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30 November 2022
Group Home Owners Sentenced in $1 Million Medicare Fraud SchemeRead the Press Release
A Texas married couple was sentenced today for a $1 million Medicare fraud scheme, including violations of the federal Anti-Kickback Statute.
Lindell King, 53, of Missouri City, was sentenced to 60 months in prison. Ynedra Diggs, 45, also of Missouri City, was sentenced to 70 months in prison. King and Diggs were also ordered to pay $537,992.55 in restitution.
On April 4, King and Diggs were convicted after trial in the Southern District of Texas of conspiracy to defraud the United States and to pay and receive health care kickbacks, and multiple substantive violations of the Anti-Kickback Statute.
According to court documents and evidence presented at trial, both Diggs and King were patient recruiters who owned and operated group homes in which Medicare beneficiaries lived. In exchange for sending their group home residents to the Behavioral Medicine of Houston (BMH), a community mental health center that purported to provide partial hospitalization services, BMH paid Diggs, King, and other patient recruiters illegal kickbacks in cash and by check, often concealed as payment for “transportation” or other sham services. During the course of the conspiracy, BMH fraudulently billed approximately $1 million to Medicare in claims related to patients it received in exchange for the kickbacks paid to Diggs and King.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer B. Lowery for the Southern District of Texas; Acting Special Agent in Charge Jason Meadows of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge James H. Smith III of the FBI Houston Field Office; and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
The HHS-OIG, FBI, and MFCU investigated the case.
Trial Attorney Monica Cooper and Acting Assistant Chief Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Gibson Woman Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that FLORENCE RANDLE (“F. RANDLE”), age 70, of Gibson, Louisiana, pled guilty on November 29, 2022 to Count One (1) of her indictment, charging her with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In exchange, the government agreed to dismiss four counts of Mail Fraud, a violation of Title 18, United States Code, Sections 1341 and 2. In pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; a fine up to $250,000.00, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to 43.
According to court documents, F. RANDLE served as an intermediary who recruited and directed passengers to participate in staged automobile collisions with tractor-trailers on May 17, 2017 and June 6, 2017. The passengers in these collisions filed fraudulent lawsuits that falsely claimed that the tractor-trailers were at fault. F. RANDLE and her co-conspirators coordinated with others, including “slammer” Damian Labeaud and attorney Patrick Keating, to arrange the staged collisions. The Honorable Jane Triche Milazzo set sentencing in this matter for March 1, 2023.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon S. Long.
Fourth unlawful entry lands Mexican citizen in prisonRead the Press Release
BROWNSVILLE, Texas – A 36-year-old man has been ordered to federal prison following his conviction of illegal re-entry into the United States, announced U.S. Attorney Jennifer B. Lowery.
Raul Catalino Vasquez-Estrada, Ciudad Altamirano, Guerrero, Mexico, pleaded guilty May 4.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Vasquez-Estrada to serve 50 months in federal prison. The court also ordered him to serve an additional seven months for violating his conditions of supervised release. Not a U.S. citizen, Vasquez-Estrada is again expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence of Vazquez-Estrada’s previous criminal history.
On March 1, authorities arrested Raul Catalino Estrada-Vasquez approximately 2.9 miles west of the Gateway Port of Entry in Brownsville. Estrada-Vasquez did not possess any documents that allowed him to be or remain in the United States legally.
Estrada-Vasquez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Former Sheriff’s Captain’s Accomplice Sentenced to Prison for Corruption OffensesRead the Press Release
For further information contact: Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961
SAN DIEGO - Self-described “consultant” Waiel “Will” Anton was sentenced today to 12 months and a day in federal prison for years of corrupt conduct after pleading guilty in July to two counts of obstruction of justice.
Anton admitted collecting cash payments from the operator of several unlicensed marijuana dispensaries in exchange for law enforcement information about impending searches, and for continuing to obstruct justice with the same dispensary operator while Anton was on federal pretrial release in one of his criminal cases.
Although he was never a San Diego County Sheriff’s deputy, Anton was a close associate of former Sheriff’s Captain M. Marco Garmo, who pleaded guilty to unlicensed firearms trafficking and admitted an array of corrupt conduct in September 2020. Garmo is currently serving a two-year sentence in federal prison.
In describing the larger case against Garmo and all of his co-defendants, U.S. District Judge Gonzalo Curiel observed that, “had the [federal] government not conducted this investigation and prosecuted Captain Garmo, there was a possibility that we would have had one of the most corrupt government officers ever leading the San Diego Sheriff's Department. And one can only imagine what types of favors, what type of corrupt schemes would have been hatched, would have been employed, would have become the templates for how the sheriff's department operates. And it's horrifying to even think about that prospect.” In pronouncing sentence on Anton, Judge Curiel emphasized that “the public is entitled to honest services by government officials.”
In his plea agreement, Anton admitted providing supposed “consulting” services to multiple operators of unlicensed marijuana dispensaries between January 2017 and February 2019. In particular, Anton collected a fee from the operator of the lucrative “Empire” dispensary in Spring Valley—a region then included in Garmo’s jurisdiction. In return for regular cash payments, Anton provided the operator with advance warning of planned Sheriff’s Department searches of the operator’s business locations, information which Anton received from Garmo.
Anton’s text messages with Garmo reveal the pair discussing a Sheriff’s search of the Empire operator’s competition in May 2018. Garmo reported to Anton that he had instructed his lieutenant to search another illegal dispensary located close to the Empire operator, in order “to scare the fuk outta [him] lol.” Anton responded: “Fuck yeah gman” and “Close them all,” but Garmo wrote back “$$$,” apparently reminding Anton that their focus was Anton’s ongoing profit-making scheme rather than legitimate law enforcement. Anton replied: “I got you.”
In his own plea agreement, Garmo had admitted tipping off a different illegal marijuana dispensary part-owned by his cousin in July 2018, before a separate putative law enforcement search.
At about the same time, Anton ran a different “consulting” venture for applicants for County permits to carry a concealed weapon (CCW). Per court records, in exchange for substantial fees, Anton would help his applicants submit their CCW paperwork and secure early appointments with civilian County staff. In his guilty plea, Anton admitted making an illegal $100 cash payment to a county clerk who ensured favored treatment for his CCW clients. Garmo admitted in his own plea papers that his role in Anton’s scheme was to refer CCW “consulting” clients to Anton in exchange for kickbacks of $100 apiece.
In February 2019, Anton met with an undercover agent from the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), whom Garmo had referred to Anton after selling the undercover agent a pair of off-roster handguns. In exchange for a $1,000 cash payment, Anton called the Licensing clerk whom he had paid off and secured a two-week CCW appointment for the agent instead of the eight-month wait available to the public. During their meeting, Anton bragged that he would become the head of Sheriff’s Licensing after Garmo was elected Sheriff.
After ATF and FBI agents searched Anton’s home on February 13, 2019, Anton placed an unsolicited call to the undercover agent. During the call, Anton admonished the agent nine times in six minutes not to tell federal agents, if questioned, that he had paid Anton any money as part of their deal. As admitted in his plea agreement, Anton added that the undercover agent should falsely claim that he and Anton were friends and business associates.
In March 2021, while on federal pretrial release for his criminal case with Garmo, Anton met with the owner of the unlicensed “Empire” dispensary to offer his services once again. As admitted in his plea agreement, Anton met the illegal dispensary operator in a parking lot and showed him a page of Anton’s criminal discovery in violation of a court order. In exchange for another $5,000 in cash, Anton told the operator who to stay away from because they might be cooperating with law enforcement.
Court documents show that Anton was able to commit these offenses because his associates perceived him as almost a police officer himself. For example, Anton promised to “send a unit”—i.e., a marked police car—to a local businessowner complaining about a homeless person frequenting his shop.
“Proximity to power is not a license to break the law,” said Attorney for the United States Rebecca Church. “Anton leveraged his image as an apparent law enforcement insider to obstruct and subvert justice and to line his own pockets with criminal proceeds. This office will not tolerate unlawful corruption in any form.”
Anton was ordered to forfeit five firearms that he admitted were involved in a violation of criminal law for purposes of forfeiture. In total, approximately 302 firearms and 131,458 rounds of ammunition have been forfeited as part of this investigation. Anton was also ordered to pay a fine of $56,215.
Church praised the talented and dedicated investigators from the ATF and FBI who have worked on this case. She added that the U.S. Attorney’s Office wishes to once again extend its sincerest gratitude to the San Diego County Sheriff’s Department, without whose referral this case would not have been possible. Church also thanked the Sheriff’s Department for their assistance and support throughout the course of the investigation.
“Individuals who knowingly participate in firearms trafficking schemes must take accountability for their role in aiding individuals who acquire firearms illegally,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Monique Villegas. “This complex investigation involving multiple defendants was made possible by the cooperation and collaboration of our federal, state, and local law enforcement partners. We have effectively disrupted yet another firearms trafficking operation.”
“Mr. Anton often purported to be a law enforcement officer and exploited his access to law enforcement information and influence for his own personal gain,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “Today’s sentencing serves as a reminder that the FBI will continue to work with our law enforcement partners to investigate corruption and ensure those who violate the law will be held fully accountable.”
Defendants U.S. v. Garmo, et. al, 19-CR-4768-GPC Morad Marco Garmo, 55 years old sentenced to two years in custody, forfeiture of 58 firearms and 5,385 rounds of ammunition, and $8,350 fine, following felony guilty plea Leo Joseph Hamel 65 years old sentenced to one year of probation and 100 days of house arrest, forfeiture of 229 firearms and 126,073 rounds of ammunition, following felony guilty plea Giovanni Vincenzo Tilotta 41 years old sentencing pending, following conviction at trial Fred Magana 45 years old sentencing pending, following guilty plea Waiel Yousif Anton 38 years oldSummary of Charges
Title 18, U.S.C., Sec. 1512(b)(3) – Attempted Obstruction of Justice
Defendant U.S. v. Anton, 22-CR-1142-GPC Waiel Yousif Anton 38 years old
Maximum Penalty: Twenty years in prison
Summary of Charges
Title 18, U.S.C., Sec. 1512(c)(2) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prisonInvestigating Agencies
Bureau of Alcohol Tobacco Firearms & Explosives (ATF)
Federal Bureau of Investigation (FBI)
Former Sheriff’s Captain’s Accomplice Sentenced to Prison for Corruption OffensesRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961
NEWS RELEASE SUMMARY – November 28, 2022
SAN DIEGO – Self-described “consultant” Waiel “Will” Anton was sentenced today to 12 months and a day in federal prison for years of corrupt conduct after pleading guilty in July to two counts of obstruction of justice.
Anton admitted collecting cash payments from the operator of several unlicensed marijuana dispensaries in exchange for law enforcement information about impending searches, and for continuing to obstruct justice with the same dispensary operator while Anton was on federal pretrial release in one of his criminal cases.
Although he was never a San Diego County Sheriff’s deputy, Anton was a close associate of former Sheriff’s Captain M. Marco Garmo, who pleaded guilty to unlicensed firearms trafficking and admitted an array of corrupt conduct in September 2020. Garmo is currently serving a two-year sentence in federal prison.
In describing the larger case against Garmo and all of his co-defendants, U.S. District Judge Gonzalo Curiel observed that, “had the [federal] government not conducted this investigation and prosecuted Captain Garmo, there was a possibility that we would have had one of the most corrupt government officers ever leading the San Diego Sheriff's Department. And one can only imagine what types of favors, what type of corrupt schemes would have been hatched, would have been employed, would have become the templates for how the sheriff's department operates. And it's horrifying to even think about that prospect.” In pronouncing sentence on Anton, Judge Curiel emphasized that “the public is entitled to honest services by government officials.”
In his plea agreement, Anton admitted providing supposed “consulting” services to multiple operators of unlicensed marijuana dispensaries between January 2017 and February 2019. In particular, Anton collected a fee from the operator of the lucrative “Empire” dispensary in Spring Valley—a region then included in Garmo’s jurisdiction. In return for regular cash payments, Anton provided the operator with advance warning of planned Sheriff’s Department searches of the operator’s business locations, information which Anton received from Garmo.
Anton’s text messages with Garmo reveal the pair discussing a Sheriff’s search of the Empire operator’s competition in May 2018. Garmo reported to Anton that he had instructed his lieutenant to search another illegal dispensary located close to the Empire operator, in order “to scare the fuk outta [him] lol.” Anton responded: “Fuck yeah gman” and “Close them all,” but Garmo wrote back “$$$,” apparently reminding Anton that their focus was Anton’s ongoing profit-making scheme rather than legitimate law enforcement. Anton replied: “I got you.”
In his own plea agreement, Garmo had admitted tipping off a different illegal marijuana dispensary part-owned by his cousin in July 2018, before a separate putative law enforcement search.
