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1 December 2022
LeClaire Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
Davenport, IA – Paul John McNicol, age 30, of LeClaire, was sentenced on November 30, 2022, to 216 months in prison for receiving child pornography. McNicol was also ordered to pay $10,000 in restitution and a $5,000 special assessment under the Justice for Victims of Trafficking Act. Following his imprisonment, McNicol was ordered to serve 10 years of supervised release.
Law enforcement identified McNicol after he uploaded sexually explicit images of minors to the social media program, KIK. Law enforcement executed a search warrant at McNicol’s residence and seized electronic devices, on which they located numerous images and videos depicting child pornography. McNicol was required to register as a sex offender following his 2014 Illinois convictions for Aggravated Criminal Sexual Abuse and Criminal Sexual Abuse.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Homeland Security Investigations investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Las Vegas Tax Preparer Sentenced to Prison for Multiple Fraud SchemesRead the Press Release
A Nevada man was sentenced Nov. 30 to 13 years and three months in prison for filing false tax returns, aggravated identity theft, wire fraud, money laundering and impersonating an FBI agent.
According to court documents and statements made in court, King Isaac Umoren, 41, owned and operated Universal Tax Services (UTS), a tax preparation business based in Las Vegas. Umoren used that business to engage in two separate fraud schemes.
First, from 2012 through 2016, Umoren prepared and filed with the IRS tax returns for clients that included false deductions and fictitious businesses in an effort to generate larger refunds than the clients were entitled to receive. At times, Umoren used the names and the IRS Preparer Tax Identification Numbers (PTINs) of other UTS employees without their knowledge or consent, making it seem as if they, not he, had prepared the false returns. Umoren also required his clients to use a refund anticipation check program, which he then utilized to secretly take fees out of the clients’ tax refunds without their knowledge. On Feb. 7, 2016, Umoren posed as an FBI agent, wearing a fake badge and tactical gear, and drove to a client’s house with police lights attached to his vehicle to demand payment of a tax preparation fee.
Second, in May 2016, Umoren attempted to sell UTS. To induce potential buyers to purchase the company at an inflated price, he provided fraudulent documents – including forged bank statements, fabricated return preparation fee reports, false personal tax returns and other tax forms that had never actually been filed with the IRS – as well as the stolen tax and personal identifying information of approximately 12,000 taxpayers who were not UTS clients. Eventually, Umoren succeeded in inducing a victim to purchase UTS for approximately $3.8 million. He used the sale proceeds to purchase land in Henderson and an automobile.
In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon ordered Umoren to serve three years of supervised release and pay $9,699,887 in restitution to the United States and the other victims of his fraud schemes.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and the FBI investigated the case.
Trial Attorneys Sarah A. Kiewlicz and Patrick Burns of the Tax Division prosecuted the case.
Las Vegas Man Sentenced to Prison for Unlawful Possession of A Machine Gun and "Ghost Guns"Read the Press Release
LAS VEGAS – A Las Vegas man who has prior felony convictions was sentenced on Wednesday by U.S. District Judge Ann R. Traum to 57 months in prison followed by three years of supervised release for unlawful possession of six firearms. The firearms included a machine gun, a short-barreled rifle, and unserialized privately made firearms (PMF), sometimes referred to as “ghost guns.”
In August 2022, Alfonzo Lee Womack (30) pleaded guilty to felon in possession of firearms and illegal possession of a machine gun. According to court documents, on October 5, 2020, near Sloan, Nev., Womack possessed six firearms. One of those firearms was a Glock 22 modified to fire as a machine gun, with an attached 31-round capacity magazine. Womack committed the acts in this case just four months after his most recent felony conviction and while on probation. He is prohibited by law from possessing firearms and ammunition due to prior felony convictions which included two separate convictions for trafficking cocaine and methamphetamine, corporal injury on spouse or inhabitant, and evading a police officer.
U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF and Las Vegas Metropolitan Police Department investigated this case. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
If you have information about illegal firearms activity, you are urged to submit a tip to ATF by calling the hotline at 1-800-ATF-GUNS (1-800-283-4867) or through the ReportIt mobile app.
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Las Cruces man charged with federal drug, firearms crimesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Djuan Anthony Aldredge was charged with possession with intent to distribute methamphetamine and possession of firearms in furtherance of drug trafficking. Aldredge, 30, of Las Cruces, New Mexico, appeared in federal court on Nov. 30 for a detention hearing and will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on July 1, FBI agents and officers with the Southern New Mexico Safe Streets Gang Task Force executed a federal search warrant for Aldredge, his residence in Las Cruces and his vehicle. In Aldredge’s bedroom, investigators found 305.8 grams of methamphetamine, two pistols, a 60-round ammunition drum, multiple ammunition magazines, assorted ammunition, body armor and firearms accessories. Investigators also found another pistol in Aldredge’s vehicle, and two rifles in the closet of another bedroom in the residence.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Aldredge faces a potential mandatory minimum sentence of five years and up to 40 years in prison for possession with intent to distribute methamphetamine and a minimum of five years and up to life in prison for possessing firearms in furtherance of drug trafficking.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Southern New Mexico Safe Streets Gang Task Force and the Las Cruces/Dona Ana County Metro Narcotics Agency. Assistant United States Attorney Matthew Ramirez is prosecuting the case.
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Lancaster Man Sentenced to 15 Years in Prison for Narcotics and Firearms OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Shawn Money Jones, 33, of Lancaster, PA, was sentenced to 15 years in prison and five years of supervised release by United States District Court Judge Joseph F. Leeson, Jr., for being convicted of possession with intent to distribute a variety of illegal narcotics, and illegally possessing a firearm as a previously convicted felon.
In August 2022, the defendant pleaded guilty to three counts, which included two counts of possession with intent to distribute controlled substances, and one count of possession of a firearm by a felon. The charges in this case stemmed from a months-long investigation, which culminated in a search of the defendant’s residence. During the search, local and federal investigators located and seized methamphetamine, cocaine, fentanyl, and a substance containing a detectable amount of oxycodone. Investigators also seized thousands of dollars in cash and three semi-automatic firearms, including one assault rifle and one “ghost gun” with no make, model, or serial number.
“The U.S. Attorney’s Office is committed to working with our law enforcement partners to keep illegal weapons out of the hands of people who are not permitted to possess them, and to cutting off the supply of deadly narcotics flowing into our communities,” said U.S. Attorney Romero. “Shawn Money Jones presented a danger to the community in Lancaster, and for his crimes he will now spend fifteen years in prison.”
“Like other drug traffickers, Shawn Jones had no regard for the harm he caused in his community,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Getting illegal narcotics off the street and illegal guns out of criminals’ hands is a step toward making Lancaster safer. The FBI and our partners will continue to work on behalf of all the good, law-abiding folks there.”
The case was investigated by the Federal Bureau of Investigation, the Lancaster County Drug Task Force, the Lancaster City Bureau of Police Selective Enforcement Unit, and Pennsylvania State Parole, and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
Lake City Man Pleads Guilty to COVID Relief Fraud Involving Fraudulently Obtained Paycheck Protection Program LoanRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jacob Deandre Byrd (20, Lake City) has pleaded guilty to wire fraud involving COVID Relief Fraud through the Paycheck Protection Program. Byrd faces up to 20 years in federal prison and payment of restitution to the United States government. Byrd has agreed to forfeit $20,833, representing the proceeds of the offense.
According to court documents, in April 2021, Byrd submitted a Paycheck Protection Program (PPP) loan application to a lender authorized by the Small Business Administration to lend funds for approved PPP loan applications. The PPP loan application falsely claimed that Byrd operated his own business, “Jacob’s Beauty.” Throughout the loan application Byrd made multiple false statements regarding his purported gross income and expenses associated with operating Jacob’s Beauty. In support of his PPP loan application, Byrd submitted a false IRS Form 1040 “Profit or Loss From Business” for Jacob’s Beauty. It contained false statements about operating expenses, gross income, and wage expenditures for his purported business. In truth, Jacob’s Beauty did not exist. In reliance on the false statements in his PPP loan application, the Small Business Administration funded a PPP loan for Jacob’s Beauty totaling $20,833. After receiving the PPP loan proceeds into his bank account, Byrd began making withdrawals and spending the funds on personal expenses.
This case is being prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kevin C. Frein. The forfeiture is being handled by Assistant United States Attorney Mai Tran.
Korean National Sentenced to Almost 2 Years in Prison for “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Jong Eun Lee, 48, a Korean national residing in Southern California, was sentenced today to 22 months in prison for a bank fraud conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2016, and December 2017, Lee participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
Lee is associated with opening source accounts or draining victim accounts. These bust-outs resulted in an actual loss of $378,735 to the banks, and a total intended loss of $756,218 based on additional, unsuccessful bust-out attempts.
On Nov. 10, 2022, Kyung Min Kong, 55, a citizen of South Korea, was sentenced to seven years and nine months in prison. Co-defendant Jeffrey Kim is scheduled to be sentenced on Jan. 26, 2023. Charges are pending against the remaining defendants: Ki Jang, Hee Soung Oh, and Bon Soke Hong, who were all indicted on Oct. 21, 2021. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
KS Man Indicted for Child Porn ProductionRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with one count of sexual exploitation of a child – production of child pornography, and one count of possession of child pornography.
Joel Cypert, 35, of Columbus is accused of creating sexually explicit images of a prepubescent, minor victim.
Homeland Security Investigations (HSI) and U.S. Immigration and Customs (ICE) are investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department Secures Settlement with State of Iowa Addressing Unconstitutional Conditions at Glenwood Resource CenterRead the Press Release
The Justice Department announced today that it has filed a complaint and a proposed consent decree with the State of Iowa to resolve allegations that conditions at Glenwood Resource Center (Glenwood), an institution for individuals with intellectual/developmental disabilities (IDD), violated the Constitution.
Specifically, the proposed consent decree, which must still be approved by the court, would resolve the department’s claims that the State exposes Glenwood residents to unreasonable harm and serious risk of harm by subjecting them to uncontrolled and unsupervised experimentation, inadequate physical and behavioral health care and inadequate protection from harm, including deficient safety and oversight mechanisms.
“People with disabilities should not be subjected to the kind of unconstitutional conditions and ill treatment that too many have experienced at Glenwood,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement makes clear that the basic constitutional rights of people with intellectual and developmental disabilities living in state-run facilities must be protected. Our agreement will ensure adequate oversight of and accountability at Glenwood, and requires extensive public reporting to promote transparency and rebuild public trust. For those who are leaving Glenwood, our agreement requires the State to help them transition to services that will meet their needs in the most integrated setting and support them in engaging with the broader community.”
The proposed consent decree prohibits uncontrolled and unsupervised experiments; requires better staffing, training and oversight for clinical care; dramatically limits the use of restraints and seclusion; and requires substantial State oversight over all aspects of Glenwood’s operation. The State must also implement policies and procedures to address the underlying deficiencies that led to the alleged constitutional violations. In addition, the decree requires greater transparency, through public reporting and engagement with stakeholders. The proposed consent decree appoints an independent monitor who will assess the State’s compliance with the decree’s terms.
Further, if more than one-third of current Glenwood residents move to, and are living at, Woodward Resource Center (the other State-run institution for individuals with IDD) at any point during the decree term, then the consent decree will apply to Woodward as well. The State of Iowa announced in April 2022 that it plans to close Glenwood in approximately two years, and the proposed consent decree requires the State to ensure that Glenwood residents move to the most integrated setting consistent with their informed choice, needs and preferences, with the appropriate services and supports in place.
The Civil Rights Division and the U.S. Attorney for the Southern District of Iowa initiated the investigation in November 2019 under the Civil Rights of Institutionalized Persons Act, which authorizes the department to act to correct a pattern or practice of deprivation of federal rights of individuals who reside in institutions, such as Glenwood Resource Center. In December 2020, the department provided the State written notice of the alleged unlawful conditions and remedial measures necessary to address them. Specifically, the department concluded that there is reasonable cause to believe that the State of Iowa violated the Fourteenth Amendment of the Constitution by harming Glenwood residents and placing them at serious risk of harm.
The proposed consent decree does not resolve the department’s notice issued in December 2021 regarding unnecessary institutionalization of people with IDD at Glenwood and Woodward Resource Centers, in violation of Title II of the Americans with Disabilities Act. Negotiations to resolve the December 202 Notice are ongoing.
Individuals with relevant information are encouraged to contact the department via email at [email protected]. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Secures Promotion and Backpay for National Guardsman in Puerto Rico and Continues to Defend Reemployment Rights of ServicemembersRead the Press Release
The Justice Department announced today that it has resolved a claim that the Puerto Rico Department of Education (PRDE) violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it failed to reemploy Puerto Rico National Guardsman Sergeant(E-5) Daniel Nazario to his proper position upon his return from military service. Based on the terms of the settlement, PRDE will promote Sergeant Nazario to his proper position as a school director in his preferred school district and will be awarding him backpay and seniority.
