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7 December 2022
Three Central Coast Health Care Providers Agree to Pay $22.5 Million for Alleged False Claims to Medi-Cal ProgramRead the Press Release
LOS ANGELES – Pursuant to two settlements announced today, several Central Coast health care providers have agreed to pay a total of $22.5 million to resolve allegations that they violated federal and California law by causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Dignity Health, a not-for-profit health system that owns and operates three hospitals and one clinic in Santa Barbara and San Luis Obispo counties, entered into one agreement with the United States and the California. The second settlement agreement resolves allegations against Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two acute healthcare facility subsidiaries of Tenet Healthcare Corporation operating in San Luis Obispo County.
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 February 1, 2015 and June 30, 2016, and that Twin Cities and Sierra Vista purportedly provided to such patients between January 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 its settlement, Dignity will pay $13.5 million to the United States and $1.5 million to the State of California. Twin Cities and Sierra Vista have agreed to pay $6.75 million to the United States and $750,000 to the State of California.
“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 United States Attorney Martin Estrada. “These major settlements demonstrate our commitment to hold accountable health care providers that seek to exploit the Medicaid program and harm the American taxpayer.”
“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.”
“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 United States Department of Justice and the United States 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 U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office. “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 federal 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. 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 United States Attorney’s Office; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and the California Department of Justice. HHS-OIG and DHCS provided substantial assistance.
Assistant United States Attorney Jack D. Ross of the Civil Fraud Section and Trial Attorneys Mary Beth Hickcox-Howard and Tiffany Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this case.
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).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Theranos President Sentenced to More Than 12 Years for Fraud That Jeopardized Patient Health and Bilked Investors of MillionsRead the Press Release
SAN JOSE – Ramesh “Sunny” Balwani was sentenced today to 155 months (12 years, 11 months) in federal prison for fraud that risked patient health by misrepresenting the accuracy of Theranos blood analysis technology and that defrauded Theranos investors of millions of dollars, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, Food and Drug Administration (FDA) Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, and U.S. Postal Inspection Service (USPIS) San Francisco Division Acting Inspector in Charge Kevin Rho. United States District Judge Edward J. Davila presided over his jury trial and imposed today’s sentence.
“Patient health is the highest priority of our healthcare system, and Silicon Valley has long been home to healthcare start-ups that enhance the care of patients through technological developments,” said U.S. Attorney Stephanie M. Hinds. “Ramesh Balwani, in a desire to become a Silicon Valley titan, valued business success and personal wealth far more than patient safety. He chose deceit over candor with patients in need of medical care, and he treated his investors no better. Today’s sentence should serve as a lesson to anyone considering fraud in their own push for success.” A link to a video statement by U.S. Attorney Hinds is available here: https://youtu.be/GmA6GqCng_8.
“Balwani not only deliberately concealed defects in Theranos' blood-testing technology to mislead investors, he knowingly put patients’ health at risk,” said FBI Special Agent in Charge Robert Tripp. “Today's sentence reflects years of dedication by the FBI and our partners to investigate fraud within Theranos and bring the company's leadership to justice.”
“Patients and their doctors rely on accurate, reliable test results to ensure a proper diagnosis of their condition. When individuals jeopardize patient health and put profits above the public health, the FDA will continue to investigate and bring them to justice,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen.
“Postal Inspectors and our law enforcement partners will continue to bring criminals to justice for schemes to defraud investors looking for innovation or concerned patients seeking health care,” said USPIS San Francisco Division Acting Inspector-In-Charge Kevin Rho. “Today’s sentence should be considered a serious message to anyone else who would engages in high tech medical quackery.”
Balwani, 57, of Fremont, Calif., was employed from September 2009 through July 2016 at Theranos, Inc. Over time he held the positions of board member, chief operating officer and president. Theranos, now defunct, was a blood testing company based in Palo Alto and Newark, Calif., that was founded in 2003 by Balwani’s former romantic partner Elizabeth Holmes, 38, of Woodside, Calif. Trial evidence showed that Balwani and Holmes, who was chairperson and CEO, claimed Theranos developed a revolutionary blood analyzer, variously referred to as the Theranos Sample Processing Unit (TSPU), the Edison, and the minilab. They described the Theranos blood analyzer device as a single device that could run any blood test run by conventional labs using only a small blood sample drawn via a fingerstick, rather than the traditional draw from a vein. Balwani and Holmes asserted that the Theranos proprietary analyzer produced results that were cheaper, more reliable and less variable than existing methods, and obtained results at a speed faster than ever before possible.
Among many other representations, Balwani reviewed and approved a 2013 Wall Street Journal article suggesting that Theranos had “devices that automate and miniaturize more than 1,000 laboratory tests” and stating that “Theranos’ processes are faster, cheaper, and more accurate than the conventional methods” and that “Theranos’ technology eliminates multiple lab trips because it can ‘run any combination of tests, including sets of follow-on tests,’ at once, very quickly, all from a single microsample.”
The descriptions approved by Balwani were false and misleading. Trial evidence demonstrated that both Balwani and Holmes knew that the analyzer performed only a few basic tests and was slower than existing devices. They repeatedly resorted to using conventional machines to obtain the blood test results that the Theranos analyzer was supposed to perform. However, they led investors and the public to believe that Theranos was conducting essentially all of its tests using only its Theranos analyzer. Evidence demonstrated that Balwani and Holmes were aware that the Theranos analyzer’s limited capabilities meant it could not compete in the market, but they nevertheless trumpeted false claims and representations about the analyzer’s capabilities and conspired to convince patients and investors that the claims were true.
Evidence at trial and examples in a sentencing memorandum filed by the government demonstrate the dark reality these misrepresentations created for patients. To portray Theranos as a legitimate enterprise, Theranos eventually offered the blood analyzer to the public to perform a “full range” of tests, despite internal protests from Theranos employees and even resignations by staff. Numerous misdiagnoses followed. A physician who testified at trial had sought Theranos testing and repeatedly received extremely elevated PSA results in comparison to earlier conventional tests. Elevated PSA is an indicator of prostate cancer. The Theranos results were later proved inaccurate when traditional, FDA-approved methods tests were run. In another example, a pregnant woman who had suffered multiple miscarriages obtained HCG values from Theranos testing that strongly indicated she was miscarrying again. However, confirmatory tests by conventional methods indicated a viable pregnancy, and the woman went on to deliver a healthy baby. This scenario played out with multiple pregnant women who received erroneous HCG results from Theranos tests. Even Theranos employees were not immune from inaccurate tests. One Theranos employee took blood-thinning medicine due to a history of blood clots and, when tested at Theranos, received a series of results that showed markedly different levels from previous conventional tests. As a result, a doctor adjusted employee’s medication. Confirmatory testing at a traditional lab showed the employee’s levels were normal; the medication adjustment had been unnecessary.
These types of test results occurred many times. Theranos itself eventually concluded a patient impact existed for every test run on a patient and voided all tests with its analyzer.
Amidst their repeated technology failures, trial evidence showed that Balwani and Holmes chose to continue deceiving their investor-victims and to proceed with the elaborate investor fraud conspiracy. They induced dozens of investors, many of whom were prominent public figures, to invest hundreds of millions of dollars in Theranos by using consistently glowing but false representations to investors and potential investors about the analyzer’s progress and its capabilities. Balwani and Holmes asserted to investors that the Theranos technology had been comprehensively validated by multiple major pharmaceutical companies and was being used by the Department of Defense to treat wounded soldiers where, it was represented, it “actually saved lives in the battlefield.” In truth, pharmaceutical companies did little work with Theranos and did not validate its technology, and the Department of Defense never used Theranos’ analyzer to clinically treat soldiers. False representations were also made that Theranos would dramatically increase its number of Wellness Centers within stores operated by its partner Walgreens from a few dozen to 900, despite Balwani and Holmes knowing at the time that the relationship with Walgreens was stagnating.
Trial evidence demonstrated that Balwani and Holmes continued to tout Theranos’ analyzer as a revolution in healthcare while misrepresenting the dire financial status of Theranos. Despite Theranos having zero revenue in 2012 and 2013, they represented to investors in late 2013 and 2014 that Theranos had hundreds of millions in revenue from a combination of pharmaceutical companies and the military. Balwani conspired to induce Walgreens and Safeway to invest in Theranos based on false pharmaceutical company endorsements and fantastical revenue projections. By March 2015, Theranos raised more than $730 million dollars from “Series C-1” and “Series C-2” investors who invested subsequent to Theranos’ public relations push in 2013.
Trial evidence showed the fraud brought spectacular personal wealth to Balwani. Balwani owned nearly 30 million shares of Theranos – over 6% of the company – which were worth hundreds of millions of dollars at the peak of the fraud. The government’s sentencing memo points out that, like Holmes, Balwani enjoyed the perks of serving as a Silicon Valley titan. Balwani’s yearned to “build the true American empire. A monopoly. Our obligation to USA.”Federal criminal charges were initially filed against Balwani and Holmes on June 14, 2018. On July 28, 2020, a federal grand jury returned a superseding indictment charging both with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and ten counts of wire fraud, in violation of 18 U.S.C. § 1343. Of the two conspiracy counts, one alleged Balwani and Holmes conspired to defraud investors and the second alleged Balwani and Holmes conspired to defraud patients who used Theranos services. Some of the ten counts of wire fraud alleged Balwani and Holmes committed fraud on individual investors while others alleged Balwani and Holmes defrauded patients who were induced to purchase Theranos services.
On July 7, 2022, after a four month trial, a federal jury convicted Balwani of all counts.
Balwani was tried separately from Holmes, and in her trial Holmes was not convicted of all counts. On January 3, 2022, a different federal jury convicted Holmes of one count of conspiracy to commit fraud on investors and three counts of committing fraud on individual investors, which involved wire transfers totaling more than $140 million. The jury acquitted Holmes of the patient-related fraud conspiracy count and the three counts of fraud against individual patients. The jury could not reach a unanimous verdict with respect to three individual investor fraud counts against Holmes. An additional count of wire fraud relating to a Theranos patient had been dismissed during trial. On November 18, 2022, U.S. District Judge Davila sentenced Holmes to 135 months (11 years, 3 months) in federal prison. She was ordered to surrender to begin serving her sentence on April 27, 2023.
In addition to the 155 month prison term, U.S. District Judge Davila sentenced Balwani to three years of supervision following release from prison. A hearing to determine the amount of restitution to be paid by Balwani is to be scheduled in the future. Balwani was ordered to surrender on March 15, 2023, to begin serving his prison sentence.
Assistant U.S. Attorneys Robert S. Leach, Jeff Schenk, John C. Bostic, and Kelly Volkar prosecuted the case with the assistance of Madeline Wachs, Lakisha Holliman, Sara Slattery, Elise Etter, Susan Kreider, and Leeya Kekona. The prosecution is the result of an investigation by the FBI, USPIS, and the FDA Office of Criminal Investigations.
The United States Attorney of Puerto Rico and the FBI San Juan Encourage You to Think Before You Post (#ThinkBeforeYouPost)Read the Press Release
SAN JUAN, Puerto Rico –The United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, and the Special Agent in Charge (SAC) of the San Juan Office of the Federal Bureau of Investigation (FBI), Joseph González, today warned the public about the serious consequences of issuing threats to schools or colleagues and reminded the community that hoax threats are no joke.
“Making a threat against the safety of a person or an organization through social media, by text message, or by email is a federal crime for constituting a threat through interstate communications. Those who post or send such threats can receive up to five years in federal prison, or may face charges before the courts in Puerto Rico,” said US Attorney Muldrow. He also added that “a reckless and impetuous comment on social media could result in our youth beginning their adult life in prison and becoming labeled as criminals for the rest of their days. It is necessary to educate them to avoid such dire consequences.”
“Public safety is our number one concern. When it comes to threats to schools and other public places, our posture is to treat all threats as credible to ensure public safety and thoroughly investigate the origin of every threat,” said SAC González. “We will follow every tip to get to the bottom of each occurrence. So, to those making hoax threats, know that, even if you never intended to carry them out, threatening a school is not a joke. It is a serious federal crime which could result in up to five years in prison.”
Public assistance is crucial to support the efforts of federal and state agencies to counter this trend. Therefore, people with information about any possible threat or suspicious activity that puts security in schools and in the community at risk should contact the FBI in San Juan by calling 787-987-6500.
Also, if you understand that your safety or the safety of others is in imminent danger, call 9-1-1 immediately.
We wish to emphasize that threats to schools and other organizations not only cause serious emotional distress to students, school staff, and parents, but also create a great social toll. Schools lose valuable teaching time responding to these threats, and state and federal law enforcement agencies spend countless man hours and resources investigating each threat to determine its credibility and protect the public. Furthermore, a young person can ruin their future by making a false threat to a school and end up being prosecuted.
For all these reasons, please think before you post. #ThinkBeforeYouPost
What can you do to help?