At about the same time, Anton ran a different “consulting” venture for applicants for County permits to carry a concealed weapon (CCW). Per court records, in exchange for substantial fees, Anton would help his applicants submit their CCW paperwork and secure early appointments with civilian County staff. In his guilty plea, Anton admitted making an illegal $100 cash payment to a county clerk who ensured favored treatment for his CCW clients. Garmo admitted in his own plea papers that his role in Anton’s scheme was to refer CCW “consulting” clients to Anton in exchange for kickbacks of $100 apiece.
In February 2019, Anton met with an undercover agent from the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), whom Garmo had referred to Anton after selling the undercover agent a pair of off-roster handguns. In exchange for a $1,000 cash payment, Anton called the Licensing clerk whom he had paid off and secured a two-week CCW appointment for the agent instead of the eight-month wait available to the public. During their meeting, Anton bragged that he would become the head of Sheriff’s Licensing after Garmo was elected Sheriff.
After ATF and FBI agents searched Anton’s home on February 13, 2019, Anton placed an unsolicited call to the undercover agent. During the call, Anton admonished the agent nine times in six minutes not to tell federal agents, if questioned, that he had paid Anton any money as part of their deal. As admitted in his plea agreement, Anton added that the undercover agent should falsely claim that he and Anton were friends and business associates.
In March 2021, while on federal pretrial release for his criminal case with Garmo, Anton met with the owner of the unlicensed “Empire” dispensary to offer his services once again. As admitted in his plea agreement, Anton met the illegal dispensary operator in a parking lot and showed him a page of Anton’s criminal discovery in violation of a court order. In exchange for another $5,000 in cash, Anton told the operator who to stay away from because they might be cooperating with law enforcement.
Court documents show that Anton was able to commit these offenses because his associates perceived him as almost a police officer himself. For example, Anton promised to “send a unit”—i.e., a marked police car—to a local businessowner complaining about a homeless person frequenting his shop.
“Proximity to power is not a license to break the law,” said Attorney for the United States Rebecca Church. “Anton leveraged his image as an apparent law enforcement insider to obstruct and subvert justice and to line his own pockets with criminal proceeds. This office will not tolerate unlawful corruption in any form.”
Anton was ordered to forfeit five firearms that he admitted were involved in a violation of criminal law for purposes of forfeiture. In total, approximately 302 firearms and 131,458 rounds of ammunition have been forfeited as part of this investigation. Anton was also ordered to pay a fine of $56,215.
Church praised the talented and dedicated investigators from the ATF and FBI who have worked on this case. She added that the U.S. Attorney’s Office wishes to once again extend its sincerest gratitude to the San Diego County Sheriff’s Department, without whose referral this case would not have been possible. Church also thanked the Sheriff’s Department for their assistance and support throughout the course of the investigation.
“Individuals who knowingly participate in firearms trafficking schemes must take accountability for their role in aiding individuals who acquire firearms illegally,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Monique Villegas. “This complex investigation involving multiple defendants was made possible by the cooperation and collaboration of our federal, state, and local law enforcement partners. We have effectively disrupted yet another firearms trafficking operation.”
“Mr. Anton often purported to be a law enforcement officer and exploited his access to law enforcement information and influence for his own personal gain,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “Today’s sentencing serves as a reminder that the FBI will continue to work with our law enforcement partners to investigate corruption and ensure those who violate the law will be held fully accountable.”
U.S. v. Garmo, et. al, 19-CR-4768-GPC
Defendants
Morad Marco Garmo, 55 years old—sentenced to two years in custody, forfeiture of 58 firearms and 5,385 rounds of ammunition, and $8,350 fine, following felony guilty plea
Leo Joseph Hamel, 65 years old—sentenced to one year of probation and 100 days of house arrest, forfeiture of 229 firearms and 126,073 rounds of ammunition, following felony guilty plea
Giovanni Vincenzo Tilotta, 41 years old—sentencing pending, following conviction at trial
Fred Magana, 45 years old—sentencing pending, following guilty plea
Waiel Yousif Anton, 38 years old
Summary of Charges
Title 18, U.S.C., Sec. 1512(b)(3) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prison
U.S. v. Anton, 22-CR-1142-GPC
Defendant
Waiel Yousif Anton, 38 years old
Summary of Charges
Title 18, U.S.C., Sec. 1512(c)(2) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prison
Investigating Agencies
Bureau of Alcohol Tobacco Firearms & Explosives (ATF)
Federal Bureau of Investigation (FBI)
Former Portland Man Sentenced to 3+ Years for 2021 Armed Standoff at Brewer WalmartRead the Press Release
BANGOR, Maine: A former Portland man was sentenced today in U.S. District Court in Bangor for being a felon in possession of a firearm. The charges stemmed from an August 2021 standoff with the Brewer Police Department.
U.S. District Judge Lance E. Walker sentenced Patrick Mullen, 52, to 37 months in prison and three years of supervised release. Mullen pleaded guilty on February 10, 2022.
According to court records, on August 28, 2021, the Brewer Police Department was called to the Brewer Walmart parking lot due to a reported disturbance. Mullen was located in the lot in his truck, and a check of his information showed that he had three outstanding warrants. In addition, he was observed in his truck holding a firearm. After an hours-long standoff, he was arrested. He is prohibited from possessing firearms due to a 2017 conviction in the Washington County Unified Court for domestic violence criminal threatening with a dangerous weapon.
The Brewer, Holden and Bangor police departments; Penobscot County Sheriff’s Office; Maine State Police; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The Penobscot County District Attorney’s Office also assisted with the case.
Project Safe Neighborhoods: 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. To learn more information about PSN, visit www.justice.gov/psn.
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Former Physician Sentenced for Second Health Care Fraud ConvictionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SPYROS PANOS was sentenced to 111 months in prison for health care fraud, wire fraud, and aggravated identity theft. PANOS pled guilty to the charges on October 30, 2020. United States District Judge Kenneth M. Karas imposed the sentence today in White Plains federal court.
U.S. Attorney Damian Williams said: “Spyros Panos, a former surgeon who surrendered his license to practice medicine after a prior conviction for health care fraud in this District, abused our healthcare system for his own personal profit again, and he is now facing a return to prison. The sentence he received appropriately reflects the seriousness of his crime and of recidivism in the eyes of the law.”
According to the Indictment, to which PANOS pled guilty, and other statements and submissions made in Court:
PANOS surrendered his New York State license to practice medicine in 2013 in anticipation of pleading guilty to an indictment charging him with health care fraud. Thereafter, while out on release in that case, and after surrendering his license, he began perpetrating a scheme to defraud six medical peer review companies by impersonating a licensed orthopedic surgeon practicing in Westchester County (“Doctor-1”). Among other things, PANOS submitted Doctor-1’s credentials to peer review companies and conducted peer reviews using Doctor-1’s name and credentials. He stopped engaging in the scheme while he served his prison sentence. After he was released, he resumed perpetrating the scheme. During the course of the scheme, PANOS defrauded the peer review companies of $876,389.97.
According to court documents, in advance of his November 2, 2020, trial, PANOS submitted proposed defense exhibits that included fraudulent emails and records. While on release pending sentencing, PANOS submitted false and fraudulent documents in support of requests for adjournments of sentencing based on false claims that he tested positive for COVID-19 and then suffered from COVID related pneumonia. In July 2022, after the Court revoked his bail conditions and ordered him remanded, PANOS was arrested and placed in custody.
* * *
In addition to the prison term, PANOS, 54, of Hopewell Junction, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York Inspector General.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Margery Feinzig and Lindsey Keenan are charge of the prosecution.
Former Officers of Non-Profit Dedicated to Helping Children Plead Guilty to Using Organization’s Funds for Personal GainRead the Press Release
WASHINGTON – The former Executive Director and the former Director of Operations and Finance of the now-defunct non-profit organization DC Children and Youth Investment Trust Corporation (DC Trust) each pleaded guilty today to one felony charge relating to their personal use of the non-profit’s funds, which were intended for youth scholarship programs.
Edward Davies, 51, of Columbia, Maryland, and Earl Hamilton, 53, of Riviera Beach, Florida, pleaded guilty in the U.S. District Court for the District of Columbia to credit card fraud. They are to be sentenced on April 7, 2023, by the Honorable Reggie B. Walton. The plea agreements call for both defendants to make restitution for their criminal acts.
The plea was announced by U.S. Attorney Matthew M. Graves, Daniel W. Lucas, Inspector General for the District of Columbia, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Terry Harris, Special Agent in Charge of the Eastern Region, U.S. Department of Education’s Office of Inspector General.
According to the plea documents, from at least November 2015 to February 2016, Davies and Hamilton perpetrated a scheme in which they obtained and used for personal benefit, DC Trust credit cards and a check card – whose bills were paid for by DC Trust funds. The DC Trust was a non-profit organization, created in 1999, to serve as an intermediary to connect philanthropists, government leaders, youth advocates, and representatives from the business community in order to support programs to benefit the children of the District of Columbia. Davies was the Executive Director and Hamilton was the Director of Operations and Finance. The organization was dissolved in late 2016.
The diverted funds, provided to the non-profit by the government of the District of Columbia and the U.S. Department of Education, were intended to provide scholarship programs for D.C. youth. According to the plea documents, Davies and Hamilton used DC Trust credit cards and a check card to make hundreds of personal purchases, for expenses such as meals, automobile repairs, and personal travel for themselves, their family members, and their friends. In total, Davies admitted to stealing at least $111,000 and Hamilton admitted to stealing at least $44,000 by using DC Trust credit cards and a check card for personal expenses.
The D.C. Office of the Inspector General, the FBI’s Washington Field Office, and the U.S. Department of Education Office of the Inspector General have been investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Rakoczy and Diane Lucas, with assistance from Paralegal Specialists Amanda Rohde and Lisa Abbe.
Former Montgomery Physician at the Center of an Oxycodone Prescription Scheme Sentenced to over 11 Years in PrisonRead the Press Release
MONTGOMERY, ALABAMA – Yesterday, former physician D’livro Lemat Beauchamp, 56, of Montgomery, Alabama, was sentenced to 135 months in prison for his role in a scheme to illegally distribute oxycodone, announced United States Attorney Sandra J. Stewart.
According to the plea agreement and other court records, from 1996 to 2020, Beauchamp practiced medicine at a Montgomery medical practice named Obelisk Healthcare. Sometime around 2012, Beauchamp agreed to write illegitimate and unnecessary oxycodone prescriptions. For writing each prescription, Beauchamp received $350. From 2012 to 2020, various organizers of the scheme recruited individuals to fill these illegitimate prescriptions at assorted pharmacies. Beauchamp wrote prescriptions to these recruits that he knew served no legitimate medical purpose. Recruits were typically paid between $100 and $250 per prescription filled, and the organizers then collected the oxycodone pills to sell to other distributors. Beauchamp wrote nearly 1,600 illegal prescriptions as part of the scheme, causing the illegal distribution of approximately 4,000,000 milligrams of oxycodone. In total, 38 individuals were charged for their roles in this conspiracy.
Beauchamp pleaded guilty to conspiracy to distribute a controlled substance in October of 2020. Beauchamp’s prison sentence will be followed by three years of supervised release. There is no parole in the federal system.
“By allowing them to prescribe powerful medications, society places a great deal of trust in physicians,” stated United States Attorney Stewart. “Not only did the defendant’s unlawful actions violate his oath to provide care for his patients, but they also contributed to the vicious cycle of addiction that is destroying lives and families. The Drug Enforcement Administration’s Tactical Diversion Squad did an excellent job of identifying Beauchamp’s alarming prescribing pattern. The thorough investigation that followed resulted in the dismantling of a drug supply line that led straight to our communities.”
“The successful prosecution of D’livro Lemat Beauchamp should put on notice those who engage in this type of illegal activity,” said DEA Assistant Special Agent in Charge Towanda Thorne-James. “We will work together with state and local law enforcement to see that anyone involved in the diversion of pharmaceuticals will be brought to justice”
The Drug Enforcement Administration’s Tactical Diversion Squad investigated this case, with assistance from the United States Department of Health and Human Services – Office of Inspector General, the Shelby County Sheriff’s Office, the Montgomery Police Department, the Department of Defense – Office of Inspector General, and the Alabama Board of Medical Examiners. Assistant United States Attorneys Stephen K. Moulton, B. Chelsea Phillips, and Jonathan S. Ross prosecuted the case.
Former Louisiana Police Chief, City Councilmember, and Additional Co-Conspirator Sentenced in Vote Buying ConspiracyRead the Press Release
Washington - A former police chief in Amite City, Louisiana and a forme Amite City councilmemberwew each sentenced yesterday to one year in prison for violating federal elction laws as part of a conspiracy to pay, or offer to pay, voters for voting in a federal election.
In addition to the prison sentence, the former police chief was also ordered to pay a $10,000 fine. Today, an additional co-conspirator was sentenced to four months in prison for his role in the scheme.