“Federal law requires employers to reemploy servicemembers into the positions that they would have held had their employment not been interrupted by military service, and also prohibits employers from denying promotions because of employees’ military obligations,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Justice Department is committed to protecting the civil rights of servicemembers who sacrifice to serve our country.”
Congress enacted USERRA to encourage non-career service in the military by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers, and others, by providing for the prompt reemployment of such persons upon the completion of their service; and to prohibit discrimination and retaliation against servicemembers if they pursue a claim under USERRA.
“The successful settlement of National Guardsman Daniel Nazario’s case with the PRDE, including his reinstatement to a permanent position, is an important step in the enforcement of servicemember rights and serves to highlight the proper treatment that must be afforded to these valuable members of our community,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico.
At the time his deployment, Sergeant Nazario was one of six temporary school directors in the Barranquitas school district. During his deployment, the PRDE promoted all the school directors in that district except for Sergeant Nazario to permanent positions. Upon his return from active duty, the PRDE initially rehired him as an English teacher and did not to promote him into a permanent school director position. Under the terms of the settlement agreement, the PRDE agreed to promote Sergeant Nazario to a permanent school director position with full benefits retroactive to June 2017, the date of his return from active duty, and pay him $2,840.00 in full back wages for his lost salary.
The Department of Labor (DOL) referred this matter to the Justice Department following an investigation by its Veterans’ Employment and Training Service.
Senior Trial Attorney and USERRA/USAO Program Coordinator Alicia D. Johnson in the Civil Rights Division’s Employment Litigation Section (ELS), in collaboration with Assistant U.S. Attorney David Martorani for the District of Puerto Rico prosecuted this matter.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. ELS continues to work collaboratively with the DOL to protect the jobs and benefits of military members. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/servicemembers, as well as on the Department of Labor’s website at https://www.dol.gov/agencies/vets/programs/userra.
Justice Department Provides Resources for Afghans and Ukrainians on Their Employment RightsRead the Press Release
The Justice Department announced today resources to help Afghans and Ukrainians in the United States understand their employment rights. These resources explain the workplace protections that Afghan and Ukrainian immigrants have under the Immigration and Nationality Act (INA), which prohibits employment discrimination based on citizenship, immigration status and national origin. Generally, employers are not allowed to discriminate against workers who have permission to work based on their citizenship or immigration status when hiring, firing or recruiting. Federal law also protects workers from discrimination based on their national origin.
“Preventing unlawful discrimination includes making sure that workers know their rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is ready to assist Afghans and Ukrainians in the United States, and will use all available tools to ensure they are not unlawfully discriminated against in the workplace.”
Afghans and Ukrainians in the U.S. may have a variety of immigration statuses. Some have arrived through Operation Allies Welcome and Uniting for Ukraine. These fact sheets include information for asylees, refugees, lawful permanent residents, individuals with Temporary Protected Status and those granted parole under Operation Allies Welcome or Uniting for Ukraine. As explained in these resources, the INA also protects workers from discrimination when an employer is checking their permission to work, often referred to as the employment eligibility verification process. The fact sheets provide examples of documentation that these workers may show during this process and emphasize that workers have the right to choose which valid documentation they can show to demonstrate their identity and permission to work.
Finally, the fact sheets provide information on how Afghans and Ukrainians in the United States can get help with a work-related issue through the worker hotline operated by the division’s Immigrant and Employee Rights Section (IER). This worker hotline is free and is available to all workers who have questions about discrimination in the workplace based on their citizenship, immigration status or national origin.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
View Russian translation here.
View Ukranian translation here.
View Pashto translation here.
View Dari translation here.
Jury finds 2 defendants guilty of participating in nationwide foreclosure rescue scamRead the Press Release
CINCINNATI – A federal jury has convicted two individuals of crimes related to their participation in a foreclosure rescue scheme that defrauded at least 780 financially distressed homeowners throughout the United States. The defendants preyed on homeowners who had defaulted on their mortgages and convinced the victims to pay to take part in fraudulent programs on the promise it would save their homes.
Lorin Kal Buckner, 66, of Hamilton, Ohio, and Dessalines Sealy, 59, of Brooklyn, New York, were two of four defendants who began trial in federal court in Cincinnati on Nov. 14. The other two trial defendants – Joel Harvey, 40, of Cincinnati, and Garrett Stevenson, 45, of Cincinnati – pleaded guilty during the trial.
Buckner and Sealy’s verdicts were announced today following the trial before Senior U.S. District Judge Michael R. Barrett.
Buckner, Sealy, Harvey and Stevenson are four of 13 total defendants in this case.
According to court documents and trial testimony, from 2013 through 2018, the defendants took advantage of homeowners’ desperation to save their homes and used money from homeowner victims to personally enrich themselves.
“The defendants took advantage of folks’ financial despair and emotional vulnerabilities to fill their own pockets,” said U.S. Attorney Kenneth L. Parker. “It was a priority for our office and our law enforcement partners to address this nationwide foreclosure scheme.”
Co-conspirators used companies to engage in a multi-level marketing scheme. The companies named in this case include:
- MVP Home Solutions, LLC, also known as
- Stay In or Walk Away;
- Bolden Pinnacle Group Corp., also known as
- Home Advisory Services Network
- Home Advisory Services Group Inc.; and
- Silverstein & Wolf Corp.
Defendants promised affiliates commissions by recruiting distressed homeowners to the above-named companies.
They used multiple ways to recruit affiliates, including conference calls and direct mailings. For example, some co-conspirators hosted weekly conference calls where participants from across the country dialed in to hear details of the scheme and share sales strategies. During the calls, defendants encouraged affiliates to recruit homeowners to their companies on the promise of easy money.
Affiliates were encouraged to be aggressive in recruiting homeowners. Affiliates used online databases and court records to identify vulnerable, financially distressed homeowners who had recently received notice of foreclosure on their home.
Co-conspirators mailed more than 56,000 postcards in the Southern District of Ohio and elsewhere promising that they could “stop foreclosure” or “stop the sheriff sale” for a fixed fee. Co-conspirators also reached out to homeowners using Craigslist ads, websites, email and social media platforms.
On the promise of reducing or eliminating mortgage obligations in exchange for a fee, initial recruiters would collect payments from homeowners and refer the victims to the co-conspirator companies.
Among other things, the referral programs promised:
- to negotiate with mortgage lenders on the homeowners’ behalf for the purchase of the mortgage notes at a discount;
- to negotiate the sale of their home and release of their mortgage loans through a short sale and/or deed in lieu of foreclosure sale;
- to stop an imminent foreclosure sale;
- to remove the mortgage lien via a tender offer; and
- achieve short sale prices at a fraction of the value of the outstanding lien/note.
Further, defendants represented that they had “proprietary” methods or “legal tactics” to help homeowners stall or completely avoid foreclosure. In actuality, the defendants persuaded homeowners to file chapter 13 bankruptcies to delay foreclosure actions.
Defendants filed skeletal bankruptcy petitions that they called “pump fakes” or “missiles,” These petitions intentionally failed to disclose the co-conspirators as preparers giving the appearance that the homeowners had filed the petitions pro se. Any relief from foreclosure delay was temporary until the bankruptcy court dismissed the proceeding.
The jury convicted Buckner and Sealy of conspiracy to commit mail and wire fraud as well as conspiracy to commit bankruptcy fraud.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Robert Manchak, Special Agent in Charge, Federal Housing Finance Agency - Office of Inspector General (FHFA-OIG), Northeast Region; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; and Philip R. Bartlett, Inspector in Charge, USPIS, New York Division, announced today’s verdict. Assistant United States Attorneys Ebunoluwa A. Taiwo and Timothy S. Mangan are representing the United States in this case.
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- MVP Home Solutions, LLC, also known as
Johnstown Man Sentenced to 60 Months in Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA, has been sentenced in federal court to a total of 60 months in prison followed by 3 years of supervised release on his conviction of unlawful possession of a firearm and ammunition by a convicted felon, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Hasus L. Hardy, age 35.
According to information presented to the court, on or about August 25, 2021, Hardy knowingly, intentionally, and unlawfully, possessed firearms and ammunition, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Ms. Chung commended United States Marshals Service for the investigation that led to the successful prosecution of Hardy.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Jacksonville Man Sentenced to 12 Years in Federal Prison on Bank Fraud and Aggravated Identity Theft ChargesRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Damien Deshaun Dennis (43, Jacksonville) to 12 years in federal prison for bank fraud and aggravated identity theft. Dennis was also ordered to pay restitution to the victims he defrauded. Dennis was arrested by the United States Secret Service Jacksonville Field Office on April 11, 2022, and ordered detained pending the outcome of his case. He had pleaded guilty on July 12, 2022.
According to court documents and evidence presented at the sentencing hearing, on August 9, 2021, Dennis entered a Community First Credit Union (CFCU) branch in Jacksonville. Using the identity of G.M., Dennis explained that he wanted to open a bank account. He then presented a counterfeit South Carolina driver license containing a picture of Dennis, but in the name of and containing the genuine date of birth of G.M. Dennis also provided a fraudulent document showing a home address in Jacksonville and a fraudulent pay document outlining his purported employment at a company in Jacksonville. After completing a “New Membership Application” using G.M.’s identity, including his Social Security number, CFCU approved the bank account application. Dennis then applied for a personal loan, stating he needed to pay for an upcoming wedding. In reliance on his false statements, the counterfeit driver license, and accompanying fraudulent documents, CFCU approved the personal loan in the name of G.M. for $20,000. Dennis subsequently made a cash withdrawal of $20,000 and left the branch.
On September 2, 2021, Dennis went to a different CFCU branch in Jacksonville. Using the identity of J.C., Dennis again explained that he wanted to open a bank account. He then presented a counterfeit Pennsylvania driver license containing a picture of Dennis, but in the name of and containing the genuine date of birth of J.C. Dennis also provided fraudulent documents in support of opening the bank account. CFCU employees became suspicious of Dennis and contacted the Jacksonville Sheriff’s Office (JSO). A JSO officer responded and spoke with Dennis who provided the officer with the victim’s name and the counterfeit Pennsylvania driver license. While Dennis and the officer were conferring outside of the credit union, Dennis fled from the officer, running through eight lanes of traffic on Beach Boulevard and into a residential neighborhood with the officer in pursuit. JSO air, canine, and ground units responded to the neighborhood. After a 20-minute search of the area, Dennis was apprehended and taken into custody. Further investigation by law enforcement determined that Dennis had attempted to open bank accounts at two additional financial institutions, using stolen identities.
In 2008 the U.S. Attorney’s Office, Jacksonville Division prosecuted Dennis, as part of a case involving a conspiracy to produce and pass counterfeit corporate checks. Dennis was convicted and sentenced to five years in federal prison in 2009.
“The Secret Service works hand in hand with the U.S. Attorney’s Office to vigorously apprehend and prosecute prolific criminals like this defendant. This type of sentence sends the perfect message to both the victims in this case and any future criminals who think about engaging in aggravated identity theft here in North Florida,” stated E. Joseph Scargill, Special Agent in Charge, U.S. Secret Service Jacksonville Field Office.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Jacksonville Man Indicted on Child Exploitation OffensesRead the Press Release
BIRMINGHAM, Ala. – A grand jury this week indicted a resident of Jacksonville, Alabama, on child exploitation charges, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Acting Special Agent in Felix A. Rivera-Esparra.
A two-count indictment filed in the U.S. District Court charges Skyler Joseph Weeks, 31, with attempted coercion and enticement of a minor and possession of child pornography arising out of events that occurred from August 2022 to October 2022.
According to the indictment, from August 7, 2022, until October 13, 2022, Weeks attempted to coerce and entice an individual who had not attained the age of 18 years to engage in prostitution and other sexual activity. Weeks also illegally possessed child pornography that involved a minor that had not attained the 12 years of age.
The maximum penalty for attempted coercion and enticement of a minor is ten years to life in prison and a $250,000 fine. The maximum penalty for child pornography is 20 years in prison and a $250,000 fine.
The FBI investigated the case along with the Homewood Police Department. The Alabama Law Enforcement Agency assisted in the investigation. Assistant U.S. Attorney Daniel S. McBrayer is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Honduran National Charged with Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that MARLON AMAYA-LOPEZ, also known as Elder Figueroa, 33, a citizen of Honduras residing in Bridgeport, was arrested yesterday on an indictment charging him with one count of illegally reentering the U.S. after being deported.
The indictment was returned on May 11, 2021 and unsealed yesterday after Amaya-Lopez was located and arrested. He appeared yesterday before U.S. Magistrate Judge S. Dave Vatti in Bridgeport, entered a plea of not guilty to the charge, and was ordered detained pending trial.
As alleged in the indictment, Amaya-Lopez was previously deported and removed from the U.S. to Honduras following a felony conviction in April 2007 in Connecticut Superior Court for attempted robbery in the second degree. He reentered the U.S. and returned to Connecticut without obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the U.S.
If convicted of the charge of illegal reentry, Amaya-Lopez faces a maximum term of imprisonment of 10 years. The penalties in this matter are enhanced based on his prior conviction for a felony.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Stephanie T. Levick.
