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18 November 2022
Arizona Man Sentenced in Southwest Virginia Meth ConspiracyRead the Press Release
Abingdon, Va. – A defendant in a drug distribution organization that trafficked methamphetamine from Texas and Indiana into Southwest Virginia was recently sentenced in federal court on drug conspiracy charges, United States Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares announced.
Pedro Loza III, 28, of Bullhead City, Arizona, was sentenced this week to 72 months in federal prison. He was previously convicted of one count of conspiring to possess with the intent to distribute and distributing 50 grams or more of methamphetamine and one count of possessing with the intent to distribute and distributing 5 grams or more of methamphetamine.
In all, five individuals were charged as being part of this drug trafficking conspiracy, four of whom have now been sentenced for their roles in the scheme. Paul Warren Rucker previously pleaded guilty and was sentenced to 120 months in federal prison in July 2022. Defendants Amber Lynn Tackett and Benjamin Alvis entered guilty pleas and are scheduled for sentencing in April 2023. The lead defendant, Alonso Cantu-Cantu, is scheduled for trial in March 2023.
This case arose from a series of indictments stemming from an ongoing methamphetamine trafficking conspiracy operating primarily in the Smyth County, Virginia area. In total, 26 defendants have been charged in connection with the investigation.
This investigation was led by the Drug Enforcement Administration’s Bristol, Virginia Office with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General assigned to the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Argyle Fire Chief Indicted for Federal ViolationsRead the Press Release
PLANO, Texas – The former Argyle Fire Chief has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Troy Mac Hohenberger, 63, was named in a federal indictment returned by a federal grand jury on Nov. 17, 2022, in the Eastern District of Texas. The indictment charges Hohenberger with multiple federal violations related to misuse and theft of funds from the Argyle Fire District, Inc. operating account, along with making false statements to the Department of Labor. Hohenberger made his initial appearance today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to the indictment, Hohenberger, while chief of the Argyle Fire Department, is alleged to have taken money from the operating account of the fire district (which received federal funds in the form of Medicare reimbursements) and used over $490,000 of those funds to pay personal credit card bills. The indictment also alleges these personal credit card expenses included cash advances at casinos, payments related to a family member’s business in Hawaii, and other personal uses. Hohenberger is also alleged to have failed to fund firefighter retirement accounts in the time required by federal regulations and thus embezzled or stole the funds, and that he made false statements related to the ERISA-qualified firefighter retirement plan on a form submitted to the Department of Labor.
If convicted, Hohenberger faces up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Department of Labor – EBSA.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Anderson Felon Sentenced to 18 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
INDIANAPOLIS – Detreck Wilson, 50, of Anderson, Indiana, was sentenced to 18 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on September 13, 2021, law enforcement officers learned that the Anderson City Court had issued a warrant for Wilson’s arrest for failure to appear. On September 14, 2021, law enforcement officers located Wilson at the Anderson Inn. Officers were aware that Wilson was a previously convicted felon. Officers were advised that Wilson was in the room and that he had a firearm. Officers accessed Wilson’s room with a key provided by the hotel and found him lying in bed with a semi-automatic handgun within his reach on an adjacent nightstand.
Wilson admitted to officers that he had two prior felony convictions and possessed the handgun found on the nightstand. Wilson was previously convicted of strangulation and non-support of a dependent, in Madison County, Indiana. Wilson is prohibited by federal law from possessing firearms due to these felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
FBI investigated the case and the Anderson Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Wilson be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this case.
24-Year-Old Tucson Man Sentenced to 14 Months and Fined $10,000 for Alien SmugglingRead the Press Release
TUCSON, Ariz. – On November 8, 2022, Michael Ernesto Abril, 24, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker to 14 months in prison, followed by three years of supervised release. Judge Hinderaker also ordered Abril to pay a $10,000 fine. Abril previously pleaded guilty to Transporting Illegal Aliens for Profit.
On November 17, 2021, U.S. Border Patrol (USBP) agents observed Abril erratically driving a U-Haul box truck at a high rate of speed near Arivaca, Arizona. After an attempted immigration stop, Abril eventually pulled over but then fled from the agents on foot. USBP agents were able to apprehend Abril and arrest him. Inside the box of the U-Haul truck, agents discovered five undocumented noncitizens who had illegally entered the United States.
U.S. Border Patrol, Tucson Sector, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-3188-TUC-JCH-LCK
RELEASE NUMBER: 2022-211_Abril# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.10 charged in business email compromise and money laundering schemes targeting Medicare, Medicaid, and other victimsRead the Press Release
ATLANTA - The U.S. Department of Justice announced charges against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.
“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”
“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”
“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”
“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments. The prosecutions allege schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients.
For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals.
Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals.
The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.
This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.
The seven defendants against whom charges were unsealed this week are:
- Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on November 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments.
- Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies.
- Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application.
- Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on November 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme.
- Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity.
- Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds. Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA).
- Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on September 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare.
The three defendants previously charged are:
- Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on February 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari.
- Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On September 15, Adesanya was sentenced to four years in prison.
- Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on September 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for January 9, 2023.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.
Assistant U.S. Attorney Kelly K. Connors for the Northern District of Georgia, Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.
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.
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.
10 Charged in Business Email Compromise and Money Laundering Schemes Targeting Medicare, Medicaid, and Other VictimsRead the Press Release
The U.S. Department of Justice announced charges today against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.
“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”
The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments.
“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”
“In the District of South Carolina, we’ve seen a marked increase in email scams, identity theft, and related money laundering schemes,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “These indictments demonstrate our unwavering commitment to fighting internet crime and holding internet fraudsters accountable, particularly when their schemes target taxpayer-funded programs intended to benefit the most vulnerable among us.”
The prosecutions announced today include alleged schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients. For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals. Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals. The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.
“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”
“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.
The seven defendants against whom charges were unsealed this week are:
- Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on Nov. 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application. If convicted of the top count, he faces a maximum penalty of 30 years in prison.
- Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme. If convicted of one of the counts, he faces a maximum penalty of 20 years in prison.
- Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity. If convicted of the top count, she faces a maximum penalty of 20 years in prison.
- Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds. Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA). If convicted of the top count, he faces a maximum penalty of 30 years in prison.
- Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on Sept. 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare. If convicted, he faces a maximum penalty of 20 years in prison.
The three defendants previously charged are:
- Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on Feb. 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On Sept. 15, Adesanya was sentenced to four years in prison.
- Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on Sept. 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for Jan. 9, 2023. If convicted of any of the counts, he faces a maximum penalty of 20 years in prison.
In each case, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.
Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia, Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.
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.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
17 November 2022
Yuba County Men Indicted on Drug Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment today against Darrell Anderson, 50, and Ricky Phienemanh, 35, both of Olivehurst, charging them with conspiracy to distribute heroin and methamphetamine, distribution of methamphetamine, distribution of heroin, and possession with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, throughout 2020, Anderson sold heroin to an undercover officer. In 2022, Anderson conspired with Phienemanh and Sanit Khamthong, 41, of Marysville to distribute, and did in fact distribute, methamphetamine and heroin. During the investigation, law enforcement learned that Phienemanh and Khamthong were supplying Anderson with large amounts of methamphetamine and heroin. Khamthong was separately indicted in September 2022 and is in federal custody.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the Bureau of Land Management, the U.S. Postal Inspection Service, the Yuba County Sheriff’s Office, the Sutter County Sheriff’s Office, the Yuba City Police Department, the Marysville Police Department, and the California Highway Patrol. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Anderson and Phienemanh face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Yonkers Man Convicted of March 2011 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against DARNELL KIDD a/k/a “Black,” a/k/a “Donney,” a/k/a “Donney Black,” on one count of an indictment charging him with the 2011 murder of Jonathan Johnson, 21, in White Plains, New York. U.S. District Judge Nelson S. Román presided over the eight-day trial.
U.S. Attorney Damian Williams said: “Darnell Kidd shot and killed Jonathan Johnson during a robbery. He now stands guilty of that murder. We will continue to work with our law enforcement partners to vigorously investigate gun violence and pursue justice for the victims of violent crimes.”
According to the allegations in the Indictment and the evidence at trial:
On or about March 18, 2011, DARNELL KIDD murdered Jonathan Johnson by shooting him during the course of an armed robbery for marijuana in White Plains, New York. KIDD’s co-defendant MARCUS CHAMBERS arranged by phone to purchase the marijuana from Johnson. CHAMBERS and KIDD met with Johnson to rob him of marijuana, and during the robbery, KIDD shot and kill Johnson.
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KIDD, 31, of Yonkers, New York, was convicted of one count of murder through the use of a firearm, which carries a mandatory minimum prison term of five years and a maximum prison term of life.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CHAMBERS previously pled guilty for his role in the murder. CHAMBERS was sentenced to 20 years in prison.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, Rockland County District Attorney’s Office, New York City Police Department, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department, New Rochelle Police Department, White Plains Police Department, Clarkstown Police Department, and Ramapo Police Department. Mr. Williams also thanked the White Plains Police Department and the Westchester County District Attorney’s Office for their assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Olga I. Zverovich, Christopher Brumwell, Steven J. Kochevar, and Hagan Scotten and Paralegal Specialist Shannon Becker are in charge of the prosecution.
Woonsocket Man Admits to Participating in Fentanyl Distribution ConspiracyRead the Press Release
PROVIDENCE – A Woonsocket man today admitted to a federal judge that he participated in a conspiracy that trafficked hundreds of grams of fentanyl, announced United States Attorney Zachary A. Cunha.
Nelson J. Davila, 28, pleaded guilty to a single count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl.
According to court documents, it is alleged that Davila participated in a conspiracy with Gregory Ortega, 33, of Woonsocket, in which multiple purchases and deliveries of fentanyl were executed. Davila admitted that the amount of fentanyl trafficked as a result of his conduct was at least 280 grams but less than 400 grams.
Davila is scheduled to be sentenced on March 2, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Ortega is currently detained and awaiting trial on charges of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; and possession with intent to distribute 400 grams or more of fentanyl. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorneys Zechariah Chafee, Richard B. Myrus, and G. Michael Seaman.
The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force.
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Woman Sentenced for Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A woman was sentenced today in federal court in Worcester for her role in a wide-ranging fentanyl, heroin, cocaine and crack cocaine trafficking conspiracy.
Jessica Hughes, 31, of Orange, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to time served (one week in prison) and three years of supervised release. On May 16, 2022, Hughes pleaded guilty to conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base (crack cocaine).
Following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, intercepted electronic communications revealed that Pedro and Anthony Baez worked together and with others to distribute a fentanyl and heroin mixture and crack cocaine on a regular basis to individuals in the Fitchburg area who then redistributed that mixture to others. In total, over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 were seized.