According to court documents and evidence presented at trial, Jerry Trabona, 73, the former Chief of Police in Amite City, and Kristian “Kris” Hart, 50, a former Amite City councilmember, agreed with each other and others to pay or offer to pay voters residing in Tangipahoa Parish, Louisiana, for voting during the 2016 Open Primary Election and the 2016 Open General Election, contests in which Trabona and Hart were candidates. Trabona and Hart’s vote buying scheme included the solicitation and hiring of individuals responsible for identifying potential voters, the transportation of those voters to the polls, and payment and offer of payment to the voters for voting. In the 2016 election, co-conspirator Sidney Smith, 69, of Amite City, paid voters with money provided by Trabona and Hart.
Two other Louisiana men who previously pleaded guilty for their involvement in the vote buying scheme, Calvin Batiste and Louis Ruffino, will be sentenced at a later date.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Douglas Williams of the FBI New Orleans Field Office made the announcement.
The FBI New Orleans Field Office investigated the case.
Trial Attorneys Rosaleen T. O’Gara and Michael N. Lang of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney M. Irene González for the Eastern District of Louisiana are prosecuting the case.
Former Louisiana Police Chief, City Councilmember, and Additional Co-Conspirator Sentenced in Vote Buying ConspiracyRead the Press Release
A former police chief in Amite City, Louisiana and a former Amite City councilmember were each sentenced yesterday to one year in prison for violating federal election laws as part of a conspiracy to pay, or offer to pay, voters for voting in a federal election.
In addition to the prison sentence, the former police chief was also ordered to pay a $10,000 fine. Today, an additional co-conspirator was sentenced to four months in prison for his role in the scheme.
According to court documents and evidence presented at trial, Jerry Trabona, 73, the former Chief of Police in Amite City, and Kristian “Kris” Hart, 50, a former Amite City councilmember, agreed with each other and others to pay or offer to pay voters residing in Tangipahoa Parish, Louisiana, for voting during the 2016 Open Primary Election and the 2016 Open General Election, contests in which Trabona and Hart were candidates. Trabona and Hart’s vote buying scheme included the solicitation and hiring of individuals responsible for identifying potential voters, the transportation of those voters to the polls, and payment and offer of payment to the voters for voting. In the 2016 election, co-conspirator Sidney Smith, 69, of Amite City, paid voters with money provided by Trabona and Hart.
Two other Louisiana men who previously pleaded guilty for their involvement in the vote buying scheme, Calvin Batiste and Louis Ruffino, will be sentenced at a later date.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Douglas Williams of the FBI New Orleans Field Office made the announcement.
The FBI New Orleans Field Office investigated the case.
Trial Attorneys Rosaleen T. O’Gara and Michael N. Lang of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney M. Irene González for the Eastern District of Louisiana are prosecuting the case.
Former DC Corrections Officer Charged with a Federal Civil Rights Violation for Assaulting a Handcuffed InmateRead the Press Release
A federal grand jury in the District of Columbia returned an indictment that was unsealed today charging a former District of Columbia Department of Corrections officer with using unreasonable force.
According to court documents, former D.C. corrections officer Marcus Bias, 26, pushed a handcuffed pre-trial detainee’s head into a metal doorframe while escorting him within the Department of Corrections on June 12, 2019, causing injury to the detainee.
Bias faces a maximum statutory penalty of 10 years in prison for his use of unreasonable force, a term of supervised release, and fines.
Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office investigated the case.
Trial Attorneys Anna Gotfryd and Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Michael Truscott for the District of Columbia are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former D.C. Corrections Officer Charged with a Federal Civil Rights Violation for Assaulting a Handcuffed InmateRead the Press Release
WASHINGTON – A federal grand jury in the District of Columbia returned an indictment that was unsealed today charging a former District of Columbia Department of Corrections officer with using unreasonable force.
According to court documents, former D.C. corrections officer Marcus Bias, 26, pushed a handcuffed pre-trial detainee’s head into a metal doorframe while escorting him within the Department of Corrections on June 12, 2019, causing injury to the detainee.
Bias faces a maximum statutory penalty of 10 years in prison for his use of unreasonable force, a term of supervised release, and fines.
Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The FBI’s Washington Field Office investigated the case.
Trial Attorneys Anna Gotfryd and Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Michael Truscott are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Customs and Border Protection Agent Indicted for Federal Civil Rights Violation for Sexually Assaulting and Kidnapping a MinorRead the Press Release
A former agent with U.S. Customs and Border Protection (CBP) was charged in a superseding indictment, unsealed today, in the District of Arizona with three counts: a civil rights violation for sexually assaulting and kidnapping a minor victim, kidnapping a minor victim, and misleading state investigators.
According to the superseding indictment, on April 25, 2022, Aaron Mitchell, 27, was employed as a CBP agent. The alleged minor victim, referred to in the indictment as M.V., was 15-years-old when the defendant allegedly kidnapped and sexually assaulted them. Mitchell is also charged with making a misleading statement to investigators regarding his conduct related to the sexual assault and kidnapping.
If convicted, Mitchell faces a maximum sentence of life in prison, a minimum of 20 years imprisonment, a minimum of five years and up to a lifetime of supervised release and a $250,000 fine.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Gary M. Restaino for the District of Arizona, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Akil Davis of the FBI Phoenix Field Office made the announcement.
The FBI’s Sierra Vista resident agency investigated the case.
Assistant U.S. Attorney Carin Duryee for the District of Arizona and Trial Attorney MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Federal Court Rejects Claims of Medical Malpractice and Medical Battery Against the United StatesRead the Press Release
For Further Information, Contact: Assistant U. S. Attorney Steven J. Poliakoff (619) 546-7058 and Janet A. Cabral (619) 546-8715
SAN DIEGO – A federal judge held, following a recent bench trial, that a San Diego woman failed to establish her claims of medical malpractice and medical battery against the United States.
Instead, the court found that the evidence at trial “overwhelmingly” supported the United States’ position that obstetrician Sandra Lopez, M.D., from the federally-funded Vista Community Clinic (“VCC”), met the standard of care in her treatment of the plaintiff and in performing an emergency Cesarean-section delivery with informed consent. VCC is one of many federally-funded health centers nationwide that receive federal funding to provide medical care in underserved communities.
The plaintiff, who was 41½ weeks pregnant, was admitted to Tri-City Medical Center for induction of labor on November 15, 2017. Her attending VCC obstetrician, Sandra Lopez, M.D., ordered Pitocin to induce labor. The plaintiff requested, and an anesthesiologist inserted, a continuous epidural anesthetic to relieve pain. Both the Pitocin and epidural anesthetic were administered pursuant to Tri-City Hospital Medical Center protocols, which the evidence demonstrated met the standard of care.
According to evidence presented at trial, at approximately 5:20 a.m, the following morning, nursing staff noted a markedly diminished fetal heartbeat, and called Dr. Lopez, who arrived at the plaintiff’s bedside by 5:21 a.m. Dr. Lopez confirmed that the baby’s heartbeat was dangerously slow and weak. Dr. Lopez consulted with the plaintiff, who agreed to undergo an emergency Cesarean-section delivery to prevent neurologic injury and possibly death to her baby. Dr. Lopez called for an emergency Cesarean-section delivery per Tri-City Hospital protocol, which should result in all members of the surgical team promptly appearing at the operating room. However, the hospital paging notification system (for which the United States was not responsible) was delayed, and the anesthesiologist did not receive timely notification.
The baby’s very slow and very weak heartbeat meant that its blood supply to critical organs, including the brain, was being severely compromised. If allowed to continue, the baby would suffer irreversible brain damage and possibly death. Not knowing when, or even if, the anesthesiologist would arrive, Dr. Lopez consulted with the plaintiff, who again consented to Cesarean-section delivery of her baby, but now with injection of a local anesthetic to augment the anesthesia that she already had in place with the epidural anesthetic. Dr. Lopez conducted a pinch test in the plaintiff’s lower abdomen, both before and after the injection of the local anesthetic, to confirm that the plaintiff did not have sensation in the area.
During the surgery, the anesthesiologist arrived and further anesthetized the plaintiff. Within one minute of beginning the surgery, Dr. Lopez delivered a normal and healthy baby.
In her complaint, which was reported by many local news outlets after its filing, the plaintiff alleged that the United States, through Dr. Lopez, breached the standard of care in the administration of Pitocin (thereby creating the baby’s distress) and committed medical battery by performing an emergency Cesarean-section delivery without anesthesia, and without the plaintiff’s consent. The Court disagreed and found that:
Plaintiff has failed to establish her claims of medical malpractice and medical battery in this case. The evidence overwhelmingly supports Defendant’s position that Dr. Lopez met the standard of care in her treatment of Plaintiff and proceeded to perform the emergency c-section with informed consent, and to perform it under local anesthesia with informed consent.
"Dr. Lopez’s quick thinking and her command of the operating room in this obstetrical emergency was of the highest order and resulted in the birth of a healthy baby,” said U.S. Attorney Randy Grossman. “The United States Attorney’s Office was honored to defend this case and is grateful that justice was found in the court’s ruling."
Case Number
Delfina Mota v. United States of America, 19-cv-1212-AJB-NLS
SUMMARY OF CLAIMS
- Medical negligence
- Medical Battery
AGENCY
Department of Health and Human Services
Fall River Police Officer Indicted for Civil Rights Violations and False ReportsRead the Press Release
BOSTON – A Fall River Police Officer was arrested today in connection with an alleged assault with a baton on a man in Fall River Police custody.
Nicholas M. Hoar, 35, was indicted on one count of deprivation of rights under color of law and two counts of false reports. Hoar was arrested this morning and will appear in federal court in Boston today at 1:45pm before U.S. District Court Magistrate Judge Donald L. Cabell.
According to the indictment, on Dec. 21, 2020, while on duty as an officer with the Fall River Police Department, Hoar struck an individual who had been arrested in the forehead with a baton, resulting in bodily injury to the arrestee. The indictment further alleges that, on Dec. 21 and Dec. 22, 2020, Hoar submitted two reports which omitted any mention of the fact that he had struck the arrestee in the forehead with a baton.
The charge of deprivation of rights under color of law resulting in bodily injury provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false reports provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Rollins’ Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eight gang members sentenced to federal prison for their roles in the execution of a teenage gang member for suspected "snitching"Read the Press Release
ATLANTA – Gary Terrell Davis, an associate of the 135 Piru gang responsible for a series of violent acts throughout the Northern District of Georgia, is the last defendant to be sentenced for his role in a federal RICO conspiracy. The main targets in the case, including lead defendant Maurice Antonio Kent, were previously convicted and sentenced for their roles in the execution-style murder of a 17-year-old boy and other offenses.
“The pain and fear these defendants caused through their senseless violence has forever altered the lives of the victims, the victims’ families, and the witnesses brave enough to assist investigators.” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our law enforcement partners for their perseverance in investigating the various acts of violence and threats of violence committed by this gang over the years and for bringing a measure of closure to those who have been impacted. While the perpetrators of these crimes are now in prison, tragically the gang culture that promoted these violent acts remains a scourge in our community. At-risk teens remain vulnerable to the lure of gang culture and require our collective diligence to avoid this dangerous path.”
“The members of the 135th Street Pirus gang were willing to violently assault and kill people for the smallest perceived sign of disrespect,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and the Safe Streets Gang Task Force are committed to working with our partners to ensure that individuals are held accountable for their crimes and to eliminate gang violence from our communities.”
“This case is a great example of how collaboration with our local and federal partners is necessary to fight organized crime,” stated Brookhaven Chief of Police Brandon Gurley. “We are grateful for the relentless work of the U.S. Attorney’s Office to hold this final defendant accountable for the violent crimes he committed in our city and throughout Georgia.”
“Again, I’d like to credit the Project Safe Neighborhoods (PSN), a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia that has been in place for many years,” said Cartersville Police Chief Frank McCann. “The PSN program puts federal, state, and local law enforcement officers together regularly to remove violent repeat offenders from our streets.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The 135 Pirus gang originated in Compton, California, and has a national presence, including in the Northern District of Georgia. Maurice Antonio Kent, a.k.a. “Savage Duze,” 32, the lead defendant charged in the RICO Conspiracy, was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia.
In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven, Georgia, nightclub between a California-based 135 Pirus gang member and a rival gang member. At that time, Kent fired multiple rounds into a crowd of people outside the club, critically wounding the other gang member as well as a club security guard. During his flight from the scene, Kent tossed the firearm from a vehicle just before he was apprehended by police. Soon after being arrested and while in custody, Kent learned that a 17-year-old fellow gang member, who may have witnessed the shooting, was interviewed by law enforcement. Kent suspected the teen of “snitching.” Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.
At Kent’s federal trial earlier this year, a jury heard evidence that eight months prior to the nightclub shooting, Kent committed a drive-by shooting of a man standing in his front yard in Cartersville, Georgia. After that shooting, Kent threw the firearm into Lake Allatoona. The FBI later recovered the gun from the bottom of the lake and matched cartridge casings and a bullet from the drive-by shooting to Kent’s firearm.
On May 18, 2022, the jury found Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, guilty of RICO Conspiracy, violent crime in aid of racketeering, discharging a firearm during the commission of those violent crimes, and possession of a firearm as a convicted felon. On August 24, 2022, the Court sentenced Kent to 40 years in prison to be followed by three years of supervised release.