Grant County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Steven Leroy Dillow, Jr., of Petersburg, West Virginia, was sentenced today to 50 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Dillow, 35, pleaded guilty in August 2022 to one count of “Distribution of Methamphetamine.” Dillow admitted to selling methamphetamine in June 2021 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Georgia Man Sentenced to Federal Prison for Threats Against the PresidentRead the Press Release
MACON, Ga. – A Georgia man was sentenced to prison for threatening to kill the President of the United States and blow up the White House, following an investigation that included multiple death threats issued against local judges, law enforcement and a threat letter containing a white powdery substance sent to the U.S. Courthouse in Macon.
Travis Ball, 56, of Barnesville, Georgia, was sentenced to serve 33 months in prison to be followed by three years of supervised release and ordered to pay a $7,500 fine by Chief U.S. District Judge Marc Treadwell on Nov. 30 after he previously pleaded guilty to threats against the President. There is no parole in the federal system.
“Sending death threats and purported anthrax is not protected speech — it is a crime,” said U.S. Attorney Peter D. Leary. “I applaud the investigative work by our federal and local law enforcement partners to secure justice in this case.”
“The sentencing in federal court of Mr. Ball is commensurate with the wasted resources and concern generated by his hate-filled hoax anthrax letter campaign,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “While Mr. Ball’s criminal conduct clearly illustrates his lack of concern and compassion for others, it also illustrates an unwillingness to be rehabilitated.”
“The U.S. Secret Service works closely with law enforcement and criminal justice partners at every level to investigate threats against our protectees,” said U.S. Secret Service Resident Agent in Charge Clint Bush with the Albany, Georgia, Resident Office. “Our zero-fail mission requires a tireless dedication from thousands of agents and investigators across the country to ensure the nation’s highest elected officials are protected from criminals like Travis Ball. Those who perpetrate these crimes must be held accountable for their actions, and we are thankful for the strong partnership we enjoy with the Department of Justice.”
According to court documents and other evidence, Ball sent a series of letters using another individual’s name as an alias to a variety of local and county government offices and officials, including judges with the Superior Court of Jones County, Georgia, and the Jones County Sheriff’s Office in March 2021. On March 23, 2021, a threat letter signed with the same name and the same return address was received at the U.S. District Courthouse for the Middle District of Georgia, which contained a white powdery substance. At that point, federal law enforcement agencies, including FBI, began investigating the source of the letters and identified Ball as the suspected author.
On March 23, 2021, a warrant was executed at Ball’s residence and agents noted that Ball was residing in the front living room where he slept on a cot and spent most of his time on a laptop computer and writing letters. One of the items seized was a stack of white leaflet notebook paper that matched the threat letters found on the mantle above his cot. The top page had the impression of a letter. Investigators lightly shaded the page with a pencil and discovered that it contained an explicit threat against the President of the United States, Joseph R. Biden, dated on March 8, 2021, which stated, “HATE YOU JOE BIDEN AND AM GOING TO KILL YOU AND YOUR FAMILY AND EVERYONE IN THE WHITEHOUSE! I’M A PSYCHO KILLER AND AM GOING TO BLOWUP THE WHITEHOUSE AND KILL EVERYONE IN IT! IM SERIOUS AND NOT KIDDING! LOCK ME UP OR ALL OF YOU WILL DIE! HAVE SOME ANTHRAX YOU BASTARDS!” The White House Mail Sorting Facility received the letter on March 30, 2021, which was turned over to U.S. Secret Service.
Ball was convicted of felony hoax threats in the Northern District of Georgia in June 2017 after he sent letters to the State Bar of Georgia and to Atlanta Newspapers in 2016 that contained a white powdery substance with threats to “kill all of you” and “have some anthrax.” Ball was sentenced to serve 24 months in prison to be followed by three years of supervised release on June 23, 2017.
The case was investigated by the FBI, the U.S. Secret Service and the Jones County Sheriff’s Office.
Assistant U.S. Attorney Alex Kalim prosecuted the case for the Government.
Fourteen Gang Members and Associates from Newburgh and Poughkeepsie Charged with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a 10-Count Indictment charging 14 members of the Young Gunnaz Gang (“YG”), including the gang’s high-ranking street leaders, with committing various racketeering, narcotics, and firearms offenses. The case is assigned to U.S. District Judge Kenneth M. Karas.
The Indictment charges several YG members and associates with acts of violence. This includes KASHAD SAMPSON, a/k/a “Shoca,” a YG leader who is charged with participating in multiple assaults with a dangerous weapon in Poughkeepsie and Newburgh, New York. In addition to serious acts of violence, the gang was also responsible for trafficking large amounts of narcotics across the City of Newburgh and New York State and perpetrating fraud schemes to enrich members of the gang.
U.S. Attorney Damian Williams said: “When I was sworn in as U.S. Attorney, I promised that this Office would be relentless in rooting out violent crime, in every corner of this District. That’s a promise I am determined to keep. Today, we’re announcing a sweeping RICO indictment charging 14 members and associates of a violent gang that we allege was up to no good: Running open air drug markets, engaging in shootouts in the broad daylight, and doing whatever it took to control the streets and do their dirt. Well, not anymore. Let today’s massive takedown be a warning to all gang members. The feds are watching. And you better believe we don’t quit.”
FBI Assistant Director in Charge Michael J. Driscoll said: "Many communities are seeing a dramatic increase in violent crime, putting people on edge. The FBI, and our law enforcement partners, are doing all we can to search out and stop these gangs from terrorizing towns in the Hudson Valley. This investigation should be viewed as a warning to others - we will hold you accountable."
As alleged in public court filings and the Indictment unsealed today in White Plains federal court:[1]
KASHAD SAMPSON, a/k/a “Shoca,” GEORGE DELGADO, a/k/a “Groc,” GABRIEL ROMAN, a/k/a “Gabe,” DALLAS ARCHER, a/k/a “Muggas,” JASIAH WOOTEN, a/k/a “Hov,” BRUCE ALLEN, a/k/a “Bam,” SYNCERE TATUM, a/k/a “Syn,” JOHN LALANNE, a/k/a “JJ,” RAEKWON JACKSON, a/k/a Tree,” BASHIR MALLORY, a/k/a “BG,” a/k/a “Bear,” MEKHI MCDONALD, a/k/a “Khi,” CHRISTOPHER TATE, a/k/a “Bag,” KRISTOPHER BURGESS CUNNINGHAM, a/k/a “KG,” and DEJON SCOTT, a/k/a “Red Dot,” are members and associates of a racketeering conspiracy known as YG.
On August 15, 2020, KASHAD SAMPSON, DALLAS ARCHER, JOHN LALANNE, and RAEKWON JACKSON, for the purpose of maintaining and increasing their positions in the YG enterprise, participated in and facilitated the attempted murder of rival gang members in Poughkeepsie, New York.
On April 27, 2021, SYNCERE TATUM, GABRIEL ROMAN, and CHRISTOPHER TATE, for the purpose of maintaining and increasing their positions in the YG enterprise, attempted to rob and shot at a rival drug dealer in Newburgh, New York.
On November 17, 2021, KASHAD SAMPSON, GEORGE DELGADO, JASIAH WOOTEN, and BRUCE ALLEN, for the purpose of maintaining and increasing their positions in the YG enterprise, shot at four rival gang members in Newburgh, New York.
On November 10, 2020, JOHN LALANNE robbed a narcotics dealer at gunpoint and discharged his firearm in Newburgh, New York.
From at least 2019 to the present, KASHAD SAMPSON, GEORGE DELGADO, GABRIEL ROMAN, JASIAH WOOTEN, BRUCE ALLEN, SYNCERE TATUM, JOHN LALANNE, RAEKWON JACKSON, BASHIR MALLORY, MEKHI MCDONALD, CHRISTOPHER TATE, KRISTOPHER BURGESS CUNNINGHAM, and DEJON SCOTT participated in a conspiracy to distribute a substantial amount of narcotics, including crack cocaine, heroin, Oxycodone, marijuana, and Promethazine HCL mixed with Codeine, commonly known as “lean.” These individuals also possessed numerous firearms in connection with this narcotics conspiracy.
* * *
SAMPSON, 23, DELGADO, 23, ROMAN, 23, ARCHER, 25, ALLEN, 24, TATUM, 22, LALANNE, 23, MALLORY, 19, MCDONALD, 19, TATE, 19, and CUNNINGHAM, 28, were all arrested yesterday, and presented today before United States Magistrate Judges Judith C. McCarthy and Andrew E. Krause. WOOTEN, 24, JACKSON, 22, and SCOTT, 27, have not been arrested at this time.
Charts containing the names, charges, and minimum and maximum penalties for the defendants are set forth below. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, New York State Police, Town of New Windsor Police Department, Orange County Sheriff’s Office, City of Newburgh Police Department, Town of Newburgh Police Department, and Nassau County Sheriff’s Office. Mr. Williams also thanked the FBI’s Westchester County Safe Streets Task Force, the New York City Department of Correction, Correction Intelligence Bureau, Department of Labor – Office of Inspector General, the Poughkeepsie Police Department, and the New York City Police Department for their assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jennifer N. Ong, Nicholas S. Bradley, and Ryan W. Allison are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
DEFENDANT(S)
MAX. AND MIN. POTENTIAL PENALTIES
Count One: Conspiracy to Commit Racketeering
KASHAD SAMPSON
DALLAS ARCHER
GABRIEL ROMAN
GEORGE DELGADO
JASIAH WOOTEN
BRUCE ALLEN
BASHIR MALLORY
CHRISTOPHER TATE
JOHN LALANNE
RAEKWON JACKSON
SYNCERE TATUM
MEKHI MCDONALD
KRISTOPHER BURGESS CUNNINGHAM
DEJON SCOTT
20 years in prison
Count Two: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
KASHAD SAMPSON
DALLAS ARCHER
JOHN LALANNE
RAEKWON JACKSON
20 years in prison
Count Three: Possession and Discharge of a Firearm in Furtherance of a Crime of Violence
KASHAD SAMPSON
DALLAS ARCHER
JOHN LALANNE
RAEKWON JACKSON
Life in prison; Mandatory minimum of 10 years in prison to run consecutive to any other sentence imposed
Count Four: Assault with a Dangerous Weapon in Aid of Racketeering
SYNCERE TATUM
GABRIEL ROMAN
CHRISTOPHER TATE
20 years in prison
Count Five: Possession and Discharge of a Firearm in Furtherance of a Crime of Violence
SYNCERE TATUM
GABRIEL ROMAN
CHRISTOPHER TATE
Life in prison; Mandatory minimum of 10 years in prison to run consecutive to any other sentence imposed
Count Six: Assault with a Dangerous Weapon in Aid of Racketeering
KASHAD SAMPSON
GEORGE DELGADO
JASIAH WOOTEN
BRUCE ALLEN
20 years in prison
Count Seven: Hobbs Act Robbery
JOHN LALANNE
20 years in prison
Count Eight: Possession and Discharge of a Firearm in Furtherance of a Crime of Violence
JOHN LALANNE
Life in prison; Mandatory minimum of 10 years in prison to run consecutive to any other sentence imposed
Count Nine: Conspiracy to Distribute Controlled Substances
KASHAD SAMPSON
GABRIEL ROMAN
GEORGE DELGADO
JASIAH WOOTEN
BRUCE ALLEN
BASHIR MALLORY
CHRISTOPHER TATE
JOHN LALANNE
RAEKWON JACKSON
SYNCERE TATUM
MEKHI MCDONALD
KRISTOPHER BURGESS CUNNINGHAM
DEJON SCOTT
Life in prison; Mandatory minimum of 10 years in prison
Count Ten: Possession of a Firearm in Furtherance of a Drug Trafficking Crime
KASHAD SAMPSON
GABRIEL ROMAN
GEORGE DELGADO
JASIAH WOOTEN
BRUCE ALLEN
BASHIR MALLORY
CHRISTOPHER TATE
JOHN LALANNE
RAEKWON JACKSON
SYNCERE TATUM
MEKHI MCDONALD
KRISTOPHER BURGESS CUNNINGHAM
DEJON SCOTT
Life in prison; Mandatory minimum of five years in prison to run consecutive to any other sentence imposed
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Fort Kipp woman sentenced to prison for involuntary manslaughter in vehicle deathRead the Press Release
GREAT FALLS — A Fort Kipp woman who admitted to striking and killing a man with her vehicle on the Fort Peck Indian Reservation was sentenced today to 18 months in prison, to be followed by two years of supervised release, U.S. Attorney Jesse Laslovich said.
Joanna Sayetsitty, 35, pleaded guilty in August to involuntary manslaughter.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged that on Aug. 22, 2019, Sayetsitty was driving around the Fort Kipp area with the victim, drinking alcohol and listening to music. At some point, Sayetsitty and the victim had a fight, and the victim got out of the vehicle. Sayetsitty drove away, running over the victim and leaving him in a field, where he died. The body was found three days later and was only identified after his clothing was described on social media. Sayetsitty admitted in a court hearing to driving the vehicle in a reckless manner, and striking the victim, causing his death.