Hughes was a regular drug customer of the DTO, who routinely purchased both a fentanyl/heroin mixture and crack cocaine from Pedro Baez. Hughes used most of the drugs she purchased and resold a portion to support her own addiction. It is estimated that Hughes purchased approximately 70 grams of crack cocaine and approximately 20 grams of a heroin/fentanyl mixture from Pedro Baez over a one-week period.
Hughes was charged along with 17 others in July 2020. Prior to that, she was arrested on unrelated state charges out of Orange District Court where she successfully completed the Drug Court program. Over the course of the last two years, Hughes has maintained her sobriety and now works full time as a recovery specialist.
Hughes is the 11th defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison and five years of supervised release. Two of the remaining defendants, Pedro Baez and Hector Matos, have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments and the U.S. Postal Inspection Service provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
West Roxbury Man Pleads Guilty to Role in Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A West Roxbury man pleaded guilty today in federal court in Boston in connection with a scheme to defraud an insurance provider for physical therapy services that were not provided to patients.
Slava Pride, 42, pleaded guilty to one count of conspiracy to commit mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for March 23, 2023. Pride was indicted in February 2021 along with co-defendants Anna Barenboym, Gyulnara Bayryshova and Raya Bagardi.
Pride was a physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. Barenboym and Bagardi were also employed at BPT as a licensed physical therapist and a licensed physical therapist assistant, respectively. According to the charging documents, from October 2018 through June 2020, Pride and his co-defendants conspired to cause an insurance company to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Pride and, allegedly, his co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. It is further alleged that BPT paid patients for referrals, referred patients to attorneys to assist with patients’ insurance settlements and accepted kickbacks from those attorneys in return.
Pride is the second defendant to plead guilty in the case. On March 17, 2022, Barenboym pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on April 4, 2023.
The charge of conspiracy to commit mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wasco Couple Arrested for 6-Year Credit Card Fraud Scheme that Caused $825,000 in LossesRead the Press Release
FRESNO, Calif. — Miguel Leyva, 35, and Karina Gutierrez, 32, both of Wasco, were arrested today after a federal grand jury indicted them for conspiracy, bank fraud, access device fraud, and aggravated identity theft in connection with a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February 2016 and August 2022, Leyva and Gutierrez stole the personally identifiable information (PII) for individuals some obtained from health care providers where Gutierrez worked. They then used the PII to obtain fraudulent credit cards from banks in the identities of those individuals. Specifically, Leyva and Gutierrez created online accounts with credit reporting agencies for the individuals so they could check credit scores before applying for the credit cards. They then used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses over which they had control so any communications from the banks would go to them. They also used checks that had been stolen from trucking and other companies to access the companies’ bank accounts and make fraudulent payments to the credit cards.
Leyva and Gutierrez’s scheme caused an actual loss of over $825,000 to the banks. They spent the proceeds on home appliances, automobile accessories, gardening equipment, designer clothing, concert tickets, professional sporting events tickets, and travel, among other items. Often times, they sold the merchandise for cash on social media sites.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Leyva and Gutierrez face a maximum penalty of 30 years in prison and $1 million fine for each of the conspiracy and bank fraud charges, 10 years in prison and $250,000 fine for the access device fraud charges, and mandatory two years in prison, consecutive to other counts, for the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of the applicable statutory factors and Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Leyva and Gutierrez are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Virginia Man Convicted for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Michael Mandel Baldwin, 53, of Alexandria, Virginia, for orchestrating an investment scheme that defrauded victims of more than $800,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
“Baldwin’s Miracle Mansion was a house of lies,” said U.S. Attorney King in announcing the guilty verdict. “Using Biblical themes and empty promises to cover up the fraud, Baldwin engaged in an extensive scheme that caused significant monetary losses to his victims. My office is committed to uncovering investment fraud and ensuring that perpetrators like Baldwin face the criminal justice system.”
According to trial evidence and witness testimony, from 2009 to October 2021, Baldwin served as an Assistant Pastor and Musical Director for a church in Northern Virginia, and Chief Executive Officer of the Miracle Mansion, LLC (Miracle Mansion). As evidence established, over the course of the scheme, Baldwin made numerous fraudulent representations to victim-investors about the viability, legitimacy, and success of Miracle Mansion, and solicited investments from a Charlotte-area church and its members, as well as individuals and entities located throughout the United States, including in Virginia, Arkansas, Florida, and Georgia.
According to evidence presented at trial, as part of the fraudulent investment scheme, Baldwin created and distributed promotional materials to potential investors that described Miracle Mansion as “a one-of-a-kind entertainment complex that [would] reshape the face of family entertainment in the Washington Metropolitan region,” with a mission that “promotes family-focused inspiration, entertainment and enrichment anchored by a Biblical worldview.” In furtherance of the fraud, Baldwin also held in-person and virtual meetings with potential investors, during which he falsely claimed the investors’ money would be used to develop, create and construct Miracle Mansion, including to purchase the land on which Miracle Mansion would be located.
According to witness testimony, in furtherance of the scheme, Baldwin presented to investors several investment opportunities, including “GroundSwell 73,” which was described as “73 acres = 7,300 people, investing $73 per month, for 73 months.” Baldwin also represented to potential investors that The Kennedy Center and high-level executives at Hobby Lobby and Chick-Fil-A had endorsed and supported Miracle Mansion. Contrary to Baldwin’s claims, high-level executives with Hobby Lobby and Chick-Fil-A testified at trial that they neither knew nor supported Baldwin and his project.
Rather than using the victims’ money to create, develop and construct Miracle Mansion as promised, trial evidence established that Baldwin spent hundreds of thousands of dollars on his personal lifestyle, including to pay for personal expenses, travel, and meals at restaurants, and to make credit card payments and cash withdrawals. He also used a portion of the victims’ money to pay others involved in Miracle Mansion, and to make Ponzi style payments to some of the investors.
The federal jury convicted Baldwin of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and securities fraud, which carries a maximum prison term of 20 years and a $5 million fine. Baldwin is currently released on bond. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King thanked the U.S. Secret Service for leading the investigation.
Assistant U.S. Attorneys Caryn Finley and Kenneth Smith of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Vacaville Felon Indicted for Manufacturing DMT and Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Robert Charles Crist, 56, of Vacaville, charging him with being a felon in possession of a firearm and manufacturing a controlled substance, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2022, law enforcement officers executed a search warrant at Crist’s home and found a lab he used to manufacture N,N‑Dimethyltryptamine, or “DMT,” a Schedule I controlled substance. Crist traveled to Hawaii to obtain plant materials for manufacturing DMT, which he mailed back to California in order to turn the plant materials into a crystalline controlled substance. Officers also found Crist in possession of a firearm. Crist is prohibited from possessing firearms because he has five prior felony convictions.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms; the U.S. Postal Inspection Service; and the Solano County Sheriff’s Office. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.
If convicted, Crist faces a maximum statutory penalty of 15 years in prison and a $250,000 fine on the firearm count and a maximum of 20 years in prison if convicted for the manufacturing of a controlled substance count. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is 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.
VA Employees Plead Guilty in $2.9 Million Embezzlement SchemeRead the Press Release
Two former employees of the U.S. Department of Veteran’s Affairs entered guilty pleas in a $2.9 million embezzlement scheme, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Randius McGlown, 56, and Charles Gates, 54, both pleaded guilty to theft of government funds. Mr. McGlown entered his plea in October and Mr. Gates entered his on Thursday.
According to plea papers, Mr. McGlown, an inventory manager and acquisition utilization specialist at the Dallas VA Medical Center, entered a company he created, G4 Logistics, into the medical center’s vendor system in 2014.
He and Mr. Gates then generated phony purchase orders for G4 equipment and materials and used a medical center-issued purchase card to pay the bill using the payment processing platform Stripe. G4 never delivered any items.
The VA money paid to G4 was deposited into an account controlled by an individual identified in court documents as J.R. When he was notified of a fake purchase, J.R. would withdraw the money from the account, deliver most of it to Mr. McGlown or Mr. Gates, and keep the remaining amount for himself.
In 2018, Mr. McGlown switched from G4 to another fictious company he named Caprice.
To conceal the scheme, Mr. McGlown created fake invoices and used existing items in the medical center’s inventory to cover up the fact that G4 and Caprice never delivered any materials.
“Using their official government positions to steal millions of taxpayer dollars is an egregious crime that diverts resources from deserving veterans and erodes public trust. These guilty pleas should send a clear message that the VA Office of Inspector General will diligently investigate those who would misuse their positions to commit fraud,” said Acting Special Agent in Charge Patrick Roche of the VA Office of Inspector General’s South Central Field Office. “The VA OIG thanks the US Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.”
Mr. McGlown and Mr. Gates now face up to 10 years in federal prison.
The Department of Veterans Affairs, Office of Inspector General, conducted the investigation with the assistance of the Federal Bureau of Investigation’s Fort Worth Field Office, and the General Services Administrations, Office of Inspector General. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Unlicensed Medical Assistant Convicted in $6 Million Fraud ConspiracyRead the Press Release
A federal jury convicted an Illinois woman yesterday for conspiring to defraud Medicare of over $6 million.
According to court documents and evidence presented at trial, Rhonda Sutton, 58, of Matteson, worked as an unlicensed medical assistant for a physician in Chicago and surrounding areas from at least 2009 until at least 2012. In this position, Sutton conspired with others, including the owners of two home health care companies, to fraudulently certify Medicare beneficiaries for home health services for which those beneficiaries did not qualify.
Specifically, Sutton forged her physician employer’s signature on certification forms and supporting documentation, which caused Medicare beneficiaries to be enrolled in over 2,000 episodes of home health care at A&Z and Dominion home health agencies, both located in Lansing, Illinois. Sutton provided the forged physician forms to A&Z and Dominion, which enabled A&Z and Dominion to submit claims to Medicare for services that the beneficiaries did not need and were not qualified to receive. The owners of A&Z and Dominion paid Sutton kickbacks in exchange for the forged physician forms. A&Z and Dominion received over $6 million from Medicare due to Sutton’s fraudulent conduct.
Sutton was convicted of conspiracy to commit health care fraud. She is scheduled to be sentenced on March 16, 2023 and faces a maximum penalty of 10 years in prison. 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 John R. Lausch Jr. for the Northern District of Illinois; Assistant Director Luis Quesada of the FBI’s Criminal Division; Acting Special Agent in Charge John S. Morales of the FBI Chicago Field Office; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office made the announcement.