Gary Terrell Davis, a.k.a. “Bhody,” 36, of Cartersville, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release.
In addition to Kent and Davis, the following 135 Pirus gang members and associates were previously convicted and sentenced in this case:
- Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, received a sentence of 25 years in prison, to be followed by three years of supervised release. Nwanjoku pled guilty to RICO Conspiracy.
- Jamel Dupree Hughes, a.k.a. “Savage,” 28, a 135 Pirus member from Atlanta, Georgia, received a sentence of 26 years and two months in prison, to be followed by three years of supervised release. Hughes pled guilty to murder in aid of racketeering, use of a firearm in furtherance of a crime of violence resulting in death, attempted murder in aid of racketeering, and discharge of a firearm in furtherance of a crime of violence.
- Cedric Sams, Jr., a.k.a. “Awall,” 30, a 135 Pirus member from Cartersville, Georgia, received a sentence of 20 years in prison to be followed by three years of supervised release. Sams pled guilty to murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death.
- Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was sentenced to 20 years in prison to be followed by three years of supervised release. Michael Kent pled guilty to RICO Conspiracy.
- Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was sentenced to 12 years in prison, to be followed by three years of supervised release. Foutz pled guilty to aiding and abetting murder in aid of racketeering and aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in death.
- DaSean Dorey, 29, a 135 Pirus member from Decatur, Georgia, was sentenced to ten years in prison, to be followed by three years of supervised release. Dorsey pled guilty to aiding and abetting murder in aid of racketeering and aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in death.
This case was investigated by the FBI Safe Streets Gang Task Force, with valuable assistance provided by the Brookhaven Police Department, the Bartow County Sheriff’s Office, the Cartersville Police Department, and the Georgia Department of Community Supervision.
Assistant U.S. Attorneys Jessica Morris, who serves as a Project Safe Neighborhoods Coordinator, and Michael Herskowitz, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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.
Eight Individuals Charged in Alleged $30 Million Unemployment Benefits SchemeRead the Press Release
Charges were unsealed today against eight individuals for conspiring to defraud the Georgia Department of Labor of tens of millions of dollars in federal funds intended for unemployment benefits.
Seven defendants have been indicted and one defendant has already pleaded guilty for her role in the scheme.
According to court documents, Tyshion Nautese Hicks, 30, of Vienna, Georgia; Shatara Hubbard, 34, of Warner Robins, Georgia; Torella Wynn, 30, of Cordele, Georgia; Macovian Doston, 29, of Vienna; Kenya Whitehead, 35, of Cordele; A’Darrion Alexander, 27, of Warner Robins; Membrish Brown, 27, of Vienna; and Edith Nate Hicks, 45, of Atlanta, Georgia and others allegedly caused more than 5,000 fraudulent unemployment insurance (UI) claims to be filed with the Georgia Department of Labor (GaDOL), resulting in at least $30 million in stolen benefits meant to assist unemployed individuals during the COVID-19 pandemic.
To execute the scheme, the defendants and others allegedly created fictitious employers and fabricated lists of purported employees using stolen personally identifiable information (PII) from thousands of identity theft victims and filed fraudulent unemployment insurance claims on the GaDOL website. The defendants allegedly stole PII from a variety of sources, including by paying defendant Edith Nate Hicks, an employee of an Atlanta-area health care and hospital network, to unlawfully obtain patients’ PII from the hospital’s databases. The defendants also allegedly caused the stolen UI funds to be disbursed via prepaid debit cards mailed to addresses of their choice, many of which were in and around Cordele and Vienna.
Tyshion Nautese Hicks, Hubbard, Wynn, Doston, Whitehead, Alexander, and Brown are each charged by indictment with conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison. Tyshion Nautese Hicks and Doston are also charged with aggravated identity theft, which carries a mandatory two-year prison sentence that must be imposed consecutively with any other sentence. Alexander is also charged with money laundering, which carries a maximum penalty of 20 years in prison.
Edith Nate Hicks was charged by criminal information with conspiracy to commit mail fraud and pleaded guilty to this offense on Nov. 15. According to her plea agreement, Hicks unlawfully used her employer’s patient databases to steal PII for the unemployment fraud scheme in exchange for payments via Chime, Venmo, and CashApp. She unlawfully accessed at least 1,600 Atlanta-area patients’ PII during the conspiracy. Hicks faces a maximum penalty of 20 years in prison. A sentencing date has not been scheduled.
As to all defendants, 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 Peter D. Leary for the Middle District of Georgia; Special Agent in Charge Mathew Broadhurst of the Department of Labor Office of Inspector General (DOL-OIG), Atlanta Region; Inspector General Joseph V. Cuffari of the Department of Homeland Security Office of Inspector General (DHS-OIG); Resident Agent in Charge Clint Bush of the U.S. Secret Service (USSS) Albany, Georgia Office; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group; Special Agent in Charge Katrina Berger of Homeland Security Investigations (HSI) in Georgia; Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General (USPS-OIG) Southern Area Field Office; and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) made the announcement.
The DOL-OIG, DHS-OIG, USSS, USPIS, HSI, USPS-OIG, and IRS-CI are investigating the case.
Trial Attorneys Lyndie Freeman, Matt Kahn, and Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case, with valuable assistance from the U.S. Attorney’s Office for the Middle District of Georgia.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at http://www.justice.gov/criminal-vns/case/united-states-v-tyshion-nautese-hicks-et-al.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eastern District of Texas Announces Multi-Year Investigation into Transnational Cryptocurrency Money Laundering NetworksRead the Press Release
TYLER, Texas – According to court documents unsealed today, 21 individuals have been charged for their roles in transnational money laundering networks, including those that laundered millions of dollars stolen from United States fraud victims through romance scams, business email compromises, technical support schemes, and other fraud schemes.
U.S. Attorney Brit Featherston of the Eastern District of Texas, William Smarr, Special Agent in Charge of the U.S. Secret Service’s (USSS) Dallas Field Office, and Inspector in Charge Thomas Noyes of the U.S. Postal Inspection Service announced Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation into transnational cryptocurrency money laundering networks that facilitate the movement of fraud proceeds from victims in the United States to foreign criminal organizations.
“These defendants orchestrated highly organized and sophisticated schemes to launder fraud proceeds through cryptocurrency,” said U.S. Attorney Brit Featherston. “Today’s announcement sends a clear message that money laundering networks that service fraud schemes targeting American victims, especially the elderly, will not be tolerated, and those operating such networks will be held accountable. By acting as domestic money launderers for foreign co-conspirators, these defendants played indispensable roles that allowed foreign actors to reach from overseas to target victims in communities across the United States.”
“Today’s announcement demonstrates the investigative capabilities of the Secret Service and highlights the success of our collaborative efforts through Operation Crypto Runner to dismantle and disrupt transnational money laundering networks,” said William Smarr, Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “These arrests are just the beginning. We are committed to bringing each of the remaining perpetrators to justice.”
“These cases stem from a multi-year operation initiated in the Eastern District of Texas by Postal Inspectors and the Secret Service,” said Thomas Noyes, Inspector in Charge of the Postal Inspection Service’s Fort Worth Division. “Cybercrime has become an all-too-common way for foreign criminal actors to prey on Americans. Interagency cooperation is essential to be effective in disrupting organized crime. I commend the exceptional work of our law enforcement partners and emphasize our agency’s ongoing commitment to combatting fraud and money laundering schemes.”
To date, the Operation has disrupted more than $300 million in annual money laundering transactions, seized and forfeited millions in cash and cryptocurrency, and identified thousands of victims.
Some of the schemes alleged in the indictments include the following:
- U.S. v. Zenobia Walker, 6:20-CR-91-JCB/KNM (11/19/2020)
Zenobia Walker, 65, of Temple Hills, Maryland, pleaded guilty on January 6, 2022, to conspiracy to operate an unlicensed money transmitting business and was sentenced to 18 months in federal prison on November 2, 2022. Walker was involved in a scheme in which she received cash by mail, money orders, wire transfers, and cashier’s checks obtained from victims of romance scams and from victims of other fraud schemes. The funds were deposited into Walker’s personal bank accounts and withdrawn and deposited into other bank accounts in order to exchange the funds for cryptocurrency. Between December 2019 and September 2020, Walker exchanged $308,800.00 for cryptocurrency on behalf of her foreign co-conspirators.
- U.S. v. Tulasidas Konda, 6:20-CR-31-JDK/JDL (4/23/2021)
Tulasidas Konda, 57, of Amelia Court House, Virginia, pleaded guilty on May 5, 2021, to conspiracy to commit money laundering. Konda led and organized a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams. Konda’s organization opened bank accounts and mailboxes that were used to receive and transact victim funds, received the victim funds, engaged in subsequent financial transactions, routinely structured in amounts under $10,000 in an effort to evade reporting requirements and to conceal the nature and source of the criminal proceeds, and moved the criminal proceeds to foreign co-conspirators. Konda’s organization routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In the course of the operation, Konda was personally responsible for laundering $4,172,061.58 in criminal proceeds.
- U.S. v. Deependra Bhusal, 6:21-CR-32-JDK/JDL (4/23/2021)
Deependra Bhusal, 46, of Irving, Texas, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison on April 6, 2022. Bhusal was a key member of the Konda Organization. In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.
- U.S. v. Lois Boyd, et al., 6:21-CR-43-JDK/KNM (6/16/2021)
Lois Boyd, 76, of Amelia Court House, Virginia, pleaded guilty on June 14, 2022, to a violation of the Travel Act. Boyd, also a member of the Konda Organization, is alleged to have conspired with others to receive victim money derived from a variety of fraud schemes and launder the proceeds through cryptocurrency. Boyd routinely structured deposits in order to avoid transaction reporting requirements and to conceal the nature and source of the criminal proceeds. Boyd and others in the Konda Organization exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, Boyd and others traveled to Longview, Texas, where they attempted to exchange more than $450,000 for Bitcoin.
- U.S. v. John Khuu, 6:22-CR-62-JCB/JDL (5/18/2022)
John Khuu, 27, of San Francisco, California was named in an indictment returned by a federal grand jury charging him in a money laundering conspiracy. According to the indictment, Khuu is alleged to have conspired with others to launder the proceeds of his drug trafficking organization through cryptocurrency. The defendant allegedly distributed counterfeit pharmaceutical pills and other controlled substances on dark web markets to customers across the United States. Customers paid for their purchases by transferring cryptocurrency, usually Bitcoin, from their dark web market customer accounts to one of Khuu’s vendor accounts. Khuu and his co-conspirators traded the Bitcoin for U.S. currency and laundered the proceeds through hundreds of transactions and dozens of financial accounts. During the course of the conspiracy, Khuu and his co-conspirators allegedly laundered more than $5,350,000.00. On August 17, 2022, Khuu was also charged by a federal grand jury in the Northern District of California in a two-count indictment charging him with unlawful importation of a controlled substance.
- U.S. v. Randall V. Rule, et al., 6:22-CR-64-JDK/KNM (5/18/2022)
Randall V. Rule, 71, of Reno, Nevada, and Gregory C. Nysewander, 64, formerly of Irmo, South Carolina, were named in an indictment returned by a federal grand jury charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act. According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency. The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators. The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.” The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges. During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million. Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.
- U.S. v. Sharena Seay, 6:22-CR-110-JDK/JDL (8/17/2022)
Sharena Seay, 37, of Jacksonville, Florida, was named in an indictment returned by a federal grand jury charging her with money laundering. According to the indictment, Seay is alleged to have laundered the proceeds of her drug trafficking operations through cryptocurrency. The defendant allegedly supplied alpha-Pyrrolidinopentiophenone (alpha-PVP), which is often called “flakka,” and similar synthetic cathinones, such as Eutylone or alpha-PiHP. Seay distributed alpha-PVP and other controlled substances to various customers across the United States. Customers who purchased controlled substances from Seay paid for their purchases with cash. Seay laundered the cash proceeds through cryptocurrency in order to purchase more controlled substances on the dark web and to conceal her criminal activity. During the course of the conspiracy, Seay allegedly laundered more than $1.2 million.
- U.S. v. Fnu Ankush, et al., 6:22-CR-111-JCB/KNM (8/17/2022)
Fnu Ankush, 35, of Fishers, Indiana, Jenisha Katuwal, 40, of Fishers, Indiana, Sukhwinder Sandhu, 44, of Philadelphia, Pennsylvania, Inder Singh, 37, of Philadelphia, Pennsylvania, Mukul Khanna, 37, of Philadelphia, Pennsylvania, Satinder Singh, 36, of Philadelphia, Pennsylvania, Ramneek Singh, 28, of Levittown, New York, Muninder Singh, 52, of Fairfax, Virginia, Sandeep Heir, 43, of Fresno, California, and Rachel Mullins, 36, of Jacksonville, Florida, were named in an indictment returned by a federal grand jury charging them in a wire and mail fraud conspiracy. According to the indictment, the defendants facilitated technical support schemes by creating a financial infrastructure in the United States that involved establishing shell companies with names intended to resemble names of legitimate companies. The defendants opened and controlled business bank accounts in the names of the shell companies in order to facilitate the computer tech scheme. The defendants also established websites for many of the shell companies in order to make the shell companies appear legitimate. Then, through false and fraudulent pretenses, representations, and promises, and concealment of material facts, the defendants and their co-conspirators persuaded victims to deposit, wire, or transfer funds into designated bank accounts or to mail funds to designated addresses.