1. Never post or send false threats… period.
2. If you are the subject of an online threat, alert your local authorities immediately.
3. If you see a threat posted on social media, contact the authorities and the FBI immediately.
4. Notify authorities, but do not share or distribute the threat until authorities have had a chance to investigate – doing so can spread incorrect information and cause panic in the community.
5. If you are a parent or relative, be aware that some young people post these threats seeking attention, revenge, or to manipulate. Talk to the children and young people in your care about the correct way to express your frustrations and other emotions. Explain to them the importance of responsible use of social networks and the consequences of posting false threats.
Additional Resources:
- https://www.fbi.gov/image-repository/think-before-you-post-hoax-threats-graphic-052318.jpg
- Think Before You Post PSA
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Fiscalía Federal de Puerto Rico y el FBI San Juan
Exhortan a Pensar Antes de Publicar (#ThinkBeforeYouPost)
SAN JUAN, Puerto Rico – El Fiscal Federal para el Distrito de Puerto Rico, W. Stephen Muldrow, y el Agente Especial a Cargo de la Oficina de San Juan del Negociado Federal de Investigación (FBI, por sus siglas en inglés), Joseph González, advirtieron hoy a la ciudadanía sobre las serias consecuencias de emitir amenazas a escuelas o compañeros, y recordaron a la comunidad que las amenazas falsas o “hoax threats” no son cosa de bromas.
“Hacer una amenaza contra la seguridad de una persona o una organización a través de las redes sociales, por mensaje de texto, o por correo electrónico es un delito federal por constituir una amenaza mediante comunicaciones interestatales. Aquellos que publiquen o envíen dichas amenazas pueden recibir hasta cinco años en una prisión federal, o pueden enfrentar cargos ante los tribunales en Puerto Rico”, comentó el Fiscal Federal Muldrow. También añadió que “un comentario imprudente e impetuoso en las redes sociales pudiese resultar en que nuestros jóvenes comiencen su vida adulta en prisión y que lleguen a ser etiquetados como delincuentes por el resto de sus días. Es necesario educarlos para evitar tan nefastas consecuencias”.
“La seguridad pública es nuestra prioridad número uno. Cuando se trata de amenazas a escuelas y otros lugares públicos, nuestra postura es de tratar toda amenaza como si fuese creíble para garantizar la seguridad del público”, dijo González, quien dirige el FBI en Puerto Rico. “Seguiremos cada pista y llegaremos hasta el final de cada uno de estos eventos. Para aquellos que estén realizando estas amenazas, sepan que, aún si nunca tuvo la intención de cometer un delito, una amenaza de esta naturaleza no es un chiste. La mera amenaza es un crimen federal serio que conlleva hasta cinco años de cárcel”.
La asistencia del público es crucial para apoyar los esfuerzos de las agencias federales y estatales de contrarrestar esta tendencia. Por eso, las personas con información sobre cualquier posible amenaza o actividad sospechosa que ponga en riesgo la seguridad en las escuelas y en la comunidad deben contactar al FBI en San Juan llamando al 787-987-6500.
Además, si usted entiende que su seguridad o la seguridad de otros está en peligro inminente, llame al 9-1-1 inmediatamente.
Deseamos recalcar que las amenazas a escuelas y otras organizaciones no sólo causan angustia emocional grave a los estudiantes, el personal escolar y los padres, sino que también crean un gran cargo social. Las escuelas pierden tiempo valioso de enseñanza al tener que responder a estas amenazas, y las agencias estatales y federales de ley y orden dedican incontables horas de trabajo y una gran cantidad de recursos investigando cada amenaza para determinar su credibilidad y proteger a la ciudadanía. Mas aún, una persona joven puede arruinar su futuro al realizar una amenaza falsa a una escuela y terminar siendo procesado.
Por todas estas razones, por favor, piense antes de publicar. #ThinkBeforeYouPost
¿Qué puede hacer para ayudar?
- Nunca publique o envíe amenazas falsas… punto.
- Si usted es objeto de una amenaza en línea, alerte a las autoridades locales de inmediato.
- Si usted ve una amenaza publicada en las redes sociales, contacte a las autoridades y al FBI de inmediato.
- Notifique a las autoridades, pero no comparta ni distribuya la amenaza hasta que las autoridades hayan tenido la oportunidad de investigar – hacerlo puede difundir información incorrecta y ocasionar pánico en la comunidad.
- Si usted es padre, madre o familiar, sepa que algunos jóvenes publican estas amenazas buscando atención, venganza o para manipular. Hable con los niños y jóvenes a su cargo sobre la forma correcta de expresar sus frustraciones y otras emociones. Explíqueles sobre la importancia del uso responsable de las redes sociales y de las consecuencias de publicar amenazas falsas.
Recursos adicionales:
- https://www.fbi.gov/image-repository/think-before-you-post-hoax-threats-graphic-052318.jpg
- Think Before You Post PSA
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Texas Man Sentenced for Mail Fraud in Financial SchemeRead the Press Release
Acting United States Attorney Steven Russell announced that Frederick Voight, 65, of Richmond, Texas, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard for mail fraud. Voight was sentenced to 66 months in prison and will also serve 3 years on supervised release. There is no parole in the federal system. Voight was also ordered to pay restitution to the victims in the case in the amount of $40,903,052.09.
Between September 2009 and October 4, 2018, Voight conducted business through various business entities, including F.A. Voight and Associates, LP, (FAVA), Voight Financial Services, Inc. and Daystar Funding, LP. Voight represented to investors that he would search for companies that had an "excellent and innovative product in a growing market" but were short of cash needed to take their product to market. Voight further represented that his business entities pooled investor funds and provided financing to companies in the form of secured loans with equity components in some transactions. Voight knowingly failed to disclose certain material facts to lenders and potential lenders in correspondence and other materials that he knew the lenders and potential lenders would rely on in deciding whether to loan their monies to business entities owned by and/or affiliated with Voight, and/or to renew or "rollover" existing loans instead of being repaid their principal. These omissions, combined with other statements made to the lenders and potential lenders, led some lenders and potential lenders to believe that the full amount of money they lent to Voight's entities would in turn be invested in specifically identified companies, referred to as "program companies."
As Voight knew, most of the money received from the lenders was not in turn invested directly into the program companies. Instead, interest payments and principal repayments made by Voight to investors generally did not come from interest payments made by the program companies but instead was primarily derived from the proceeds of new loans from lenders. Voight failed to disclose to lenders the material fact that he was making interest payments to other lenders with funds acquired from new lenders and/or new loan monies from prior lenders into Voight's "Programs." By failing to provide them with information about the source of their interest and the use of their funds, Voight deprived lenders of materially valuable information needed to decide how to use their assets and monies.
With respect to the count Voight pleaded guilty to, as part of the scheme, Voight knowingly caused items to be sent and placed in the U.S. Mail from victims in Holdrege, Nebraska, to the office of FAVA in Richmond, Texas on February 4, 2013. The items mailed included a check in the amount of $45,000 payable to FAVA, for the "RevH2O program". The items represented the proceeds of a loan made by the victims with the belief that the proceeds of their loan to Voight's company would in turn be used by Voight's company to provide funding to RevH2O. In truth and fact, as Voight well knew, the money provided by the victims did not go to RevH20 but was in fact used primarily to pay interest payments to other lenders without the knowledge or consent of the victims. The victims were never told by Voight how their money was actually used, depriving them of material information regarding the use of their investment.
“Today’s sentence of Frederick Voight shows the resolve and determination of the U.S. Postal Inspection Service and our law enforcement partners to bring criminals to justice,” said Ruth Mendonça, Postal Inspector in Charge of the Denver Division, which includes oversight of operations in Nebraska. “Mr. Voight’s success with defrauding so many individuals emphasizes how important it is to exercise caution when investing, no matter how much trust you have in the individual or company you are investing with. Fortunately, the U.S. Postal Inspection Service and our law enforcement partners will continue to be steadfast in identifying and investigating fraudulent investment schemes dependent on the U.S. Mail to defraud investors.”
During the course of Voight’s scheme to defraud, the investors and related business entities lost approximately $40,903,052.09.
This case was investigated by the United States Postal Service Office of Investigations, the Federal Bureau of Investigation and the Internal Revenue Service.
Stafford Man Pleads Guilty to Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID KAMAL, 60, of Stafford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to tax evasion.
According to court documents and statements made in court, Kamal, who formerly resided in Hebron, willfully evaded taxes for the 2012 tax year by filing a false tax return for that year. On the tax return, Kamal claimed false deductions, including deductions for moving expenses and medical expenses he had not incurred. Kamal subsequently provided false documentation for the moving expenses, including invoices and bank statements, to an attorney for the IRS in connection with U.S. tax court proceedings. Kamal also filed false tax returns for the 2013 through 2017 tax years by claiming false and inflated unreimbursed medical and dental expenses.
Kamal has agreed to cooperate with the IRS to pay $163,264 in back taxes, as well interest and penalties.
Judge Shea scheduled sentencing for March 2, at which time Kamal faces a maximum term of imprisonment of five years. Kamal is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Spokane Man Sentenced to 27 Years for Child Sex TraffickingRead the Press Release
Spokane – On December 7, 2022, U.S. District Judge Thomas O. Rice sentenced Trever Daniel Harder, 35, of Spokane, to 27 years in prison for engaging in the sex trafficking of a six-year-old girl. Upon his release from prison, Harder will be on federal supervision for the remainder of his life, and he will be required to register as a sex offender. The Court also ordered Harder to pay nearly $30,000 in restitution, along with a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act.
According to court documents and proceedings, Harder met an adult woman online in early 2021 using the social media application “Plenty of Fish.” Within days, Harder sought out sexual contact with a minor child to whom the adult woman had access. Harder and the adult woman negotiated a series of transactions in which Harder gained sexual access to the child by providing the adult woman with a place to stay, cash, and the promise of new Nike sneakers. Harder then engaged in illicit sexual acts with the minor victim. Earlier this year, the adult woman was convicted of conspiracy to engage in the sex trafficking of a child, and Judge Rice imposed a multi-decade sentence on her, as well.
“Today the Court addressed the egregious sexual abuse of a child. Its sentence is significant, but it pales in comparison to what the child has endured,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “No sentence can return the child’s innocence, but our community is safer and stronger with these two defendants in federal prison. Most important, the child is now in a safe place.” U.S. Attorney Waldref emphasized the vigilance with which law enforcement protects children from sexual harm: “My office will continue to prioritize cases involving individuals who seek to exploit and abuse children online or in person.”
David M. Herzog, the Assistant United States Attorney who prosecuted the case, thanked the agencies responsible for the investigation and the protection of the young victim. “Incredibly dedicated FBI agents worked hand-in-hand with state, local, and tribal law enforcement to secure justice for the victim in this case and to protect this child from further sexual abuse.”
“The defendant’s conduct in this case was horrific,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “I commend the professionalism and dedication of our investigators and partners, who sought justice for a child who could not seek it on her own.”This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the FBI’s Spokane Resident Office and the Spokane Police Department, with significant assistance from the Quileute Nation. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
United States v. Harder, 2:21-CR-00165-TOR-1South Florida Woman Sentenced to 3 Years for Her Role in A Health Care Fraud ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Ruth Bianca Fernandez (39, Pompano Beach) to three years in federal prison for her role in a conspiracy to commit health care fraud and for making a false statement in a matter involving a federal health care benefit program. As part of her sentence, the court ordered Fernandez to pay approximately $12 million to the affected government health programs and an insurance company, which obligation is joint and several with other coconspirators. The court also entered an order of forfeiture against Fernandez in the amount of $62,650. Fernandez had pleaded guilty on October 18, 2021.
According to court documents, beginning in January 2018 and continuing into April 2019, Patsy Truglia, previously sentenced to a 15-year term of imprisonment, Fernandez, who worked directly under Truglia’s supervision and direction, and other conspirators generated medically unnecessary physicians’ orders via their telemarketing operation for certain orthotic devices—knee braces, back braces, wrist braces, and other braces—referred to as durable medical equipment (“DME”). Through the telemarketing operation, federal health care program beneficiaries’ (i.e., Medicare beneficiaries’) personal and medical information was harvested to create the unnecessary DME brace orders. The brace orders were then forwarded to purported “telemedicine” vendors that, in exchange for a fee, paid illegal bribes to physicians to sign the orders, often without ever contacting the beneficiaries to conduct the required telehealth consultations. The fraudulent, illegal brace orders were then returned to Truglia’s telemarketing operation, which used the orders as support for millions of dollars in false and fraudulent claims submitted to the Medicare program. To avoid Medicare scrutiny, Truglia and Fernandez spread the fraudulent claims across five DME storefronts operated under Truglia’s control and Fernandez’s day-to-day management. In all, through their five storefronts, Truglia, Fernandez, and other conspirators caused approximately $25 million in fraudulent DME claims to be submitted to Medicare, resulting in approximately $12 million in payments.
“Submitting fraudulent claims to Medicare for medically unnecessary equipment diverts funding meant to cover the cost of caring for vulnerable beneficiaries,” stated Special Agent in Charge Omar Pérez Aybar with the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to work with our law enforcement partners to identify and hold accountable bad actors who commit health care fraud.”
