tarifas de conciliación. Más de 30,000 hispanohablantes residentes en los Estados Unidos fueron estafados.
En total, los once acusados incluyen siete propietarios-operadores de centros de atención telefónica peruanos y cuatro operadores de centros de distribución que procesaron pagos y facilitaron el fraude en los Estados Unidos. Muchos de los acusados colaboraron y compartieron estrategias sobre cómo estafaron a los residentes hispanohablantes de los Estados Unidos.
Siete de los acusados fueron extraditados de Perú y se declararon culpables ante un tribunal federal por conspiración para cometer fraude postal y electrónico, y recibieron importantes sentencias de prisión. El juez de distrito de los EE. UU., Robert N. Scola, Jr., condenó a Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla y Josmell Espinoza a penas de entre 88 y 110 meses de prisión.
“Estos casos demuestran que la Subdivisión de Protección al Consumidor del Departamento de Justicia perseguirá y enjuiciará enérgicamente a los delincuentes transnacionales que estafan a los consumidores estadounidenses vulnerables”, declaró Brian M. Boynton, fiscal general adjunto principal de la División Civil del Departamento de Justicia. “Las personas que estafen a nuestras comunidades de inmigrantes serán llevadas ante la justicia y rendirán cuentas ante los tribunales estadounidenses”.
“Nuestros casos con la Subdivisión de Protección al Consumidor demuestran que el largo brazo de la justicia no tiene límites cuando se trata de alcanzar a los estafadores que se aprovechan de las poblaciones más vulnerables de nuestra nación”, declaró el fiscal federal del distrito sur de Florida, Juan Antonio Gonzalez. “Seguiremos llevando ante la justicia estadounidense a los delincuentes transnacionales que utilizan tácticas de miedo e intimidación para robar dinero a inmigrantes, ancianos y otras personas que viven en este país”.
“Durante muchos años, el Servicio de Inspección Postal de los EE. UU. y sus socios de las fuerzas del orden han investigado y perseguido a redes delictivas internacionales que tenían como objetivo robar a los consumidores estadounidenses el dinero que tanto les había costado ganar”, declaró el inspector en funciones Juan A. Vargas, de la División de Miami del Servicio de Inspección Postal de los EE. UU. “El Servicio de Inspección Postal de los EE. UU., junto con la Subdivisión de Protección al Consumidor del Departamento de Justicia y la Fiscalía General de los EE. UU., seguirá persiguiendo agresivamente a estos delincuentes para garantizar que sean procesados con todo el peso de la ley”.
Según los documentos judiciales, Rendón era propietario y operador de International Latin Market (“ILM”), un centro de distribución con sede en California que facilitó el plan de fraude de telemercadeo y extorsión a gran escala desde 2011 hasta finales de 2017. Rendón colaboró en el plan al facilitar listas de posibles víctimas a los centros de atención telefónica de Perú, procesar pagos con tarjeta de las víctimas y enviar tabletas informáticas de baja calidad precargadas con cursos de inglés a las víctimas de la zona de Miami y de todos los Estados Unidos.
Rendón, al igual que los demás acusados que se declararon culpables antes que él en esta investigación, admitió que los centros de atención telefónica y sus empleados afirmaban falsamente ser abogados, funcionarios judiciales, agentes federales y representantes de un supuesto “tribunal de delitos menores”, que no existe. Las personas que llamaban amenazaban falsamente a las víctimas con procesos judiciales, marcas negativas en sus informes crediticios, encarcelamiento y consecuencias migratorias si no pagaban inmediatamente los productos supuestamente entregados y las tarifas de conciliación.
Ángel Adrianzen, otro cómplice que operaba un centro de distribución con sede en los EE. UU. que ayudó a otro grupo de centros de atención telefónica peruanos fraudulentos, se declaró culpable de cargos similares en 2020. Adrianzen ayudó a sus cómplices a establecer y dotar de personal a centros de atención telefónica que estafaban a residentes de habla hispana de los Estados Unidos. El juez Scola condenó a Adrianzen a 121 meses de prisión.
Rendón será sentenciado el 16 de febrero de 2023 ante la jueza de distrito de los EE. UU., Patricia A. Seitz, en Miami. Se enfrenta a una pena máxima de 20 años de prisión.