These efforts are part of Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. The Department has conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
In August 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud. This EDTX initiative is designed to combat these criminal organizations, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds.
The investigations arising from the operation are being conducted by the U.S. Secret Service and the U.S. Postal Inspection Service and are being led and prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr., with assistance from the Criminal Division’s Fraud Section and Computer Crime and Intellectual Property Section and the Department’s Office of International Affairs.
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District of Columbia Man Sentenced to Eight Years in Prison for Burglaries in Northwest WashingtonRead the Press Release
WASHINGTON – Rayshonne Marbley, 48, of Washington, D.C., was sentenced today to an eight-year prison term on charges stemming from a series of break-ins and thefts in Northwest Washington in June 2022.
The announcement was made by U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Marbley pleaded guilty in October 2022, in the Superior Court of the District of Columbia, to two counts of second-degree burglary. The Honorable Michael O’Keefe sentenced Marbley today to an aggregate term of eight years’ imprisonment. Following his prison term, Marbley will be placed on three years of supervised release.
According to the government’s evidence, on June 6, 2022, shortly after 3:00 p.m., Marbley entered an occupied home in the 3000 block of 11th Street NW. The resident’s child was awoken to the sound of her bedroom doorknob being turned and observed Marbley looking at her from another bedroom door. Marbley took various electronics before leaving the house. Marbley then entered another occupied home in the area before being chased out by the resident. Marbley again took various electronics on his way out of the house. A short time later, police were able to locate and apprehend Marbley. In his possession were various electronics taken from the two residences.
In announcing the sentence, U.S. Attorney Graves and Chief Contee expressed appreciation for the work of those investigating the cases from MPD. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Victim Advocate Latrice Washington-Williams.
Finally, they commended the work of Assistant U.S. Attorney Shalin Nohria, who investigated and prosecuted the cases.
Connecticut Man Admits to Attempting to Travel to the Middle East to Join and Fight for ISISRead the Press Release
Ahmad Khalil Elshazly, 25, of West Haven, Connecticut, pleaded guilty today in Bridgeport federal court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court documents and statements made in court, beginning in approximately September 2018, Elshazly, a U.S. citizen, expressed a desire to travel to Syria and the surrounding area to fight on behalf of ISIS. In numerous conversations online and in person, he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. For example, in October 2019, Elshazly sent a message pledging allegiance (bayat) to the new leader of ISIS, saying “I pledge my allegiance...to the Khilafah (the successor of the leadership) of the Muslims Abu Ibrahim Al Husseini Al Hashami Al Qurashi…” (after Abu Bakr Al-Baghdadi’s death).
On Dec.14, 2019, Elshazly paid $500 to a person he believed was an ISIS facilitator who would be able to smuggle him out of the U.S. to Turkey. He further believed that travelling to Turkey would enable him to connect with ISIS members overseas who, in turn, would assist him with traveling to ISIS within Syria. On Dec. 15, 2019, Elshazly was arrested after he arrived in Stonington, Connecticut, where he expected to board a boat to begin his trip.
Elshazly has been detained since his arrest. The charge of conspiring to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Vanessa Roberts Avery for the District of Connecticut and Special Agent in Charge David Sundberg of the FBI New Haven Field Office made the announcement.
This matter has been investigated by the FBI’s Joint Terrorism Task Force (JTTF) with the assistance of the Stonington Police Department, New Haven Police Department and Connecticut State Police. The FBI’s JTTF includes participants from the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), IRS – Criminal Investigation, Naval Criminal Investigative Service, U.S. Marshals Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Town of Groton Police Department, UConn Police Department, Yale Police Department and New York Police Department.
Assistant U.S. Attorney Margaret M. Donovan for the District of Connecticut and Trial Attorneys Justin Sher and Daniel Gardner of the National Security Division’s Counterterrorism Section are prosecuting the case.
Colorado Springs Woman Pleads Guilty in Teenager’s Fentanyl DeathRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Alexis Nicole Wilkins, age 27, of Colorado Springs pleaded guilty today to distribution of fentanyl, resulting in death.
According to the plea agreement, on December 3, 2021, a juvenile overdosed during class at Mitchell High School in Colorado Springs. First responders attempted life-saving measures, and transported the juvenile to a local hospital, where she was pronounced dead. The El Paso County Coroner determined the cause of death was “fentanyl intoxication.” Investigators spoke with two juvenile witnesses who were with the victim in a school restroom that morning. One juvenile witness provided statements that she and the victim used ”Percocet” in the bathroom that morning. Investigators were able to track where the juveniles got the pill through Facebook messages with the defendant, including a conversation which appears to be the one arranging the sale of a pill at the Citadel Mall in Colorado Springs the night before the victim’s death. One of the juvenile witnesses said she was introduced to the defendant by a Denver gang member in February 2021, and had been purchasing “percs” from the defendant. One witness noted the pill they purchased on December 2, 2021, looked different and was a lighter blue color than what they had received previously. Other Facebook messages indicate the defendant knew the pills she was selling were not made by a pharmaceutical company. On March 15, 2022, the Federal Bureau of Investigation (FBI) and the Colorado Springs Police Department executed a federal search warrant on the defendant’s home on West Portal Drive in Colorado Springs. Officers located and seized over 100 blue pills marked with “M” and “30,” which contained fentanyl. Investigators believe some of the pills were packaged for distribution.
Judge Christine M. Arguello presided over the change of plea hearing on November 30, 2022. Wilkins will be sentenced on March 14, 2023. Distribution of fentanyl, a Schedule II controlled substance, resulting in death carries a potential penalty of no less than 20 years and up to life in prison, a fine of no more than $1,000,000, and no less than three years of supervised release.
The Federal Bureau of Investigation (FBI) Denver Division, the Colorado Springs Police Department Metro, Vice, Narcotics, and Intelligence (MVNI) Unit, the El Paso County Sheriff’s Office, and the 4th Judicial District Attorney’s Office participated in the investigation. The prosecution is being handled by Assistant United States Attorneys Peter McNeilly and Alyssa Mance.
CASE NUMBER: 22-cr-101-CMA.
Career Drug Dealer Sentenced to over 17 Years in Federal Prison for Armed Trafficking of Fentanyl While on Community CorrectionsRead the Press Release
INDIANAPOLIS – Kevin Noel, 40, of Indianapolis, was sentenced to 210 months in federal prison after pleading guilty to possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on January 29, 2021, Indianapolis Metropolitan Police Department officers went to Noel’s residence on North King Avenue, in Indianapolis, to assist Marion County Community Corrections with a check to ensure Noel was complying with the conditions of his home detention. The officers encountered common tools used by drug traffickers and evidence of recent illegal drug use during the compliance check and obtained a warrant to search Noel’s residence and truck.
The officers executed the search warrant and seized evidence of drug trafficking and illegal guns including approximately 226 counterfeit pills containing Fentanyl (totaling 24 grams), approximately 460 grams of heroin or cocaine mixed with Fentanyl powder, approximately 75 grams of crack cocaine, approximately 27 grams of powder cocaine, approximately 24 grams of methamphetamine, three semi-automatic handguns, and over $24,000 in cash drug proceeds. Noel admitted that he possessed the illegal drugs with the intent to distribute them and illegally possessed the firearms in furtherance of his drug dealing.
Officers seized approximately 692 grams of Fentanyl or substances mixed with Fentanyl during the search. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
Noel has four prior felony convictions in state court related to possession of and dealing drugs. Noel is prohibited from possessing firearms under federal law due to these felonies.
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; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division; and Randal Taylor, Police Chief of the Indianapolis Metropolitan Police Department; made the announcement.
DEA investigated the case in conjunction with ATF and IMPD. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Noel be supervised by the U.S. Probation Office for four years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
California meth trafficker sentenced to six years in prisonRead the Press Release
BILLINGS — A California man who admitted to trafficking methamphetamine after law enforcement found about a pound of the drug in his vehicle in Livingston was sentenced today to six years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Michael Romie Cervantes, 48, of Fresno, California, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on March 25, 2021 in Livingston, a Montana Highway Patrol trooper conducted a traffic stop of a vehicle Cervantes was driving. The trooper developed reasonable suspicion that Cervantes and his passenger were involved in criminal activity. Upon execution of a search warrant, the officer found about one pound of meth in a backpack in the vehicle. One pound of meth is the equivalent of 3,624 doses,
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Drug Enforcement Administration 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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Boston Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man has pleaded guilty to conspiracy to distribute fentanyl, cocaine and cocaine base (crack cocaine).
Josiah Watkins, 26, pleaded guilty on Nov. 28, 2022 to one count of conspiracy to distribute, and possess with intent to distribute, 40 grams or more of fentanyl, 28 grams or more of cocaine base and cocaine. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 28, 2023. Watkins was arrested and charged in April 2021.
In February 2021, law enforcement opened an investigation into drug trafficking activities conducted by Watkins and, allegedly, his co-defendant London Lee. The investigation revealed that Watkins and his co-defendant were actively selling cocaine, crack cocaine and fentanyl in the Boston area. Between February and April 2021, Watkins sold or arranged the sale of crack cocaine and fentanyl in at least 10 separate controlled purchases. His co-defendant has pleaded not guilty and is pending trial.
The charge of conspiracy to distribution of 40 grams or more of fentanyl, and conspiracy to distribute 28 grams or more of cocaine base provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bluffton Man Sentenced to 104 Months in PrisonRead the Press Release
FORT WAYNE – Yancie Hunter, 34 years old, of Bluffton, Indiana, was sentenced by United States District Court Judge Holly A. Brady after his guilty plea to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Hunter was sentenced to 104 months in prison followed by 2 years of supervised release.
According to documents in the case, in May 2020, Hunter possessed a .380 caliber firearm after being convicted of three separate felony offenses for robbery in both Indiana and Kentucky. Hunter’s prior felony convictions prohibit him from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey Speith.
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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Berryville Man Sentenced to over 6 Years in Federal Prison for Receipt of Child PornRead the Press Release
FORT SMITH – A Berryville man was sentenced yesterday to 75 months in prison followed by five years of supervised release on one count of Receipt of Child Pornography. The Honorable Judge P.K. Holmes, III presided over the sentencing hearing in the U.S. District Court in Fort Smith.
According to court documents, in January of 2022, Homeland Security Investigations (HSI) Fayetteville, received a Cyber Tip from the National Center for Missing and Exploited Children which reported that an unknown person was utilizing an account on the Kik Messenger application to upload media files including child pornography. An investigation into the IP addresses and the Kik account information revealed the account owner to be Andrew Cruz Tovar-Reyes, age 20, of Berryville, Arkansas. Tovar-Reyes admitted to receiving child pornography using his Kik account through his cellphone. Berryville Police Department arrested Tovar-Reyes on February 15, 2022.
Tovar-Reyes was indicted by a Grand Jury in April 2022 and pled guilty in June 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Homeland Security Investigations Fayetteville, the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force and the Berryville Police Department investigated the case.
Assistant U.S. Attorneys Carly Marshall and Kyra Jenner prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Atlanta Sex Trafficker Sentenced to 25 Years in Prison for Offenses During Super Bowl LIV in MiamiRead the Press Release
MIAMI – An Atlanta sex trafficker has been sentenced to 25 years in prison for forcing a young woman and a girl into selling themselves for sex.
Anthony Bernard Carter was convicted in July by a federal jury in Miami of sex trafficking by force, fraud, and coercion; transporting a person to engage in sexual activity; sex trafficking of a minor; and transporting a minor to engage in sexual activity.
Evidence showed during trial that Carter trafficked the Adult Victim and Minor Victim for commercial sex in Atlanta before driving them in January 2020 to Miami, which was hosting Super Bowl LIV, to continue engaging in commercial sex. While in Miami, Carter advertised the victims for commercial sex in online advertisements and both engaged in commercial sex at his direction.
Carter came to the attention of law enforcement after taking the Minor Victim to a hotel to meet with a client who was actually an undercover officer from the Miami Beach Police Department. When law enforcement attempted to apprehend Carter upon his return to the hotel, he fled from law enforcement, nearly striking multiple pedestrians with the vehicle he was driving before abandoning it. Law enforcement subsequently arrested Carter in Atlanta.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; acting Special Agent in Charge Robert M. DeWitt, Federal Bureau of Investigation (FBI), Miami Field Office; and Miami Beach Police Department Chief Richard Clements announced the sentence.
FBI, Miami Field Office, and Miami Beach Police Department investigated the case. Assistant U.S. Attorneys Lacee Elizabeth Monk and Jessica Kahn Obenauf prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
Visit www.humantraffickinghotline.org to learn more about the National Resource Hotline. Visit www.justice.gov/humantrafficking to learn more about the U.S. Department of Justice’s efforts to combat human trafficking.