Assistant U.S. Attorney Wendy A. Johnson prosecuted the case, which was investigated by the FBI, Fort Peck Tribes Department of Law and Justice and the Roosevelt County Sheriff’s Office.
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Former Vice President and General Manager of New England Compounding Center Sentenced to PrisonRead the Press Release
BOSTON – A former co-owner of the now-defunct New England Compounding Center (NECC) was sentenced today in federal court in Boston in connection with conspiring to defraud the Food and Drug Administration (FDA).
Gregory Conigliaro, 57, of Southborough, Mass. was sentenced by U.S. District Court Judge Richard G. Stearns to one year in prison and one year of supervised release. In December 2018, Conigliaro was convicted following a 41-day jury trial of one count of conspiracy to defraud the United States.
Conigliaro was the Vice President and General Manager of NECC and served as NECC’s primary point of contact with federal and state regulators. Conigliaro conspired with the former co-owner of NECC and head pharmacist, Barry Cadden, and others at NECC to misrepresent to the FDA and the Massachusetts Board of Registration in Pharmacy that NECC was operating as a pharmacy dispensing drugs only pursuant to patient-specific prescriptions, when, in reality, NECC was shipping drugs in bulk across the nation for over a decade, evading regulatory oversight through fraud and misrepresentation.
Though he was well aware that NECC was routinely shipping drugs to customers throughout the country without patient-specific prescriptions, from 2002 through 2012, Conigliaro (and his co-conspirators) always represented to the FDA and the Massachusetts Board of Registration in Pharmacy that NECC was only dispensing drugs pursuant to valid, patient-specific prescriptions—even going so far as to create fraudulent prescriptions and present them to regulators to conceal NECC’s true activities.
Through this deceit, Conigliaro and NECC were able to avoid the FDA’s oversight authority—and the FDA’s requirement that drug-manufacturers follow cGMPs—and operate in a slipshod, unsafe manner, ultimately leading to a tragic outbreak of fungal meningitis that killed more than one hundred individuals and injured many hundreds more.
“Mr. Conigliaro and his co-conspirators repeatedly made the choice to put their greed over patient safety,” said United States Attorney Rachael S. Rollins. “In turn, nearly 800 patients suffered terribly and over 100 died. Today's sentence sends a clear message to healthcare executives – if you lie to regulators, the outcomes can be deadly and we will hold you accountable.”
The criminal case in this matter arose from the nationwide outbreak of fungal meningitis that was traced back to contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. In 2012, nearly 800 patients in 20 states were diagnosed with a fungal infection after receiving injections of MPA manufactured by NECC, and more than 100 patients died as a result. The outbreak was the largest public health crisis ever caused by a contaminated pharmaceutical drug.
In December 2014, following a two-year investigation, Conigliaro and 13 other owners, employees and associates of NECC were charged in a 131-count indictment. The indictment did not charge Conigliaro with having any role in the drug manufacturing operations of NECC.
On July 7, 2021, Cadden was resentenced, following the government’s successful appeal of his original sentence, to 174 months in prison and ordered to pay forfeiture of $1.4 million and restitution of $82 million. On July 21, 2021, Glenn Chin was resentenced, following the government’s successful appeal of his original sentence, to 126 months in prison and three years of supervised release. Chin was also ordered to pay forfeiture of approximately $473,584 and restitution in the amount of $82 million.
U.S. Attorney Rollins; FDA Commissioner Robert M. Califf, M.D.; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Patrick Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Assistant U.S. Attorney Amanda P.M. Strachan, Chief of Rollins’ Criminal Division and Assistant U.S. Attorney Christopher R. Looney of Rollins’ Health Care Fraud Unit prosecuted the case.
Former Teaching Assistant in St. Louis Admits Blackmailing StudentRead the Press Release
ST. LOUIS – A former teaching assistant at St. Louis University on Thursday pleaded guilty to a federal charge and admitted blackmailing a student who was also his former girlfriend.
Hussein Kadhim Abood Khalaf, 34, was a teaching assistant in one of the victim’s classes in the fall of 2020, his plea agreement says. They dated briefly that December. Khalaf admitted setting up Instagram accounts and using them to threaten the victim. He also set up a fake Instagram account in her name and sent her threatening text messages from multiple phone numbers.
In these messages, Khalaf demanded $30,000 and sex from the victim. He threatened to send nude pictures and videos to her friends, classmates and relatives if she did not comply.
Khalaf, an Iraqi citizen, is in the United States on a student visa. In court, he said he was expelled from the university but is planning on petitioning to be readmitted. Khalaf also acknowledged in his plea agreement that it could impact his immigration status or result in deportation
Khalaf pleaded guilty in front of U.S. District Judge Henry E. Autrey to a misdemeanor blackmail charge.
The case was investigated by the FBI. Assistant U.S. Attorneys Colleen Lang and Matthew Drake prosecuted the case.
Former State of Georgia employee sentenced to five years in federal prison for stealing $1.3 million earmarked for citizens with disabilitiesRead the Press Release
ATLANTA – Former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke (formerly known as Karen C. Gregory) has been sentenced to five years in prison for forging educational records and creating fake students with non-existent disabilities and illnesses in an elaborate, multi-year scheme to steal more than $1.3 million.
“The State of Georgia trusted Lyke to serve some of its most vulnerable citizens – Georgians with significant disabilities and illnesses,” said U.S. Attorney Ryan K. Buchanan. “Driven by greed more than integrity, Lyke betrayed that trust and masterminded a complex scheme to invent fake students with non-existent disabilities through forging medical, educational, and financial records. Based on her sophisticated conspiracy, Lyke cheated taxpayers out of more than $1.3 million.”
“Lyke abused her trusted counselor position to line her own pockets, and for that she will spend time in prison,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing should serve as a message that the FBI and our partners will not tolerate anyone driven by personal greed to steal American tax payer money that should be going to those who need it.”
“This sentence provides accountability for an absolutely brazen crime that resulted in the largest criminal fraud OIG has ever investigated,” said State Inspector General Scott McAfee. “OIG will continue to uphold the integrity of state programs and ensure taxpayer dollars are used for their intended purpose.”
“This should serve as a reminder that fraud related to the services and resources the Georgia Vocational Rehabilitation Agency provides to our clients will not be tolerated. We are committed to protecting the interests of Georgia taxpayers and our constituents,” says GVRA Executive Director Chris Wells. “As soon as we suspected fraud in this matter, we notified the Georgia Office of the Inspector General. Additionally, we took immediate action to prevent such incidents of fraud even earlier to ensure both our clients and public funds are secure.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The State Vocational Rehabilitation Services Program is a federally funded program administered by the U.S. Department of Education that offers grant money to assist states to provide services to individuals with disabilities. To be eligible for the State Vocational Rehabilitation Services Program, individuals must have a physical or mental impairment that results in a substantial impediment to employment and require services to achieve employment and to maximize career goals. Across the country, state vocational rehabilitation agencies offer various services to individuals with disabilities, including tuition assistance for vocational training and college education.
The Georgia Vocational Rehabilitation Agency (“GVRA”) operates Georgia’s vocational rehabilitation program. Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities (known as “clients”) to find and maintain employment, including by providing funding and tuition assistance for college education.
During this time, the GVRA assigned counselors to assist its clients, including helping clients to obtain tuition assistance. To obtain tuition assistance, a client was required to provide the GVRA with documentation to support obtaining GVRA funds, including: (a) medical records demonstrating a disability related to employment, (b) a driver’s license, (c) proof of registration for classes, and (d) financial aid information.
After receiving the information, the client’s GVRA counselor reviewed the documentation and, if the counselor approved the request for tuition assistance, a check was mailed to the client for the requested educational expenses. From June 2015 to March 2019, Lyke served as a GVRA counselor in its Norcross, Georgia office.
From approximately May 2016 to November 2020, Lyke and her husband, Kevin M. Gregory (who has been separately charged) conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Lyke and Gregory used the names of actual friends and relatives as the names of the fake disabled students seeking tuition assistance from the GVRA.
Lyke and Gregory used the names of friends and relatives to create fake medical records to make it appear that the approximately 13 fake students qualified for tuition assistance from the GVRA. They claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.
As proof of identification, Lyke and Gregory provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, Gregory created a fake driver’s license in his cousin’s name, by using a mug shot image of an unknown individual from the Internet as the driver’s license photograph.
Lyke and Gregory then used photo-editing software to alter authentic college transcripts, financial aid reports, and proofs of registration from actual GVRA clients to support claims that the fake students attended schools like the Georgia Institute of Technology, Georgia State University, or the University of Georgia. Lyke then uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.
Based on false documentation, Lyke and Gregory caused more than 230 checks to be mailed to approximately 13 friends and relatives for bogus educational expenses. In fact, none of the 13 fake students attended any of the claimed colleges or universities.
The GVRA mailed the checks to post office boxes that Lyke and Gregory opened in their own names. After receiving the GVRA checks, Lyke and Gregory either: (a) deposited the GVRA checks into their own bank accounts, or (b) gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Lyke and Gregory after depositing the GVRA checks.
After Lyke left the GVRA in March 2019, Lyke and Gregory continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA continued to issue checks to the fake students for bogus educational expenses. Lyke and Gregory used the stolen GVRA funds to pay for various personal expenses, including cars, jewelry, high-end guitars, and the down payment on a new home. In total, based on the false documentation they created, the GVRA mailed more than 230 checks to Lyke and Gregory resulting in the theft of approximately $1.3 million.
From approximately August 2016 to February 2019, Gregory and Lyke also conspired to steal several high-value computers from the GVRA. Using her position as a GVRA counselor, Lyke and Gregory stole multiple computers by submitting phony paperwork to the GVRA claiming that:
- Three genuine GVRA clients needed computers to further their educational goals when, in fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;
- Three fake students (that Gregory and Lyke created) needed the computers to further their educational goals; and
- Gregory was a GVRA client who needed a computer to further his educational goals.
Lyke arranged for at least six computers to be shipped to her attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Lyke and Gregory then sold at least five of the computers on eBay using Gregory’s account. Lyke and Gregory kept one computer for personal use. In total, Lyke and Gregory stole at least seven computers with various accessories worth approximately $32,000.
Based on the conduct above, on September 1, 2022, Karen C. Lyke, 37, of Toledo, Ohio, pleaded guilty to a criminal information charging her with conspiring to commit federal program theft. Lyke was sentenced to five years in prison followed by three years of supervised released and was ordered to pay $1,347,531.76 in restitution to the U.S. Department of Education and the GVRA.
On October 4, 2022, Kevin M. Gregory, 40, of Toledo, Ohio, pleaded guilty to a criminal information charging him with conspiring to commit federal program theft. Gregory is scheduled to be sentenced on January 11, 2023.
The Federal Bureau of Investigation and Georgia Office of Inspector General are investigating the case. The Georgia Vocational Rehabilitation Agency also provided valuable investigative assistance.
Assistant U.S. Attorneys Jeffrey W. Davis and Jesika W. French are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Seattle area resident convicted of conspiracy and multiple counts of mail and wire fraud plus various bankruptcy fraud countsRead the Press Release
Seattle – A former Bellevue, Washington, resident who relocated to Miami, was convicted today in U.S. District Court in Seattle of 26 counts related to his multimillion-dollar Ponzi scheme, announced U.S. Attorney Nick Brown. The jury deliberated about 11 hours before returning the verdicts following a nine-day trial. Volodimyr Pigida, 48, and his wife Marina Bondarenko, 39, operated a ‘work-at-home’ email scheme that ultimately crashed – but not before the two raided the company’s accounts to purchase homes, expensive cars, and a yacht. The two set up a series of trusts to try to hide the diverted assets from the bankruptcy trustee after the company declared bankruptcy.
According to records filed in the case and testimony at trial, the company Pigida and his spouse formed, Trend Sound Promoter AMG Corp., was supposed to conduct advertising and music promotion over the internet. The couple sold ad-promoting packages whereby those who bought a package were to be paid for email marketing. The couple made claims to those purchasing the packages that they could make big money for sending emails on Trend Sound’s behalf. In reality, the only significant money being generated was from those purchasing the packages, and it was used to pay earlier purchasers as in a typical Ponzi scheme. Over time the company brought in over $22 million, and total losses to those purchasing the packages was over $11 million. As purchasers got wise and the money started to run out, Pigida and Bondarenko accelerated their looting of the company, eventually transferring $3.3 million out of the company for their personal benefit.
Between May 2013 and March 2014, the pair used more than $3 million in company funds to purchase four properties, a yacht, and numerous cars. When the company filed for bankruptcy protection, Pigida never revealed to the bankruptcy court that they had looted the company coffers and transferred assets purchased with that money to ten trusts they had established. In all, the pair attempted to conceal $3,334,750 in assets from the bankruptcy court and creditors.
Pigida and Bondarenko were indicted for conspiracy and mail, wire, and bankruptcy fraud in November 2018. In September 2019, Bondarenko pleaded guilty to bankruptcy fraud and was sentenced to 38 months in prison.