El Servicio de Inspección Postal de los EE. UU. y la Subdirección de Protección al Consumidor investigaron el caso. El abogado litigante principal Phil Toomajian y el abogado litigante Max Goldman, de la Subdivisión de Protección al Consumidor, llevan los casos, y la fiscal adjunta Annika Miranda está encargada de la confiscación de bienes. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía de los EE. UU. del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú prestaron una ayuda fundamental.
El Departamento de Justicia sigue investigando y presentando cargos en otros asuntos similares relacionados con amenazas contra residentes hispanohablantes de los Estados Unidos. Si usted o alguien que conoce tiene 60 años o más y ha sido víctima de un fraude financiero, puede obtener ayuda en la Línea Directa Nacional Contra el Fraude a Personas Mayores: 1-833-FRAUD-11 (1-833-372-8311).
Encontrará más información sobre la Subdivisión de Protección al Consumidor y sus actividades de lucha contra el fraude en www.justice.gov/civil/consumer-protection-branch.
Tyler County woman sentenced for mail fraudRead the Press Release
WHEELING, WEST VIRGINIA – Margaret Ann Moffitt, of Sistersville, West Virginia, was sentenced today to 21 months of incarceration for mail fraud, United States Attorney William Ihlenfeld announced.
Moffitt, 62, pleaded guilty in August 2022 to one count of “Mail Fraud.” Moffitt stole money from the estate of someone in the amount of $156,744.87. As the executor of the estate, she made cash withdrawals and endorsed checks to be mailed to people not associated with the estate in any way. She then caused checks to be mailed to the beneficiaries of the estate, knowing the funds were no longer in the account. She stopped payments on those checks because she knew the funds were gone. The crimes occurred from August 2019 to December 2020 in Tyler and Wetzel Counties.
Moffitt was also ordered to pay $156,744.87 in restitution.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government. The West Virginia State Police and the Office of the Prosecuting Attorney for Tyler County investigated.
U.S. District Judge John Preston Bailey presided.
Two defendants appear on indictment connected to $7 million in drugs left on beach near Port Angeles, Washington in April 2021Read the Press Release
Seattle – Two of three defendants charged in a failed attempt to smuggle more than 400 pounds of methamphetamine and two pounds of fentanyl powder into Canada appeared in U.S. District Court in Seattle today, announced U.S. Attorney Nick Brown. Erika A. Bocelle, 32 , of Providence, Rhode Island and John Michael Sherwood, 65, currently of Idaho, appeared on an indictment today, connected to the April 2021 discovery of some $7 million of illegal drugs found on the beach near Port Angeles, Washington.
Bocelle, Sherwood and a third defendant, Kevin Christopher Gartry, 45, of British Columbia, Canada, are charged in a three-count indictment with conspiracy to distribute controlled substances, possession of controlled substances with intent to distribute, and conspiracy to commit international money laundering. All three defendants are in custody on unrelated charges and are being brought to western Washington on the indictment returned in August 2022.
On April 7, 2021, beachcombers near Port Angeles reported a black duffel bag with drugs inside. The Clallam County Sheriff’s office took possession of the bag found to contain 2 pounds of fentanyl powder and nearly 60 pounds of methamphetamine. The fentanyl powder was originally believed to be cocaine. Just days later, on April 11, 2021, a different beach walker reported another find – seven more duffel bags containing 342 pounds of methamphetamine. The Sheriff’s Office estimated the street value of the drugs as nearly $7 million.
Due to the large quantity of drugs involved, the defendants face a mandatory minimum ten years to life in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The grand jury indictment was returned after an extensive investigation by the FBI, Homeland Security Investigation (HSI), U.S. Border Patrol and the Border Patrol Air and Marine Unit, the Royal Canadian Mounted Police (RCMP), and the Olympic Peninsula Narcotics Enforcement Team (OPNET).
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
197110310942.pdf Drugs found on beachTwo Worcester County Men Arrested for Trafficking Contraband Smokeless Tobacco to Evade $2 Million in TaxesRead the Press Release
BOSTON – Two Worcester County men were arrested today for conspiring to traffic in contraband smokeless tobacco.
Mohammad Hanif Balaparya, 61, of Shrewsbury, and Rakesh Garg, 52, of Holden, were indicted by a federal grand jury with one count each of conspiracy to transport, possess, purchase and distribute in excess of 500 units of contraband smokeless tobacco. Balaparya was also indicted on one count of transporting and possessing over 500 units of smokeless tobacco. The defendants were arrested this morning and were released following an initial appearance in federal court in Worcester this afternoon.