The FBI and HHS-OIG investigated the case, which was brought as part of the Chicago Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Illinois.
Trial Attorneys Victor B. Yanz, Claire T. Sobczak, and Sarah W. Rocha of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrick Mott for the Northern District of Illinois prosecuted 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.
United States Repatriates over $20 Million in Assets Stolen by Former Nigerian DictatorRead the Press Release
The Department of Justice announced today that it has transferred over $20.6 million to the government of the Federal Republic of Nigeria (Nigeria) in accordance with an Aug. 23 agreement between the governments to repatriate assets the United States forfeited that were traceable to the kleptocracy of former Nigerian Dictator General Sani Abacha and his co-conspirators.
This repatriation brings the total amount forfeited and returned by the United States in this case to approximately $332.4 million.
In 2014, a judgment was entered in the District of Columbia ordering the forfeiture of approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint for more than $625 million traceable to money laundering involving the proceeds of General Abacha’s corruption. In 2020, the department repatriated over $311.7 million of the forfeited assets that had been located in the Bailiwick of Jersey. Last year, the U.K. government enforced the U.S. judgment against the additional over $20.6 million.
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who became Head of State of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint filed in this case alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu, and others embezzled, misappropriated, and extorted billions of dollars from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and transactions in the United States. The United Kingdom’s cooperation in the investigation, restraint, and enforcement of the U.S. judgement, along with the valuable contributions of Nigeria and other law enforcement partners around the world, including the United Kingdom’s National Crime Agency, as well as those of the Justice Department’s Office of International Affairs, have been instrumental to the recovery of these funds.
Under the agreement signed in August, the United States agreed to transfer 100% of the net forfeited assets to Nigeria to support three critical infrastructure projects in Nigeria that were previously authorized by Nigerian President Muhammadu Buhari and the Nigerian legislature. The $20,637,622.27 marks a slight reduction from the $23 million announced in August due primarily to exchange rate fluctuations between British pounds sterling and U.S. dollars. The funds governed by this agreement will help finance the Second Niger Bridge, the Lagos-Ibadan Expressway, and the Abuja-Kano road – investments that will benefit the citizens of each of these important regions in Nigeria.
The agreement includes key measures to ensure transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability adopted at the Global Forum on Asset Recovery (GFAR) in December 2017 in Washington, D.C., which the United States and United Kingdom hosted with support from the Stolen Asset Recovery Initiative of the World Bank and United Nations Office on Drugs and Crime.
The department appreciates the extensive assistance provided by the governments of the United Kingdom, Nigeria, Jersey, and France in this investigation.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Two-ton marijuana seizure results in prison for young Mexican traffickerRead the Press Release
BROWNSVILLE, Texas – A 21-year-old Mexican citizen has been sent to prison following his conviction of conspiracy to transport over four thousand pounds of marijuana, announced U.S. Attorney Jennifer B. Lowery.
Jorge Monjaraz-Perez pleaded guilty Jan. 13.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Monjaraz-Perez to serve 200 months in federal prison. Not a U.S. citizen, Monjaraz-Perez is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted Monjaraz-Perez coordinated with a drug trafficking organization and was also manager in that organization, facilitating the trafficking of the drug loads in numerous different ways. Judge Rodriguez further noted that this wasn’t aberrant behavior and that Monjaraz-Perez trafficked a large amount of marijuana over several different events.
At the time of his plea, Monjaraz-Perez admitted he conspired with a drug trafficking organization to transport at least 1,886 kilograms of marijuana.
He also acknowledged running a marijuana stash house located in Brownsville and participating in at least 12 drug trafficking loads. Law enforcement seized marijuana from 7 different events in Brownsville near the Rio Grande River, each load ranging between 91 kilograms and 528 kilograms.
Monjaraz-Perez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Two sentenced for their roles in murder of man who blew the whistle on an illegal labor conspiracyRead the Press Release
BRUNSWICK, GA.: Two men have been sentenced to federal prison for their roles in the murder of a whistleblower who exposed a multi-million-dollar scheme that fraudulently employed undocumented workers.
Pablo Rangel-Rubio, 53, of Rincon, was sentenced to 584 months in prison after previously pleading guilty to charges including Aiding and Abetting the Retaliation Against a Witness, while Higinio Perez-Bravo, 52, of Savannah, was sentenced to 240 months in prison after previously pleading guilty to Conspiracy to Commit Murder for Hire, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S District Court Judge Lisa Godbey Wood also ordered Perez-Bravo to pay restitution of $1,329,412.80 to the family of the victim, and ordered Rangel-Rubio to pay $1,351,217.05 in restitution to the victim’s family and to another worker for lost wages. Both Perez-Bravo and Rangel-Rubio are citizens of Mexico illegally present in the United States and are subject to deportation after completion of their prison terms. There is no parole in the federal system.
A third defendant, Rangel-Rubio’s brother, Juan Rangel-Rubio, 45, of Rincon – also an illegal alien – faces a statutory minimum sentence of life in prison after being found guilty at trial in October 2022 on charges including Conspiracy to Retaliate Against a Witness, and Conspiracy to Kill a Witness. His sentencing date has not yet been set.
“These sentences represent a measure of justice for Eliud Montoya, a brave man murdered by criminals protecting their lucrative and exploitative labor-trafficking enterprise,” said U.S. Attorney Estes. “Our law enforcement partners did outstanding work to identify and hold accountable those responsible for this brutal murder.”
As reflected in court documents and evidence, the three men conspired to kill Eliud Montoya, a United States citizen who blew the whistle on a scheme of hiring and mistreating illegal aliens and who was murdered August 19, 2017, near his home in Garden City, Ga.
Pablo Rangel-Rubio worked as a supervisor at Wolf Tree, a contract company that performed tree-cutting services on utility rights-of-way. Working with his brother, the two schemed to hire illegal aliens to work for the company, and then routed the illegal aliens’ paychecks to their own bank accounts where they skimmed a portion of the pay for themselves. As a result of this scheme, the conspirators netted more than $3.5 million from an estimated 100 illegal alien laborers.
Mr. Montoya, a United States citizen who also worked at Wolf Tree, saw his colleagues being mistreated and complained to the company and to the U.S. Equal Employment Opportunity Commission. After Mr. Montoya blew the whistle on the scheme, Pablo Rangel-Rubio arranged for Mr. Montoya’s murder by paying Perez-Bravo for the use of his vehicles and to act as the getaway driver when Juan Rangel-Rubio shot Mr. Montoya to death.
“This sentence means that criminals like these defendants will not escape justice and will no longer be able to victimize anyone,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We are thankful for the hard work done by all of the agencies involved in this case and hope that the verdict brings comfort to the victims and their families.”
Homeland Security Investigations (HSI) led the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Garden City Police Department, the Effingham County Sheriff’s Office, and the Chatham County Sheriff’s Office, and is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys, including Tania D. Groover.
Two Sacramento Men Indicted for Conspiracy, Bank Fraud, Possession of Stolen Mail, and Possession of Mail Keys or LocksRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Carlos Aranda, 40, and Daniel Hunt, 37, both of Sacramento, charging them with conspiracy, bank fraud, and possession of stolen mail, U.S. Attorney Phillip A. Talbert announced. Aranda is also charged with possession of mail keys or locks.
According to court documents, Aranda, Hunt, and others engaged in a conspiracy to obtain and counterfeit postal keys, which used to steal mail from the U.S. mail system. From the stolen mail, Aranda, Hunt, and their conspirators obtained identifying information, financial information, and financial instruments of other people. The conspirators periodically gathered together at motel rooms to alter or “wash” checks together. The conspirators then took the checks and attempted to negotiate, deposit, or cash them.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
If convicted, Aranda and Hunt face a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud, and a maximum statutory penalty of five years in prison and a $250,000 fine for the counts of conspiracy and possession of stolen mail. Aranda further faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the count of possession of a mail key or lock. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Men Indicted on Murder-For-Hire Charges for St. Louis DeathRead the Press Release
ST. LOUIS – Two men were indicted on murder-for-hire charges Wednesday in connection with the April fatal shooting of a man in St. Louis, Missouri.
Ray Bradley, 44, and Moreion Lindsey, 32, were indicted on one count each of conspiracy to commit murder-for-hire and murder-for-hire. The indictment says their conspiracy resulted in the death of Titus Armstead on April 21, 2022. The indictment also seeks the forfeiture of $332,000 seized as part of the investigation.
A motion seeking to have Bradley held in jail until trial says he was not present at Armstead’s murder but arranged for him to travel from New Jersey to St. Louis and bought his airline tickets. Bradley arranged for the murder to cover up the robbery of several million dollars’ worth of cocaine and drug proceeds, the motion says.
Lindsey picked Armstead up from the airport and took him to Penrose Park in St. Louis, where he was killed, Lindsey’s detention motion says. Lindsey then photographed Armstead’s body to provide proof of his death to Bradley, it says.
If convicted, the men face a mandatory sentence of life in prison.
Lindsey and another man, Jerome Williams, were already facing a May indictment on a charge of destruction of evidence to obstruct a federal investigation. That indictment accuses them of destroying a Social Security card and a cell phone on April 21.
Both men have pleaded not guilty to the charge and their cases are pending.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorneys Angie Danis and Nathan Chapman are prosecuting the case.Two Members and Associates of the 18th Street Gang Sentenced to Prison Terms for Violent Crimes Committed in Aid of RacketeeringRead the Press Release
WASHINGTON – Two members and associates of the 18th Street gang operating within Washington, D.C. were sentenced today to over five years each in prison for their roles in an attack on rival gang members on the platform of the Georgia Avenue-Petworth Metro station on Sept. 17, 2019.
Christopher Molina-Garcia, 21, and Christian Figueroa-Gutierrez, 22, both of Washington, D.C., pleaded guilty earlier this year in the U.S. District Court for the District of Columbia to one count of violent crime in aid of racketeering – assault with a dangerous weapon and one count of unlawful possession, brandishing, and discharge of a firearm during a crime of violence. The pleas were contingent upon the Court’s approval. Molina-Garcia’s plea called for a 5 ½-year prison term, and Figueroa-Gutierrez’s plea called for a range of 60 months to 72 months in prison. The Honorable Randolph D. Moss accepted the pleas and sentenced Molina-Garcia to 5 ½ years in prison, and Figueroa-Gutierrez to 5 years and 4 months in prison. Following their prison terms, each will be placed on three years of supervised release.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Robert Dixon, U.S. Marshal for the U.S. Marshals Service for the Superior Court of the District of Columbia, Michael Anzallo, Chief of the Metro Transit Police Department, and Robert J. Contee III, Chief of the Metropolitan Police Department.