In closing argument, on November 29, 2022, Assistant United States Attorney Justin Arnold said the company, “was as far away from solvent [as] a company can be… This wasn’t mismanagement, this was lies.” Arnold said Pigida lied about investors from Hollywood and investors from Florida. “You don’t get to lie to people [to] build your dream, and you don’t get to take their money,” AUSA Arnold said.
Pigida is scheduled for sentencing on March 24, 2023.
Conspiracy is punishable by up to five years in prison. Wire fraud and mail fraud are punishable by up to 20 years in prison for each count and a maximum fine of $250,00o or twice the losses to any victims of the offense. The various counts related to bankruptcy fraud are punishable by up to five years in prison for each count and a fine of up to $250,000. The actual sentence will be imposed by Judge Ricardo S. Martinez after considering the sentencing guidelines and other statutory factors.
The case was investigated by the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Philip Kopczynski.
Former Maui County Environmental Management Official Charged with Accepting BribesRead the Press Release
HONOLULU – United States Attorney Clare E. Connors and Federal Bureau of Investigation Special Agent in Charge Steven Merrill announced that an information has been unsealed today charging Wilfred Tamayo Savella, 71, of Maui County, Hawaii, with charges stemming from the operation of a long running bribery scheme. A court appearance for Savella is scheduled for December 5, 2022, at 11:00 a.m.
The information, unsealed today, alleges that a Honolulu based businessman, Milton Choy, bribed Savella while he was a public official with the Maui County Department of Environmental Management (“DEM”), and that between approximately 2013 through 2017, Savella accepted bribes from Choy for his role in “initiating, awarding and/or acting as DEM’s primary contact person for sole source contracts issued by Maui County to DEM.” The bribes were made with cash, bank deposits, at least one gambling trip to Las Vegas, casino chips, and/or other financial benefits, totaling over $40,000, in exchange for Savella’s agreement, in his official capacity as a County of Maui official at DEM, to assist in the awarding of lucrative sole source contracts and purchase orders to Choy’s company.
Choy pleaded guilty in September 2022, to bribing another Maui County official, Stewart Stant, who also pled guilty in September 2022. Both men are awaiting sentencing.
“Corruption by public officials degrades the integrity of our government institutions and tarnishes the important work done every day by honest public servants,” said United States Attorney Clare E. Connors. “Our office continues to investigate and prosecute corruption at all levels of Hawaii government.”
“Mr. Savella was in a position of public trust, and our investigation shows he violated that trust by accepting thousands of dollars in bribes,” said FBI Special Agent in Charge Steven Merrill. “These charges should send a very clear message that the FBI will vigorously pursue allegations of corruption at every level.”
If convicted, Savella faces a sentence of up to 10 years imprisonment, and a fine of up to $250,000. An information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation in the case was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Ken Sorenson and Micah Smith are prosecuting the case.
Former Heads of New York-Based Non-Governmental Organization Plead Guilty to Conspiring to Bribe Elected Officials of the Marshall IslandsRead the Press Release
Two Marshallese nationals pleaded guilty today to conspiring to pay bribes to elected officials of the Republic of the Marshall Islands (RMI) in exchange for passing certain legislation.
According to court documents, beginning in or around 2016 and continuing until at least August 2020, Cary Yan, 50, and Gina Zhou, 34, the heads of a New York-based non-governmental organization (NGO), conspired with others in connection with a multi-year bribery scheme. Yan and Zhou offered and paid tens of thousands of dollars in bribes to elected RMI officials – including, among others, members of the RMI legislature – in exchange for supporting legislation creating a semi-autonomous region within the RMI called the Rongelap Atoll Special Administrative Region (RASAR) that would benefit the business interests of Yan, Zhou, and their associates. Yan and Zhou carried out the bribery and money laundering scheme using the New York NGO, including the physical use of its headquarters in Manhattan, to meet with and communicate with RMI officials.
In November 2020, Thai authorities arrested Yan and Zhou in Thailand at the request of the United States pursuant to the U.S.-Thailand extradition treaty, and following court proceedings, the Thai government extradited Yan and Zhou to the United States on Sept. 2.
Yan and Zhou each pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). They each face a maximum penalty of five years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, and Assistant Director-in-Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI investigated the case. The Royal Thai Government, the U.S Department of State’s Diplomatic Security Service, the Embassy of the United States in Bangkok, and the Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of the defendants.
Assistant Chief Gerald M. Moody Jr. and Trial Attorney Anthony Scarpelli of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Hagan Scotten, Lara Pomerantz, and Derek Wikstrom for the Southern District of New York are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Gulf Breeze Attorney Sentenced to Federal Prison for Tax EvasionRead the Press Release
PENSACOLA, FLORIDA – William Cater Elliott, 61, of Gulf Breeze, Florida was sentenced to one year in federal prison after pleading guilty on May 4, 2022, to three counts of tax evasion for the years of 2015, 2016, and 2017. Elliot was a former attorney and the sole proprietor of William C. Elliott Associates, P.A., law firm, in Gulf Breeze, Florida. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The United States relies on the payment of taxes to defend our country and maintain its operations,” said U.S. Attorney Coody. “We will investigate and prosecute those who falsely misrepresent their income – whether by traditional evasion or the filing of fraudulent documents.”
In addition to the federal imprisonment, Elliot was ordered to pay $211,073.00 in restitution, and $116,896.25 in cost of prosecution fees. Elliot’s imprisonment will be followed by three years of supervised release – with the first three months to be served on Home Confinement.
“Devising fictitious loan documents intended to conceal the true facts from the IRS isn't just bending the rules; it's fraud,” said IRS-CI Acting Special Agent in Charge Ron Loecker. “Every American who pays their taxes should be offended by individuals such as Mr. Elliott who use similar schemes to avoid paying their fair share. Today’s sentencing should serve as a warning to others considering following Mr. Elliott’s poor example – the risk of being caught will only increase.”
This case was investigated by the Internal Revenue Service - Criminal Investigation Division. Assistant United States Attorney Andrew J. Grogan prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Florida Attorney Indicted for Racketeering Relating to Operation of His Tallahassee Law Firm and Investment CompaniesRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury has returned a one-count indictment charging Phillip Timothy Howard, 61, of Tallahassee, Florida, with racketeering (RICO). The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
According to the indictment, between in or about December 2015, and in or about January 2018, Howard, a Florida attorney, along with others, was associated with and employed by an Enterprise, that is, his Tallahassee law firm (Howard & Associates, P.A.), and several Tallahassee investment companies (Cambridge Capital Group, LLC; Cambridge Capital Wealth Advisors, LLC; Cambridge Capital Advisors, LLC; Cambridge Capital Funding, Inc., Cambridge Capital Group Equity Option Opportunities, L.P.; and Cambridge Capital Partners, L.P.). The indictment further alleges that during this time, Howard, along with others, knowingly, willfully, and unlawfully conducted and participated in the conduct of the affairs of the Enterprise, through a pattern of racketeering activity, namely, wire fraud and money laundering. Specifically, the indictment alleges that Howard engaged in such racketeering activity in three ways.
First, it is alleged that Howard represented former NFL players in a class-action lawsuit who were eligible for settlement payouts from the NFL, and as part of that representation, Howard fraudulently enticed his clients to invest their retirement funds with his investment companies. However, it is also alleged that Howard failed to disclose and misrepresented to these former NFL player investors the structure of the Enterprise, and the conflicts of interest and the criminal background of persons associated with or employed by the Enterprise. It is further alleged that Howard failed to disclose and misrepresented the true nature of investment companies’ funds and the actual investments made by the former NFL player investors. The indictment also alleges that despite reassuring investors that their money was secure, Howard never informed them that almost none of investment funds yielded a return and failed to disclose that the investment funds had been commingled with funds used to operate his law firm and to issue payroll for its staff, pay Howard’s home mortgages, and otherwise personally enrich Howard. It is alleged that Howard and others fraudulently obtained and attempted to obtain over $4 million through such conduct.
Second, the indictment alleges that Howard sought third-party lenders that would be willing to lend money to Howard’s former NFL clients in advance of their potential NFL concussion settlements as part of the NFL class-action lawsuit, and also to Howard as litigation funding for the NFL class-action lawsuit. To obtain such funds for himself and his clients, it is alleged that Howard provided false and fraudulent information, including numerous material misrepresentations and omissions, to the lenders. It is alleged that Howard and others fraudulently obtained and attempted to obtain over $10 million from third-party lenders through such conduct.
Third, the indictment alleges that Howard solicited a person to invest in a real estate project located in Jacksonville, Florida, and in doing so, promised the investor certain returns on the investment within a specified period of time. It is further alleged that after the investor money transferred money to the investment company, Howard and an employee falsely told the investor that additional money was needed in order to close that real estate deal, and that the investor was guaranteed to receive a certain return on that investment within a specified period of time. In reliance on this false promise, it is alleged that the investor transferred additional proceeds to the investment company. The indictment alleges that several months later, the investor was falsely told by Howard that the real estate investment funds were secure and would be returned to her. It is alleged that Howard fraudulently obtained and attempted to obtain over $520,000 from this investor through this conduct.
Trial for Howard is scheduled for January 30, 2023, at 8:15 a.m., at the United States Courthouse in Tallahassee before the Honorable United States Chief District Judge Mark E. Walker. Howard faces a maximum penalty of 20 years in prison for racketeering and a maximum term of 3 years of supervised release following any prison sentence that is imposed.
This case resulted from a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service–Criminal Investigations, with assistance from the U.S. Securities and Exchange Commission. Assistant United States Attorneys Justin M. Keen and David Byron are prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Bank Teller Sentenced for Stealing over $64,000 from Her EmployerRead the Press Release
BOSTON – A Tewksbury woman was sentenced yesterday in federal court in Boston for stealing over $64,000 from the local bank branch where she was employed.
Gina Rogers, 46, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years of supervised release with three months served in home detention. Rogers was also ordered to pay restitution of $64,495 to Citizens Bank. On Aug. 10, 2022, Rogers pleaded guilty to one count of bank theft.
While working as a teller and vault custodian at a Citizens Bank branch in Woburn, Rogers stole $64,496 in bank deposits.United States Attorney Rachael S. Rollins and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service in Boston made the announcement. Valuable assistance was provided by the Waltham Police Department. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit prosecuted the case.
Former Bank Manager Sentenced for Role in Tax Scheme Targeting Immigrant CommunityRead the Press Release
BOSTON – A former bank manager was sentenced yesterday in federal court in Boston for falsely inflating taxpayer’s federal income tax refunds and diverting a portion of those refunds to accounts controlled by him and others.
Christian Zynga, 47, formerly of Everett, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served and two years of supervised release with the first six months to be served in home detention. Zynga was also ordered to pay a fine of $5,000 and restitution to the Internal Revenue Service of $194,305. In October 2021, Zynga pleaded guilty to one count of conspiracy to defraud the United States.
From 2012 to 2018, Zynga and co-conspirator Boris Shadari held Shadari out to be a tax professional, particularly for the Congolese community of Greater Boston. Until 2017, they took their customers’ tax information to a legitimate tax professional and provided the tax professional with false information concerning their customers’ dependents, dependent and childcare expenses and business income and losses in order to inflate the customers’ federal income tax refunds. They then caused the refunds to be split between the customers’ bank accounts and accounts they and their co-conspirators controlled.
From 2017 to 2018, Zynga and Shadari prepared customers’ tax returns themselves while continuing to inflate refunds by adding false information to the returns and diverting a portion of the customers’ refunds to themselves or accounts they or their co-conspirators controlled. The scheme resulted in a tax loss of more than $500,000. Among other things, Zynga, who worked as a bank manager, opened bank accounts in others’ names for the purpose of receiving the fraudulent federal income tax refunds. Zynga also provided Shadari with the names and Social Security numbers of children of an associate who was living abroad at the time so that they could be falsely listed as dependents on returns.
On Aug. 2, 2022, Shadari was sentenced to 30 months in prison and two years of supervised release after previously pleading guilty to his role in the scheme. Shadari was also ordered to pay restitution of $496,082.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former Amazon employees plead guilty to $10 million fraudRead the Press Release
ATLANTA - Kayricka Wortham and Demetrius Hines have pleaded guilty to defrauding Amazon.com, Inc., and stealing nearly $10 million from the company, while employed at the company in managerial and loss prevention roles.
“The defendants abused their trusted positions to steal nearly $10 million from the company over the course of just a few months,” said U.S. Attorney Ryan K. Buchanan. “This staggering fraud was fueled by pure greed, as evidenced by the high-end real estate, luxury cars, and expensive jewelry that the defendants quickly accumulated with their fraudulent proceeds.”
“These defendants attempted to hide their scheme in plain sight by using their unique roles within their company to conceal the actions from which they fraudulently benefitted,” said U.S. Secret Service Atlanta Special Agent in Charge Steven Baisel. “The defendants ultimately learned that the highly skilled investigators with the Secret Service are uniquely proficient in their work to uncover illicit financial schemes, regardless of attempts to evade law enforcement. I am proud of the investigative team responsible for bringing these defendants before our justice system.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Kayricka Wortham and Demetrius Hines used their positions at Amazon.com, Inc., to submit more than $10 million in fictitious invoices for fake vendors, causing Amazon to pay approximately $9.4 million to Wortham, Hines, and their co-conspirators.