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 no. 21-cr-20052.
29 November 2022
Woodstock Man Pleads Guilty to Tax FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that MARIUSZ KALINOWSKI, 47, of Woodstock, waived his right to be indicted and pleaded guilty today in New Haven federal court to a tax fraud offense
According to court documents and statements made in court, Kalinowski owns and operates Kalinowski General Construction, Inc., based in Webster, Massachusetts, which provides residential and commercial construction services in Connecticut and Massachusetts. For the 2010 through 2013 tax years, Kalinowski failed to report on his personal federal tax returns $927,828 in income from his business and, as a result, failed to pay approximately $174,746 in taxes on that income.
Kalinowski pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 22, 2023, in Hartford.
Kalinowski has agreed to pay the IRS $174,746, plus penalties and interest that have accrued on his unpaid taxes.
This investigation has been conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Wisconsin Man Indicted for $35 Million Bank Fraud SchemeRead the Press Release
MINNEAPOLIS – A Wisconsin man has been indicted for orchestrating a $35 million bank fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, between 2020 and August 2022, Matthew Thomas Onofrio, 31, of Eau Claire, devised and executed a scheme to defraud multiple federally-insured banks including MidCountry Bank headquartered in Bloomington. As part of his scheme, Onofrio operated a business entity called Northwoods Management LLC which he used to market a real estate investing program for investors to acquire commercial properties. Onofrio allegedly engaged in several fraudulent acts as part of the scheme, including causing false information to be submitted to lenders financing investors’ real estate purchases and altering purchase agreements to support higher appraisals of the properties. According to the indictment, Onofrio withheld information from the lenders, including the fact that he was lending money to the investors to help them purchase the properties and would temporarily wire funds to investors’ accounts to create the appearance that they had more available assets than they in fact had. The charges seek forfeiture of more than $35 million seized in the investigation.
Onofrio is charged with three counts of bank fraud. On November 23, 2022, Onofrio made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the FBI, the IRS, and the Federal Deposit Insurance Corporation – Office of Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Georgia Resident Guilty of Distributing 380,000 Fentanyl Doses Sentenced to PrisonRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a lengthy criminal history who admitted to distributing nearly 500 grams of fentanyl and 265 grams of a fentanyl analogue—which amounts to approximately 380,000 doses—was sentenced to federal prison today.
Michael Schlarman, aka White Mike, 32, was sentenced to serve 156 months in prison to be followed by five years of supervised release by U.S. District Judge Clay Land today after he previously pleaded guilty to possession of fentanyl with intent to distribute. There is no parole in the federal system.
“Individuals caught distributing fentanyl into our communities will be held accountable for a crime which is profiting from the death of people, including many first-time users,” said U.S. Attorney Peter D. Leary. “In 2021, overdose deaths from fentanyl hit an all-time high: A single dose can kill. Our office and our law enforcement partners are working to combat the spread of fentanyl – and save lives – in every community across the Middle District of Georgia.”
“While in the midst of this country’s opioid epidemic, deadly drugs like fentanyl continue to ravage many communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Consequently, DEA and its law enforcement partners will relentlessly pursue drug dealers like Michael Schlarman who choose to ‘push’ poison in the community for consumption. This defendant will now spend time in federal prison.”
According to court documents and other evidence, members of the Muscogee County Sheriff’s Office (MCSO), Drug Enforcement Administration (DEA), Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF) and FBI executed a search warrant at Schlarman’s residence on Wagner Drive in Columbus on Jan. 26. Schlarman fled from the rear of the house but was later arrested with the help of DEA Air Support and escorted back to the house without incident. Inside the defendant’s residence, law enforcement found 496.4 grams of fentanyl and 265.5 grams of p-Fluorofentanyl (a fentanyl analogue), plus a Glock 9mm with an extended magazine and a Taurus 9mm with magazine and ammunition. In addition, agents found multiple jars of a cutting agent for drugs, digital scales, a 20-ton hydraulic press, a variety of drug paraphernalia and cash. Schlarman has a lengthy criminal history, including three prior burglary convictions in Muscogee County, Georgia, Superior Court.
The case was investigated by the Muscogee County Sheriff’s Office, DEA, ATF, and FBI.
Assistant U.S. Attorney Christopher Williams prosecuted the case for the Government.
Virginia man pleads guilty to defrauding the United StatesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Shrock, 47, of Meadowview, Virginia, pleaded guilty on Nov. 28 to conspiracy to defraud the United States. Shrock will remain on conditions of release pending sentencing, which has not been scheduled.
According to court records, beginning in January 2005, David Wellington, 62, of Albuquerque, and his business partner Stacy Underwood, 51, of Albuquerque, operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services would open bank accounts under the names and IRS employer identification numbers (EINs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts. Clients received debit cards, online bank access information and pre-signed checks with Underwood’s signature, which clients could use to access the money despite the bank never associating the client with the account.
In his plea agreement, Shrock admitted that he contacted National Business Services in 2006 for help avoiding federal taxes by incorporating a business in New Mexico. Shrock spoke with Underwood and Wellington, and became a client of National Business Services.
Wellington and Underwood created three LLCs in New Mexico for Shrock: White Top Enterprise LLC; Poultry Enterprises LLC; and TALC Properties LLC. Shrock was not listed on the Articles of Organization. Instead, Underwood was listed as the “Organizer,” and National Business Services was the initial registered agent for each of the three LLCs.
On May 9, 2011, Underwood opened a bank account in the business name of White Top Enterprise, LLC, utilizing the company EIN. Shrock’s name was not on the signature card for the account. Underwood provided Shrock with online access to the bank account and a book of pre-signed checks with her signature. Between May 9, 2011, and June 30, 2015, Shrock caused approximately $4,875,940 to be deposited into the White Top Enterprise LLC bank account, and over the same time period, Shrock and his wife withdrew or caused the withdrawal of approximately $4,875,940. Among the withdrawals was a wire transfer of approximately $352,216 for the purchase of a home.
Prior to his indictment in this case on June 23, 2021, Shrock did not file a personal or business tax return with the IRS reporting the White Top Enterprises LLC income. At the time of the deposits and withdrawals, Shrock had a large outstanding IRS assessment for unpaid taxes, penalties and interest. Because it was not opened in his personal name, the White Top Enterprises LLC bank account enabled Shrock to generate and deposit income while evading the outstanding assessment and avoiding personal and business taxes on the income.
Wellington was arraigned on July 9, 2021, charged with conspiracy to defraud the United States and operation of an unlicensed money transmitting business. Wellington remains on conditions of release pending trial, which is scheduled for June 12, 2023. If convicted, Wellington faces up to 10 years in prison.
On Oct. 23, Underwood pleaded guilty to conspiracy to defraud the United States. Underwood is scheduled for sentencing on Jan. 30, 2023.
Underwood and Shrock face up to five years in prison.
IRS Criminal Investigation investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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Utah Man Admits to Using Kik to Distribute Child PornographyRead the Press Release
CHARLOTTESVILLE, Va. – A Utah man, who communicated via the instant messaging application Kik with an undercover employee working for the I-81 Human Trafficking and Crimes Against Child Task Force, pled guilty today to a pair of federal crimes.
Brent Walter Murie, 67, pled guilty today to two counts of distribution of child pornography. Each count calls for a mandatory minimum sentence of five years in prison and requires Murie to register as a convicted sex offender upon his release from prison as well as pay restitution to his victims.
“Our children’s world is online more than ever before and we, as a law enforcement community, must rise to the challenge of keeping them from becoming victims of sexual abusers,” United States Attorney Christopher R. Kavanaugh said today. “My Office will continue to work with our federal, state, and local law enforcement partners to protect the most vulnerable among us, our children, from sexual exploitation. I am thankful to the FBI and all those who worked to bring this matter to justice.”
“Brent Walter Murie admitted today to sexually exploiting children by distributing and exchanging their images online,” said FBI Richmond Special Agent in Charge Stanley M. Meador. “I want to thank the I-81 Human Trafficking and Crimes Against Child Task Force and our partners for their work on this case. We will never stop fighting to protect children and making sure their abusers are held accountable.”
According to court documents, an online covert employee (OCE) used a social media account on Kik to target individuals engaged in child exploitation activities. The OCE setup an account posing as an adult who had access to a 9-year-old daughter and 11-year-old son.
On September 9, 2021, an account linked to Murie began messaging the OCE account through a public chat room about incestuous family relationships. The chat between the two lasted from September 2021 through March 2022.
Topics of their conversations ranged from work, family, used cars, and the weather. However, Murie constantly returned the conversation back to ways the OCE could molest his fictional 9-year-old daughter. Murie repeatedly provided the OCE instructions on grooming and molestation, such as drugging the daughter or lowering her inhibitions by showing her child pornography.
In addition, Murie offered tips on how to conceal sexual abuse, such as using tickle fights as an excuse to sexually abuse a minor child.
During the conversations, Murie also spontaneously sent the OCE child pornography, including videos of infants and prepubescent children engaged in sexual activity with adults.
The case was investigated by the Federal Bureau of Investigation and was part of an undercover operation by the I-81 Human Trafficking and Crimes Against Children Task Force (I-81 HTTF). The I-81 HTTF is a collaborative effort of law enforcement and community partners focused on identifying instances of human trafficking along the I-81 corridor in the northern Shenandoah Valley of Virginia, West Virginia, and Maryland, prosecuting those responsible, and providing assistance to the victims impacted by these crimes. The I-81 HTTF includes law enforcement officers from the counties of Frederick, Clarke, and Shenandoah as well as the cities and towns of Front Royal, Hagerstown, and Frederick, Maryland, and Lord Fairfax Community College.
Assistant U.S. Attorney Heather L. Carlton is prosecuting the case.
United States Files Complaint and Reaches Agreement on Proposal with City of Jackson and State of Mississippi on Interim Solution to the Jackson Water CrisisRead the Press Release
Today, the United States filed a proposal in federal court that — if approved by the court — would appoint an Interim Third Party Manager to stabilize the city of Jackson, Mississippi’s public drinking water system, and build confidence in the system’s ability to supply safe drinking water to the system’s customers. The city and the Mississippi State Department of Health (MSDH) have signed this order and agreed to its terms. At the same time, the Justice Department, on behalf of U.S. Environmental Protection Agency (EPA), filed a complaint against the city alleging that the city has failed to provide drinking water that is reliably compliant with the Safe Drinking Water Act (SDWA) to the system’s customers.
The proposal, which was called a “proposed stipulated order” in court filings, is meant to serve as an interim measure while the United States, the city, and MSDH attempt to negotiate a judicially enforceable consent decree to achieve long-term sustainability of the system and the city’s compliance with the SDWA and other relevant laws.
“Today the Justice Department is taking action in federal court to address long-standing failures in the city of Jackson’s public drinking water system,” said Attorney General Merrick B. Garland. “The Department of Justice takes seriously its responsibility to keep the American people safe and to protect their civil rights. Together with our partners at EPA, we will continue to seek justice for the residents of Jackson, Mississippi. And we will continue to prioritize cases in the communities most burdened by environmental harm.”
“Over the past year, I’ve had the privilege to spend time with people on the ground in Jackson – many who’ve struggled with access to safe and reliable water for years," said EPA Administrator Michael S. Regan. “I pledged that EPA would do everything in its power to ensure the people of Jackson have clean and dependable water, now and into the future. While there is much more work ahead, the Justice Department’s action marks a critical moment on the path to securing clean, safe water for Jackson residents. I’m grateful to the Attorney General for his partnership and commitment to this shared vision.”
“Every American — regardless of where they live, their income, or the color of their skin — deserves access to safe, reliable drinking water,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “For many years now, the people of Jackson have lived in uncertainty — uncertainty about whether, on any given day, the water that flows from their taps will be safe to drink. With our court filings today, we have taken an important step towards finally giving the people of Jackson the relief they so desperately deserve.”
“It is vital that providers of drinking water comply with federal and state laws designed to ensure the safety of the water,” said U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi. “Through this litigation, we will act to ensure that the city of Jackson’s water system will be compliant with the Safe Drinking Water Act and other state and local regulations so that those serviced by the system can have confidence that the water they are consuming is safe. The proposed agreed interim order is a critical first step.”
The proposal seeks the court’s appointment of an Interim Third Party Manager that would have the authority to, among other things:
- Operate and maintain the city’s public drinking water system in compliance with SDWA, the Mississippi Safe Drinking Water Act, and related regulations;
- Take charge of the Water Sewer Business Administration, the arm of the city responsible for billing water users;
- Implement capital improvements to the city’s public drinking water system, in particular, a set of priority projects meant to improve the system’s near-term stability, including a winterization project meant to make the system less vulnerable to winter storms; and
- Correct conditions within the city’s public drinking water system that present, or may present, an imminent and substantial endangerment to the health of the city’s residents.