“This investigation reflects the FBI’s continuing efforts to safeguard Federal healthcare programs from greed-fueled fraud schemes,” said FBI Tampa Division Special Agent in Charge David Walker.
“This sentence today holds the defendant accountable for her role in a fraud scheme that bilked federal healthcare programs out of millions of dollars. The VA OIG is committed to rooting out fraud committed against healthcare programs for veterans and their families,” said Special Agent in Charge David Spilker of the VA Office of Inspector General’s Southeast Field Office. “We commend the collaborative efforts of our law enforcement partners in this important joint investigation.”
“Health care fraud is not a victimless crime. We all pay in multiple ways: the U.S. Treasury loses tens of billions of dollars per year and higher health care premiums are passed on to patients as a result of these scams,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “IRS-CI and our federal partners take the criminal acts committed by this defendant, and others, very seriously and will continue to follow fraudulent money flows no matter the underlying crime.”
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Department of Veterans Affairs – Office of Inspector General, and the Internal Revenue Service –Criminal Investigation’s Tampa Field Office. The criminal case was prosecuted by Assistant United States Attorneys Jay G. Trezevant, Tiffany E. Fields, and James A. Muench. A related federal civil action is being handled by Assistant United States Attorney Carolyn B. Tapie.
Sheridan Man Sentenced to 8 Years in Federal Prison for Distributing Child PornRead the Press Release
FAYETTEVILLE – A Sheridan, Arkansas man was sentenced yesterday to 96 months in prison without the possibility of parole on one count of Distribution of Child Pornography. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, Joshua Landon Hall, age 30, was identified by Homeland Security Investigations (HSI) pursuant to an ongoing child pornography investigation in November 2020. HSI’s investigation showed that Hall had sent child pornography to another user via online social media applications. HSI executed a federal search warrant on Hall’s residence and continued their investigation.
Hall pled guilty to an Information in May 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Homeland Security Investigations Fayetteville, and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force investigated the case.
Assistant U.S. Attorney Carly Marshall prosecuted the case.
This case was prosecuted 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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Seven Chilton County Residents Sentenced for Felony Violations of the Animal Welfare Act, Ending One of the Largest Cockfighting Operations in the CountryRead the Press Release
MONTGOMERY, ALABAMA – A seventh and final Verbena, Alabama, resident was sentenced yesterday for violating the Animal Welfare Act’s prohibition against animal fighting ventures in connection with an expansive cockfighting operation. This marks the end of a series of sentencings in which the Court held four Alabama residents accountable for their roles in operating a large-scale cockfighting arena (cockfighting pit) and massive fighting-bird breeding businesses, and for conspiring to violate the Animal Welfare Act and to operate an illegal gambling business. The Court determined that the illegal conduct involved animal fighting on an “exceptional scale” and imposed sentences which reflect the unusual cruelty of a business model that relies on the death or injury of thousands of birds for entertainment and profit.
The court issued the following sentences for four defendants who pleaded guilty to multiple felonies on August 5:
- On Dec. 6, George William “Billy” Easterling, 56, was sentenced to 22 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, Brent Colon Easterling, 38, was sentenced to 24 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the L&L Gamefarm fighting-bird breeding operation.
- On Nov. 30, William “Tyler” Easterling, 30, was sentenced to 20 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, William Colon “Jim” Easterling, 77, was sentenced to two years of home detention — rather than incarceration which the court determined would be “extremely detrimental” to his declining health — and a fine of $8,000 for violating the Animal Welfare Act’s prohibition against animal fighting ventures and for conspiring with others to violate the Act and to operate an illegal gambling business in connection with the cockfighting pit.
Three other residents of Verbena, Alabama, who are also members of the Easterling family, pleaded guilty on June 3 to conspiring to violate the Animal Welfare Act or to a substantive violation of the Act. On Oct.13, the following individuals were sentenced:
- Kassi Brook Easterling, 39, was sentenced to two years of probation, including six months of home detention, for conspiring with others to violate the Animal Welfare Act’s prohibition against animal fighting ventures, including the sale of cockfighting knives, and for her involvement with the L&L Gamefarm fighting-bird breeding operation.
- Amber Nicole Easterling, 25, was sentenced to one year of probation for her involvement with the cockfighting pit.
- Thomas Glyn “Junior” Williams, 34, was sentenced to one year of probation for his involvement with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
“These sentences demonstrate the importance of enforcing the Animal Welfare Act to ensure the humane treatment of animals and prohibit cruel practices such as cockfighting,” said United States Attorney Sandra Stewart for the Middle District of Alabama.
“As these sentences vividly show, the Department of Justice will continue to hold accountable those who encourage and profit from forcing animals to fight each other for human entertainment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“The U.S. Department of Agriculture Office of Inspector General (USDA-OIG) actively investigates allegations of animal abuse and any associated gambling activities,” said Special Agent in Charge Jason Williams of the USDA-OIG. “This agency has made animal fighting a high priority to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to thank the Justice Department for aggressively prosecuting perpetrators of animal fighting and our federal, state, and local law enforcement partners for assisting in enforcing these federal statutes.”
According to court documents and information in the public record, from at least January 2018 through June 11, 2021, illegal cockfighting events were held at the cockfighting pit, which consisted of an arena with stadium-style seating for approximately 150 people which faced several cockfighting pits and several nearby outbuildings including a merchandise stand. The illegal derbies involved a series of cockfights in which at least two or more roosters fought each other, each with a sharp blade attached to its leg. These fights were conducted for the purpose of sport, wagering, and entertainment. Participants were charged expensive fees to enter their birds in the derbies – such as $1,500 to fight seven roosters – and told what weapons to strap to the roosters’ legs, such as short knives, long knives, or spurs. Consistent with his plea agreement, William Colon Easterling dismantled and destroyed the entire cockfighting arena and associated outbuildings.
Near the cockfighting pit, members of the Easterling family ran two large fighting-bird breeding businesses known as Swift Creek Gamefarm and L&L Gamefarm at which thousands of birds were bred and sold to be used in fights between two or more birds for the purposes of sport, wagering, or entertainment.
Combined, the seven convicted members of the Easterling family helped run one of the largest cockfighting enterprises in the country. With the help of six of his family members, Jim Easterling owned and operated the cockfighting pit for many years, even enlisting his granddaughter, Amber Easterling, to sell weapons used to kill birds in cockfights at the merchandise stand. Brent Easterling was one of the most widely known fighting-bird breeders in the country, running L&L Gamefarm with his wife Kassi Easterling and charging $1,500 for three chickens because they were birds of select fighting pedigrees. Brent Easterling also promoted the cockfights at his father’s, Jim, cockfighting pit. Tyler Easterling helped his father, Billy Easterling, operate a vast fighting-bird breeding business known as Swift Creek Gamefarm where they employed their in-law, Junior Williams, and others to help maintain and ship fighting birds. Tyler Easterling also promoted several cockfights at his grandfather’s, Jim, cockfighting pit.
The USDA-OIG and Homeland Security Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Alabama Law Enforcement Agency and the Greenville County Sheriff’s Office in South Carolina provided invaluable assistance to federal law enforcement officers.
Trial Attorney Leigh Rendé and Senior Trial Attorney Gary Donner of the Environment and Natural Resources Division’s Environmental Crimes Section and First Assistant U.S. Attorney Jonathan Ross for the Middle District of Alabama prosecuted the case.
Seven Alabama Residents Sentenced for Felony Violations of the Animal Welfare Act, Ending One of the Largest Cockfighting Operations in the CountryRead the Press Release
A seventh and final Verbena, Alabama, resident was sentenced yesterday for violating the Animal Welfare Act’s prohibition against animal fighting ventures in connection with an expansive cockfighting operation. This marks the end of a week of sentencings in which the court held four Alabama residents accountable for their roles in operating a large-scale cockfighting arena (cockfighting pit) and massive fighting-bird breeding businesses, and for conspiring to violate the Animal Welfare Act and to operate an illegal gambling business. The court determined that the illegal conduct involved animal fighting on an “exceptional scale” and imposed sentences which reflect the unusual cruelty of a business model that relies on the death or injury of thousands of birds for entertainment and profit.
The court issued the following sentences for four defendants who pleaded guilty to multiple felonies on Aug. 5:
- On Dec. 6, George William “Billy” Easterling, 56, was sentenced to 22 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, Brent Colon Easterling, 38, was sentenced to 24 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the L&L Gamefarm fighting-bird breeding operation.
- On Nov. 30, William “Tyler” Easterling, 30, was sentenced to 20 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, William Colon “Jim” Easterling, 77, was sentenced to two years of home detention — rather than incarceration which the court determined would be “extremely detrimental” to his declining health — and a fine of $8,000 for violating the Animal Welfare Act’s prohibition against animal fighting ventures and for conspiring with others to violate the Act and to operate an illegal gambling business in connection with the cockfighting pit.
Three other residents of Verbena, Alabama, who are also members of the Easterling family, pleaded guilty on June 3 to conspiring to violate the Animal Welfare Act or to a substantive violation of the Act. On Oct.13, the following individuals were sentenced:
- Kassi Brook Easterling, 39, was sentenced to two years of probation, including six months of home detention, for conspiring with others to violate the Animal Welfare Act’s prohibition against animal fighting ventures, including the sale of cockfighting knives, and for her involvement with the L&L Gamefarm fighting-bird breeding operation.
- Amber Nicole Easterling, 25, was sentenced to one year of probation for her involvement with the cockfighting pit.
- Thomas Glyn “Junior” Williams, 34, was sentenced to one year of probation for his involvement with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
“As these sentences vividly show, the Department of Justice will continue to hold accountable those who encourage and profit from forcing animals to fight each other for human entertainment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“These sentences demonstrate the importance of enforcing the Animal Welfare Act to ensure the humane treatment of animals and prohibit cruel practices such as cockfighting,” said U.S. Attorney Sandra Stewart for the Middle District of Alabama.
“The U.S. Department of Agriculture Office of Inspector General (USDA-OIG) actively investigates allegations of animal abuse and any associated gambling activities,” said Special Agent in Charge Jason Williams of the USDA-OIG. “This agency has made animal fighting a high priority to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to thank the Justice Department for aggressively prosecuting perpetrators of animal fighting and our federal, state and local law enforcement partners for assisting in enforcing these federal statutes.”
According to court documents and information in the public record, from at least January 2018 through June 11, 2021, illegal cockfighting events were held at the cockfighting pit, which consisted of an arena with stadium-style seating for approximately 150 people which faced several cockfighting pits and several nearby outbuildings including a merchandise stand. The illegal derbies involved a series of cockfights in which at least two or more roosters fought each other, each with a sharp blade attached to its leg. These fights were conducted for the purpose of sport, wagering and entertainment. Participants were charged expensive fees to enter their birds in the derbies – such as $1,500 to fight seven roosters – and told what weapons to strap to the roosters’ legs, such as short knives, long knives or spurs. Consistent with his plea agreement, William Colon Easterling dismantled and destroyed the entire cockfighting arena and associated outbuildings.
Near the cockfighting pit, members of the Easterling family ran two large fighting-bird breeding businesses known as Swift Creek Gamefarm and L&L Gamefarm at which thousands of birds were bred and sold to be used in fights between two or more birds for the purposes of sport, wagering or entertainment.
Combined, the seven convicted members of the Easterling family helped run one of the largest cockfighting enterprises in the country. With the help of six of his family members, Jim Easterling owned and operated the cockfighting pit for many years, even enlisting his granddaughter, Amber Easterling, to sell weapons used to kill birds in cockfights at the merchandise stand. Brent Easterling was one of the most widely-known fighting-bird breeders in the country, running L&L Gamefarm with his wife Kassi Easterling and charging $1,500 for three chickens because they were birds of select fighting pedigrees. Brent Easterling also promoted the cockfights at his father’s, Jim, cockfighting pit. Tyler Easterling helped his father, Billy Easterling, operate a vast fighting-bird breeding business known as Swift Creek Gamefarm where they employed their in-law, Junior Williams, and others to help maintain and ship fighting birds. Tyler Easterling also promoted several cockfights at his grandfather’s, Jim, cockfighting pit.
The USDA-OIG and Homeland Security Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Alabama Law Enforcement Agency and the Greenville County Sheriff’s Office in South Carolina provided invaluable assistance to federal law enforcement officers.
Trial Attorney Leigh Rendé and Senior Trial Attorney Gary Donner of the Environment and Natural Resources Division’s Environmental Crimes Section and First Assistant U.S. Attorney Jonathan Ross for the Middle District of Alabama prosecuted the case.
Russian Intelligence Agent Charged with Fraud and Money Laundering in Connection with Purchase and Use of Luxury Beverly Hills Real EstateRead the Press Release
A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California. Derkach allegedly purchased the properties in violation of new U.S. sanctions imposed earlier this year and concealed his interest in the transactions. Derkach remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Andrew Adams, Director of Task Force Kleptocapture announced the charges.