According to the indictment, throughout 2017, Balaparya and Garg rented a commercial box truck on an almost weekly basis to drive to Pennsylvania. While in Pennsylvania, Balaparya allegedly purchased significant quantities of smokeless tobacco, which he transported back to Massachusetts and stored at his home. On one occasion, on Dec. 7, 2017, Balaparya allegedly transported more than 500 units of smokeless tobacco from Pennsylvania to Massachusetts. It is further alleged that Balaparya and Garg distributed the smokeless tobacco to certain convenience store owners in Massachusetts. By doing so, the two men evaded over $2 million in excise taxes that wholesale distributors of smokeless tobacco in Massachusetts are required to pay.
The charging statute provides for a sentence of up to five years in prison for each count, up to three years of supervised release, and a fine of $250,000, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Geoffrey E. Snyder, Commissioner of the Massachusetts Department of Revenue made the announcement today. Valuable assistance in the investigation was provided by the Shrewsbury and Holden police departments. Assistant U.S. Attorneys Greg A. Friedholm and Lucy Sun of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Brothers Sentenced to Prison for Access Device Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced two brothers, Andy Teruel Colina (25, Miami) and Adrian Teruel (31, Orlando), to federal prison terms. Andy Teruel Colina was sentenced to 5 years for aggravated identity theft and for producing, using, or trafficking in one or more counterfeit access devices, possession of 15 or more counterfeit and unauthorized access devices, and possession of device-making equipment. The court also ordered him to pay $1,703.23 in restitution and a special assessment of $400. He had pleaded guilty on August 26, 2022. Adrian Teruel was sentenced to 8 months’ imprisonment for producing, using, or trafficking in one or more counterfeit access devices. His prison sentence will run consecutively to his previously imposed 12-month term of imprisonment for a violation of supervised release. Adrian Teruel had pleaded guilty on August 16, 2022.
According to court documents, an investigation by the U.S. General Services Administration, Office of Inspector General (GSA-OIG) identified fraudulent credit card transactions associated with a credit card assigned to a government-owned vehicle leased by GSA to the United States Department of Veterans Affairs (VA) at the Orlando Veterans Affairs Medical Center at Lake Nona in Orlando. The account was determined to have been used for diesel fuel purchases exceeding the assigned vehicle's tank capacity and also involved inconsistent odometer entries for the vehicle in connection with the fuel purchases. The fraudulent purchases were made between March 7 and 14, 2020, at multiple gas stations in and around Orlando. The Office of Veterans Affairs confirmed that the credit card was not lost nor had any of the diesel fuel purchases made during that time period been authorized by the VA. The total loss on the credit card was determined to be $1,703.23.
As a result of the unauthorized use of the VA credit card account number, a joint investigation was undertaken by the GSA-OIG and U.S. Secret Service (USSS). It was later determined that a tow truck that was observed being fueled by diesel fuel purchased using the VA credit card was registered to Andy Teruel Colina. Agents obtained video surveillance from the gas stations where the cloned VA credit card was used to make unauthorized diesel fuel purchases. These videos depicted Andy Teruel Colina using the cloned VA credit card to fuel the tow truck. Further investigation revealed that the tow truck made numerous stops at various gas stations and to an unlawful fuel yard. Adrian Teruel was also observed on gas station video cameras using two counterfeit and unauthorized access devices to purchase diesel fuel for the tow truck on April 11, 2020.
A federal search warrant was executed at Andy Teruel Colina’s residence where agents found amongst other things, a bag containing two camera circuit boards, gorilla glue, black electrical tape, multiple battery packs, and a screwdriver. These items are consistent with a pin-hole camera, which is commonly used to obtain personal information such as a pin code at a credit card payment terminal at a fuel pump. Additionally, agents recovered a credit card encoder, two fuel pump barrel keys, and numerous counterfeit and unauthorized access devices in gift card format. The agents also found numerous electronic devices that contained credit and or debit card account numbers and names associated with the rightful card holders. In total, Andy Teruel Colina was found to be in possession of over 2,400 individual’s names and their credit or debit card account numbers.
This case was investigated by the U.S. Secret Service and the U.S. General Services Administration – Office of Inspector General, Southeast and Caribbean Regional Investigations Office. It was prosecuted by Assistant United States Attorney Terry B. Livanos.