According to the government’s evidence, Molina-Garcia and Figueroa-Gutierrez were members of associates of the international criminal street gang known as 18th Street, which operates in the District of Columbia, and other jurisdictions both within the United States and internationally. The 18th Street gang engages in a variety of criminal activities to include acts of assault, robbery, kidnapping, murder, and firearms trafficking. The 18th Street gang is particularly violent because members are required to commit acts of violence to further the interests of the gang.
On Sept. 17, 2019, at approximately 3:31 p.m., Molina-Garcia and Figueroa-Guiterrez went to the Georgia Avenue-Petworth Metro Station in Northwest Washington as part of a group of 18th Street gang members. Metro station surveillance captured the defendants as they engaged in an altercation with another group of rival gang members on the train station platform. The 18th Street gang members began to run towards the rival gang members and Molina-Garcia was seen pulling a large knife out of his waistband while Figueroa-Gutierrez pulled out a meat cleaver from his backpack. The rival gang members then pulled out a set of weapons of their own. Another 18th Street gang member then pulled a handgun from his backpack and fired two gunshots towards the rival crew. The two gangs immediately dispersed as a Metro train pulled into the station. The defendants admitted to participating in the attack in order to gain entrance to, or to maintain or increase their position in the 18th Street gang.
Molina-Garcia was arrested on May 11, 2021, in Loudoun County, Virginia. Figueroa-Gutierrez was arrested on May 10, 2021, in Irving, Texas. They have been detained ever since.
This case was investigated by the FBI Washington Field Office’s Safe Streets Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from the District of Columbia area. The United States Marshals Service, the Metro Transit Police Department, and the Metropolitan Police Department also provide valuable collaboration and assistance in the investigation.
The case was prosecuted by Assistant U.S. Attorneys Jack F. Korba, Gilead Light, and Christopher Marin, with assistance from Paralegal Specialist Latoya Wade.
Two Maui Men Found Guilty of Hate Crimes for Racially Motivated AttackRead the Press Release
HONOLULU – After a two-week jury trial before United States District Judge J. Michael Seabright, a federal jury today found Defendants Kaulana Alo-Kaonohi (age 32) and Levi Aki, Jr. (age 33) each guilty of a hate crime for their racially motivated attacks on C.K., a white man, when he attempted to move into the home he had purchased in their neighborhood of Kahakuloa on Maui. Judge Seabright ordered both defendants detained in custody pending their sentencing, which is set for March 2, 2023.
At trial, the evidence showed that C.K. purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.” On February 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, Defendant Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “You’ve got the wrong f****** color skin.” Defendant Aki then picked up a roofing shovel and handed it to Defendant Alo-Kaonohi, who struck C.K. in the head with it, causing a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, Defendant Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side—kicks that broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.” Although the victim had recorded the attacks using his phone, the Defendants took it from him after he lost consciousness. Cameras on the victim’s car, however, captured critical evidence that corroborated C.K.’s account.
“The jury’s verdict confirms that the rule of law serves to protect all persons in our community from vicious assaults, no matter the color of their skin,” said United States Attorney Clare E. Connors. “When people commit violent crimes against someone out of hatred for the victim’s race, the Department of Justice will ensure they face criminal consequences in a court of law.”
“This verdict brings justice and vindication to the victim, a man who was assaulted and nearly killed simply based on the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The jury’s verdict – and in fact this whole prosecution – reflects the Department of Justice’s commitment to protecting every person in this country from race-based violence, regardless of the race of the perpetrator or the victim. The law applies equally to everyone.”
“The FBI is committed in protecting individuals from being harmed based on their race,” said FBI Special Agent in Charge Steven Merrill. “This case highlights our work to ensure everyone feels safe in their own community without any fear of retribution or violence regardless of their race. The FBI encourages the public to support law enforcement’s efforts to end hate crimes by contacting the FBI at tips.fbi.gov or by calling 1-800-CALL-FBI.”
The charge on which they were convicted carries a maximum sentence of ten years of imprisonment. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Chris A. Thomas prosecuted the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division.
Two Felons Guilty of Possessing FirearmsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that on November 16, 2022 a federal jury found Robert Vandori Johnson, age 40 , of Aurora, guilty of being a felon in possession of a firearm. Co-defendant Daevon House, age 30, of Denver, previously pled guilty to being a felon in possession of a firearm or ammunition.
According to facts presented at trial, on February 1, 2022, Denver police officers were searching for House due to an outstanding arrest warrant. After locating him, they observed House and Johnson drive to an apartment complex in Denver, Colorado. Both went into an apartment and came back out a short time later. As House and Johnson got back into the car, officers stopped the car and attempted to arrest House. When officers approached, House ran on foot. He was carrying a firearm which he dropped as he fled before being taken into custody. House had previously been convicted of a felony, making it illegal for him to possess a firearm or ammunition. Johnson was contacted and escorted from the driver seat of his car vehicle. As he exited the vehicle, a semiautomatic pistol dropped from his waistband. Johnson had previously been convicted of a felony offense making it unlawful for him to possess a firearm or ammunition.
Judge Philip A. Brimmer presided over Johnson's two day trial. The jury returned its guilty verdict on November 16, 2022. Johnson will be sentenced at a later date. He faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release.
Judge Raymond P. Moore sentenced House to 91 months in prison on August 9, 2022.
The investigation was handled by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Denver Police Department. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
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.
CASE NUMBER: 22-cr-00046-RM
For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Two Essex County Men Sentenced to Prison for Using Credit Cards and Checks Stolen from U.S. Mail as Part of a Scheme that Attempted to Defraud Banks of over $1 MillionRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were sentenced yesterday and today for their roles in a scheme to steal credit cards, debit cards, and checks from the mail and use the stolen cards and checks to attempt over a million dollars of retail and online purchases and cash withdrawals, Attorney for the United States Vikas Khanna announced today.
Jahad Salter, 26, of Newark, was sentenced to 60 months in prison, and Hakir Brown, 28, Newark, was sentenced to 31 months in prison. Salter had previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with conspiracy to commit bank fraud and unlawfully possessing a firearm as a convicted felon, and Brown previously pleaded guilty before Judge McNulty to an information charging him with conspiracy to commit bank fraud. Judge McNulty imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
Salter, Brown, and others engaged USPS employees to steal from the mail, in exchange for compensation, credit cards and debit cards, and Salter and others engaged the same employees to steal checks, including federal stimulus payments issued in response to the COVID-19 pandemic. Once they obtained the stolen cards, Salter, Brown and their conspirators unlawfully obtained the credit and debit card holders’ personal identifiers and used that information to fraudulently pose as the accountholders of the stolen credit and debit cards when calling the banks that issued the cards and used that personal identifying information belonging to the accountholders to obtain or change information about the stolen credit cards. They, and others, then used the stolen credit cards to make purchases at retail stores in New Jersey and elsewhere, including New York and online. They and others also negotiated stolen checks, obtaining cash. In total, The scheme resulted in attempted losses of over $1 million.
In addition to the prison terms, Judge McNulty sentenced Salter to three years of supervise release and ordered him to pay forfeiture of $124,076. He sentenced Brown to three years of supervised release and ordered him to pay forfeiture of $46,209.
Attorney for the United States Khanna credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the sentencings. He also thanked the U.S. Marshals Service, District of New Jersey, under the direction of Marshal Juan Mattos Jr.; the U.S. Secret Service, New York Field Office, under the direction of Special Agent in Charge Patrick J. Freaney; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division, under the direction of Special Agent in Charge Andrew S. McKay; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel; the Livingston, New Jersey Police Department, under the direction of Chief Gary Marshuetz; the Newark Police Department, under the direction of Department of Public Safety Director Fritz Fragé; the Essex County, New Jersey Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the New Providence, New Jersey, Police Department, under the direction of Chief of Police Theresa A. Gazaway; and the Berkeley Heights, New Jersey, Police Department, under the direction of Chief of Police Jason Massimino, for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Two Defendants Sentenced for Participating in Nationwide Grandparent ScamRead the Press Release
Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769
NEWS RELEASE SUMMARY – November 17, 2022
SAN DIEGO – Two more defendants were sentenced in federal court today for participating in a large-scale “grandparent scam” racketeering conspiracy.
Anajah Gifford, 24, of North Hollywood, California, received a sentence of 57 months in custody. Tracy Glinton, 35, of Orlando, Florida, was sentenced to time served. According to court documents, the defendants participated in a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation. At least 10 elderly victims who resided in San Diego County lost over $300,000 to the fraud.
From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed. Members of the conspiracy and their associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.
As part of her plea agreement, defendant Anajah Gifford admitted that she personally conducted cash pick-ups from victims under codefendant Timothy Ingram’s direction, and helped Ingram pay unlawful proceeds to codefendant Tracy Knowles. Gifford, personally and with co-defendant Ingram, also recruited and coordinated money mules in California. As part of her sentence, Gifford was ordered to forfeit $52,750 in proceeds she personally received from the offense and to pay $1,235,406.93 to the victims in restitution.
According to court documents, defendant Tracy Glinton’s primary role was to help codefendant Tracy Knowles receive proceeds from coconspirators who obtained victim funds. In her plea agreement, Glinton admitted that she knew the money she received constituted proceeds of grandparent scams. As part of her sentence, Glinton was ordered to forfeit $9,950 in proceeds she personally received from the offense, and to pay $471,600 to the victims in restitution. Ingram was previously sentenced to 108 months; Knowles remains at large.
This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the San Diego County District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2021 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.
“The defendants were members of a particularly sophisticated grandparent scam enterprise that callously and shamelessly targeted the elderly across our country,” said U.S. Attorney Randy Grossman. “Today’s sentencings hold the defendants accountable not only for the financial losses, but also the deep and long-lasting psychological damage their crimes can cause their victims. The U.S. Attorney’s Office remains committed to seeking justice in frauds committed against elderly adults. We will also continue to warn the public about the dangers of elder fraud.” Grossman thanked the prosecution team and the Elder Justice Task Force for their excellent work on this case.
“Because seniors are a particularly vulnerable victim group and are often specifically targeted for financial fraud crimes, the FBI and our law enforcement partners have prioritized our efforts to address elder fraud,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “Using such deceitful tactics bilk hard-earned money from aging victims – leaving so many financially devastated in their retirement years without recourse for recovery. We encourage anyone who believes they are a victim of fraud or know a senior who may be, regardless of financial loss, to immediately report the incident to the FBI or another law enforcement agency.”