From about August 2020 to March 2022, Wortham worked as an Operations Manager at Amazon. She was employed at the company’s warehouse in Smyrna, Georgia. In her position, Wortham supervised others and acted with authority to approve new vendors and the payment of vendor invoices.
Hines was a Loss Prevention Multi-Site Lead at Amazon. He also worked at the Smyrna warehouse and at other company sites. In his position, Hines was responsible for preventing loss, monitoring security risks, and protecting people, products, and information at Amazon.
Wortham, who was the leader of the scheme, provided fake vendor information to unknowing subordinates and asked them to input the information into Amazon’s vendor system. Once the information was entered, Wortham approved the fake vendors, thereby enabling those vendor accounts to submit invoices to Amazon. Wortham and her co-conspirators, including Hines, then submitted fictitious invoices for payment. These invoices falsely represented that the fake vendors had provided goods and services to Amazon. The payments for these invoices, typically approved by Wortham, went to bank accounts controlled by Wortham and her co-conspirators.
Wortham recruited other individuals to act as purported vendor contacts for the fake vendors entered into Amazon’s system. She recruited Hines into the scheme and asked him to supply individuals’ information that could be used as fake vendor contacts.
In total, Wortham and her co-conspirators received about $9.4 million from the scheme. They spent the fraudulent proceeds for personal benefit, including purchasing real estate, luxury cars, and expensive jewelry.
As part of her sentencing, Kayricka Wortham, a/k/a “Kayricka Dupree,” a/k/a “Kayricka Young,” 31, of Atlanta, Georgia, will forfeit more than $2.7 million in fraudulent proceeds seized from multiple bank accounts, a residence located in Smyrna, that was purchased with over $900,000 in fraudulent proceeds, and a 2019 Lamborghini Urus, a 2021 Dodge Durango, a 2022 Tesla Model X, a 2018 Porsche Panamera, and a Kawasaki ZX636 motorcycle, all of which were purchased with fraudulent proceeds.
Demetrius Hines, 35, of Smyrna, Georgia, will forfeit more than $600,000 in fraudulent proceeds seized from multiple bank accounts and a 2022 Suzuki GSX1300 Motorcycle, a 2013 Ford Shelby Mustang, a 2021 Ford F-150 Black Widow, a Rolex Day-Date watch, a diamond bracelet, and a diamond necklace, all of which were purchased with fraudulent proceeds.
Wortham and Hines pleaded guilty to conspiracy to commit wire fraud. Sentencing for Wortham is scheduled for March 8, 2023, at 10:30 a.m., before U.S. District Judge Timothy C. Batten, Sr. Sentencing for Hines is scheduled for March 8, 2023, at 11:00 a.m., before Judge Batten.
Brittany Hudson, 37, of Atlanta, Georgia, has also been charged with conspiracy to commit wire fraud. The Criminal Information alleges that Hudson was in a relationship with Wortham and owned a business, Legend Express LLC, which contracted with Amazon to deliver packages to customers. Hudson allegedly conspired with Wortham to submit fictitious invoices for fake vendors as part of the scheme. Her case is pending.
This case is being investigated by the U.S. Secret Service.
Assistant U.S. Attorneys Stephen H. McClain and Norman L. Barnett are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Man Sentenced to 18 Months for Theft of over $20 Million in SIM Swap SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NICHOLAS TRUGLIA was sentenced today to 18 months in prison for his participation in the theft of over $20 million worth of cryptocurrency during a SIM swap attack of a victim (the “Victim”) and was further ordered to pay $20,379,007 in restitution to the Victim within 60 days. TRUGLIA was sentenced today by U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams said: “Nicholas Truglia and his associates stole a staggering amount of cryptocurrency from the victim through a complex SIM swap scheme. Nevertheless, today’s sentencing goes to show that no matter how sophisticated the crime is, this Office will continue to successfully prosecute those who choose to defraud others.”
According to Count One of the Indictment, to which TRUGLIA pled guilty, and other statements and submissions made in Court:
In or around January 2018, TRUGLIA participated in a scheme to conduct a cyber intrusion of online accounts of the Victim in order to steal cryptocurrency. During the course of the scheme, participants in the scheme (the “Scheme Participants”) gained unauthorized access to online accounts of the Victim through a cyber intrusion technique referred to as “SIM swapping.” During a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a subscriber identity module (“SIM”) card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a device controlled by the threat actors. The threat actors then use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
The Scheme Participants successfully gained unauthorized access to online accounts of the Victim via a SIM swap of the Victim’s mobile phone number (the “SIM Swap”). The Scheme Participants then used those online accounts to gain access to a cryptocurrency wallet of the Victim containing over $20 million worth of the Victim’s cryptocurrency. One of the Scheme Participants contacted TRUGLIA and added him to an online call with other Scheme Participants, during which TRUGLIA learned of the SIM Swap and agreed to receive cryptocurrency fraudulently diverted from the Victim’s cryptocurrency wallet into an online account held by TRUGLIA (the “Truglia Account”). Over the next few hours, TRUGLIA made the Truglia Account available to other Scheme Participants to receive the Victim’s stolen cryptocurrency, where it was converted into Bitcoin. Scheme Participants transferred much of this Bitcoin to other accounts controlled by them and left a portion of the criminal proceeds for TRUGLIA. In total, during the SIM Swap, Scheme Participants stole over $20 million worth of the Victim’s cryptocurrency, with the defendant keeping at least approximately $673,000 worth of the stolen funds.
* * *
In addition to his prison term, TRUGLIA, 25, of Ocoee, Florida, was sentenced to three years of supervised release. In addition to his restitution obligation of $20,379,007, TRUGLIA was further ordered to forfeit $983,010.72.
Mr. Williams praised the outstanding investigative work of Special Agents of the United States Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation’s Las Vegas Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Timothy V. Capozzi is in charge of the prosecution.
Fentanyl trafficking sends Pablo man to prison for four yearsRead the Press Release
MISSOULA — A Pablo man who admitted to trafficking fentanyl pills in the community was sentenced today to four years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
Donald Ray McLeod, 38, pleaded guilty in July to possession with intent to distribute fentanyl.
U.S. District Judge Donald W. Molloy presided.
In court documents, the government alleged that on Dec. 20, 2021, McLeod fled from an attempted traffic stop in Lake County and was arrested following a crash. In a search of the vehicle, officer located a large amount of fentanyl pills, $6,070 in U.S. currency and a .380-caliber pistol. McLeod admitted to investigators that he sold pills to make money and estimated he traveled nearly two times a month for more than one year to Spokane, Washington, to pick up from 250 to 500 pills each trip. The investigation found that the pills seized contained 358 fentanyl pills.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Northwest Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal civil rights forum planned for WheelingRead the Press Release
WHEELNG, WEST VIRGINIA – Civil rights experts will share their knowledge at a special event to be held next week in Wheeling.
United States Attorney William Ihlenfeld and his staff will host a half-day event on Thursday, December 8 to highlight the constitutional rights of citizens and how they are enforced through civil and criminal actions. Hate crimes, housing rights, disability rights and more will be explained by federal prosecutors, an FBI agent, and prominent Wheeling attorney Robert McCoid.
“The Department of Justice vigorously enforces civil rights and events like this highlight how we protect the public through the federal court system,” said U.S. Attorney Ihlenfeld. “Our hope is that this forum will raise awareness and lead to more citizens contacting us when their rights have been violated.”
The event will take place at 9 a.m. at Temple Shalom on Bethany Pike and is open to the public.
Continuing social work education and legal education credits will be available.
To learn more, go to justice.gov/usao-ndwv.
FBI and Bureau of Indian Affairs Sign Agreement to Improve Law Enforcement in Indian CountryRead the Press Release
During remarks at the 2022 White House Tribal Nations Summit today, Attorney General Merrick B. Garland announced that the FBI and the Bureau of Indian Affairs (BIA) signed an agreement to establish guidelines to provide for the effective and efficient administration of criminal investigations in Indian Country. This is the first update since the early 1990s to a memorandum of understanding between the agencies.
The announcement is being discussed during a panel featuring Secretary of the Interior Deb Haaland and Associate Attorney General Vanita Gupta at the Summit. The Summit provides an opportunity for Administration and Tribal leaders from the 574 federally recognized Tribes to discuss ways the federal government can invest in and strengthen nation-to-nation relationships as well as ensure that progress in Indian Country endures for years to come.
“This agreement is a crucial step to advancing public safety for American Indian and Alaska Native communities,” said Associate Attorney General Vanita Gupta. “The Department of Justice is committed to working with the Department of the Interior to investigate Indian Country crimes, including reports of missing or murdered Indigenous people, quickly, effectively and respectfully. We are grateful to the Tribes that provided input into this new policy.”
“The FBI is committed to ongoing and continued collaboration with the Bureau of Indian Affairs,” said FBI Director Christopher Wray. “The FBI has a crucial role in successfully addressing matters in the nation’s Indian Country communities and this updated MOU affirms our dedication to the mission of protecting all Americans. The FBI will not waver in its support of our Tribal law enforcement agency partners and our coordination with the Bureau of Indian Affairs.”
“Interagency coordination is absolutely critical given the complexities of jurisdiction in Tribal communities. This agreement supports an all-of-government approach to addressing federal responsibilities and Tribal needs in Indian Country,” said Assistant Secretary Bryan Newland for Indian Affairs. “All federal agencies share a treaty and trust responsibility to protect Tribal sovereignty and revitalize Tribal communities. This partnership will further support our efforts to keep Native people safe in their homes and communities.”
Under the agreement, the BIA Office of Justice Services and the FBI will cooperate on investigations and share information and investigative reports. The agencies will also establish written guidelines outlining jurisdiction and investigative roles and responsibilities for investigators from the BIA, FBI and Tribal law enforcement agencies. The agreement also requires that all BIA, FBI and Tribal law enforcement officers receive training regarding trauma-informed, culturally responsive investigative approaches.
This agreement will support the unified response to the Missing and Murdered Indigenous Peoples crisis, and the Missing and Murdered Unit launched by Secretary Haaland. It defines responsibilities for FBI, BIA and Tribal investigators to ensure that missing person cases are entered into the National Crime Information Center, National Incident-Based Reporting System and other appropriate federal criminal databases, and that DNA is submitted to the National Missing Person DNA Database when appropriate and available.
The agreement also specifies that the FBI will take an initial primary role in the investigation of any BIA or Tribal law enforcement officer-involved shootings and in-custody death incidents. The BIA will concurrently conduct separate internal administrative investigations of any BIA or Tribal law enforcement officer-involved shootings and in-custody death incidents.
The mission of the BIA Office of Justice Services is to uphold Tribal sovereignty and provide for the safety of Indian communities by ensuring the protection of life and property, enforcing laws, maintaining justice and order, and by ensuring sentenced American Indian offenders are confined in safe, secure, and humane environments. Ensuring public safety and justice is arguably the most fundamental of government services provided in Tribal communities.
The mission of the Department of Justice is to uphold the rule of law, to keep our country safe, and to protect civil rights. Read more about the Department’s work to strengthen public safety in American Indian and Alaska Native communities here.
Dracut Man Sentenced to More Than 12 Years in Prison for 2020 Christmas Eve Armed Robberies of Convenience StoresRead the Press Release
BOSTON – A Dracut man was sentenced today in federal court in Boston in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Dec. 24, 2020.
Michael Vangpa, 33, was sentenced by U.S. District Court Judge Leo T. Sorokin to 150 months in prison and five of supervised release. On July 21, 2022, Vangpa pleaded guilty to three counts of interfering with commerce by robbery and one count of using a firearm in furtherance of a crime of violence.
On Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa brandished a firearm and demanded money from the store clerks. During one of the robberies, Vangpa discharged the firearm into cardboard boxes under the register while demanding money. In the other robberies, he used the firearm to strike the cashier in the head and make a store customer get on the ground.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit prosecuted the case.
Dentist Indicted for Tax EvasionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Frantz Brignol with one count of tax evasion and one count of failing to file a tax return. If convicted, Brignol faces up to six years in federal prison.
According to court records, despite successful dental practices in multiple counties, Brignol amassed almost $900,000 in tax liabilities to the IRS. Between approximately 2014 and 2020, Brignol evaded his tax payments by hiding hundreds of thousands of dollars in his mother’s bank accounts (for which he had signatory authority), trading funds overseas, and failing to disclose another bank account to the IRS. Despite an annual income of more than $200,000 in calendar year 2020, Brignol also failed to file an income tax return as required under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Defendant Convicted of Bribing New York City Correction Officers to Smuggle Contraband into Rikers Island JailRead the Press Release
Today, a federal jury in Brooklyn convicted James Albert of conspiracy to violate the Travel Act and conspiracy to distribute controlled substances while he was incarcerated at the George R. Vierno Center at Rikers Island (GRVC) as part of a scheme to bribe correction officers to smuggle illegal drugs and other contraband into the jail for sale to other inmates. The verdict followed a four-day trial before United States District Judge Ann M. Donnelly. When sentenced, Albert faces a maximum of 15 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“Today’s verdict holds the defendant accountable for conspiring with corrupt correction officers to facilitate his lucrative drug-selling business from which he generated tens of thousands of dollars from his Rikers Island jail cell. Such lawless conduct by the defendant and his co-conspirators undermines the orderly running of the institution and endangers the safety of other incarcerated individuals and Department of Correction personnel,” stated United States Attorney Peace. “This Office will continue working with our federal and local law enforcement partners to disrupt the flow of illegal narcotics and other contraband into correctional facilities.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Department of Investigation for their outstanding investigative work on the case.