“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing, and capable of exploiting our banking system in order to advance his illicit goals. The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”
“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services. While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions,” stated Assistant Director-in-Charge Driscoll.
“Attempting to enjoy the safety, security, and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force. It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections,” said Task Force KleptoCapture Director Andrew C. Adams.
Since 1998, except for a hiatus from November 2006 to November 2007, Derkach was a member of the Verkhovna Rada (Rada), Ukraine’s Parliament. During his time in the Rada, Derkach was a member of the Party of Regions, a pro-Russia political party, which was the ruling party in Ukraine from 2010 until the 2014 Ukrainian Euromaidan Revolution. On September 10, 2020 the United States Department of Treasury’s Office of Foreign Asset Control (OFAC) sanctioned Derkach and several companies he controlled pursuant to Executive Order 13848, calling him “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services” who “waged a covert influence campaign” to undermine the 2020 U.S. presidential election.
As alleged in the indictment, beginning in 2013, Derkach and a co-conspirator devised a scheme to purchase and maintain two luxury condominiums in Beverly Hills while concealing his interest in the transactions from U.S. financial institutions. Specifically, Derkach used the services of a corporate nominee, a multi-tiered structure of California-based shell companies, and numerous U.S. bank and brokerage accounts. Using this framework, Derkach wired approximately $3.92 million to the nominee from overseas accounts in Latvia and Switzerland belonging to companies registered in the British Virgin Islands. The money was then used to pay $3.2 million in cash in the name of a corporate entity set up by the nominee, with Derkach having no visible affiliation with the purchase. The remaining $800,000 was invested in a brokerage account maintained by the nominee for Derkach’s benefit and used to pay expenses on the condominiums, including taxes, homeowners’ fees, and utilities. Because Derkach had fraudulently obscured details about his identity and involvement from the financial institutions holding the aforementioned bank and brokerage accounts, he prevented those financial institutions from moving funds into blocked accounts, and instead caused those financial institutions to engage in transactions involving blocked funds and transactions for the benefit of the condominiums, which were blocked property pursuant to the sanctions.
A parallel civil forfeiture action has been initiated to seize the condominiums and the remaining funds in the U.S. brokerage and bank accounts that Derkach controls.
If convicted, Derkach faces a maximum of 30 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Jonathan E. Algor are in charge of the prosecution, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section and Litigation Analyst Ben Richmond. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by Attorney General Merrick Garland on March 2, 2022 under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The Defendant:
ANDRII DERKACH
Age: 55
Dnipropetrovsk, UkraineE.D.N.Y. Docket No.: 22-Cr-432 (DLI)
Rochester Man Going to Prison for Planning the Robbery by Gunpoint of A Cell Phone StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney Trini E. Ross announced today that James A. Houston a/k/a Hood, 36, of Rochester, NY, who was convicted of Hobbs Act robbery and brandishing a firearm during a crime of violence, was sentenced to serve 84 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Robert A. Marangola, who handled the case, stated Houston, along with co-defendants Troy L. McCullough, Raekwon D. Fuqua, and others, robbed the AT&T store on E. Ridge Road in Irondequoit on December 3, 2019. Defendant McCullough entered the store wearing a mask and gloves and brandishing and pointing a firearm at a store employee, ordering the employee to open the store safe. McCullough and co-defendant Fuqua then stole approximately 32 cellular phones from the safe and left the store. The telephones were valued at approximately $32,344. James Houston planned the robbery, enlisted others to participate, made arrangements to sell the stolen cell phones, and conducted surveillance outside the store before and during the robbery. The stolen cell phones were recovered at a residence on Champlain Street in Rochester.
McCullough and Fuqua were previously convicted and sentenced to serve 262 months and 64 months in prison respectively.
The sentencing is the culmination of an investigation the Bureau of Alcohol. Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, the Rochester Police Department, under the direction of Chief David Smith and the Irondequoit Police Department, under the direction of Chief Alan Laird.
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Roane County Man Sentenced to Prison After Pipe Bomb FoundRead the Press Release
CHARLESTON, W.Va. – Joseph David Bailey, 52, of Spencer, was sentenced today to one year and one day in prison, to be followed by three years of supervised release, for possessing an unregistered destructive device.
According to court documents and statements made in court, on December 24, 2020, law enforcement officers executed a search warrant at Bailey’s residence and found a completed pipe bomb as well as five unfinished pipe bombs in various stages of completion. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that the completed pipe bomb was a destructive device and that Bailey did not register it with the National Firearms Registration and Transfer Record.
United States Attorney Will Thompson made the announcement and commended the investigative work of the ATF and the West Virginia State Police.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-249.
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Revere Man Pleads Guilty to Drug and Firearm PossessionRead the Press Release
BOSTON – A Revere man pleaded guilty yesterday to possessing cocaine and fentanyl as well as receiving a firearm while under indictment for felony charges.
Cesar Rivera, 23, pleaded guilty to one count of possession with intent to distribute cocaine and fentanyl and one count of receipt of a firearm while under indictment for felony charges. U.S. District Court Judge Richard G. Stearns scheduled sentencing for April 6, 2023. Rivera was indicted by a federal grand jury on Jan. 12, 2022. He has been in federal custody since July 2021.
In December 2020, Rivera was wanted on outstanding warrants on multiple state gun cases for which he had failed to respond court summonses or appear in court for over a year. On Dec. 22, 2020, law enforcement located Rivera at a carwash in Malden and was subsequently arrested. At the time of his arrest, Rivera was carrying approximately 28 grams of crack cocaine, fentanyl and a Glock firearm.
In October 2020, two months prior to his arrest, while wanted on the outstanding warrants, Rivera and another individual named Phillips Charles (charged separately) had a brief encounter with a rival gang member, his girlfriend and their one-year-old child at the Square One Mall in Saugus. After the encounter, Rivera and Charles pursued the victim and his family and fired at least seven rounds into their vehicle. Following Rivera’s arrest, ballistics examination of the Glock firearm recovered from Rivera in December 2020 revealed that it had been used in the October 2020 shooting.
On Sept. 7, Charles was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 78 months in prison and four years of supervised release.
The charge of possession with intent to distribute cocaine and fentanyl provides 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 $5 million. The charge of possession of firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Malden Police Chief Kevin Molis made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Middlesex County and Suffolk County District Attorney’s Offices; and the Boston Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime and Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Rapper Who Boasted in Music Video About Committing COVID Fraud Sentenced to over 6 Years in Prison on Fraud, Gun and Drug CrimesRead the Press Release
LOS ANGELES – A rapper who boasted in a YouTube music video about getting rich quickly by scamming a COVID relief program was sentenced today to 77 months in federal prison.
Fontrell Antonio Baines, 33, a.k.a. “Nuke Bizzle,” of Memphis, Tennessee, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $704,760 in restitution to the California Employment Development Department (EDD).
Today’s sentence was imposed in connection with three criminal cases. Baines pleaded guilty on July 11 to one count of mail fraud and, in a separate case, to one count of unlawful possession of a firearm and ammunition by a convicted felon. He also pleaded guilty on August 30 to possession of oxycodone with intent to distribute in a case transferred from the Western District of Tennessee. Baines has been in federal custody since his arrest in October 2020.
From July 2020 to September 2020, Baines unlawfully exploited the Pandemic Unemployment Assistance (PUA) provisions of the CARES Act to obtain unemployment insurance money – ultimately more than $700,000 – to which he was not entitled.
As the COVID-19 pandemic’s grip tightened, Congress implemented the PUA provisions to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise be eligible for them.
Baines defrauded the program to obtain unemployment benefits administered by the EDD in the names of third parties, including identity theft victims. The applications for benefits also included false statements about the work histories and in-state residences of the named applicants. Through his fraud, Baines turned the taxpayer-funded program into “his personal piggybank,” according to a sentencing memorandum filed by federal prosecutors.
The applications for these benefits listed addresses in Beverly Hills and Koreatown to which Baines had access. As a result, Baines was able to take possession of and use the debit cards that EDD pre-loaded with the unemployment benefits obtained through the fraudulent applications.
For example, Baines used the identity of a Missouri man who briefly attended school – but never worked – in California to apply for unemployment benefits. In September 2020, Baines used a debit card issued based on the fraudulent PUA claim filed in the Missouri man’s name to withdraw approximately $2,500.
Baines filed 92 fraudulent PUA claims with EDD, resulting in attempted losses to EDD and the United States Treasury of approximately $1,256,108 and actual losses of at least $704,760.
According to court documents, Baines bragged about his ability to defraud the EDD in a music video posted on YouTube and in postings to his Instagram account. In the music video called “EDD,” Baines boasts about doing “my swagger for EDD” and, holding up a stack of envelopes from EDD, getting rich by “go[ing] to the bank with a stack of these” – an apparent reference to the debit cards that came in the mail.
In addition, in October 2020 at his Hollywood Hills residence, Baines illegally possessed a semi-automatic pistol with 14 rounds of ammunition. Baines was prohibited from possessing the firearm and ammunition because of his prior felony convictions, including a conviction in 2011 in Tennessee state court for unlawful possession of a controlled substance with intent to sell and a conviction in Nevada federal court in 2014 for being a felon in possession of a firearm.
Lastly, Baines also trafficked narcotics. On January 31, 2020, at Memphis International Airport. Baines attempted to check a bag containing various controlled substances, including oxycodone, promethazine with codeine, alprazolam and more than seven pounds of marijuana.
The United States Department of Labor – Office of Inspector General; the United States Postal Inspection Service; IRS Criminal Investigation; and the California Employment Development Department investigated this matter. The United States Marshals Service, the Las Vegas Metropolitan Police Department, and the United States Attorney’s Office for the Western District of Tennessee provided substantial assistance.
Assistant United States Attorneys Ranee A. Katzenstein, Chief of the Major Frauds Section, and Alexander B. Schwab, also of the Major Frauds Section, prosecuted this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Raleigh Bank Teller Pleads Guilty to Theft of Customer Account InformationRead the Press Release
WILMINGTON, N.C. – A Raleigh woman pleaded guilty today for her role in a scheme to steal customer account information. Davia Delores Lockley, 26, faces up to 15 years in prison when sentenced in March of next year.
“Financial institutions and their customers count on the integrity of bank employees,” said U.S. Attorney Michael Easley. “This defendant used her position of trust to steal customers’ personal financial information as part of a scheme to defraud people of their hard-earned money.”
According to court documents and information presented in court, Lockley participated in a scheme to defraud banks and bank customers while employed as a teller at the Raleigh branch location of an area bank. As part of the scheme, bank employees were recruited by conspirators to identify customer accounts that contained significant funds and lacked a customer photo on file. They then accessed the customers’ information on the bank’s internal systems, including account numbers and personal identifiers, and sent that information to other conspirators using cell phones or by handwritten notes.
Runners were recruited to enter various banks and credit unions and withdraw funds from victim accounts. To facilitate the fraudulent withdrawals, conspirators obtained counterfeit drivers licenses using the victims’ personal identifiers and the runners’ photographs. The proceeds of the fraud were split amongst conspirators. Between January 2021 and June 2021, Lockley compromised the accounts of at least six bank customers. Lockley pleaded guilty to one count of Access Device Fraud.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief United States District Judge Richard E. Myers II accepted the plea. The Federal Bureau of Investigation and Raleigh Police Department are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting 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. 5:22-cr-00232-M-1.
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Pittsburgh Man Sentenced to Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court in Pittsburgh to 28 months’ imprisonment and 3 years supervised release on his conviction of drug distribution and firearms charges, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Clarence Thomas, 30, of Pittsburgh, PA.
Thomas, who had a prior felony heroin trafficking conviction, pleaded guilty on Aug. 25, 2022, to possessing with intent to distribute quantities of a mixture of heroin and fentanyl, cocaine, crack cocaine and possession of a firearm and ammunition by a convicted felon. The drugs, Ruger pistol, and ammunition were seized from Thomas’s residence by City of Pittsburgh police officers during the execution of a search warrant on Nov. 10, 2019. The Ruger pistol had been previously reported as being stolen.
Prior to imposing sentence, Judge Cercone noted that the distribution of fentanyl had recently become prolific in the Pittsburgh area and was particularly serious in that it was causing deaths among users.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Thomas.
Pittsburgh Man Charged with Attempted Possession of CocaineRead the Press Release
PITTSBURGH - Today, the Court unsealed the indictment of a resident of Pittsburgh, Pennsylvania, charging him with attempting to possess with intent to distribute at least 500 grams of cocaine, United States Attorney Cindy K. Chung announced.
The one-count Indictment, returned on Oct. 25, 2022, named Charles Morris, 56, as the sole defendant.