As of today, six of the eight defendants charged in the case have pleaded guilty. Two defendants are fugitives and remain at large.
DEFENDANTS Case Number 21cr2216-CAB
Tracy Adrine Knowles 30 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 30 Northbay Village, Florida
Fugitive
Timothy Ingram, aka Bleezy 30 North Hollywood, California
Sentenced on August 31, 2022, to 108 months in prison.
Anajah Gifford 24 North Hollywood, California
Sentenced today to 57 months.
Lyda Harris 74 Laveen, Arizona
Released on bond. Sentencing set for December 1, 2022.
Joaquin Lopez 46 Hollywood, Florida
Sentenced on August 31, 2022, to 24 months in prison.
Jack Owuor 25 Paramount, California
Sentenced on August 17, 2022, to 46 months in prison.
Tracy Glinton 35 Orlando, Florida
Sentenced today to time served – Nine days.
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCY
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
Three Oklahoma City Residents Sentenced to Serve More Than 21 Years Collectively in Federal Prison for Conspiracy to Commit Mail and Wire FraudRead the Press Release
OKLAHOMA CITY – Earlier this week, LAURA R. JOHNSON, 47, THOMAS JOHNSON, SR., 54, and CHERYL M. ASHLEY, 72, all residents of Oklahoma City, were sentenced collectively to more than 21 years in federal prison for conspiracy to commit mail and wire fraud in connection with a scheme to take ownership of more than a dozen real properties without the consent or knowledge of the actual owners, announced U.S. Attorney Robert J. Troester.
On December 19, 2019, a federal grand jury returned a 16-count Indictment against the defendants. The federal grand jury returned a superseding indictment on June 16, 2020, which added additional charges. On November 17, 2020, each defendant pleaded guilty to a single count of conspiracy to commit mail and wire fraud.
Public records reflect that the defendants used fraudulent documents from 2014 until 2019 to obtain titles to homes and other properties. The defendants primarily targeted real properties that had delinquent property taxes and therefore were subject to being auctioned by the Oklahoma County Treasurer’s Office. By paying off one or more years of back taxes, the defendants caused the properties to be removed from the county tax auction. The defendants then claimed they had purchased the properties at the county tax auction, when in fact they had filed fraudulent warranty deeds to transfer properties into the names of fictitious companies and individuals. The conspiracy also included fraudulent confidential stamp tax affidavits and fake mortgages, all of which contained forged notary signatures and seals.
Some homeowners vacated their homes based on phony eviction notices. When certain victims fought the takeover of their homes in court, the defendants filed pleadings with the names of fictitious lawyers and submitted affidavits in court signed by fictitious people.
The defendants targeted one home that had been owned by a woman who died in 2012. After they gained control of the decedent’s property, the defendants used bank records they found in the home and forged a power of attorney to lie to the bank in an attempt to withdraw more than $100,000 from the decedent’s bank account. When that attempt failed, the conspirators attempted to steal money by writing forged checks on the decedent’s account and causing electronic transfers out of the account for their personal benefit. They also filed a false will in Oklahoma County District Court after the woman’s nephew learned of the death and filed a probate action. Based on the fraudulent will, the court appointed Laura Johnson as the personal representative of the estate, which enabled her to withdraw approximately $146,000 remaining in the decedent’s bank accounts and obtain more than $45,000 from her oil and gas interests.
At sentencings earlier this week, Chief United States District Judge Timothy D. DeGiusti found the defendants’ conduct preyed on more than a dozen victims, many of whom were vulnerable due to their age or financial status. Judge DeGiusti sentenced the defendants as follows:
- Laura R. Johnson was sentenced on November 14, 2022, to 151 months in federal prison. This term of imprisonment will be followed by 4 years of supervised release. She was remanded to the custody of the United States Marshal Service at sentencing.
- Thomas Johnson, Sr. was sentenced on November 15, 2022, to 42 months in federal prison. This term of imprisonment will be followed by 3 years of supervised release.
- Cheryl M. Ashley was sentenced on November 16, 2022, to 60 months in federal prison. This term of imprisonment will be followed by 3 years of supervised release.
In addition, the Court will order the defendants to pay restitution to victims after a separate restitution hearing in approximately 90 days.
This case is the result of an investigation by the United States Secret Service and the Oklahoma Attorney General’s Office. Assistant U.S. Attorney Jessica L. Perry prosecuted the case.
Reference is made to public filings for more information.
Three Men Federally Indicted for Cocaine Distribution ConspiracyRead the Press Release
Louisville, KY – A federal grand jury returned an indictment yesterday charging Maximiliano Gutierrez, Mario Guzman and Alfredo Lira with conspiring to possess with the intent to distribute cocaine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Chief Richard Sanders of the Jeffersontown Police Department made the announcement.
According to the indictment, Maximiliano Gutierrez, 49, of San Ygnacio, Texas, Mario Guzman, 48, of Broken Arrow, Oklahoma, and Alfredo Lira, 38, of Laredo, Texas were charged with one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine.
The defendants will be arraigned a later date before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, each defendant faces a sentence of not less than 10 years and a maximum of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the DEA and the Jeffersontown Police Department.
This case is being prosecuted by Assistant United States Attorney Josh Porter.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Former NYPD Police Officers Plead Guilty to Bribery SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, James Davneiro, a former New York City Police Department (NYPD) officer, pleaded guilty to conspiring to participate in a scheme to steer vehicles damaged in automobile accidents to a licensed tow trucking and automobile repair business company in contravention of NYPD’s Directed Accident Response Program (DARP) in exchange for thousands of dollars in bribes (the “Tow Truck Scheme”). On November 15, 2022, former NYPD officer Michael Perri pleaded guilty to conspiring to participate in the Tow Truck Scheme. On November 16, 2022, former NYPD officer Giancarlo Osma pleaded guilty to conspiring to participate in the Tow Truck Scheme.
At the time that they participated in the Tow Truck Scheme, Davneiro and Osma were NYPD officers assigned to the 107th Precinct in Queens, New York. Perri was also an NYPD officer assigned to the 107th Precinct at the outset of the scheme, but subsequently retired in June 2020 and began operating a licensed tow trucking and automobile repair business that received the damaged vehicles pursuant to the Tow Truck Scheme. Davneiro resigned from the NYPD in November 2021 and Osma resigned on November 16, 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, NYPD, announced the guilty pleas.
“These three officers abused the public’s trust and disgraced their NYPD badges by lining their pockets with bribes,” stated United States Attorney Breon Peace. “This Office will continue working closely with our law enforcement partners to vigorously investigate and prosecute corruption by those who are sworn to enforce and uphold the law.”
“The investigators of our Internal Affairs Bureau left no stone unturned in this case because there is zero tolerance in the NYPD for corruption of any kind,” said NYPD Commissioner Sewell. “We worked tirelessly in this case, alongside our partners in the Federal Bureau of Investigation and the United States Attorney’s Office, to ensure that those who swore to serve and protect the public but violate that trust face severe consequences.”
According to court filings and facts presented at the plea proceeding, between May 2020 and May 2021, Davneiro and Osma received thousands of dollars of bribe payments from Perri in exchange for steering vehicles damaged in automobile accidents to a licensed tow trucking and automobile repair business operated by Perri, instead of using the NYPD’s DARP, as legally required. DARP requires the NYPD to identify appropriate licensed tow trucking and automobile repair businesses to respond to automobile accident scenes and remove damaged vehicles.
Today’s plea took place before United States District Judge Rachel P. Kovner. When sentenced, each of the defendants faces up to five years in prison. As part of their respective pleas, Davneiro has agreed to forfeit $25,000, Osma has agreed to forfeit approximately $26,011, and Perri has agreed to forfeit approximately $158,277.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Ryan C. Harris is in charge of the prosecution.
The Defendants:
JAMES DAVNEIRO
Age: 43
Bayside, New YorkGIANCARLO OSMA
Age: 40
Deer Park, New YorkMICHAEL PERRI
Age: 33
East Islip, New YorkE.D.N.Y. Docket No. 21-CR-508 (RPK)
Three Eastern Jackson County Men Plead Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Three Eastern Jackson County men have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine.
Kenneth James Paulson, 51, of Blue Springs, Mo., pleaded guilty before U.S. District Judge Greg Kays on Wednesday, Nov. 16, to participating in a conspiracy to distribute methamphetamine from Aug. 11 to Oct. 14, 2020. Co-defendants Louis Melvin Williamson, 51, and Kurt Thomas Kingsley, 40, both of Independence, Mo., have also pleaded guilty to their roles in the drug-trafficking conspiracy. Kingsley also pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
Paulson admitted that he purchased methamphetamine from Kingsley and sold bulk quantities to lower level dealers. Williams and Kingsley have admitted that Williams sold bulk quantities of methamphetamine to other dealers, including Kingsley, who in turn sold to Paulson.
Agents from the Drug Enforcement Administration, through undercover agents and confidential informants, made controlled purchases of methamphetamine from Paulson at his home and at a movie theater parking lot in Grain Valley, Mo. On Oct. 13, 2020, DEA agents stopped Paulson’s car in Blue Springs while he was on his way to another undercover controlled purchase. Agents found 145 grams of 99 percent pure methamphetamine in his car. Agents also searched his residence and found 226 grams of 99 percent pure methamphetamine in his garage. Agents also found a Smith & Wesson 9mm semi-automatic handgun and a Smith & Wesson .38-caliber revolver in his garage.
On Oct. 14, 2020, Kingsley arrived at Paulson’s residence for an arranged drug sale. DEA agents found a black backpack on the passenger’s seat of Kingsley’s Ford F-150 that contained 46.7 grams of pure methamphetamine.
Under federal statutes, Paulson, Kingsley and Williams each are subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Brandon Gibson, who is a cross-designated prosecutor from the Missouri Attorney General’s office as part of the Safer Streets Initiative to combat violent crime. It was investigated by the Drug Enforcement Administration.
Thirty-Year-Old Mississippi Man Pleads Guilty to Attempting to Transfer Obscene Material to a MinorRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that COLBI TRENT DEFIORE, age 30, a resident of Carriere, Mississippi, pleaded guilty as charged on November 16. 2022 before United States District Judge Sarah S. Vance after previously being charged with attempted transfer of obscene matter to a minor, in violation of Title 18, United States Code, Section 1470.