Tomah Man Sentenced to 78 Months for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Stephen Thompson, 57, Tomah, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 78 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. Thompson pleaded guilty to this charge on August 31, 2022.
The government’s investigation revealed that Thompson received a total of nine packages containing methamphetamine in the mail from Arizona at various addresses in the Tomah area. On November 15, 2021, U.S. Postal Inspectors executed a search warrant on a parcel sent from Arizona and addressed to “Stephen Thompson” at an address in Sparta, Wisconsin. The parcel contained approximately one pound of methamphetamine. On March 17, 2022, Postal Inspectors executed a search warrant on a parcel sent to Thompson’s associate in Tomah. Inspectors found approximately 220 grams of methamphetamine in the parcel. Thompson was arrested that same day after taking possession of the parcel.
Thompson’s criminal history dates back to 1992 and includes six drug-related felonies as well as prior felony convictions for burglary and theft. At the sentencing hearing, Judge Conley concluded that a substantial sentence was warranted because Thompson received a significant amount of methamphetamine from Arizona and distributed it in the Tomah area.
The charge against Thompson is the result of a joint investigation by the Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, U.S. Postal Inspection Service, U.S. Postal Service – Office of the Inspector General, Trempealeau County Sheriff’s Office, Monroe County Sheriff’s Office, and West Central Metropolitan Enforcement Group. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Tigard Man Sentenced to Federal Prison for Trafficking Fentanyl, Other Illegal NarcoticsRead the Press Release
PORTLAND, Ore.—A Tigard, Oregon man was sentenced to federal prison today for trafficking illegal narcotics, including fentanyl and methamphetamine, in the Portland area.
Cole Richard Killion, 35, was sentenced to 72 months in federal prison and four years’ supervised release.
According to court documents, in March 2021, while investigating fentanyl trafficking in the Portland area, special agents from Homeland Security Investigations (HSI) learned, through various investigative tactics including financial analyses, that Killion was involved in the distribution of counterfeit oxycodone pills. Between December 2020 and February 2021, Killion’s bank account recorded 37 cash deposits and electronic funds transfers totaling approximately $56,000, which was inconsistent with his apparent employment status.
On August 4, 2021, agents executed a federal search warrant on Killion’s Tigard residence where he was living with his parents. That day, Killion left the house carrying a rectangular case containing more than 500 counterfeit oxycodone pills and various drug paraphernalia. A further search of the residence returned an additional 1,500 pills later confirmed to contain fentanyl, 187 grams of heroin laced with fentanyl, 345 grams of methamphetamine, and 501 grams of cocaine. Investigators also located two firearms, ammunition, and other materials indicating Killion’s involvement in drug trafficking.
On August 5, 2021, Killion was charged by criminal complaint with possessing with intent to distribute fentanyl, methamphetamine, heroin, and cocaine; possessing a firearm in furtherance of a drug trafficking crime; and impeding an officer authorized to conduct a search a warrant. Later, on August 17, 2021, a federal grand jury indicted Killion on the drug trafficking and firearm charges. On October 12, 2022, he pleaded guilty to possessing with intent to distribute fentanyl and methamphetamine.
This case was investigated by HSI with assistance from the Washington County Sheriff’s Office and Westside Interagency Narcotics Task Force (WIN). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
WIN includes representatives from the Washington County Sheriff's Office and the Beaverton, Hillsboro, and Tigard Police Departments.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you are in immediate danger, please call 911.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Three Men Sentenced to Decades in Federal Prison for A Robbery on the Big Cypress Reservation Resulting in the Death of A VictimRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Johan Holder (26, Clewiston) to 40 years, Sylvanis Brice (31, Clewiston) to 40 years, and Uriah Waggerby (25, Clewiston) to 18 years in federal prison, respectively, for their roles in an attempted robbery that resulted in the killing of a victim on the Big Cypress Indian Reservation in Clewiston. The Big Cypress Indian Reservation is one of the reservations of the Seminole Tribe of Florida. On July 20, 2022, following an eight-day trial, a jury found Holder and Brice guilty of conspiracy and robbery. The jury found Waggerby guilty of conspiracy.