This court filing marks the latest efforts to address Jackson’s drinking water crisis, but there is much work still to be done to solve the myriad problems plaguing Jackson’s public drinking water system. On July 29, MSDH issued a boil-water notice for Jackson’s public drinking water system. The next month, the city proclaimed an emergency after excessive rainfall and extreme flooding prevented the system from delivering any water to the approximately 160,000 persons living within the city and in certain areas of nearby Hinds County who rely on the system. That meant that many of those residents had no running water to drink, or to use for basic hygiene and safety purposes like washing hands, showering, flushing toilets, fighting fires, or washing dishes. The water pressure was not restored until Sept. 6, and the boil-water notice remained in effect until Sept. 15.
Learn more information about EPA’s efforts in Jackson to date here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here.
Two Owners of New Jersey Pharmaceutical Marketing Company Admit Role in $38 Million Compounding Fraud SchemeRead the Press Release
NEWARK, N.J. – Two owners of a New Jersey pharmaceutical marketing company admitted their roles in a $38 million compounded medication health care fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Samantha Zaretzky, 42, of Wayne, New Jersey, and Lee Nichols, 43, of Fair Haven, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to separate informations charging each with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Through their company, Synergy Medical LLC, Zaretzky and Nichols exploited the manner in which health insurance plans processed, screened, and paid for customized drugs known as “compounded medications,” causing tens of millions of dollars of losses to several health insurance plans over two years. Zaretzky and Nichols pocketed millions of dollars through this compounding fraud scheme.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a medical professional determines that an FDA-approved medication does not meet the health needs of a particular patient.
From April 2014 to June 2016, Zaretzky and Nichols used Synergy as a platform through which they could market prescription-based compounded medications without regard to whether a health insurance beneficiary actually needed such a medication or whether an FDA-approved medication would have been appropriate and sufficient.
Zaretzky and Nichols and their conspirators determined which combination of compounded ingredients was most financially lucrative. Through their sales representatives, they recruited health insurance beneficiaries who were willing to obtain these expensive, but medically unnecessary, compounded medications before a medical professional had evaluated the beneficiaries’ unique and individualized need for the medications. After convincing the beneficiaries to obtain a pre-formulated compounded medication, in many cases, Zaretzky, Nichols, and their sales representatives steered beneficiaries to a medical professional with whom the beneficiaries had no prior doctor-patient relationship, such as a telemedicine company. Although the beneficiaries did not have a prior relationship with the telemedicine doctors, Zaretzky and Nichols paid that company for consulting with the beneficiaries. On at least one occasion, Zaretzky and Nichols paid an advanced practice nurse, whose license was inactive, to write prescriptions in exchange for cash. Once those medical professionals issued the prescriptions, Zaretzky and Nichols ensured that the prescriptions were steered to compounding pharmacies that paid them a kickback.
The health care fraud conspiracy charge carries a statutory maximum prison sentence of 10 years and a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for April 23, 2023.
U.S. Attorney Sellinger credited special agents and an analyst of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.
Two Men Plead Guilty to Their Roles in Local Dogfighting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pleaded guilty to conspiring to engage in dogfighting, and a Camp Springs, Maryland, man pleaded guilty today to advertising a dogfight on the internet.
According to court documents, from at least May 2015 through August 2020, Derek Garcia, 41, Ricardo Thorne, 52, and other conspirators from Virginia, D.C., and Maryland, used a messaging app private group, which they generally referred to as "The DMV Board" or "The Board," as a place where they and their associates could discuss training fighting dogs, exchange videos about dogfighting, and arrange and coordinate dog fights, away from the view of law enforcement authorities. Members of The DMV Board also used the messaging app to compare methods of killing dogs that lost fights, as well as to circulate media reports about conspirators who had been caught by law enforcement and discuss methods to minimize the likelihood that they would be caught themselves.
According to court documents, in November 2015, Thorne told another conspirator that Thorne made a lot of money from charging admission to dog fights that he held for years at a warehouse off Kenilworth Avenue in the District of Columbia. Thorne further said that he had a fighting dog that killed six other dogs in less than a year.
Further, according to court documents, in December 2016, Garcia sold a fighting dog to another individual involved in dogfighting for $1700. In March 2017, upon the arrest of another individual involved in the fights, Garcia instructed one of his co-conspirators on how to delete the messages on the DMV Board without deleting the group from the messaging app.
In June 2017, Thorne posted to the DMV Board that the most he had ever won in one fight was $15,000. In January 2019, Thorne posted to the DMV Board that his “Darkside Kennels” had been around for over 20 years. On July 30, 2019, Thorne possessed at his residence dogfighting paraphernalia and nine pitbull-type dogs, many with scarring patterns and lacerations consistent with dogfighting. When questioned by law enforcement agents, Thorne denied any involvement ever in dogfighting, and said that he did not know that there were nine dogs tied up in his backyard.
According to court documents, on or about June 28, 2020, Garcia posted on the DMV Board a narrative of a fight between dogs, one of which was conditioned and handled by Garcia himself. Garcia notified the DMV Board that his dog was the winner, after his opponent’s dog stopped moving at 32 minutes into the fight.
In August, Garcia, Thorne, and four others were indicted for a dogfighting conspiracy involving the “DMV Board.” Earlier this month, three other conspirators pleaded guilty to the same dogfighting conspiracy. Garcia and Thorne are each scheduled to be sentenced on March 7, 2023. Each faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Gordon Kromberg and Cristina Stam are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-154.
Troy Man Sentenced for Possessing Firearms as a FelonRead the Press Release
ALBANY, NEW YORK – Justin Smith, age 22, of Troy, New York, was sentenced today to 21 months in prison for possessing firearms as a previously convicted felon. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his prior guilty plea, Smith admitted that on March 4, 2021, he possessed a Smith & Wesson M&P 9 mm pistol and an HS Produkt 40 caliber pistol that were recovered after a search warrant was executed at a residence in Troy. Smith had posted, to SnapChat, photos and videos of himself handling the firearms the night before they were recovered. Smith was prohibited from possessing the firearms due to a previous felony conviction involving a firearm.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, which will start after Smith is released from prison.
The case was investigated by the FBI and the Troy Police Department, and was prosecuted by Assistant U.S. Attorney Dustin Segovia.
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.
Thai Woman Pleads Guilty to Her Role in International Sex Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. – Sumalee Intarathong has pleaded guilty to her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger.
“Today’s guilty plea marks the final conviction in a years-long international sex trafficking prosecution resulting in 37 convictions,” said U.S. Attorney Andrew M. Luger. “Ms. Intarathong, worked directly with others at the highest levels in the organization to victimize hundreds of vulnerable women for her own financial gain.”
According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 61, served as a boss/trafficker for the organization. Each trafficked victim was “owned” by Intarathong or another boss/trafficker, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.
According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.
“I’m proud of the HSI agents and law enforcement partners who helped bring Intarathong to justice,” said HSI Saint Paul Special Agent in Charge Jamie Holt. “Intarathong’s heinous acts victimized countless individuals and their families. HSI will continue the work necessary to dismantle and destroy these human trafficking organizations while providing care and support to the victims.”
“For more than seven years, Ms. Intarathong had been responsible for sex trafficking across the nation,” said Justin Campbell, IRS CI Special Agent in Charge, Chicago Field Office. “And like many criminals she tried to hide her ill-gotten gains through legitimate purchases – such as vehicles and real estate. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”
Intarathong was arrested in Belgium in August 2016 and remained in custody until she was extradited to the United States in February 2021. Intarathong pleaded guilty earlier today before Senior Judge Donovan W. Frank to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.
Texas woman sentenced for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Leslie O’Quinn, of Houston, Texas, was sentenced today to 100 months of incarceration for her role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, United States Attorney William Ihlenfeld announced.
O’Quinn, age 32, pleaded guilty in July 2022 to one count of “Conspiracy to Distribute Controlled Substances.” O’Quinn admitted to working with others to distribute methamphetamine, cocaine base, cocaine hydrochloride, and fentanyl from the Spring of 2018 until October 2020.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office; the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and the FBI and DEA in Los Angeles, California.
This case 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.
Chief U.S. District Judge Thomas S. Kleeh presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Texan indicted for producing pornography of 16-year-oldRead the Press Release
McALLEN, Texas – A 26-year-old man residing in Hidalgo is set to appear in federal court on charges of coercion of a minor and production of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Rogelio Pruneda III is set to appear before U.S. Magistrate Judge Juan F. Alanis at 2 p.m.
Originally charged by criminal complaint, a federal grand jury returned the two-count indictment Nov. 15.
According to the charges, Pruneda began communicating via social media with a minor female, offering money and THC vape cartridges in exchange for sexual acts. Pruneda allegedly convinced the minor female to meet locally, at which time Pruneda created two videos of the minor female performing oral sex on him.
The charges allege Pruneda exchanged messages recognizing the minor female’s age and discussed sexual activity with the minor female. Pruneda allegedly met up with the female on two more occasions at a family-owned auto shop and a residence where he engaged in sexual intercourse with the minor. In one instance Pruneda brought THC cartridges in exchange for sex, according to the charges.
Shortly thereafter, law enforcement took Pruneda into custody.
At the time of his detention hearing, the court found him to be a danger to community and ordered held in custody pending future criminal proceedings.
The FBI conducted the investigation.
Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Ten Associated with Nuestra Familia Plead Guilty to Drug Trafficking Offenses in Kings and Tulare CountiesRead the Press Release
FRESNO, Calif. — Ten defendants arrested as part of Operation Red Reaper have pleaded guilty today to drug trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
In 2019, Operation Red Reaper was a federal, state, and local law enforcement operation that targeted the criminal activities of the Nuestra Familia Prison Gang in the counties of Kings and Tulare. At the conclusion of the operation, federal charges were brought against 23 of those defendants, with the remaining being charged by the Kings County District Attorney’s Office.
Pleading guilty today are Raymond Lopez, 35, of Pleasant Valley State Prison; Jesse Juarez, 32, of Visalia; Daniel Juarez, 30, of Visalia; Michael Rocha, 40, of Visalia; Angel Montes, 26, of Visalia; Rafael Lopez, 41, of Visalia; Manuel Barrera, 28, of Kettleman City; Joann Bernal, 36, of Armona; Ramon Amador, 33, of Riverdale; and Raul Lopez Jr., 51, of Visalia.
Two co-defendants have been sentenced after pleading guilty. On May 24, 2021, Salvador Castro Jr., 52, of Fresno, was sentenced to 17 years and six months in prison, and on July 11, 2022, Manuel Garcia, 36, of Armona, was sentenced to 15 years in prison.
According to court documents, in March 2019, various agencies partnered in an investigation into the Nuestra Familia prison gang and the Norteño street gang in Kings County. The investigation uncovered that the Nuestra Familia was responsible for large-scale trafficking of methamphetamine and cocaine, as well as various firearms offenses and other violent crimes.
According to court documents, high-ranking Nuestra Familia members Salvador Castro Jr. and Raymond Lopez used contraband cellphones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kings County Gang Task Force, the Special Operations Unit of the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Jessica A. Massey are prosecuting the case.
Barrera, Amador, Montes, and Raul Lopez are scheduled to be sentenced by U.S. District Judge Ana de Alba on March 6, 2023, and the remaining defendants are scheduled to be sentenced by Judge de Alba on March 20, 2023. They face a range of mandatory minimum sentences from between five to 15 years in prison and a range of maximum sentences, including up to life in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against the remaining defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Tax service owner pleads guilty to preparing false joint income tax returnsRead the Press Release
HOUSTON – A tax preparer has admitted to willfully preparing a false joint 2017 individual income tax return, announced U.S. Attorney Jennifer B. Lowery.
As part of his plea, Fabrice Mahinga admitted that from 2016 to 2018, he operated Kennedy Tax Service located in Houston. He admitted that he often claimed fake Schedule C items, education and fuel tax credits on the returns he prepared.
In 2019, he assisted with the preparation of a tax return that should have resulted in a tax owed of $42. Mahinga added to the return a false Schedule C and false credits that resulted in a false claim for an income tax refund of $4,257 from the IRS. A copy of the return reflected a false income tax refund of a lesser refund - $3,259 - when the refund claimed on the return filed with the IRS was $4,257.
Mahinga took responsibility of $270,612 of loss to the IRS. He has agreed to pay $182,212 in restitution.
U.S. District Judge Keith P. Ellison will impose sentencing Feb. 17. At that time, Mahinga faces up to three years in federal prison and a possible $250,000 maximum fine.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
St. Louis Market's Security Guard Faces Gun ChargesRead the Press Release
ST. LOUIS – A St. Louis market's security guard appeared in federal court Tuesday to answer charges accusing him of illegally possessing firearms, including during a shootout in St. Louis in October.
Dwayne A. Kimmins, 49, was indicted November 16 on two felony counts of being a felon in possession of a firearm. The indictment says Kimmins had a gun on October 3 and again five days later.