According to court documents, DEFIORE was an adult male who was released from a federal correctional institution upon completion of his judicially imposed sentence in an unrelated matter on August 19, 2022. Days after his release, DEFIORE acquired a cellular phone and posted that he desired a really young girl on a social media application. Law enforcement authorities with the FBI saw the post and, acting in an undercover capacity by pretending to be a fourteen-year-old female (“Minor”), began corresponding with DEFIORE. During the correspondence, occurring on August 24 and 25, 2022, DEFIORE provided additional details about himself, including his age, location, and recent release from prison. He also engaged in a sexually charged conversation with Minor, during which he sent a self-taken picture of his erect penis. DEFIORE also expressed interest in meeting Minor for the purposes of engaging in sexual activity with her at her location in Slidell, Louisiana. DEFIORE also told Minor that he was attempting to obtain transportation to Slidell, Louisiana (where he believed Minor to be located) and provided Minor with directions to his location. Additionally, DEFIORE encouraged Minor to obtain transportation to his location so they could engage in sexual activity.
DEFIORE faces up to ten years in prison, a fine of up to $250,000.00, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment fee. DEFIORE may also be required to register as a sex offender. Sentencing before Judge Vance has been scheduled for February 15, 2022 .
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Third Philadelphia Man Sentenced to 12 Years for 2018 South Philadelphia Home Invasion Robbery and Assault of Owners’ Teenage DaughterRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Khairyi Burgess, 23, of Philadelphia, PA, was sentenced to 12 years in prison, five years of supervised release, and ordered to pay $1,000,000 in restitution by United States District Court Judge R. Barclay Surrick for his participation in a home invasion robbery during which the defendant and his accomplices victimized the homeowners’ teenage daughter and stole approximately $1 million in currency and jewelry. Burgess’ father, Edward Burgess, was also sentenced to time served plus a period of supervised release for his role in obstructing justice after the robbery by wiping his son’s cell phone of information.
In March 2022, the defendant pleaded guilty to charges of conspiracy to commit Hobbs Act robbery, Hobbs Act Robbery and brandishing a firearm during the commission of a violent crime in connection with the robbery incident in August 2018. According to court documents, Burgess and three co-defendants, including Demetrius Ceasar and Shaquan Johnson, victimized the 17-year-old girl in her home while stealing the cash and valuables owned by her parents. Specifically, while she lay sleeping around midnight, the men entered her bedroom, pulled her from her bed, and struck her several times. They then held her at gunpoint and robbed her family of their life savings—the proceeds of their restaurant business a block-and-a-half away on Washington Avenue in South Philadelphia. Ceasar was previously sentenced to seven years and three months in prison, and Johnson was previously sentenced to eleven years in prison.
Following the robbery, Edward Burgess deleted all information on his son’s cell phone in an attempt to prevent investigators from learning of Khaiyri’s involvement, a crime for which he pleaded guilty in May 2022.
“The younger Burgess and his accomplices not only victimized a family by violating the sanctity of their home and stealing their life savings, the elder Burgess attempted to cover up the crime and help his son evade justice,” said U.S. Attorney Romero. “The sentencing results in this case should serve as a warning to others who might be considering engaging in similar behavior – either by committing violent crimes or protecting those who do.”
“ATF, the Philadelphia Police Department, and the U.S. Attorney’s Office have worked closely with the victims in this case to seek justice for this violent crime,” said Eric DeGree, acting Special Agent in charge of ATF’s Philadelphia Field Division. “No one deserves what this family went through, and our hope is that some solace can be found in the finality of this sentencing.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Anthony Carissimi and former Assistant United States Attorney Sarah Damiani.
Thibodaux Man Charged with Failure to Account for and Pay TaxesRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that CORNEL MARTIN, SR. (“MARTIN”), age 61, of Thibodaux, Louisiana, was charged on November 17, 2022, with failing to account for and pay over federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.
According to the one count indictment, MARTIN conducted a business as a limited liability company under the name “Global Workforce, LLC”. During the first quarter of the year 2019, MARTIN collected federal income taxes and FICA taxes in the approximate sum of $67,211 from his employees but did not pay any of that money to the Internal Revenue Service.
If convicted, MARTIN faces a maximum sentence of five (5) years. Upon release from prison, MARTIN also faces a term of supervised release of up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. MARTIN also faces payment of a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the work of the Internal Revenue Service on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon Long.
Ten-Time Convicted Felon Sentenced to More Than Seven Years for Illegally Possessing Stolen FirearmRead the Press Release
MOBILE, AL – A Theodore man was sentenced to 92 months in prison for being a felon in possession of a stolen firearm.
According to court documents, Joshua Ryan Hartness, 37, was arrested by Mobile police officers on October 1, 2021. That evening, officers had responded to a 911 call regarding a white male with no shirt and numerous tattoos committing thefts on a residential street in Theodore. When officers arrived, they encountered Hartness with a Taurus 9mm pistol, among other stolen items, stuffed inside his pants. The pistol belonged to a nearby resident who had left it and other stolen items inside an unlocked truck parked in a driveway. At the time Hartness possessed the stolen pistol, he knew he had previously been convicted of ten prior felony drug and theft offenses in Mobile County Circuit Court. Hartness’s prior convictions rendered his possession of the pistol illegal under federal law.
United States District Judge Terry F. Moorer ordered Hartness to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Hartness to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Two East St. Louis Men Convicted of KidnappingRead the Press Release
East St. Louis, Illinois – Kendrick A. Frazier, 35, and Kenwyn L. Frazier, 38, were convicted by a federal jury for the Kidnapping of Kein Eastman that occurred on August 13, 2020. The verdict was announced on Thursday, November 10, 2022, after a six-day jury trial.
Evidence presented at trial established that just before 7 p.m. on August 13, 2020, Kenwyn Frazier forced Kein Eastman out of his grandmother’s house at gunpoint because he believed Eastman had stolen from him a jeweled mouthpiece, known as a “grillz.” He drove Eastman in a Dodge Durango to an apartment located on Kansas Avenue in East St. Louis and forced him to look for the grillz for over an hour and a half. When Eastman couldn’t find it, Kenwyn Frazier called his brother, Kendrick
Frazier, to the apartment.Shortly after Kendrick got there, the Frazier brothers forcibly pulled Eastman out of the apartment at gunpoint threatening to shoot him if he did not take them to the grillz. They forced Eastman to the ground, repeatedly kicking and threatening him. Eastman insisted he hadn’t taken it, pleading with them not to shoot. Despite his pleas, Kendrick Frazier fired one shot at Eastman while he laid on the ground. After the shooting, witnesses saw Eastman bleeding from his face as he ran from the apartment complex. Kendrick and Kenwyn Frazier followed immediately after him in the Dodge Durango.
Two hours later, that Dodge Durango was found on fire by the East St. Louis Fire Department, completely burned to the frame. According to other documents filed in the case, Eastman has not been seen or heard from by family members or law enforcement since the night of the kidnapping.“This guilty verdict represents long-awaited justice for the family of Kein Eastman,” said United
States Attorney Rachelle Aud Crowe. “I am proud of our office and law enforcement partners from the
East St. Louis Police Department and the ISP PSEG unit for their commitment in seeing this case through to completion. I also commend the Eastman Family and members of the East St. Louis community who cooperated throughout the investigation to take a stand against this sort of senseless violence. These are the results we expect to see when dedicated public servants and community members work together to pursue even the most difficult of cases.”“The ongoing commitment by ISP to reducing and preventing violence is built upon the outstanding professional investigative work of our special agents and sustained by our deep relationships with our law enforcement partners and the community,” said ISP Director Brendan Kelly. “The US
Attorney’s Office has been and continues to be critical to the sustained effectiveness of this noble effort as seen in this case.”The case is being prosecuted by Assistant U.S. Attorneys Ali Summers and Zoe Gross.
Stockton Man Sentenced to 10 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jeremy David Dosier, 26, of Stockton, was sentenced today to 10 years in prison for possession with intent to distribute at least 500 grams of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2020, law enforcement executed a search warrant at Dosier’s home in in Stockton and found Dosier in the bathroom destroying a large quantity of methamphetamine in the bathtub by turning on the faucet and breaking off the faucet. Agents were able to recover 3.5 pounds of methamphetamine. Next to the bathtub were several open bags that had contained the methamphetamine the defendant destroyed. On Oct. 14, 2022, Dosier pleaded guilty and admitted that he had possessed approximately 10-13 pounds of methamphetamine before agents arrived at his house.
During the search of Dosier’s residence, agents also seized a loaded 9 mm pistol under a couch cushion and $11,830 in cash.
This case was the product of an investigation by the Drug Enforcement Administration and the San Joaquin County Metro Task Force. Assistant U.S. Attorney Cameron Desmond prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
St. Louis Man Admits Being Caught Trying to Buy 40 Pounds of MethamphetamineRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Thursday admitted being caught in Franklin County, Missouri trying to buy 40 pounds of methamphetamine for $120,000.
Richard Treis, 48, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Treis also admitted that he was involved in a deal that was originally negotiated on a cell phone smuggled into prison.
In June of 2020, Homeland Security Investigations in El Paso learned that an inmate in the Great Plains Correctional Institution in Hinton, Okla. wanted to purchase a large quantity of methamphetamine, according to Treis’ plea.
In a series of calls to a cell phone that had been smuggled to the inmate, Tarik “Morocco” Mazhar, an undercover HSI special agent coordinated the delivery of about 40 pounds of the drug.
Tries called the undercover agent and confirmed that the delivery would happen in Missouri, and both Tries and Mazhar sent pictures of the cash to the agent.
On July 29, 2020, Tries and another man, Dennis Dewrock, arrived at a gas station in Pacific, Missouri with a black bag full of cash, the plea agreement says. Agents had brought about 15 pounds of methamphetamine and arrested both Treis and Dewrock after they swapped the cash for the drugs.
Treis is scheduled to be sentenced February 16. As part of his plea, he has agreed to forfeit $128,000 in custody of the Homeland Security Investigations.
Mazhar, 41, pleaded guilty in December 2021 to the same methamphetamine conspiracy charge and was sentenced in March to 13 years in prison. He is currently in a high-security prison in Mississippi.
Dewrock, 53, also pleaded guilty to the conspiracy charge and was sentenced to five years in prison.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Ricardo Dixon is prosecuting the case.
St. Charles County Business Owner Admits Failing to Pay $3.4 Million in TaxesRead the Press Release
ST. LOUIS –A business owner from St. Charles County, Missouri on Thursday admitted using part of the $2.3 million in income, Social Security and Medicare taxes that he’d withheld from his employees' paychecks for college tuition and mortgage payments on two houses.
Jeffrey M. Bauza, 55, of Weldon Spring, also admitted failing to pay $1 million in employer contributions to the IRS. Bauza pleaded guilty in front of U.S. District Judge Stephen R. Clark to one count of willful failure to collect or pay tax.