According to the indictment presented to the court, on Jan. 6, 2022, Morris attempted to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Christopher M. Hanrahan is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pikeville Medical Center to Pay $4.39 Million to Resolve Alleged Controlled Substance Act Violations That Allowed Drug DiversionRead the Press Release
LEXINGTON, Ky. — The United States Attorney’s Office for the Eastern District of Kentucky announced that Pikeville Medical Center (“PMC”) has agreed to pay the United States $4,394,600 in civil penalties, to resolve allegations that its violations of the Controlled Substances Act’s (“CSA”) recordkeeping provisions resulted in significant diversion of dangerous opioids from its pharmacy. The settlement is one of the nation’s largest relating to CSA recordkeeping violations involving allegations of drug diversion at a hospital. The settlement is the third-largest civil penalty ever obtained from a hospital system under the CSA.
As a registrant with the U.S. Drug Enforcement Administration (“DEA”), PMC had certain recordkeeping obligations, which included maintaining complete and accurate records of each controlled substance received, dispensed, and disposed. DEA has the authority to inspect the records of registrants like PMC, to verify that their records are complete, accurate, and in compliance with the CSA.
In settlement documents, the Government contends that over a two-year period, PMC violated multiple provisions of the CSA relating to recordkeeping, including by failing to maintain complete and accurate inventories and dispensing records for Schedule II controlled substances. The Government alleges that as a result of these failures, a PMC pharmacy technician was able to divert more than 60,000 dosage units of oxycodone, hydrocodone, and methadone from PMC’s narcotics vault and Pyxis MedStations, from January 1, 2016, through September 7, 2018. The controlled substances diverted from PMC ultimately were distributed by the pharmacy technician’s husband to the community. Both the PMC pharmacy technician and her husband have pled guilty to violating 21 U.S.C. § 846, conspiracy to distribute Schedule II controlled substances, in the matter of United States v. Perry et al., 7:20-cr-12.
“As the opioid crisis continues to plague communities in Kentucky, hospitals like PMC have a responsibility and critical role to play. They must ensure that controlled substances are carefully tracked and protected against theft and loss, so that these drugs are not diverted for illegal uses,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “My office will continue to seek appropriate civil penalties from healthcare providers who are careless with their recordkeeping and fail to provide effective safeguards against drug diversion.”
“All DEA registrants, to include hospitals and healthcare providers, are obligated to adhere to the strict record-keeping requirements outlined in the Controlled Substances Act; failure to do so often leads to the diversion of controlled substances,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “The size of this fine shows how serious this situation is. Hopefully, Pikeville Medical Center will do a better job in the future with their record keeping and the resulting harm inflicted on the community can be reversed.”
As part of the settlement, PMC has entered into a three-year Memorandum of Agreement with DEA, which prescribes the hospital’s drug-handling responsibilities going forward. These steps include:
- Permitting DEA personnel to enter its registered location at any time during regular business hours without an administrative inspection warrant, and without prior notification to PMC, to verify compliance with the Memorandum of Agreement;
- Conducting an inventory of select controlled substances every six months and providing the results to DEA;
- Investigating and documenting any concerns about diversion, employee theft, or significant loss of controlled substances;
- Reporting suspicious controlled substance incidents to DEA on a quarterly basis; and
- Providing mandatory training on federal laws and regulations pertaining to controlled substances for all employees and contract personnel who have access to controlled substances.
PMC cooperated with the DEA’s investigation and self-reported the diversion. As recognized in the Memorandum of Agreement, PMC took substantial steps to address its deficiencies in its handling of controlled substances before the settlement was entered.
A main objective of the CSA is controlling illegitimate traffic in controlled substances. To prevent the diversion of controlled substances, the CSA regulates persons and entities that manufacture, distribute, and dispense controlled substances. The Government’s investigation and resolution of this matter illustrates its continued emphasis on combating the prescription opioid crisis by ensuring that opioids are not diverted. Anyone with concerns about prescription drug diversion can report them to the DEA, by submitting a tip at https://www.dea.gov/submit-tip.
The case was investigated by the Drug Enforcement Administration’s London Resident Office Diversion Group, with assistance from the Kentucky Board of Pharmacy, and handled by the U.S. Attorney’s Office’s Affirmative Civil Enforcement section, including Assistant U.S. Attorneys Meghan Stubblebine and Mary Melton. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Philadelphia Man Charged with Impersonating a USPS Mail Carrier, Possessing USPS Arrow Keys, and Mail TheftRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zachkey James, 27, of Philadelphia, PA, was charged by Indictment with impersonation of a U.S. Postal Service (USPS) Mail Carrier, unlawful possession of three USPS Arrow Keys, mail theft, and possession of stolen mail.
As alleged in the Indictment, in July 2022, while pretending to be a USPS Mail Carrier, James stole undelivered mail from a collection box located near the Kingsessing Post Office in Philadelphia. In October 2022, again while pretending to be a USPS Mail Carrier, James stole undelivered mail from a collection box located near the East Germantown Post Office in Philadelphia. And in November 2022, James possessed three Arrow Keys and approximately 15 mail-in ballots that had been stolen from USPS collection boxes.
If convicted, the defendant faces a maximum of 31 years in prison and a $1,500,000 fine.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Patrick Brown.
U.S. Attorney Romero and USPIS Assistant Inspector in Charge John Walker made the announcement today: https://twitter.com/USAO_EDPA/status/1600588080150372352.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parkersburg Woman Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Mary Elizabeth Curran, 37, of Parkersburg, pleaded guilty today to possession with intent to distribute 40 or more grams of fentanyl.
According to court documents and statements made in court, on April 27, 2021, Curran obtained a quantity of fentanyl in Columbus, Ohio, which she intended to distribute in the Parkersburg area. On that date, Curran was a passenger in a vehicle stopped by law enforcement officers after it entered Wood County from Ohio. Officers suspected that Curran was hiding controlled substances on her person, and she was transported to the North Central Regional Jail for an X-ray body scan.
While awaiting the body scan, Curran clogged a bathroom toilet when she attempted to flush two plastic bags containing powder. The toilet was taken apart and the bags were recovered. The West Virginia State Police Forensic Laboratory confirmed one bag contained approximately 56 grams of fentanyl and the other bag contained approximately 28.5 grams of a fentanyl analogue. The lab also found Curran’s DNA on one bag, and her fingerprint on the other.
Curran is scheduled to be sentenced on March 2, 2023, and faces a mandatory minimum of five years in prison, at least four years of supervised release, and a $5,000,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Drug and Violent Crime Task Force and the West Virginia State Police.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-136.
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Omak Domestic Abuser Sentenced to 46 Months in Federal Prison for Assaulting His Intimate Partner on the Colville Indian ReservationRead the Press Release
Spokane, Washington – Senior U.S. District Court Judge Rosanna Malouf Peterson sentenced Shawn Vincent Best, Sr., age 62, of Omak, Washington, to 46 months in federal prison for a domestic assault that occurred in August 2021. Judge Peterson also imposed 3 years of federal supervised release. Best pled guilty earlier this year to Assault Resulting in Substantial Bodily Injury in Indian Country.
In announcing the sentence, Judge Peterson varied upward from the United States Sentencing Guidelines range, as determined by the Court. In doing so, Judge Peterson emphasized the need to protect victims of domestic abuse from Mr. Best. The Court also described the seriousness of the offense and the traumatizing effects on the victim, whom Judge Peterson commended for her strength and courage for coming forward and speaking at sentencing. The Court further acknowledged the extreme psychological impact of the offense and ruled that Best’s criminal record underrepresented his history of domestic abuse.
According to court documents and proceedings, in August and September 2021, a female victim contacted Colville Tribal Police and reported that Best physically assaulted and threatened to kill her if the victim told law enforcement about the assaults. Specifically, on August 12, 2021, Best became upset that his victim received a ride home from another man. Best shoved the victim, causing her to fall to the floor, resulting in substantial bodily injury and extreme pain. On September 21, 2021, Best again assaulted this same victim – striking her with a belt and strangling her. As he did so, Best told the victim, “If [you] ever say anything or call the cops, there would be no way they would be able to find [your] body.”
Court documents further indicate that at the time of the offenses, Best had prior arrests and convictions for domestic violence. Despite his history of domestic violence, the sentence announced today represents Best’s first felony conviction.
“My office is committed to prosecuting those who commit violence against their spouses or intimate partners,” U.S. Attorney Vanessa R. Waldref stated. “Domestic violence victims often struggle to access the justice system and get the protection and resources they need. I am grateful for the law enforcement agents, victim advocates, and prosecutors who handle these challenging cases. By working together and with those who are victims of violent crime, we can ensure that all men, women and children are protected not only from domestic violence, but also from retaliation when they disclose what they experienced.”
U.S. Attorney Waldref continued, “Native Americans experience some of the highest rates of violence in the country, a situation that is all the more tragic in light of the generations of trauma already suffered by Indigenous people, especially Native American women. It took tremendous courage for Mr. Best’s victim in this case to speak on behalf of herself and for Mr. Best’s prior victims. Today, their voices were heard.”
“Tragically, this victim endured the trauma of being attacked by a trusted partner, who should have protected her. I commend the brave survivors who report to law enforcement, the advocates who help them heal, and the investigators and prosecutors who bring the perpetrators to justice,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “The FBI will continue to work with our law enforcement and community partners to protect citizens from these types of violent crimes.”
The case was investigated by the Colville Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington.
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O.C. Man Sentenced to 6 Years in Federal Prison for Pimping and Opening Fire on Bystanders While He Was on Supervised ReleaseRead the Press Release
SANTA ANA, California – An Irvine man has been sentenced to 72 months in federal prison for – while on supervised release for committing a prior federal felony – engaging in pimping and shooting a firearm at women on the streets of San Bernardino, the Justice Department announced today.
Coby Christopher House, 23, was sentenced late Tuesday by United States District Judge David O. Carter.
House pleaded guilty on June 21 to one count of conspiracy to use a facility in interstate commerce in aid of unlawful activity and two counts of unlawful possession of firearms and ammunition by a convicted felon.
In October 2019, while he was on supervised release for an alien smuggling conviction in San Diego federal court, House acted as a pimp, overseeing two women working in prostitution and receiving the money from their sex work. On October 10, 2019, House shot a firearm several times at other women working in prostitution who approached House’s two sex workers, who were then soliciting clients at the time. The other women were concerned that House’s women would attract the attention of law enforcement, according to court documents.
Law enforcement arrested House the following day after a two-mile, high-speed chase.
House admitted in his plea agreement to unlawfully possessing a .22-caliber revolver and a .380-caliber handgun and ammunition despite his prior felony conviction for alien smuggling.
“When he learned of a confrontation between the women working for him and other women working as prostitutes, [House] pulled out a gun and shot it many times at another person,” prosecutors wrote in a sentencing memorandum. “Though he missed, this conduct is deserving of a long stretch in federal prison.”
Olbert Maximilian Lara, 23, of Riverside, a co-defendant in this case, pleaded guilty on April 19 to one count of being an accessory after the fact for being the driver of the car when House attempted to flee from police in October 2019. Lara was sentenced to three years of probation and was fined $500.
The FBI and the San Bernardino Police Department investigated this matter.
Assistant United States Attorneys Greg Scally and Kristin Spencer of the Santa Ana Branch Office prosecuted this case.
Nine Indicted on Charges Involving Embezzlement of Hundreds of Thousands of Financial Aid Funds from A Higher Education InstitutionRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Andrea Mitchell (53, Tampa), Lester Best (54, Tampa), Gloria Gutierrez (51, Lakeland), Sylvester Robinson (57, Temple Terrace), Neukenya Jokines (52, Riverview), Kinya Lillie (52, Tampa), Jewel Jordan (52, Brandon), Andre Wright (54, Hinesville, GA) and Rozaundra Lillie (53, Tampa) with conspiracy to commit wire fraud. Mitchell is further charged with aggravated identity theft. If convicted, each faces a maximum penalty of 20 in federal prison. If convicted for aggravated identity theft, Mitchell faces a mandatory minimum of 2 years’ imprisonment, in addition to the sentence imposed for conspiracy to commit wire fraud. The indictment also notifies the individuals that the United States intends to forfeit all assets which are alleged to be traceable to proceeds of the offense.
According to the indictment, Mitchell served as a financial services manager at a higher education institution in the Middle District of Florida. Mitchell and her coconspirators used her position to embezzle hundreds of thousands of dollars in financial aid. In order to steal the funds, Mitchell stole the identities of hundreds of current and formerly enrolled students at the higher education institution, then issued checks to coconspirators using those funds. The coconspirators cashed the checks at various financial institutions and shared the proceeds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Candace Garcia Rich.
New York Man Charged with Possession with Intent to Distribute 95 Kilograms of Cocaine and FentanylRead the Press Release
NEWARK, N.J. – A New York man was arrested in East Rutherford, New Jersey for possessing with intent to distribute approximately 70 kilograms of cocaine and 25 kilograms of fentanyl, U.S. Attorney Philip R. Sellinger announced today.
Alejandro Nouel Lajud, 39, of Yonkers, New York, is charged by complaint with one count of possession with intent to distribute cocaine and fentanyl. He was arrested and had his initial court appearance on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and was detained.