As proven at trial, while he was incarcerated at GRVC between February and June 2019, Albert orchestrated a scheme to bribe at least two officers to bring marijuana, suboxone strips, and other contraband into GRVC for sale and distribution to other inmates. Albert also enlisted his wife, co-defendant Celena Burgess, to receive money from inmates and pay thousands of dollars in bribes to the correction officers on the defendant’s behalf using the electronic money-transfer platform Cash App.
The government’s evidence included testimony from Patrick Legerme, a former New York City Correction Officer who accepted bribes from Albert to smuggle marijuana into the jail and described how he smuggled drugs into the jail. Legerme pleaded guilty to conspiring to accept bribes and is awaiting sentencing. The government’s evidence also included testimony from Burgess that she managed the Cash App transactions for the defendant and received payments from other inmates for the items that Albert had sold them. Burgess testified as part of a deferred prosecution agreement with the government. In addition to financial and phone records and expert testimony, the jury heard recorded telephone calls in which inmates used coded language in their conversations. For example, “Oakland Raider jerseys” referred to marijuana, “oranges” was code for suboxone strips, and “Pink Panties” referred to a correction officer.
The government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Joy Lurinsky and Andrew D. Reich with the assistance of Paralegal Specialist Rachel Friedman.
The Defendant:
JAMES ALBERT
Age: 45
Comstock, New YorkE.D.N.Y. Docket No. 20-CR-64 (AMD)
Davenport Man Sentenced to Federal Prison for Bank RobberyRead the Press Release
Davenport, IA – Rayontrez Demar Brown, age 26, of Davenport, was sentenced on November 30, 2022, to 41 months in prison for bank robbery. Brown was also ordered to pay $26,399 in restitution. Following his imprisonment, Brown was ordered to serve three years of supervised release.
In January and February 2022, there were a series of bank robberies in Davenport. With the assistance of surveillance video and thorough investigative techniques, law enforcement identified Brown as the suspect. On January 14, 2022, Brown entered a Great Southern Bank and jumped over the counter, demanding that tellers give him all the money. On January 21, 2022, Brown entered the Family Credit Union on West Kimberly Road, jumped over the counter and demanded the tellers give him all the money. Finally, on February 2, 2022, Brown robbed a third bank, the Family Credit Union on Rockingham Road, again demanding that tellers give him all the money. In total, Brown stole $26,399. Law enforcement recovered $9,315 in Brown’s residence and on his person at the time of his arrest.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation and Davenport Police Department investigated the case.
Davenport Man Sentenced for Possessing Ammunition as a FelonRead the Press Release
Davenport, IA – Brandon Scott Hagedorn, age 26, of Davenport, was sentenced on November 28, 2022, to 57 months in prison for possessing ammunition as a felon. Following his imprisonment, Hagedorn was ordered to serve three years of supervised release.
On April 30, 2021, Davenport police officers responded to Daisy Dooks Gentlemen Club for a shots-fired call. Surveillance video showed a group of males engaged in a physical altercation in the parking lot. As the altercation concluded, Hagedorn shot at a vehicle leaving the parking lot. Law enforcement collected one live round of ammunition and seven spent shell casings. The firearm was never recovered. Law enforcement identified Hagedorn as the shooter through the surveillance video, as well as Hagedorn’s clothing, witness reports, social media, and location data.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Dark Web Drug Dealer Sentenced to 16 Years in PrisonRead the Press Release
MIAMI – Anton Peck, 29, of Boca Raton, Fla., has been sentenced by U.S. District Judge Donald M. Middlebrooks to 16 years in prison for conspiring to possess with intent to distribute controlled substances. Peck previously pled guilty to one count of conspiring to possess with intent to distribute fentanyl, methamphetamine, and heroin.
According to court records, between May 2021 and May 2022, Peck distributed narcotics from various dark web markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the United States Postal Service.
Law enforcement agents were able to recover kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck, the leader of the operation, obtained bulk amounts of narcotics, advertised them using the Syntropy vendor profile, orchestrated distribution, and collected customer payments. He possessed a list of more than 6,000 customers living in every part of the U.S.
On November 4, 2022, Fusco, 34, of West Palm Beach, Fla., was sentenced by U.S. District Judge Robin L. Rosenberg to 11 years in prison for conspiring to distribute fentanyl, heroin and methamphetamine. Banner, 31, of Boynton Beach, Fla., is scheduled to be sentenced on February 10, 2023, after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Special Agent in Charge Deanne L. Reuter, Drug Enforcement Administration (DEA), Miami Field Division; acting Special Agent in Charge Robert M. DeWitt, Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Scott Pierce, U.S. Postal Service, Office of Inspector General (USPS-OIG), acting Inspector in Charge Juan A. Vargas, U.S. Postal Inspection Service (USPIS), Miami Division, and Palm Beach County Sheriff Ric Bradshaw announced the sentence.
DEA, Miami Field Division; FBI, Miami Field Office; USPS-OIG; USPIS, Miami Division; and Palm Beach County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Daniel E. Funk and Lara Gatz prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 22-CR-80100-DMM, 22-CR-80056-RLR, and 22-CR-80113-RLR.
Dominican Republic National Imprisoned After Falsely Claiming United States CitizenshipRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Ramon Torres-Pichardo, 28, of the Dominican Republic, was sentence to eight months of imprisonment by Judge Wilma A. Lewis on his conviction on Material False Statement. His sentence will be followed by two years of supervised release and a special assessment of $100 on the charge of Material False Statement.
According to court documents, on March 29, 2022, Torres-Pichardo presented himself for inspection to Customs and Border Protection (CBP) at the Henry E. Rohlsen Airport in St. Croix before attempting to board a flight to San Juan, PR, where he presented a Puerto Rico driver’s license as identification. During routine travel and immigration related questions by CBP, Torres-Pichardo falsely claimed to be a United States citizen and a resident of Puerto Rico. Torres-Pichardo was then referred for a secondary inspection due to concerns regarding the authenticity of his driver’s license. When questioned, Torres-Pichardo failed to correctly respond to questions regarding commonly known areas in Puerto Rico. Thereafter, Torres-Pichardo admitted that he was not a citizen of the United States and that he was not legally authorized to be present in the United States. Upon further investigation, CBP determined that the Puerto Rico driver’s license presented by Torres-Pichardo was fraudulent.
This case was investigated by U.S. Customs and Border Protection and Homeland Security Investigations and was prosecuted by Assistant United States Attorney Evan Rihkye.
Corporate Insider Sentenced to 10 Years' Imprisonment for Conspiring with Long Island Boiler Room to Pump and Dump Stock on Unsuspecting Elderly InvestorsRead the Press Release
Earlier today, in federal court in Central Islip, Jeffrey Chartier, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in publicly traded companies, was sentenced by United States District Judge Joanna Seybert to 10 years’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and money laundering. The Court also ordered Chartier to pay $1,022,398.89 in forfeiture and $6,083,603.45 in restitution. Chartier and co-defendant Lawrence Isen were convicted of the charges by a federal jury in March 2020 following a six-week trial. Isen is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the sentence.
“Jeffrey Chartier and his confederates lined their pockets with the lifetime savings of hard-working citizens they victimized all around the country,” stated United States Attorney Peace. “Today’s sentences should serve as a reminder to so-called white-collar criminals that this Office will hold them accountable for their selfish actions and the devastation they inflict upon the lives and families of others.”
Mr. Peace also thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation, and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.
From 2014 to 2016, Isen, Chartier and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of stock in struggling companies with poor prospects, and off-loaded it onto unsuspecting victims who were often elderly and vulnerable.
The evidence at trial proved that from approximately 2014 to 2016, Chartier paid the boiler room to illegally prop up the stock price of National Waste Management Holdings, Inc., trading under the ticker symbol NWMH, and CES Synergies, Inc., trading under ticker symbol CESX, through manipulative trading, and also to dump his own NWMH and CESX shares on innocent investors through illegal matched trades. NWMH and CESX were previously profitable private companies that were each run by individuals seeking to retire. Chartier persuaded them to pay him in large blocks of stock to take their companies public on promises that doing so would sustain the companies for the future. Instead, Chartier hired the boiler room, which fraudulently inflated these companies’ share prices using high-pressure sales tactics, and then dumped his own shares through matched trades, which caused the companies’ stock prices to plummet. As part of the sentencing, the Court ordered the repatriation of Chartier’s remaining shares in NWMH and CESX.
The evidence at trial showed that Isen colluded with crooked investors, both in the United States and overseas, to dump large volumes of shares in Hydrocarb Energy Corp., trading under the ticker symbol HECC, and Intelligent Content Enterprises, Inc. trading under the ticker symbol ICEIF, on the victims. He did so by, among other things, connecting the investors with the boiler room; negotiating the terms of the arrangements between them; and managing the relationships between them. Isen assisted the boiler room in its illegal cold call campaigns that used lies and high-pressure sales tactics to lure victims, by, among other things, transferring money and stock required by the boiler room for the campaigns; working with the boiler room to fill the duped victims’ orders with Isen’s crooked investors’ stock; and creating fraudulent stock purchase agreements, consulting agreements and invoices to cover up the illegal conduct.
The government has calculated that the conspiracy’s market manipulation fraudulently inflated the stock price of HECC, ICIEF, NWMH and CESX and one other company by more than $147 million. All 16 defendants charged in this case have been convicted.
Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendants:
JEFFREY CHARTIER
Age: 59
Sunny Isles, FloridaLAWRENCE ISEN
Age: 69
San Diego, CaliforniaDocket No. 17-CR-372 (JS)
Convicted Felon Pleads Guilty to Possessing Firearms After Being Reported for Illegal Gun SalesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Robert Humberston (39, Sarasota) has pleaded guilty to unlawful possession of a firearm by a convicted felon. Humberston faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in March 2021, law enforcement officers recovered three firearms from a felon during a probation search. The felon – who was prohibited from possessing firearms – informed the officers that he had purchased all three firearms from Humberston, and that he had purchased one of the firearms as recently as early January 2021. The felon showed law enforcement officers a series of Facebook messages where Humberston arranged for the sale of the firearm. Officers secured a search warrant for Humberston’s Facebook account. The Facebook account contained several pictures of Humberston holding various firearms. The account also contained numerous posts and messages relating to the sale of firearms. Law enforcement officers discovered the chain of messages where Humberston agreed to sell the firearm to the felon from early January 2021.
Humberston was previously convicted of multiple felonies. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Charlie D. Connally.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Colorado Man Convicted of Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that on Wednesday, November 30, 2022, a federal jury in Lincoln, Nebraska, convicted Jose O. Maes, 38, of Colorado Springs, Colorado, of conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine mixture after a three-day trial presided over by United States District Judge John M. Gerrard. Prior to the beginning of the trial, Maes agreed that he had a prior conviction for a violent felony, first degree murder, from the state of Colorado. As a result, he faces a potential sentence of 15 years to life imprisonment. Sentencing is scheduled for March 22, 2023.
Testimony and evidence presented during the trial showed between June of 2020 and February 12, 2021, Maes became involved in a methamphetamine distribution organization which transported methamphetamine from the Colorado Springs area to the Lincoln and Omaha/Council Bluffs, Iowa areas. Maes provided methamphetamine to Jeffry Hogan who drove it to Lincoln and sold it to Kelly Jablonski. Jablonski then sold the methamphetamine to persons in Lincoln, Omaha, and Council Bluffs. She provided Hogan with cash from those sales and Hogan would then provide cash to Maes. Multiple pounds of methamphetamine were distributed in this manner between the latter part of 2020 or early 2021 and February 12, 2022.
On February 11, 2022, investigators with the Lincoln/Lancaster County Narcotics Task Force followed Jablonski to Council Bluffs, Iowa, where she was seen on Horseshoe Casino video meeting and gambling with Hogan. Jablonski and Hogan later met Maes at the casino and all three went into the casino parking garage. Hogan took a backpack containing methamphetamine out of Maes’s car, got into Jablonski’s Jeep, and both vehicles left the parking garage. Investigators conducting surveillance saw the two vehicles meet again at a gas station a short distance away where witnesses testified Hogan provided cash to Maes.