According to testimony and evidence presented at trial, shortly before midnight on November 1, 2016, men wearing hoodies, masks and gloves, and brandishing firearms attempted to commit a robbery at a residence on the Big Cypress Reservation. During the robbery attempt, one of the masked men fired a shot that struck and killed a young man who had been visiting the targeted residence. Immediately after the shooting, the masked assailants fled the area. As the assailants had concealed their identities during the robbery attempt, no one at the scene was able to identify the perpetrators. Subsequent efforts to identify the assailants through fingerprint and DNA evidence were also unsuccessful.
Waggerby later admitted to his involvement in the robbery, telling investigators that he had met with men in the Harlem area of Clewiston prior to the robbery and directed them to rob a particular house on the reservation because a resident there was a marijuana dealer. As a result of an exhaustive law enforcement investigation, Brice and Holder were identified as perpetrators who had committed the attempted armed robbery on the reservation.
This case was investigated by the Federal Bureau of Investigation and the Seminole Police Department, as part of the joint Federal Bureau of Investigation/Seminole Police Department Safe Trails Task Force, which has been in existence since 2010. It was prosecuted by Assistant United States Attorneys Michael Sinacore and Simon Eth.
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.
Three Health Care Providers Agree to Pay $22.5 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
Dignity Health (Dignity), a not-for-profit health system that owns and operates three hospitals and one clinic in Santa Barbara County and San Luis Obispo County, California, and Twin Cities Community Hospital (Twin Cities) and Sierra Vista Regional Medical Center (Sierra Vista), two acute healthcare facility subsidiaries of Tenet Healthcare Corporation operating in San Luis Obispo County, California, have agreed to pay a total of $22.5 million pursuant to two separate settlements to resolve allegations that they violated the federal False Claims Act and the California False Claims Act by causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), if a California county organized health system (COHS) did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” the COHS was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The two settlements resolve allegations that Dignity, Twin Cities and Sierra Vista knowingly caused the submission of false claims to Medi-Cal for “Enhanced Services” that Dignity purportedly provided to the Adult Expansion patients of a COHS between Feb. 1, 2015, and June 30, 2016, and that Twin Cities and Sierra Vista purportedly provided to such patients between Jan. 1, 2014, and April 30, 2015. The United States and California alleged that the payments were not “allowed medical expenses” permissible under the contract between DHCS and the COHS; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided; and/or the Enhanced Services were duplicative of services already required to be rendered. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
As a result of the settlements, Dignity will pay $13.5 million to the United States and $1.5 million to the State of California, and Twin Cities and Sierra Vista will pay $6.75 million to the United States and $750,000 to the State of California.
“When health care providers misuse Medicaid funds, they undermine the integrity of the Medicaid program and waste taxpayer funds,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “These settlements demonstrate the Department’s continued commitment to prevent providers from inappropriately using Medicaid or other federal health care programs for their own financial gain.”
“These health care providers siphoned critical Medicaid funding for their own gain instead of using it to provide health care services to patients most in need,” said U.S. Attorney Martin Estrada for the Central District of California. “These major settlements demonstrate our commitment to hold accountable health care providers that seek to exploit the Medicaid program and harm the American taxpayer.”
“Every day, Medi-Cal provides support for Californians in need of essential healthcare, and when companies take advantage of this system at the expense of patients, they must be held accountable,” said Attorney General Rob Bonta. “I want to express my gratitude to the U.S. Department of Justice and the U.S. Attorney’s Office in Los Angeles for their extensive efforts throughout the course of this investigation. The California Department of Justice will continue to prosecute corporations that seek to abuse the Medi-Cal system for their own benefit.”
“Bad actors who target and exploit Medicaid for unlawful profit drain the program of much-needed funds intended to support the health and safety of our nation’s individuals who need these resources the most,” stated Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services. “HHS-OIG readily applies our investigative aptitude to, with our law enforcement partners, pursue providers suspected of defrauding this and other federal health care programs.”
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, the former medical director of the COHS that contracted with Dignity, Twin Cities, and Sierra Vista for the provision of health care services under Medi-Cal. Under the act, 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 United States and State of California ex rel. Bordas v. Dignity Health and Tenet Healthcare Corporation, et al. (C.D. Cal.). Mr. Bordas will receive $3.9 million as his share of the federal recovery.
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, the U.S. Attorney’s Office for the Central District of California and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation and resolution 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 800-HHS-TIPS (800-447-8477).
Trial Attorneys Mary Beth Hickcox-Howard and Tiffany Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled this case.
The claims resolved by the settlements are allegations only and there has been no determination of liability.