According to documents filed in this case and statements made in court:
On Dec. 5, 2022, Lajud was stopped on the New Jersey Turnpike in East Rutherford while driving a tractor-trailer erratically. During a lawful search of the tractor-trailer, law enforcement officers discovered approximately 95 brick-shaped packages, each of which weighed approximately one kilogram. Approximately 70 of the packages contained suspected cocaine and approximately 25 contained suspected fentanyl.
The count of possession with intent to distribute cocaine and fentanyl carries a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 10 years in prison and a maximum fine of $10 million.
U.S. Attorney Sellinger credited special agents of the New York Strike Force, under the direction of Drug Enforcement Administration Special Agent in Charge Frank A. Tarentino III, with the investigation leading to the charge.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; New York State Department of Corrections and Community Supervision; and the Suffolk County District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jenny Chung of the OCDETF/Narcotics 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.
Nevada man pleads guilty to production of images of child rape and abuseRead the Press Release
Seattle – A 44-year-old resident of Dayton, Nevada, who previously resided in Burlington, Washington, pleaded guilty today in U.S. District Court in Seattle to production of child pornography, announced U.S. Attorney Nick Brown. Between 2014 and 2020, John Holcomb made sexually explicit videos of a young child left in his care. Holcomb faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on March 16, 2023.
According to records filed in the case, in 2020, law enforcement in Skagit County was investigating Holcomb for an unrelated criminal allegation. As part of that investigation, law enforcement served a court authorized search warrant on Holcomb allowing them to seize his electronic devices. The forensic examination revealed videos depicting child sexual abuse. Law enforcement then sought a new search warrant from a Skagit County Superior Court judge to further review the devices for images of child sexual abuse.
The forensic examination revealed three videos of Holcomb sexually abusing a child who was about 6 or 7 years old.
As part of his guilty plea, Holcomb will register as a sex offender.
The case was investigated by the FBI, the Burlington Police Department, the Skagit County Sheriff’s Office, the Mt. Vernon Police Department, and the Oak Harbor Police Department.
The case is being prosecuted by Assistant United States Attorney Matthew Hampton and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior Deputy King County Prosecutor who is specially designated to prosecute child exploitation crimes in federal court.
Monongalia County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Morgan, of Morgantown, West Virginia, was sentenced today to 36 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Morgan, 50, pleaded guilty in August 2022 to one count of “False Statement in Connection with the Acquisition of Firearms.” Morgan admitted to working with another to make false statements to purchase a firearm from a licensed dealer in May 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Missouri Man Convicted at Trial of a Dozen Child Pornography ChargesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph Willard, 59, of Cole Camp, Missouri, was convicted at trial with 12 counts of child exploitation offenses arising from his abuse of seven minor children, ranging in age from eight to 17, while pretending to own an international modeling agency.
In August 2019, the defendant was charged by Indictment, which was then subsequently superseded four additional times with more charges as additional victims were identified, which resulted in the defendant ultimately being charged with 11 counts of production and attempted production of child pornography, and one count of possession of child pornography. As recounted by victims and their parents during the trial, Willard pretended to own a modeling agency with offices in major cities such as Milan, Italy and New York City, and represented that he could secure paid modeling contracts for the children and teenagers. He traveled from state to state in a conversion van and used this ruse to get the minors alone and would then take sexually explicit images of them, sometimes sexually assaulting them as well. Evidence presented at trial demonstrated that the defendant produced these images in four states: Florida, Tennessee, Missouri, and Pennsylvania.
“Joseph Willard chose to flout the law and pursue his own gratification by concocting this elaborate hoax to lure vulnerable victims,” said U.S. Attorney Romero. “His actions are some of the most heinous offenses prosecuted by this Office, and I thank the dedicated investigators and prosecutors who worked on this case for years. As a result of this conviction, he will remain safely behind bars where he can no longer hurt any more children.”
“Joseph Willard devised a twisted scam to lure children into his clutches, specifically to abuse and exploit them,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “With his hideous crimes, this predator has forfeited his right to walk among us. It will be gratifying day when his sentence is handed down and that cell door clangs shut behind him.”
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 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 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.projectsafechildhood.gov.
The case was investigated by Federal Bureau of Investigation and the Bethlehem Police Department, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Mexican National Pleads Not Guilty to Attempted Unlawful Transportation of Foreign Nationals in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Antonio Alvarez, 45, of New York, NY was arraigned today in United States District Court in Burlington on an indictment charging him with unlawfully attempting to transport individuals that entered the United States illegally. Alvarez pleaded not guilty at his appearance before U.S. Magistrate Judge Kevin J. Doyle and remains on release conditions.
According to public documents in the case, during the evening of November 7, 2022, a United States Border Patrol Agent performing surveillance in the vicinity of Moon Road in Derby Line, Vermont, less than a mile from the Canadian border, observed six individuals, who were subsequently identified as Mexican nationals without identification or paperwork allowing them to reside in the United States legally. Shortly thereafter, another Border Patrol Agent stopped a Toyota Tacoma with New York plates that was driving slowly in a remote area approximately one mile from where Border Patrol encountered the six individuals. The driver of the Toyota Tacoma was identified as Antonio Alvarez, a Mexican national living in New York, NY who is in immigration removal proceedings. Alvarez later admitted that he was to be paid $2,000 for picking up and transporting the Mexican nationals.
The U.S. Attorney’s Office emphasizes that an indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged, Alvarez faces up to 5 years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines.
U.S. Attorney Nikolas Kerest credited the agents of the United States Border Patrol for their investigation and apprehension of Antonio Alvarez and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations.
Assistant U.S. Attorney Andrew C. Gilman represents the United States in this case. Alvarez is represented by Assistant Federal Public Defender Steven Barth.
Members of Drug Trafficking Conspiracy Plead Guilty to Drug and Gun Charges in Operation “Titan Fall”Read the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Carlos Alberto Roman (56, Orlando) has pleaded guilty to possession of controlled substances and possessing a firearm equipped with a silencer in furtherance of that drug crime. Roman faces a minimum mandatory sentence of 30 years, up to life, in federal prison. Coconspirators James Richard Howell (37, Silver Springs) and Kenneth Angel Vera (31, Orlando) pleaded guilty on December 5 and December 6, 2022, respectively, to their roles in the drug conspiracy with Roman. A final coconspirator, Joely Manuel Burgos (39, Orlando), is scheduled for trial on January 17, 2023.
On August 9, 2022, 13 individuals were charged in two indictments in Operation “Titan Fall,” a multi-agency Organized Crime Drug Enforcement Task Force (OCEDTF) investigation. Roman was charged with conspiracy to distribute fentanyl and cocaine in a four-person indictment along with Howell, Burgos, and Vera. On August 31, 2022, a superseding indictment charged Roman with six additional counts of drug possession, possession of a firearm equipped with a silencer in furtherance of drug trafficking, unlawful possession of firearms, ammunition, and explosive grenades by a convicted felon, and unlawful possession of a short-barreled rifle, pistols with vertical foregrips, and silencers.
According to the plea agreement, Roman supplied cocaine and fentanyl to Howell, Burgos, and Vera for resale and regularly communicated with each of them. On August 9, 2022, Roman was arrested at his home with 19 firearms, 6 silencers, 3 flash-bang grenades, and thousands of rounds of ammunition. All but three of the firearms depicted below were recovered from Roman’s home:
This case was investigated by the Drug Enforcement Administration with assistance from Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Highway Patrol, the Winter Garden Police Department, the Orange County Sheriff’s Office, the Kissimmee Police Department, the Winter Park Police Department, the Clermont Police Department, the Orlando Police Department, the Apopka Police Department, the Ocoee Police Department, the Osceola County Sheriff’s Office, and the Seminole County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Operation Titan Fall is a multi-agency Organized Crime Drug Enforcement Task Force (OCEDTF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dominick Mickens, of Hagerstown, Maryland, was sentenced today to 63 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Mickens, 39, pleaded guilty in August 2022 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Mickens admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Maryland man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Keyontray Daniel Johnson, of Worton, Maryland, has admitted to his role in a multi-state organized drug trafficking enterprise dubbed the “19th Street Enterprise,” United States Attorney William Ihlenfeld announced.
Johnson, also known as “38,” age 26, pleaded guilty today to one count of “RICO Conspiracy.” Johnson admitted to working with others as a member of the “19th Street Enterprise,” a criminal organization that engaged in acts of violence, robbery, money laundering, mail and wire fraud, providing and selling false identification documents, and drug trafficking. The enterprise operated in West Virginia, Pennsylvania, Maryland, Delaware, and Puerto Rico.
Johnson faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Man Sentenced to over 17 Years in Federal Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
SAN ANTONIO – A Garden Ridge man was sentenced Tuesday to 210 months in prison, 10 years supervised release and ordered to pay $30,000 restitution to six victims for distributing child sexual abuse material.
Kyle Ross Rivers, 38, pleaded guilty on August 23, 2022 to one count of distribution of child pornography after trafficking the material to an undercover agent in a group using a social media messaging app. Investigators found that Rivers possessed thousands of images and videos of child sexual abuse material involving prepubescent children. At the time of his arrest, Rivers was working at a Residential Autism Treatment Center, providing care for many nonverbal children.
“The sexual abuse of children is horrific and individuals like Mr. Rivers who traffic in this despicable material continue the exploitation of these innocent children,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “The sentence imposed by the court reflects the gravity of the offense committed.”
"The exploitation of innocent children is a heinous crime and demands our relentless focus on bringing these terrible subjects to justice," said Special Agent in Charge Oliver E. Rich Jr. for the FBI San Antonio Field Office. "This sentencing ensures Mr. Rivers will be held accountable for his actions and sends a message that these horrible crimes will not be tolerated in our community."
FBI San Antonio and FBI Chattanooga investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Laurel Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. - A Laurel man pled guilty to possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge David L. Denton of Homeland Security Investigations.
Moses Ray McDonald, 43, pled guilty on December 1, 2022, in U.S. District Court in Hattiesburg.
According to court documents, on June 8, 2022, the Jones County Mississippi Sheriff’s Office, Narcotics Division, made a controlled purchase of approximately 29 grams of methamphetamine from McDonald at the residence in which he was known to reside in Laurel.
McDonald was subsequently indicted by a federal grand jury for possession with intent to distribute methamphetamine.
McDonald is scheduled to be sentenced on March 22, 2023, at 9:45 a.m., in Hattiesburg, and faces a maximum penalty of 20 years in prison and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations, Border Enforcement Security Task Force (DHS Gulfport BEST), and the Jones County Mississippi Sheriff’s Office, Narcotics Division.
The case is being prosecuted by Assistant U.S. Attorneys Shundral Cole and Andrea Jones.
Karlsruh, ND, Man Sentenced to 60 Years in Federal Prison for Production of Sexually Explicit Material of Minor ChildrenRead the Press Release
BISMARCK – United States Attorney Jennifer Klemetsrud Puhl announced that on December 6, 2022, U.S. District Court Judge Daniel Hovland sentenced Dwayne Gerard, Sr., Age 63 of Karlsruh, ND, to serve 60 years in federal prison, followed by lifetime supervised release for eight counts of Sexual Exploitation of Minors, for which Gerard, Sr., pleaded guilty to on August 17, 2022. During the sentencing hearing, several family members provided statements regarding the tremendous impact the sexual abuse has had on the victims and their families. During the sentencing, Judge Daniel L. Hovland called the defendant "a parent’s worst nightmare" and one of the worst cases he has seen on the bench.
This case came to the attention of law enforcement after it was reported that Gerard, Sr., had been repeatedly sexually abusing two children. A search of his electronic devices revealed images and videos depicting his sexual abuse of these children.
"Homeland Security Investigations is committed to combatting child exploitation, and I’m proud of our agents and law enforcement partners who brought Gerard, Sr. to justice," said Jamie Holt, HSI St. Paul Special Agent in Charge.
"This is truly a case that required a sentence sufficient enough to ensure the defendant never harms another child again," said Assistant United States Attorney Gary Delorme.
The case was prosecuted by Assistant United States Attorney Gary Delorme and investigated by the Department of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, the Minot Police Department, and McHenry County Sheriff’s Office.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Johnstown Man Pleads Guilty to Possessing and Distributing NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Andrew Colvin, age 30, of 839 Vickroy Avenue, Johnstown, PA, pleaded guilty to Counts One and Two of the Indictment before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, on or about October 7, 2019, Colvin possessed with the intent to distribute a quantity of marijuana. Further, on or about October 9, 2019, Colvin possessed with the intent to distribute one gram or more of lysergic acid diethylamide (LSD), and quantities of marijuana, cocaine, methylenedioxymethamphetamine (MDMA), ketamine, and tetrahydrocannabinol (THC).
Judge Haines scheduled sentencing for April 12, 2023. The law provides for a maximum sentence of five years in prison, a fine of $250,000, or both, for Count One, and a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of $5,000,000, or both, for Count Two. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigations, Cambria County Drug Task Force, Federal Bureau of Investigation, and the Safe Streets Task Force conducted the investigation that led to the successful prosecution of Colvin.