Bauza owned the truck driving schools CDL Training Service & Consulting and CDL Training Services of Missouri at the time. The schools prepared students to obtain their commercial driver’s licenses. Bauza was required by law to withhold income, Social Security and Medicare taxes from employee wages before turning them over to the Internal Revenue Service. he was also required to file quarterly employment tax returns. He admitted willfully failing to do so from 2012-2019.
Bauza instead made substantial payments toward the mortgage of his primary home as well as a vacation home in Florida and paid college tuition for one of his children, according to his plea agreement.
As part of the agreement, Bauza agreed to pay back the $1.4 million that he still owes in taxes. He is scheduled to be sentenced next year and could face up to five years in prison, a $250,000 fine, or both.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Gwendolyn Carroll is prosecuting the case.
Springfield Man Pleads Guilty to Bank Robbery While Wearing Ankle MonitorRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who was wearing a court-ordered ankle monitor at the time of the offense pleaded guilty in federal court today to robbing a Bank of America branch in Springfield last summer.
Michael C. Loyd, 30, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of bank robbery.
By pleading guilty today, Loyd admitted he stole $754 from Bank of America at 633 W. Kearney in Springfield on July 20, 2022. Loyd approached a bank teller and handed her a note that stated, “Give Your Money Now. Don’t Say Anything. I Have A Partner Outside.” After the teller handed him the cash in her drawer, Loyd left the bank and drove away in a black Dodge Ram pickup truck.
A few minutes later, investigators received a tip that Loyd may be the bank robber and that he was currently at Lazy Acres Mobile Home Park, where the truck’s owner lived. Law enforcement officers surrounded the residence and began calling out occupants of the residence.
Investigators compared a previous booking photo of Loyd to the surveillance photos from the bank. Investigators also learned that Loyd was on ankle monitoring as part of his state probation. LBS Monitoring confirmed that their tracking data indicated Loyd’s ankle monitor was inside the Bank of America at the time of the robbery.
Loyd surrendered to law enforcement and admitted to robbing the bank. He told investigators that, as he was driving away from the bank, he saw patrol cars with their lights activated driving in the direction of the bank. He became scared and started throwing money out the window of the truck. Loyd didn’t know how much of the money he disposed of, because he didn’t know how much money he had stolen.
Under federal statutes, Loyd is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
Southern Oregon Woman Indicted for Using Deceased Spouse's Identity to Obtain Federal Student AidRead the Press Release
MEDFORD, Ore.—A Southern Oregon woman is facing federal charges alleging she used her deceased spouse’s identity to fraudulently obtain more than $36,000 in federal student aid.
On October 6, 2022, a federal grand jury in Medford returned a nine-count indictment charging Cynthia Pickering, 55, of Central Point, Oregon with wire fraud, aggravated identity theft, and student loan fraud.
According to court documents, beginning in September 2017 and continuing though April 2019, Pickering is alleged to have devised a scheme to use her deceased spouse’s personally identifiable information to submit multiple applications for federal student aid and enroll her former spouse at three different colleges and universities in Oregon. These fraudulent applications caused the three colleges and universities—Eastern Oregon University, Rogue Community College, and Western Oregon University—to disperse $36,341 in federal student aid into Pickering’s personal checking account.
To conceal her scheme, Pickering attended online classes pretending to be her former spouse so that her spouse would remain eligible for the student aid. Pickering did what was necessary to pass first term courses at each institution and collect the funds.
On November 15, 2022, Pickering was arrested at her residence in Central Point. The next day, on November 16, 2022, she made her first appearance in federal court in Medford before a U.S. Magistrate Judge. Pickering was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on January 24, 2023.
Wire fraud and student aid fraud are punishable by up 20 years and five years in federal prison, respectively, per count of conviction. Aggravated identity theft is punishable by up to two years in prison consecutive to any other carceral sentence imposed.
This case was investigated by the U.S. Department of Education, Office of Inspector General (ED-OIG). It is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
If you or someone you know believe you are the victim of federal student aid fraud or are otherwise aware of student aid fraud being committed, please contact ED-OIG by calling 1-800-MIS-USED (1-800-647-8733) or submit a tip online at https://oighotlineportal.ed.gov/eCasePortal/.
South Florida Political Campaign Consultant Sentenced to 15 Months in Prison for Defrauding COVID-19 Relief ProgramRead the Press Release
MIAMI—Omar Smith, 42, of Royal Palm Beach, Fla., who has worked on South Florida political campaigns, has been sentenced to 15 months in prison and two years of supervised release for lying on a coronavirus relief loan application and fraudulently obtaining hundreds of thousands of dollars intended to help small businesses financially survive the Covid-19 pandemic.
According to the information to which he pled guilty, in June 2020, Smith applied for a $212,500 forgivable, federally guaranteed Paycheck Protection Program (PPP) loan on behalf of A Star For I Inc., a Florida company he owned. To justify the requested loan amount, Smith claimed in the on-line loan application, and through supporting fraudulent payroll tax forms, that his company employed 30 people and spent an average of $85,000 each month on payroll. In fact, A Star For I Inc had zero employees and no payroll expenses. A bank in Utah approved A Star For I Inc.’s PPP loan application based on the lies and wired $212,500 to the company’s bank account in Florida.
Once the money hit the bank account in July 2020, Smith spent the next few months creating a paper trail to make it appear as if A Star For I Inc. had employees and was spending the PPP money on legitimate, approved expenses. Smith issued checks from the company bank account made out to others who did little or no work for A Star For I Inc.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M, Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
FBI, Miami Field Office, investigated this case. Assistant U.S. Attorney Jeffrey Kaplan prosecuted it.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the PPP.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud. It does this by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please click here .
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form here.
You may find related court documents and information 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 number 21-cr-60229.
Sergeant Bluff Business Owner Pleads Guilty in Federal Court to Tax EvasionRead the Press Release
The owner of a Sergeant Bluff, Iowa construction firm pleaded guilty November 16, 2022, to tax evasion for evading payment of his company’s employment taxes.
According to court documents and statements made in court, Kevin Alexander, 62, of Sioux City, owned K&L Construction, Inc., a landscaping and construction company. As the sole shareholder and president of K&L Construction, Alexander was responsible for filing quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from employees’ wages. From the second quarter of 2014 through the first quarter of 2017, K&L Construction paid approximately $3.8 million in wages to its employees and withheld approximately $1 million in payroll taxes, but the company did not pay over any of these withholdings to the IRS.
During IRS collection proceedings, Alexander accepted responsibility for paying K&L Construction’s outstanding tax balance. Alexander, however, submitted a false form to the IRS that concealed some of his assets. As part of his plea agreement, Alexander admitted that he submitted the false form for the purpose of concealing assets and evading payment of K&L Construction’s outstanding payroll tax liability.
Alexander will be sentenced at a later date before United States District Court Chief Judge Leonard T. Strand. Alexander remains in custody of the United States Marshal pending sentencing. He faces a maximum sentence of 5 years in prison. Alexander also faces a period of supervised release, restitution, and monetary penalties. Judge Strand will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Timothy T. Duax of the Northern District of Iowa made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Ron Timmons of the U.S. Attorney’s Office for the Northern District of Iowa and Trial Attorney Meredith Havekost of the Justice Department’s Tax Division are prosecuting the case.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4092.
Follow us on Twitter @USAO_NDIA.
Scranton Man Sentenced to 36 Months’ Imprisonment for Acting as Courier in A Cocaine Trafficking ConspiracyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Judge Robert D. Mariani sentenced Arnaldo Caban-Soto, age 29, of Scranton, Pennsylvania, to 36 months’ imprisonment and a 3-year term of supervised release, for conspiring to distribute cocaine.
According to United States Attorney Gerard M. Karam, on November 13, 2021, Caban-Soto was surveilled to a residence in Scranton, where he took possession of a package that authorities suspected contained a significant quantity of illegal drugs. Following a motor vehicle stop, Caban-Soto was detained while a search warrant was obtained for the package. Inside the package, authorities located approximately 3 Kilograms of cocaine. Further investigation revealed that the package was shipped to Northeastern Pennsylvania from Puerto Rico, and that Caban-Soto’s role in the drug trafficking conspiracy was to transport the cocaine to a location in New York where it would be packaged for further distribution.
This matter was investigated by the Drug Enforcement Administration (DEA) and the Scranton Police Department. Assistant United States Attorney Jeffery St John 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.
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Sanford Foster Parent Sentenced to 170 Years in Prison for Child Exploitation OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Justin Dwayne Johnson, Sr. (48, Sanford) to 170 years in federal prison for four counts of production of child sexual abuse material, one count of production and attempted production of child sexual abuse material, and one count of possession of child sex abuse material. Johnson had pleaded guilty on July 7, 2022.
According to court documents, in January 2022, an investigation was initiated into Johnson after Child Protection Services was alerted that Johnson was secretly recording his foster children. Johnson disclosed to an acquaintance that he had cameras in his home to record the children in the nude and that he had videos of him touching the children. During the investigation, law enforcement officers seized several devices belonging to Johnson. Forensic examinations of Johnson’s cellphone and other electronic devices revealed numerous images and videos of child sex abuse material. Specifically, the evidence showed that Johnson used the children under his care to produce depictions of sexually explicit conduct. Johnson’s cellphone also contained numerous visual depictions of child sex abuse material depicting young children. So far, the FBI has identified at least 18 victims that were sexually exploited by Johnson.
“Protecting children from sexual abuse and exploitation is one of the highest priorities of my office,” said U.S. Attorney Roger Handberg. “This defendant victimized children who were especially vulnerable because they needed the protection of the foster care system. I am proud of the outstanding work by our local and federal law enforcement partners and my office that brought this predator to justice.”
“Instead of offering a haven for foster children, this predator betrayed the children with a home of horrific abuse,” said FBI Tampa Special Agent in Charge David Walker. “The FBI’s Child Exploitation Task Force is committed to identifying, locating, and recovering the innocent victims of sexual abuse and ensuring their abusers are brought to justice.
“Johnson’s crimes are particularly disturbing, in that he was in a position that is expected to provide protection and care to already vulnerable children, and he exploited that role and further victimized these young children,” said Chief Cecil Smith of the Sanford Police Department. “I hope his sentence brings some comfort to those who he has abused.”