A motion seeking to have Kimmins held in jail until trial says that on October 3, Kimmins, who was working at the Salamas market and gas station on North 13th Street, approached someone suspected of stealing beer. Kimmins, who was armed with a handgun, patted the person down and the two then got into an altercation. At some point, the suspect began firing at Kimmins, and Kimmins took cover behind a gas pump and returned fire, the motion says. Kimmins admitted firing a shotgun in the air to scare the suspect, the motion says. Five days later Kimmins was found in possession of another firearm when officers returned to the store to conduct additional investigation into the shooting, the motion says.
Kimmins was found in possession of a third firearm and loose ammunition on November 29, when he was arrested, according to statements at Tuesday's hearing.
Kimmins pleaded not guilty Tuesday to the charges.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kourtney Bell is prosecuting the case.
St. Louis County Man Indicted, Accused of Shooting at Federal Task Force OfficersRead the Press Release
ST. LOUIS – A man from St. Louis County has been indicted and accused of shooting at three federal task force officers during a 2021 standoff.
Derek D. Brown, 49, of Jennings, appeared in court Tuesday and pleaded not guilty to three counts of assault on a federal officer, three counts of discharging a firearm during a crime of violence and one count of being a felon in possession of a firearm. He was originally indicted Oct. 13, 2021.
The indictment says Brown fired at the officers on March 18, 2021.
A detention motion says the shooting followed a domestic dispute. Brown was armed with a machete and a hammer and had kicked down the door of his wife’s daughter’s house while trying to confront his wife, the motion says. The daughter, afraid for the safety of herself and her children, retrieved her .45 caliber pistol but Brown was able to wrestle it away, the motion says.
Brown left and went to his sister’s house, where he fired at officers, including federal task force officers, outside the house, through a screen door and then through the closed front door, the motion says. He eventually surrendered.
The assault charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both. The discharge of a firearm charges carry a penalty of at least 10 years in prison, consecutive to any other charges. The felon in possession charge carries a penalty of up to 10 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Brown has been held on state charges since the shooting.
The case was investigated by the St. Louis County Police Department. Assistant U.S. Attorney Donald Boyce is prosecuting the case.
Sioux Falls Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Sioux Falls, South Dakota, man convicted of Receipt and Distribution of Child Pornography was sentenced on November 28, 2022, by U.S. District Judge Karen E. Schreier.
Dylan St. Claire age 31, was sentenced to ten years and one month in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
St. Claire was indicted by a federal grand jury in September of 2021. He pled guilty on September 2, 2022.
The conviction stemmed from incidents between March 10, 2021, and July 21, 2021, when St. Claire knowingly received and distributed material containing child pornography. While using his KIK social media account, St. Claire engaged in chat conversations with other KIK users. During those conversations, St. Claire shared files that contained videos of child pornography, including prepubescent minors that had not attained the age of twelve years old.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
St. Claire was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Robert Charles Black Cloud, age 67, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on November 23, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Black Cloud, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between May 29, 2022 and November 1, 2022.
The charge is merely an accusation and Black Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Black Cloud was released on bond pending trial which has been set for January 31, 2023.
Shoreline Business Owner Who Failed to Pay Taxes Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTOPHER JARDINE, 55, of Guilford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 15 months of imprisonment, followed by one year of supervised release, for failing to pay business and personal taxes. Judge Dooley also ordered Jardine to pay a $10,000 fine.
According to court documents and statements made in court, Jardine is a part owner of D&A Construction Management, Inc. (“D&A”), a Branford-based company in the construction business. Jardine was responsible for D&A’s financial affairs, and for collecting and paying over certain federal taxes from D&A’s employees, namely federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, which include Medicare and social security taxes. He was also responsible for ensuring that D&A, as an employer, paid its own share of FICA taxes.
An investigation revealed that although Jardine and D&A withheld employees’ federal income and FICA taxes over multiple tax periods between 2016 and 2019 and reported those withholdings to the IRS, they failed to pay over the withheld amounts, totaling approximately $868,000. Jardine also represented to the IRS that D&A lacked the ability to pay, but he used more than $1 million in company funds to pay personal expenses, including purchases of a 52-foot cigarette boat, a Range Rover, high-end clothing, and auto parts, and to make payments on behalf of Straight Jacket USA, LLC, a Guilford business controlled by Jardine.
On April 28, 2022, Jardine pleaded guilty to one count of willful failure to pay over withholding taxes. Jardine admitted that he evaded payment of the withheld employee taxes, as well as D&A’s share of FICA taxes, for multiple quarters during the 2016 through 2019 tax years, and he also acknowledged that he evaded the payment of personal income tax liabilities for multiple tax years between 2007 and 2015.
Jardine agreed to pay approximately $2,070,000 in restitution to the IRS, an amount that includes interest and penalties. To date, he has paid most of his restitution obligation.
Jardine, who is released on a $50,000 bond, is required to report to prison on February 28.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Sex Offender Sentenced to 14 Years in Federal Prison for Obscenity OffenseRead the Press Release
GAINESVILLE, FLORIDA – Matthew Lee Ostrander, 36, of Missouri, was sentenced to fourteen years in federal prison following his conviction for possession of obscene visual depictions of minors. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them,” said U.S. Attorney Coody. “We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
Ostrander was convicted by a federal jury on May 12, 2022. Evidence introduced at trial revealed that in September 2020, Ostrander was arrested in Gainesville, Florida for an outstanding warrant from Missouri. At the time of his arrest, he had also failed to register as a sex offender in the State of Florida. He knowingly possessed electronic devices that contained over three hundred computer-generated images depicting children engaged in sexual activity. The activity included sadistic and masochistic abuse and sexual intercourse with children.
According to court documents, Ostrander is a registered sex offender who was previously convicted of possession of child pornography on October 18, 2017.
“This twice-convicted sexual predator saved hundreds of heinous computer-generated images depicting children being sexually abused,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Working with our law enforcement partners, such as the Gainesville Police Department, HSI will continue to focus on identifying and prosecuting those who prey on our most vulnerable. This sentencing is another exemplary example of those efforts.”
Ostrander’s prison sentenced will be followed by lifetime supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
This conviction was the result of an investigation by the Homeland Security Investigations, the Gainesville Police Department, and the United States Marshal Service. Assistant United States Attorney Frank Williams prosecuted this 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.
Seattle man sentenced to four years in prison for attempting to travel to the Middle East to join a foreign terrorist organizationRead the Press Release
Seattle – A 22-year-old Seattle man was sentenced today in U.S. District Court in Seattle to four years in prison with 15 years of supervised release to follow, for Providing Material Support to a Designated Foreign Terrorist Organization, announced U.S. Attorney Nick Brown. Elvin Hunter Bgorn Williams was arrested May 28, 2021, at Seattle-Tacoma International Airport on criminal charges related to his alleged efforts to join the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, to engage in violent acts of terrorism in the Middle East or the United States. At today’s sentencing hearing, U.S. District Judge John C. Coughenour said he was imposing a sentence far below the government’s request of 15 years because of Williams’ “mental health and history of mental health difficulties.”
“Mr. Williams persisted in his plans to join a terrorist organization and commit acts of violence, despite intervention from his family, his school, members of his mosque, and from the FBI,” said U.S. Attorney Nick Brown. “Indeed, he repeatedly stated his intention to commit an act of terror here at home if he could not travel overseas. Mr. Williams continues to pose a risk to the community. It will be critically important that he be closely supervised after he is released from prison.”
Williams was arrested following a lengthy investigation into his efforts to join ISIS.
“Mr. Williams proved by his actions he was willing to join the Islamic State in hopes of furthering their ideology through violence,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “He took concrete steps to fund his activities, procure equipment, and travel to the Middle East. I am grateful for how law enforcement was able to step in and stop him before he actually was able to achieve his goal.”
According to the plea agreement, in November 2020, Williams began telling family members he was a member of ISIS. Williams posted a video on Facebook in which he swore an oath of loyalty to a leader of ISIS.
Using confidential sources close to Williams, the FBI monitored his activity and became aware of his efforts to travel to the Middle East and join ISIS. Williams expressed to his associates that if he could not travel overseas, he would commit an attack in the U.S. on behalf of ISIS. Williams began communicating with those he believed were ISIS recruiters who could get him to an ISIS terror cell in the Middle East or other parts of the world.
The plea agreement contains statements Williams made about his intentions: that he sought martyrdom, had “no problem with killing,” and hoped to be involved in beheading others.
In May 2021, Williams obtained a passport and pawned a laptop computer to raise funds for his travel. In early May 2021, Williams booked an airline ticket from Seattle to Amsterdam and on to Egypt to join ISIS. On Friday May 28, 2021, he went to Sea-Tac Airport to catch the first leg of his international flight. Williams was arrested at the departure gate.
In asking the court for a 15-year sentence prosecutors wrote to the court, “Sadly, this case is far from unique. ISIS and other terrorist groups engage in the recruitment of would-be supporters using online propaganda communication tools. Far too many U.S. persons fall prey to this recruitment and attempt to travel to fight with terrorist groups overseas or seek to commit local attacks in the name of terrorist organizations.”
The case was investigated by the FBI’s Joint Terrorism Task Force in Seattle with assistance from the King County Sheriff’s Office; U.S. Customs and Border Protection; Homeland Security Investigations; Federal Air Marshals; U.S. Citizenship and Immigration Services; U.S Marshals Service; U.S. Postal Inspection Service; Transportation Security Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Naval Criminal Investigative Service; Seattle Police Department; Bellevue Police Department; and Port of Seattle Police Department.
Assistant United States Attorney Todd Greenberg of the Western District of Washington’s Terrorism and Violent Crime Unit, and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case.
San Angelo Tax Preparer Sentenced to 14 Years for Tax FraudRead the Press Release
A San Angelo tax preparer whose fraudulent tax returns cost the IRS millions of dollars was sentenced today to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham. His adult son and daughter were sentenced to 66 and 80 months, respectively.
Hugo Cesar Granados, manager of Columbia Tax Service, his daughter, Blanca L. Granados, and his son, Hugo Alberto Granados, were convicted at trial in August of conspiracy to defraud the United States and multiple counts of aiding in the preparation and presentation of false documents. They were sentenced Tuesday by U.S. District Judge James Wesley Hendrix
“Columbia Tax Service doctored clients’ tax returns to inflate clients’ refunds and line the Granados’s pockets. Such blatant fraud is an affront to all conscientious taxpayers,” U.S. Attorney Chad Meacham said following the verdict. “As is their right, the Granadoses opted for a trial by jury. We are proud to have obtained a guilty verdict. I’m thankful to the IRS Criminal Investigation agents who ran this case to ground and to the members of the jury, who gave three days of their lives to bring these defendants to justice.”
“Today, justice is served - a victory for all honest tax return preparers and taxpayers. Hugo Cesar Granados, along with his daughter and son, are being held accountable for their criminal actions,” Special Agent in Charge Christopher J. Altemus, Jr., IRS Criminal Investigation of the Dallas Field Office said today. “I am extremely proud of the women and men of IRS-CI who work tirelessly each and every day to bring criminals like these individuals to justice. I also want to extend my gratitude to the US Attorney’s office and specifically the prosecution team for their relentless pursuit of justice in this case.”
At trial, prosecutors introduced evidence that the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns (Forms 1040) in order to inflate the clients’ tax refunds.
They routinely fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements, claiming the taxpayer owned a business when no such business existed, claiming unreimbursed employee expenses such as travel and per diem, and claiming business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred or grossly inflated.
Testimony adduced at trial showed that Columbia Tax Service claimed more than $900,000 in income in 2015 and more than $1.3 million in income in 2016.
An employee who plead guilty prior to trial, Saul Garcia-Soto testified that in 2016, Columbia Tax employees met with Hugo C. Granados because taxpayers were not receiving their refunds from the IRS. When questioned, the elder Mr. Granados asked the employees if they thought the company was doing something illegal. Mr. Garcia-Soto said that he, Blanca Granados, and Hugo A. Granados all replied that they thought Columbia Tax was doing something illegal. In response, Hugo C. Granados just smiled and turned back to his computer.
In a Skype chat introduced at trial, Blanca Granados wrote to a co-worker: “Fraud is ridiculous here yo . . . I swear.”
Prosecutors also introduced into evidence the company’s “tax preparation manual,” a handbook that outlined exactly how to commit fraud.
In discussing preparation of Schedule C of the tax return, the manual stated: “This is where your training and knowledge of income and deductions will make a big difference in the amount of refund the taxpayer will be obtaining. A determination has to be made if the return needs additional income to generate the maximum earned income and other credits or if the return has a substantial amount of income (Adjusted Gross Income) and needs to come down to maximize the earned income and other credits.” In other words, the manual advised tax preparers to manipulate income to maximize refunds rather than referring to the law to determine whether an activity was a business for income tax purposes and whether expenses properly qualified as a business deduction.
At sentencing, experts put the estimated tax loss in excess of $11.7 million.
The Internal Revenue Service - Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas, including Assistant U.S. Attorneys Jeffrey Haag, Ann Haag, Amy Burch, and Paulina Jacobo (fmr), prosecuted the case.