Indictment Unsealed Charging Two Individuals in Alleged Financial Fraud SchemeRead the Press Release
COLUMBUS, Ga. – A federal indictment was unsealed today charging two individuals in a pre-IPO investment scheme.
On Nov. 9, a federal grand jury returned an indictment charging George Iakovou, 29, of New York, New York, with one count of conspiracy to commit wire fraud, 17 counts of wire fraud and two counts of engaging in monetary transactions involving criminally derived property. If convicted, Iakovou faces a maximum sentence of 20 years in prison and a $250,000 fine for the wire fraud charges and a maximum sentence of 10 years in prison and a $250,000 fine for the monetary transactions involving criminally derived property charges.
Co-defendant, Penelope Zbravos, 27, of Queens, New York, is charged with one count of misprision of a felony. If convicted, Zbravos faces a maximum sentence of four years in prison and a $250,000 fine.
Iakovou was previously charged by criminal complaint out of the Middle District of Georgia and taken into custody at JFK International Airport on Oct. 25; he had his initial appearance in the Eastern District of New York and was granted a $1.5 million secured bond at that time. Iakovou and Zbravos have initial appearances and arraignments in the Middle District of Georgia scheduled for Dec. 14.
The indictment alleges that Iakovou defrauded investors under his company, Vika Ventures LLC, in a scheme involving pre-IPO investments. Vika is a boutique investment firm located in New York, New York; Iakovou is CEO and Zbravos was the financial manager of the firm. Pre-IPO investments are investments in shares of private companies before those companies become listed on a public stock market exchange.
From Dec. 2019 to Dec. 30, 2021, Iakovou would communicate via phone or email to victim-investors that he had access to shares in specific private companies at a particular price per share when he did not actually have access or the ability to obtain the pre-IPO shares he advertised to his victim-investors. Iakovou is alleged to have used many different types of artifice to deceive people, including sending victim-investors fraudulent documentation pertaining to the price of shares and company profiles; he would also send Vika subscription agreements for victim-investors to review, sign and return. Vika advertised the ability to sell pre-IPOs for high-profile companies including Airbnb, Palantir, Coupang, Stripe and SpaceX. Two victim-investors reside in Columbus, Georgia, which is located in the Middle District of Georgia.
Iakovou sent emailed instructions for victim-investors to send money to a Vika bank account but he is alleged to have not purchased or delivered the shares of the specific companies to the victim-investors. Co-defendant Zbravos is alleged to have gained knowledge of the fraud through transferring money from Vika accounts to various accounts controlled by her and Iakovou. The amount of the fraud impacting victim-investors in the Middle District of Georgia is currently believed to be more than $369,000.
Individuals who believe they may be a victim of this investment fraud can contact the U.S. Secret Service, Albany, Georgia, Resident Agency at 229-430-8442.
This case is being investigated by the U.S. Secret Service and the Securities and Exchange Commission (SEC).
Assistant U.S. Attorney Christopher Williams is prosecuting the case.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Indian National Pleads Guilty to Unlawfully Re-Entering the United States After RemovalRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Ashokkumar Prahladbhai Patel, 40, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to Re-Entry of Removed Alien.
According to court documents, on November 24, 2021, Patel, an illegal alien and Indian national, appeared before U.S. Customs and Border Protection officers at the Henry E. Rohlsen Airport in St. Croix for pre-boarding inspection for his flight on Spirit Airlines to Fort Lauderdale, FL. During his inspection, Patel presented a fraudulent Florida driver’s license. CBP officers then conducted a database inquiry which revealed that on August 17, 2019, Patel was apprehended and detained by CBP in Tecate, CA, and was processed for expedited removal. Patel was subsequently removed from the United States to India on November 21, 2019. After his removal, Patel did not obtain express consent of the Attorney General or the Secretary of Homeland Security to re-enter the United States. Patel’s sentencing in this matter is scheduled for April 5, 2023, where he faces a term of imprisonment of up to two years. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other factors.
The case was investigated by U.S. Customs and Border Protection and Homeland Security Investigations and prosecuted by Assistant United States Attorney Daniel H. Huston.
Gulfport Man Pleads Guilty to Escape from Federal CustodyRead the Press Release
Hattiesburg, Miss. -- A former Gulfport resident pled guilty to escape from federal custody, announced U.S. Attorney Darren J. LaMarca and U.S. Marshal Mark Shepard.
According to court documents, on July 15, 2022, Anthony Necaise, 43, was housed at Dismas Charities Residential Reentry Center (RRC), in Hattiesburg, where he would have completed the final six months of his incarceration. On that date, Necaise fled the RRC and cut off his GPS ankle monitor. He was subsequently apprehended.
Necaise is scheduled to be sentenced on March 22, 2023, at 9:30 a.m. in Hattiesburg, and faces a maximum penalty of 5 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U. S. Marshals Service.
The case was prosecuted by Assistant U.S. Attorneys Andrea Jones and Shundral Cole.
Garner Resident Faces up to Five Years in Prison for Failing to Pay over Employment TaxesRead the Press Release
WILMINGTON, N.C. – A Sharon Coker Burke, of Garner, N.C., pleaded guilty today for willfully failing to pay over employment taxes withheld from employee paychecks to the federal government. At sentencing set for the March 7, 2023 term, Burke faces a statutory maximum of 60 months in prison, a $250,000 fine, and three years of supervised release.
According to court documents and other information presented in court, Burke co-owned and managed the tax and financial affairs Bear Creek Landscape Associates, a commercial landscaping business headquartered in Garner. In her position, Burke was responsible for ensuring the timely filing of federal employment tax returns (Forms 941) for the business and the payment of all associated taxes—namely, amounts withheld from the paychecks of Bear Creek employees, including federal income taxes and Federal Insurance Contributions Act (FICA) taxes allocated for Social Security and Medicare programs. However, between 2003 and 2021, Burke routinely failed to pay over the withheld taxes to the Internal Revenue Service (IRS) as required, resulting in a tax underpayment of more than $800,000. During this same period, in response to IRS collection activity, Bear Creek rebranded itself as “KBE Landscaping” initially and, later, as “KB Landscaping.” But under Burke’s stewardship as the responsible officer, the successor companies continued to accrue significant employment tax liabilities due to non-payment.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after arraignment by Chief U.S. District Judge Richard E. Myers II. IRS Criminal Investigation investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
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. 5:22-CR-289-M.
Fraudster Sentenced to 82 Months in Federal Prison for Identity and Bank Fraud SchemeRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Evan Daniel Montvel-Cohen, age 55 from Tamuning, Guam, was sentenced to 82 months imprisonment by the District Court of Guam. Montvel-Cohen was charged with Use of a Means of Identification in Furtherance of Fraud, in violation of 18 U.S.C. § 1028(a)(7), and Bank Fraud, in violation of 18 U.S.C. § 1344. The Court also ordered 5 years of supervised release, a mandatory $200 special assessment fee and restitution in the amount of $74,826.67.
From November 2019 until January 2020, Montvel-Cohen engaged in a scheme to defraud a property management company in Guam by using the name and personal identification of another person in order to enter into a residential lease agreement. Montvel-Cohen used an altered image of his Guam driver’s license, with another person’s name and date of birth, and digitally signed a lease agreement using an e-mail address created in the victim’s name. He then possessed and occupied a residential unit belonging to the property management company, bounced rent and deposit checks, and never paid any of the rental or deposit fees owed. This resulted in a loss of nearly $20,000.00.
From about July 31, 2018, until about August 18, 2018, Montvel-Cohen also engaged in a scheme to defraud the Bank of Guam, a federally insured financial institution. Montvel-Cohen deposited a $45,010.00 check from a jointly owned Bank of Hawaii account into a jointly owned Bank of Guam account. On August 1, 2018, he caused a stop payment order to be placed on the Bank of Hawaii check. On August 3, 2018, Montvel-Cohen and others caused funds to be transferred from the Bank of Guam account in the amount of $39,356.05. Because of the stop payment order, the Bank of Hawaii check was returned, resulting in a loss to Bank of Guam in the amount of $39,356.05.
At sentencing, the Court found by clear and convincing evidence that the Defendant engaged in long series of similar frauds and schemes over a multi-year period resulting in actual and intended losses of over $1.5 million dollars.
“Montvel-Cohen has a lengthy history of fraud, which has left a trail of victims throughout the United States,” stated U.S. Attorney Anderson. “Hopefully the sentence imposed by the Court will deter him from reoffending. I applaud the diligent efforts of the FBI in bringing this defendant to justice.”
"Fraud and identity theft are devastating to those who fall victim to these crimes," said FBI Special Agent in Charge Steven Merrill. "Many don't even know they are affected until it is too late. The FBI will spare no effort or resource when investigating those responsible."
The case was investigated by the Federal Bureau of Investigation and prosecuted by Benjamin K. Petersburg, Assistant U.S. Attorney in the District of Guam.
Four People Indicted in $3.5 Million COVID-19 Testing Kickback ConspiracyRead the Press Release
NEWARK, N.J. – Four people have been charged for their roles in a kickback conspiracy involving COVID-19 testing that defrauded federal health insurance programs, U.S. Attorney Philip R. Sellinger announced today.
Abid Syed, 45, of East Hanover, New Jersey; Tariq Din, 55, of Saddle River, New Jersey; David Weathers, 59, of the Bronx, New York; and Muhammed Aurangzeb, 45, of Robbinsville, New Jersey, are each charged by indictment with one count of conspiracy to violate the federal Anti-Kickback Statute for their roles in a scheme to defraud Medicare and the Health Resources and Services Administration COVID-19 Uninsured Program. Weathers and Aurangzeb had their initial appearances via videoconference today before U.S. Magistrate Judge José R. Almonte. Aurangzeb was released on $100,000 unsecured bond and Weathers consented to detention. Syed and Din were charged by criminal complaint on April 11, 2022.
According to documents filed in this case and statements made in court:
From April 2021 to April 2022, Syed and Din operated and controlled Metpath Laboratories, a clinical laboratory located in Parsippany, New Jersey, that conducted testing to detect the presence of COVID-19 in samples obtained from patients. Through Metpath, Syed and Din paid kickbacks to “marketers” – including Weathers and Aurangzeb – for referrals of COVID-19 test samples to Metpath. Weathers and Aurangzeb were each paid $5 to $30 per referral.
The conspirators tried to make the payments appear to be for legitimate business expenses. For example, Syed altered the amount of the kickback payment to make it appear as if the marketer was a “consultant” for Metpath with legitimate business expenses. In another instance, Weathers’ company – MedtechCares Inc. – issued invoices to Metpath to make it appear as though the kickback payments from Metpath were legitimate business expenses, when in fact the payments were entirely for the referrals.
Metpath received more than $3.5 million in insurance reimbursements from federal health insurance programs for COVID-19 test samples referred by Weathers and Aurangzeb.
The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. The maximum fine for each count is $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Sarasota Pain Doctor Sentenced in Health Care Fraud Kickback ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge William H. Jung has sentenced Dr. Steven Chun (59, Sarasota) for conspiring to pay and receive kickbacks and bribes. Chun was sentenced to three years and six months in federal prison and ordered to forfeit $278,900, the proceeds of his offenses. On May 24, 2022, a federal jury found Chun and Daniel Tondre (52, Tampa) guilty of conspiring to pay and receive kickbacks and bribes, in the form of speaker fees, in return for prescribing the fentanyl spray, Subsys. Both were also convicted of five separate substantive counts of paying and receiving kickbacks. Tondre is scheduled for sentencing on December 15, 2022.
According to evidence presented during the 10-day trial, Chun was a doctor who owned and operated a pain management medical practice in Sarasota where he prescribed a large volume of Subsys, an expensive form of liquid fentanyl designed to be applied under the tongue (sublingual spray), allowing it to rapidly enter the bloodstream to help relieve break-through pain in certain cancer patients. Tondre was employed as a sales representative by Insys Therapeutics, Inc., the company that manufactured and sold Subsys. Insys, through its sales representative, Tondre, actively marketed Subsys to Chun by holding bogus and sham speaker events, and paid Chun $2,400 to $3,000 per speaker event in return for Chun writing more and higher dosages of Subsys prescriptions. The sham speaker programs were often only attended by Chun’s family and friends, or repeat attendees, and included many falsified or forged signatures of attendees. The sham speaker programs were designed to conceal and disguise kickbacks and bribes paid to Chun to induce him to prescribe Subsys.
According to the evidence, Insys paid Chun more than $278,900 in illegal kickbacks and bribes via the sham speaker programs over a period of less than three years. Tondre earned more than $737,000 in salary and sales commissions over a period of two and half years. Medicare Part D paid more than $4.5 million for Subsys prescriptions written by Chun.
During the sentencing hearing, two former patients of Chun testified regarding the devastating impact that Subsys had on their lives.
“This corrupt medical professional ignored patient care and instead inflicted financial pain,” said FBI Tampa Division Special Agent in Charge David Walker. “The FBI and its law enforcement partners work hard to ensure our nation’s federally funded healthcare system is protected from deception and greed.