“As you can imagine, investigations of this nature can present overwhelming challenges,” stated Seminole County Sheriff Dennis M. Lemma. “However, the dedication of our teams, their diligence, and the collaborative efforts of the law enforcement professionals assigned to this case resulted in a successful prosecution and a sentence that sends a strong message that there are severe consequences for those who prey upon and exploit the most precious members of our community.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Sanford Police Department and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Courtney Richardson-Jones and Ilianys Rivera Miranda.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rensselaer County Man Sentenced to 130 Months for Drug and Firearm ConvictionsRead the Press Release
ALBANY, NEW YORK – Justin Micheli, age 35, of Schodack, New York, was sentenced today to 130 months in prison for possessing a firearm in furtherance of drug trafficking, possessing ammunition as a previously convicted felon, and possessing with the intent to distribute cocaine.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarantino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Micheli admitted that on March 16, 2021, he possessed more than 700 grams of cocaine with the intent to distribute it and possessed a loaded semi-automatic pistol made from component parts without a serial number, also known as a “ghost gun,” to protect his drugs and drug proceeds. Micheli also admitted to possessing ammunition as a previously convicted felon. Micheli had three prior felony convictions for drug offenses.
United States District Judge Mae A. D’Agostino also ordered Micheli to serve a 4-year term of post-imprisonment supervised release.
This case was investigated by the DEA and was prosecuted by Assistant United States Attorney Alexander Wentworth-Ping. The case was prosecuted to indictment by Assistant United States Attorney Ashlyn Miranda.
Registered Sex Offender Convicted Three Times on Child Pornography Charges Sentenced to Ten Years in PrisonRead the Press Release
PROVIDENCE – Christopher J. Skinner, 33, of Providence, convicted in unrelated child pornography cases brought by the United States Air Force in 2010, in Rhode Island state court in 2014, and, most recently, in federal court in Providence in February 2022, was sentenced today to ten years in federal prison for possession of child pornography, announced United States Attorney Zachary A. Cunha.
In January 2022, the National Center for Missing and Exploited Children notified the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that files containing child sexual abuse had been uploaded by an individual in Rhode Island. Further investigation by a Homeland Security Investigations agent and a Rhode Island State Police detective determined that the files had been uploaded from an IP address assigned to Skinner’s residence. A court-authorized search in February 2022 of Skinner’s home and his cell phone led to the discovery of images containing child sexual abuse.
Skinner pleaded guilty in U.S. District Court in June 2022 to possession of child pornography. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 120 months in federal prison to be followed by 10 years of federal supervised release.
According to court records, in 2010, Skinner was convicted of possession of child pornography by the United States Air Force and sentenced to 2 years of confinement and dishonorable discharge from the Air Force; and, in an unrelated case in 2014, Skinner was convicted in Rhode Island state court of possession of child pornography and sentenced to 10 years of incarceration - 3 years to serve.
Skinner has also been convicted of failure to register as a sex offender.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Readout of Justice Department Leadership Visit to Miami Mental Health Court and Diversion SystemRead the Press Release
Yesterday, Associate Attorney General Vanita Gupta and Director Karhlton F. Moore of the Bureau of Justice Assistance (BJA) met with judicial leaders and criminal justice professionals in Miami to discuss responses to mental health issues in the justice system. Associate Attorney General Gupta and Director Moore heard from Judge Steven Leifman of Florida’s Eleventh Judicial Circuit about the Criminal Mental Health Project, a program he created in 2000 to divert people with mental illnesses away from jail and into community-based treatment. The presentations included judges, prosecutors, public defenders, peer recovery specialists and representatives from local police departments discussing the success of the program. Thousands of people have been kept out of jail under the Miami model, and only a fraction of graduates re-offend. Estimates suggest that nationwide about 15% of men and more than 30% of women in jails have a serious mental illness, compared to about 4% of people in the general population.
BJA Director Moore and the BJA leadership team provided an overview of the BJA Justice and Mental Health Collaboration Program, which has awarded 679 state, local and Tribal grants to support responses to people with mental illnesses who come into contact with the criminal justice system. Two years ago, BJA also launched Connect and Protect, designed to strengthen partnerships between law enforcement and behavioral health agencies. Miami-Dade County is a national Law Enforcement-Mental Health Learning Site and is recognized as a model for its approach to diverting people with mental health and co-occurring substance use disorders.
Raleigh County Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Brenda Crewey, 49, of Harper, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for distribution of a quantity of methamphetamine.
According to court documents and statements made in court, on February 21, 2020, Crewey sold approximately four grams of methamphetamine to a confidential informant at her residence. Crewey admitted that she had been consistently selling methamphetamine and heroin over the previous year.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit for conducting the investigation. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Alex Hamner and Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-42.
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Recent SentencingsRead the Press Release
Child Pornography and Child Sex Crimes
United States District Court Judge Alan B. Johnson sentenced TAYLON JEFFERY BAIN, age 36, of Richey, Montana, for the commission of a felony by a registered sex offender, to 168 months’ imprisonment with 10 years of supervised release and payment of a $100 special assessment. The crime was investigated by the Federal Bureau of Investigation, Dawson County Sheriff’s Office in Montana, and the Fremont County Sheriff’s Office in Wyoming. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Case No. 22-cr-00009-ABJUnited States District Court Judge Alan B. Johnson sentenced ANDREW RAY OLDMAN, age 21, of Riverton, Wyoming, for abusive sexual contact, to 15 months’ imprisonment with five years of supervised release and payment of a $131.00 for restitution, and a $100 special assessment. The crime was investigated by the Federal Bureau of Investigation, and Assistant United States Attorney Timothy W. Gist prosecuted the case. Case No. 22-cr-00067-ABJ
United States District Court Judge Alan B. Johnson sentenced WOLFE JONTAYLOR WILLOW, age 37, of Crowheart, Wyoming, for failure to register as a sex offender, to 24 months’ imprisonment with five years of supervised release, and a $100 special assessment. Willow is required to register due to criminal history dating back to 2011. The crime was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Michael J. Elmore. Case No. 22-cr-00137-ABJ
Drug/Firearm Offenses
Chief United States District Court Judge Scott W. Skavdahl sentenced TROY MICHAEL PAINTER, age 26, of Cheyenne, Wyoming, for possession with intent to distribute fentanyl. Painter was sentenced to 44 months in prison with three years of supervised release and ordered to pay a $100 special assessment. The crime was investigated by the Drug Enforcement Administration and Laramie County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jonathan C. Coppom. Case No. 22-cr-00105-SWS
United States District Court Judge Alan B. Johnson sentenced CODY JAMES COKER, age 23, of Casper, Wyoming, for being an unlawful user of a controlled substance in possession of a firearm, to 36 months’ imprisonment with three years of supervised release, and a $100 special assessment. Coker pled guilty to one count of being a felon in possession of a firearm. He was arrested for possessing the firearm after three instances of calling 911 while hallucinating due to methamphetamine use. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Michael J. Elmore. Case No. 21-cr-00420
United States District Court Judge Alan B. Johnson sentenced ALSIAH E. SPIKES, age 30, of Peoria, Illinois, for being a felon in possession of a firearm, to 70 months’ imprisonment with three years of supervised release, and he was ordered to pay a $100 special assessment. On August 11, 2020, Wyoming Highway Patrol Trooper Joseph Dellos pulled over Alsiah Spikes on I-80 driving east just outside of Cheyenne. During the stop, Trooper Dellos discovered five handguns purchased by another person but paid for by Spikes. The case was referred to Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) special agents who discovered that Spikes was prohibited from possessing firearms. Spikes was later arrested in Indiana with another handgun and charged there with unlawful possession of a firearm. The crime was investigated by ATF with assistance from the Wyoming Highway Patrol. The case was prosecuted by Assistant United States Attorney Timothy J. Forwood. Case No. 21-00008-ABJ
Environmental/Wildlife Offenses
United States District Court Judge Alan B. Johnson sentenced JOSHUAL ANDERS RAE, age 38, of Bozeman, Montana, for the unlawful transportation, sale, receipt, acquisition of illegally possessed wildlife, to 60 days in prison with five years of supervised release, and a $100 special assessment. Rae was observed by United States Forest Service law enforcement collecting shed elk antlers in a long-standing wildlife closure area and processing them with a saw. The crime was investigated by the United States Forest Service and prosecuted by Assistant United States Attorney Kerry J. Jacobson. Case No. 22-00041-ABJ
Financial Crimes
United States District Court Judge Nancy D. Freudenthal sentenced KADE CASPER-NIXON, age 28, of Cheyenne, Wyoming, for bank fraud and conspiracy to commit bank fraud, to 57 months in prison with four years of supervised release. Casper-Nixon was also ordered to pay restitution in the amount of $55,851.97 and a $200 special assessment. The defendant plead guilty to bank fraud and conspiracy for depositing fraudulent checks at financial institutions in Wyoming. The crime was investigated by the United States Secret Service and prosecuted by Assistant United States Attorney Jonathan C. Coppom. Case No. 22-00041-ABJ
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Previously Convicted Armed Robber Sentenced to 15 Years in Federal Prison for Armed CarjackingRead the Press Release
EVANSVILLE – Omaree Shay Roby, 25, of Milwaukee, Wisconsin, was sentenced to 15 years in federal prison after pleading guilty to carjacking and using a firearm during and in relation to a crime of violence.
According to court documents, on September 27, 2020, officers with the Evansville Police Department responded to a residence on East Indiana Street regarding a robbery complaint. The adult female victim, told officers that she had been approached by a man, later identified as Roby, as she sat inside her car while parked on her driveway. When Roby demanded that the victim relinquish her vehicle, the victim refused, and Roby pointed a pistol in the air and fired a shot. At that point, the victim exited her vehicle, and Roby entered the driver’s seat and drove away. While at the scene, officers located one spent .40 caliber shell casing on the victim’s driveway.
Vigo County Sheriff deputies subsequently located Roby traveling northbound through Vigo County in the stolen vehicle, and pursued Roby into Vermillion County. When law enforcement officers deployed stop sticks in Clinton, Indiana, Roby drove through the stop sticks and fired shots at the officers from the stolen vehicle. Roby ultimately came to a stop near State Road 63 and U.S. Highway 36. As he exited the vehicle, Roby raised a firearm at the officers, who returned fire and struck Roby. Roby was transported to the hospital and survived. Upon searching the stolen vehicle, officers recovered a .40 caliber pistol.
Roby had been previously convicted of two counts of armed robbery and one count of conspiracy to commit armed robbery in Milwaukee County, Wisconsin, in July 2015.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Chief Billy Bolin, Evansville Police Department, made the announcement.
The Evansville Police Department, Vigo County Sheriff’s Office, Vermillion County Sheriff’s Office, and the Indiana State Police investigated the case. The Federal Bureau of Investigation and Vermillion County Prosecutor’s Office provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Roby be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristian R. Mukoski 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.