Later that evening, investigators saw Jablonski and Hogan leave an Omaha residence in separate vehicles. Hogan followed Jablonski onto westbound Interstate 80 and both vehicles headed toward Lincoln. Both vehicles were stopped by the Nebraska State Patrol for traffic violations and both vehicles were searched. Approximately 3 ½ pounds of methamphetamine were found in Jablonski’s Jeep. Hogan’s van had approximately ½ pound of methamphetamine, a number of fentanyl pills, two handguns and $5,000 in cash. Both Jablonski and Hogan have since pleaded guilty to conspiracy charges related to this matter. Jablonski was sentenced on November 3, 2022, to 97 months in prison. Hogan is awaiting sentencing.
As a result of these stops and searches, information was relayed to Iowa investigators indicating Maes was likely in possession of methamphetamine, cash and a firearm and was believed to have returned to the casinos in Council Bluffs. Around 2:30 a.m. on February 12, 2022, an investigator from the Iowa Division of Narcotics Enforcement and a Council Bluffs Police Officer located Maes’s car in the Harrah’s Casino parking garage in Council Bluffs. The investigator attempted to contact Maes while the Council Bluffs officer attempted to block Maes from leaving the garage. However, Maes drove around the Council Bluffs officer’s cruiser and out of the parking garage. This resulted in a pursuit which ended approximately 30 miles away, on Iowa Highway 59 in Pottawattamie County, Iowa, in a rural area between Oakland and Carson. That pursuit involved the Council Bluffs Police, Iowa Highway Patrol and Pottawattamie County Sheriff’s Department. Pottawattamie County deputies used “stop sticks” which punctured the tires of Maes’s car and eventually resulted in the car stopping because it was no longer drivable. Maes was arrested for fleeing from officers and an outstanding Colorado warrant for a parole violation related to his prior Colorado murder conviction.
Maes’s car was searched. Investigators found approximately ¼ ounce of methamphetamine, a few fentanyl pills, a loaded handgun with an extended magazine and over $34,153 in cash. That cash has since been forfeited to the United States of America by the Federal Bureau of Investigation (FBI).
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force, the Nebraska State Patrol, the Iowa Division of Narcotics Enforcement, the Iowa Division of Criminal Investigation, the Iowa Division of Intelligence, the Council Bluffs Police Department, the Pottawattamie County Sheriff’s Department, the Iowa State Patrol, the Omaha Police Department, and FBI, with assistance from the Nebraska State Patrol Crime Lab and the Iowa Division of Criminal Investigation Crime Lab.
Colorado Company and Danish Parent Company Pay $728,910 to Resolve Allegations of Failure to Pay Customs DutiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that Ellab, Inc., a Colorado corporation, and Ellab A/S, its Danish parent company, have paid the United States $728,910 to resolve civil allegations that Ellab, Inc. failed to properly classify its imported products and declare their value, thereby failing to pay the full amount of customs duties owed to the United States on the imported goods.
Under the Tariff Act of 1930, companies that import products into the United States are required to pay customs duties—typically calculated as a percentage of the value of the goods—on those products. Importers must classify their imported products according to the Harmonized Tariff Schedule of the United States (HTSUS), and they owe different rates of duty depending on which HTSUS category the product properly falls into. Importers are also required to properly declare the value of any goods they import, including products that have been exported, repaired abroad, and re-imported into the United States.
The United States alleges that Ellab, Inc.—a company that imports thermal validation equipment for use in the healthcare, pharmaceutical, and food industries from its Danish parent for resale to domestic customers—failed to properly classify its imported products. Rather than separately determining which HTSUS category each of its imported products fell into, Ellab, Inc. instead classified all of its imported products under a single HTSUS code, one which carried a low rate of duty. In addition, the United States alleges that Ellab, Inc. failed to declare the cost of repairs for products that it exported and then re-imported into the United States.
The United States claims that this conduct violated the Tariff Act. The United States also alleges that this conduct violated the federal False Claims Act, because Ellab, Inc. made false statements to the United States regarding its customs duties owed, resulting in Ellab, Inc. paying far less than it properly owed to United States Customs and Border Protection.
The settlement in this case covers a period of nine years, from April 3, 2010, through May 21, 2021. The lawsuit resolved by this settlement was originally filed by William Day, a former employee of Ellab, Inc. who had knowledge of its record keeping and import practices. Mr. Day filed a civil action, under seal, in the United States District Court for the District of Colorado, captioned United States ex rel. William Day v. Ellab, Inc. & Ellab A/S, No. 18-cv-00768-NRN (D. Colo.). Under the False Claims Act, private citizens who know about a fraud against the United States may present those allegations to the government by bringing a lawsuit under seal on behalf of the United States. If the government’s investigation substantiates those allegations and the United States obtains a monetary recovery under the False Claims Act, the private citizen may share in that monetary recovery.
“American companies that import products have a duty to truthfully report the nature and value of their imports and pay the appropriate customs duties,” said United States Attorney Cole Finegan. “If a company cuts corners and pays less than it owes, that threatens the entire system of self-disclosure, while depriving the United States government of duties lawfully owed. Importers need to understand that if they try to game the system, they can face serious penalties.”
“The Machinery Center of Excellence and Expertise, Enforcement Division, working in close collaboration with Office of Chief Counsel (Chicago) and the U.S. Attorney’s Office for the District of Colorado during the investigation was able to uncover a significant underpayment of owed Customs duties due to improper classification of repair value of products imported into the U.S. by importer Ellab, Inc.” said Juan J. Porras, Director, Machinery Center of Excellence and Expertise. “As this case illustrates, CBP will continue to exercise vigilance in the enforcement of customs and trade laws in the machinery sector to ensure that U.S. trade law is not abrogated and the revenue of the U.S. is protected. CBP’s ongoing commitment to upholding U.S. trade law helps foster U.S. economic security and in so doing strengthens U.S. national security.”
The claims settled by this civil agreement are allegations. In entering into this civil settlement, Ellab, Inc. and Ellab A/S did not admit to any liability.
The United States was represented in this matter by Assistant United States Attorneys Kyle Brenton and Amanda Rocque.
Chicago Man Sentenced to Nearly Eight Years in Federal Prison for Robbing Undercover Law Enforcement Officer During Gun DealRead the Press Release
CHICAGO — A Chicago man has been sentenced to nearly eight years in federal prison for using a machine gun to rob a law enforcement officer during an undercover firearms transaction.
CORTEZ PRICE arranged to sell a handgun equipped with a “switch” device to the undercover officer on May 2, 2022, in a drug store parking lot in the Greater Grand Crossing neighborhood on Chicago’s South Side. Upon arriving at the meeting, Price got into the front seat of the officer’s vehicle and accepted $1,900 in cash from the officer. Instead of handing over the firearm, Price inserted high-capacity ammunition into it and racked the slide. He then got out of the vehicle with the money and the loaded gun and fled the area. With the assistance of aerial support, law enforcement followed Price to a nearby residence and arrested him.
Price had previously sold three firearms to the undercover officer and stated in social media communications that he engaged in numerous other negotiations to buy, sell, or arrange the sale of firearms. The “switch” device on the gun Price possessed during the robbery converted the firearm into a fully automatic machine gun.
Price, 24, pleaded guilty earlier this year to federal firearm charges. U.S. District Judge Robert W. Gettleman imposed a 93-month prison sentence after a hearing Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by U.S. Customs and Border Protection.
“By individually participating in violent armed conduct and trafficking firearms to others, defendant became part of one of the district’s most pressing crime problems,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “The toll that gun violence inflicts on individuals and neighborhoods in Chicago is inescapable to anyone residing in this district.”
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Chanhassen Psychologist Pleads Guilty to Health Care FraudRead the Press Release
ST. PAUL, Minn. – A Chanhassen psychologist has pleaded guilty to fraudulently billing for counseling services never actually rendered, announced United States Attorney Andrew M. Luger.
According to court documents, Charles Howard Jorenby, 57, was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake. From January 2013 through February 2020, Jorenby orchestrated a scheme to defraud Blue Cross Blue Shield Minnesota (BCBS) and the Shakopee Mdewakanton Sioux Community (SMSC), which is responsible for funding the account that BCBS draws from to pay health care costs for tribal members. Jorenby submitted fraudulent bills to BCBS for counseling services he claimed to have provided to at least 29 SMSC members. In reality, Jorenby never provided counseling services to those individuals, and he used their names and dates of birth without their knowledge or permission. As a result of his false billing practices, SMSC suffered a loss of at least $555,000.
As part of his guilty plea, Jorenby also admitted that in 2017, he submitted an additional fraudulent insurance claim to State Farm Insurance following a fire at his business office. In that claim, Jorenby knowingly provided false information regarding lost income, inflating his claimed income to include earnings associated with his fraudulent BCBS billings. Jorenby received a settlement of $104,930, all or part of which is a product of his misrepresentation.
Jorenby pleaded guilty on November 29, 2022, before Senior Judge Susan Richard Nelson to one count of health care fraud. A sentencing hearing has been scheduled for April 27, 2023.
This case was the result of an investigation conducted by Homeland Security Investigations and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
Career Offender Who Led Police on Two High-Speed Chases Sentenced to 30 Years in Federal Prison for Operating a Drug Trafficking Conspiracy and Illegal Possession of AmmunitionRead the Press Release
TERRE HAUTE – Elvis Medrano, 43, of Pharr, TX, was sentenced to 30 years in federal prison after being convicted of conspiracy to possess with intent to distribute methamphetamine, cocaine, and MDMA, and being a felon in possession of ammunition following a 4-day jury trial in May of 2022.
According to court documents and evidence offered in court, from spring of 2020 through his arrest on August 3, 2020, Medrano conspired with his co-conspirators to sell methamphetamine, cocaine, and MDMA throughout Southern Indiana, more specifically in Sullivan and Knox Counties. Medrano obtained the illegal drugs from various sources in California, Missouri, and Illinois. The drugs were shipped to several different addresses through the U.S. Mail, by parcel delivery, or to two vacant P.O. Boxes, which Medrano had fraudulently obtained with the help of a corrupt U.S. Postal Service employee.
Postal Inspectors intercepted four of the drug parcels destined for Medrano’s group, however, these interventions did not stop Medrano. Medrano instead drove to pick up his drugs from sources in Illinois and Missouri. Medrano operated his drug trafficking organization from various local motels, often leaving behind evidence of his drug sales. Nearly everywhere law enforcement officers encountered Medrano, they found a specific brand of cutting agent used by Medrano to dilute his drugs and tools he used to dilute and re-package his methamphetamine.
Medrano possessed several firearms and was seen armed on numerous occasions as he operated his drug trafficking conspiracy according to several witnesses who testified at Medrano’s May trial. Medrano had a firearm when he led police on a high-speed chase through downtown Washington, Indiana, after fleeing from a Budget Inn on July 7, 2020. During the chase, Medrano sped past residences and businesses, and disregarded stop signs and traffic barriers. The pursuit had to be called off because of the extreme risk posed to the citizens of Washington.
Medrano’s motel room was later searched, and police found 23 rounds of 9mm ammunition, a holster, and a gun cleaning kit. Medrano had tossed a magazine from his vehicle during the high-speed chase, which was later found by a concerned citizen and examined by police. The magazine was loaded with two 9mm rounds of ammunition that matched the ammunition found in Medrano’s motel room.
Prior to the July 7 high-speed police chase, on June 1, 2020, police were attempting to locate Medrano who was wanted on an out-of-state warrant. Medrano fled from the Indiana State Police, leading them in another high-speed chase involving numerous officers and civilians through nearly the entirety of Sullivan County. Medrano cut through a field, disregarded traffic laws, and ran a local farmer off the road.
Medrano was finally arrested on August 3, 2020. During his arrest, police officers surrounded a residence occupied by Medrano and others and asked them to exit the residence. Everyone except Medrano complied. Medrano continued to resist, and police had to deploy tear gas into the residence.
Medrano has prior state court felony convictions in Texas and Iowa for charges including robbery and possession of methamphetamine and cocaine with intent to deliver. Medrano is prohibited from possessing ammunition and firearms by federal law due to these prior convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office; Rodney Hopkins, Inspector in Charge of the U.S. Postal Inspection Service; and Andre Martin, Special Agent in Charge of the U.S. Postal Service-Office of Inspector General; made the announcement.
DEA, U.S. Postal Inspection Service and U.S. Postal Service-Office of Inspector General investigated the case. The Indiana State Police, Washington (Indiana) Police Department and Daviess County Sheriff’s Office provided valuable assistance. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Medrano be supervised by the U.S. Probation Office for 10 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys M. Kendra Klump, Patrick Gibson and Samantha Spiro who prosecuted this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Butte man sentenced to 66 months in prison for trafficking meth in Lake CountyRead the Press Release
MISSOULA — A Butte man who admitted to trafficking methamphetamine in the Lake County community was sentenced today to 66 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Gary David Conan, 42, pleaded guilty in August to distribution of meth.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that in April 2020, officers with the Northwest Drug Task Force stopped Conan’s vehicle after he distributed meth and recovered approximately 94 grams of additional pure meth. Conan was indicted for this conduct and was released on conditions. Conan did not report to U.S. Probation and was at large until he was arrested by the Butte Police Department in October 2021 on drug charges.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Northwest Drug Task Force and Montana Highway Patrol.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results
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