“Contrary to proper patient care, the defendants repeatedly disregarded opportunities to promote legitimate, suitable pain management for beneficiaries to instead pursue personal gain,” said Special Agent in Charge Omar Pérez Aybar with the U.S. Department of Health and Human Services Office of Inspector General. “It is a top priority of our agency and law enforcement partners to bring to justice individuals who exploit their proximity to patients to defraud federal health care programs.”
“This sentence demonstrates the effectiveness of the Defense Criminal Investigative Service, our law enforcement partners, and the U.S. Attorney’s Office, in holding corrupt medical providers accountable when they fraudulently divert Defense Health Agency funds, putting their own greed before patient welfare,” said Special Agent in Charge Darrin Jones of the Defense Department's Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “DCIS and our partners are committed to rooting out fraud and corruption and safeguarding the precious Taxpayer funding intended for the healthcare of our military members and their families.”
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services—Office of Inspector General, the Defense Criminal Investigative Service, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It is being prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Jennifer L. Peresie.
Former Prisoner Transport Officer Pleads Guilty to Sexually Assaulting and Kidnapping Male DetaineeRead the Press Release
Former prisoner transport officer, Dewayne Dudley, 56, pleaded guilty in federal court in the Northern District of Oklahoma to violating a male detainee’s civil rights by sexually assaulting and kidnapping him.
“Sexual assaults carried out by law enforcement officials at any stage of the criminal justice process, including in the transport of detainees held in custody, have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officials who abuse their power and authority.”
“Dewayne Dudley is a predator who used his authority and position to control and violate the victim. He abandoned his ethical responsibilities and has been held accountable,” said U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma. “The Justice Department and U.S. Attorney’s Offices across the nation are committed to upholding the Constitutional rights of all citizens. Civil rights abuses will be fully investigated and perpetrators will be brought to justice.”
“Dewayne Dudley exploited his position of authority when he cruelly assaulted a detainee he was charged to protect,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to preserving trust in law enforcement. We will not tolerate public officials who violate the constitutional rights of our citizens.”
According to the plea agreement, at the time of the offense, Dudley worked as a prisoner transport officer for Blue Raven Services. As a private prisoner transport officer, Dudley performed the government function of picking up individuals who were arrested on out-of-state warrants and transporting those individuals back to the jurisdictions that issued the warrants. On Aug. 26, 2021, Dudley picked up the victim, a male detainee, from a jail in Boonville, Indiana, to transport him to Valencia, New Mexico.
On Aug. 27, 2021, before arriving in New Mexico, Dudley stopped the transport van at a Holiday Inn Express, located in Marshfield, Missouri, where he rented a room. Dudley brought the handcuffed victim into the hotel room and told him to shower. After the victim showered, Dudley pointed a gun at the victim and told him to undress. Dudley then proceeded to grope the victim’s genitals. When the victim’s penis did not erect, Dudley handcuffed himself to the victim, before going to sleep. Several hours later, Dudley resumed transporting the victim, before stopping the transport van at his (Dudley’s) apartment, located in Claremore, Oklahoma. Against the victim’s protests, Dudley brought the handcuffed victim inside his apartment. While inside his apartment, Dudley again groped the victim’s genitals, causing the victim bodily injury. The victim said, “No!,” and was able to break free and run outside of Dudley’s apartment.
A sentencing hearing has not yet been set. Pursuant to the plea agreement, Dudley faces 12 to 15 years in federal prison, to be followed by up to five years of supervised release. In addition, Dudley must pay restitution to the victim.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Clay Compton for the Northern District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Prisoner Transport Officer Pleads Guilty to Sexually Assaulting and Kidnapping Male DetaineeRead the Press Release
Former prisoner transport officer, Dewayne Dudley, 56, pleaded guilty in federal court in the Northern District of Oklahoma to violating a male detainee’s civil rights by sexually assaulting and kidnapping him.
“Sexual assaults carried out by law enforcement officials at any stage of the criminal justice process, including in the transport of detainees held in custody, have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officials who abuse their power and authority.”
“Dewayne Dudley is a predator who used his authority and position to control and violate the victim. He abandoned his ethical responsibilities and has been held accountable,” said U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma. “The Justice Department and U.S. Attorney’s Offices across the nation are committed to upholding the Constitutional rights of all citizens. Civil rights abuses will be fully investigated, and perpetrators will be brought to justice.”
"Dewayne Dudley exploited his position of authority when he cruelly assaulted a detainee he was charged to protect,” said Special Agent in Charge Edward J. Gray for the FBI Oklahoma City Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to preserving trust in law enforcement. We will not tolerate public officials who violate the constitutional rights of our citizens."
According to the plea agreement, at the time of the offense, Dudley worked as a prisoner transport officer for Blue Raven Services. As a private prisoner transport officer, Dudley performed the government function of picking up individuals who were arrested on out-of-state warrants and transporting those individuals back to the jurisdictions that issued the warrants. On August 26, 2021, Dudley picked up the victim, a male detainee, from a jail in Boonville, Indiana, to transport him to Valencia, New Mexico.
On August 27, 2021, before arriving in New Mexico, Dudley stopped the transport van at a Holiday Inn Express, located in Marshfield, Missouri, where he rented a room. Dudley brought the handcuffed victim into the hotel room and told him to shower. After the victim showered, Dudley pointed a gun at the victim and told him to undress. Dudley then proceeded to grope the victim’s genitals. When the victim’s penis did not erect, Dudley handcuffed himself to the victim, before going to sleep. Several hours later, Dudley resumed transporting the victim, before stopping the transport van at his (Dudley’s) apartment, located in Claremore, Oklahoma. Against the victim’s protests, Dudley brought the handcuffed victim inside his apartment. While inside his apartment, Dudley again groped the victim’s genitals, causing the victim bodily injury. The victim said, “No!,” and was able to break free and run outside of Dudley’s apartment.
A sentencing hearing has not been scheduled yet. Pursuant to the plea agreement, Dudley faces 12 to 15 years in federal prison, to be followed by up to five years of supervised release. In addition, Dudley must pay restitution to the victim.
The case was investigated by the Oklahoma City FBI Field Office. Assistant U.S. Attorney Clay Compton of the Northern District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former President of Waterbury Credit Union Admits Embezzling $250KRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TARA KEWALIS, 50, of Beacon Falls, waived her right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to embezzling from a Waterbury credit union where she was employed.
According to court documents and statements made in court, Kewalis was the President and Chief Executive Officer of Skyline Financial Federal Credit Union located in Waterbury. From approximately September 2016 until her employment was terminated in March 2021, Kewalis used her position to access the credit union’s accounting system to create fraudulent accounts and make fraudulent entries, and steal $254,532 in credit union funds.
Kewalis pleaded guilty to one count of embezzlement by a credit union officer or employee, an offense that carries a maximum term of imprisonment of 30 years. Judge Hall scheduled sentencing for March 1.
Kewalis is released on a $50,000 bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Former Portsmouth Naval Shipyard Sailor Sentenced to 5+ Years for Possessing Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: An Illinois man formerly stationed at the Portsmouth Naval Shipyard was sentenced in U.S. District Court in Portland today for possessing child sexual abuse materials.
Chief U.S. District Judge Jon D. Levy sentenced Zakary Williams, 25, to 70 months in prison and five years of supervised release. In addition, Judge Levy ordered Williams to pay $47,000 in restitution to the victims depicted in some of the images and videos he possessed. Williams pleaded guilty on May 18, 2022.
According to court records, in May 2019, Homeland Security Investigations (HSI) received information from the Royal Canadian Mounted Police (RCMP) regarding Kik Messenger users believed to be in the U.S. who were uploading child pornography. HSI agents traced one of the uploaded images back to an IP address associated with military housing on the New London Naval Submarine Base in Groton, Connecticut. HSI determined that Williams was the source of that image. In December 2020, agents interviewed Williams at the Portsmouth Naval Shipyard in Kittery where he was then stationed. Williams admitting sharing and viewing child pornography and consented to a search of his cell phone. The investigation revealed that Williams was storing hundreds of images and videos in a cloud-based storage account that depicted the sexual abuse of children. Many of the victims depicted were under the age of 12, and some were infants or toddlers.
HSI investigated the case with the assistance of the Naval Criminal Investigative Service (NCIS).
To report an incident involving the possession, distribution, receipt or production of child pornography: "Child pornography" captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: 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’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.
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Former Police Officer Admits to Lying to Investigators about Stealing $345 While On-DutyRead the Press Release
A former Sapulpa police officer pleaded guilty Tuesday in federal court for lying to law enforcement about a theft he committed while on-duty, announced U.S. Attorney Clint Johnson.
Dennis James Hall, 40, pleaded guilty to making false statements, which is a felony. The plea agreement calls for Hall to serve five years of probation. Further, the defendant will no longer be permitted to serve as a law enforcement officer.
On Oct. 6, 2021, while on-duty as a police officer, Hall was called to a scene where a deceased woman was found in a hotel room. During the on-scene investigation, Hall entered the woman’s hotel room on his own then stole $345 in cash. When the Sapulpa Police Department first learned that a theft may have been committed, they contacted the Oklahoma State Bureau of Investigation (OSBI) for assistance. Hall was then interviewed by law enforcement and lied about committing the theft despite being confronted with evidence in the case. In his plea agreement, Hall admitted that he lied and made false statements to investigators during the Nov. 15, 2021, interview.
The Sapulpa Police Department, FBI, and OSBI conducted the investigation. Assistant U.S. Attorney Niko A. Boulieris is prosecuting the case.
Former Monroe Police Officer Sentenced for Abusing ArresteeRead the Press Release
MONROE, La. – A former officer with the Monroe Police Department, Jared Preston Desadier, 44, was sentenced today to 78 months in prison, followed by 2 years of supervised release, for his role in the assault of an arrestee in Ouachita Parish and his efforts to cover up that abuse.
“The defendant’s decision to callously abuse an arrestee when he thought he wasn’t being watched is an affront to the principles of honesty and integrity that our society expects from law enforcement,” said Assistant Attorney General Clarke for the Justice Department’s Civil Rights Division. “This sentence makes clear that the Department of Justice will aggressively investigate and prosecute any officer who believes that the Constitution only applies when the cameras are on.”
“All Americans expect law enforcement officers to continuously abide by the law,” stated U.S. Attorney Brandon B. Brown. “The bedrock of officer and citizen engagement is for the officer to, without exception, act professionally with a goal of deescalating tense situations. Here, this defendant instead decided to criminally escalate the situation by unnecessarily battering the victim. Prosecuting offenses such as these not only benefit society, but also law enforcement because bad police officers who cast a black eye on the profession are eradicated from the law enforcement community. This office will continue to prosecute these types of crimes with a goal of increasing the public’s trust in law enforcement.”
According to the defendant’s plea agreement, on April 21, 2020, officers of the Monroe Police Department, including Desadier, conducted a field interview with the victim in this case. When the victim attempted to run away, Desadier chased after him. The victim eventually stopped running, got on his stomach, and put his hands behind his back. Desadier ran towards the victim and then asked his fellow officer whether the officer’s body-worn camera was recording, and when he was mistakenly told that the cameras were off, he continued to run towards victim and kicked him in the face.
Assistant Attorney General Clarke, U.S. Attorney Brown, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brian C. Flanagan and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.
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Former Louisiana Police Officer Sentenced for Abusing an ArresteeRead the Press Release
A former officer of the Monroe Police Department, Jared Desadier, 44, was sentenced today to 78 months in federal prison and two years of supervised release for his role in the assault of an arrestee in Ouachita Parish and his efforts to cover up that abuse.
“The defendant’s decision to callously assault an arrestee when he thought he wasn’t being watched is an affront to the principles of honesty and integrity that our society expects from law enforcement,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence makes clear that the Department of Justice will aggressively investigate and prosecute any officer who believes that the Constitution only applies when the cameras are on.”
“All Americans expect law enforcement officers to continuously abide by the law,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “The bedrock of officer and citizen engagement is for the officer to, without exception, act professionally with a goal of deescalating tense situations. Here, this defendant instead decided to criminally escalate the situation by unnecessarily battering the victim. Prosecuting offenses such as these not only benefit society, but also law enforcement because bad police officers who cast a black eye on the profession are eradicated from the law enforcement community. This office will continue to prosecute these types of crimes with a goal of increasing the public’s trust in law enforcement.”
According to the defendant’s plea agreement, on April 21, 2020, officers of the Monroe Police Department, including the defendant, conducted a field interview with the victim in this case. When the victim attempted to run away, Desadier chased after him. The victim eventually stopped running, got on his stomach, and put his hands behind his back. Desadier ran towards the victim and then asked his fellow officer whether the officer’s body-worn camera was recording, and when he was mistakenly told that the cameras were off, he continued to run towards the victim and kicked him in the face.
Assistant Attorney General Clarke, U.S. Attorney Brown and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Brian Flanagan for the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.