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Wednesday 5 October 2022
Trafficking over 250 kilos of meth in gas tank lands San Benito man in prisonRead the Press Release
BROWNSVILLE, Texas - A 45-year-old San Benito resident has been sent to federal prison following his conviction of possession with intent to distribute liquid meth, announced U.S. Attorney Jennifer B. Lowery.
Pedro Rodriguez III pleaded guilty July 14.
Today, U.S. District Judge Rolando Olvera ordered Rodriguez to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Rodriguez’s extensive criminal history.
On Jan. 11, law enforcement conducted a traffic stop on Rodriguez after he switched lanes without signaling. They soon discovered he had several pending state arrest warrants and took him into custody.
Authorities searched his vehicle and found approximately 253.2 kilograms of liquid meth hidden inside an auxiliary gas tank. Rodriguez admitted he knew the meth was inside the gas tank and had agreed to transport the narcotics from South Texas to Dallas.
Rodriguez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the San Benito Police Department. Assistant U.S. Attorney Edgardo J. Rodriguez prosecuted the case.
Three Long Beach Men Charged in $2.6 Million Robbery of Beverly Hills Jewelry Store in Daylight Smash-and-Grab TheftRead the Press Release
LOS ANGELES – A federal grand jury today indicted three Long Beach men who allegedly participated in the daylight smash-and-grab robbery of a Beverly Hills jewelry store in which more than $2.6 million worth of merchandise was stolen.
The two-count indictment returned today charges Long Beach residents Jimmy Lee Vernon III, 31, Ladell Tharpe, 37, and Deshon Bell, 20, with conspiracy and interference with commerce by robbery (Hobbs Act).
According to the indictment, on March 23, the defendants and other co-conspirators drove in tandem in three vehicles headed from Long Beach to Beverly Hills. Once outside the victim jewelry store, Vernon and other co-conspirators allegedly got out of a Kia vehicle, smashed the store’s exterior glass cases multiple times, and then stole merchandise worth at least $2,674,000.
Vernon and the others then ran out of the store to a nearby alley, leaving behind their Kia vehicle – which had been reported stolen out of Long Beach four days before the robbery, according to an affidavit filed with a criminal complaint in this case. During the robbery, Vernon’s cellphone fell out of his sweatpants pocket while he smashed the jewelry’s store’s window, was left behind and later recovered by law enforcement, the affidavit states.
Bell allegedly waited in a car near the victim jewelry store and served as the getaway driver for Vernon and the other co-conspirators.
The defendants allegedly stole property consisting of approximately 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches.
On March 25, Tharpe posted on his Instagram account numerous photographs that included large stacks of money and a message praising his “robbery gang,” according to the indictment.
Law enforcement arrested the defendants last month. Vernon is in federal custody, was ordered jailed without bond, and his arraignment is scheduled for October 13 in United States District Court. Tharpe is in state custody and are expected to be remanded to federal custody in the coming weeks. Bell was released on $15,000 bond and his arraignment in federal court is scheduled for October 20. A juvenile, who is not charged in the federal indictment, also was arrested in connection with the robbery, and is charged in Los Angeles Superior Court with commercial burglary.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both charges, each defendant would face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler and Kevin B. Reidy of the Violent and Organized Crime Section are prosecuting this case.
Texas Woman and Riverside County Man Charged with Illegally Transporting and Selling Live Jaguar Cub that Later Was AbandonedRead the Press Release
LOS ANGELES – A federal grand jury today indicted a Texas woman who allegedly illegally sold a live jaguar cub for approximately $30,000 to a Riverside County man who soon afterward re-sold the cub, which was ultimately abandoned on the doorsteps of an animal rescue center.
Trisha Denise Meyer, a.k.a. “Mimi,” 40, of Houston, is charged in a four-count indictment with interstate transportation of an endangered species in the course of commercial activity, interstate sale of an endangered species, trafficking prohibited wildlife species, and trafficking endangered species.
Also charged in the indictment returned today is Abdul Rahman, a.k.a. “Manny Rahman,” 34, of Murrieta, who is charged with interstate transportation of an endangered species in the course of commercial activity, trafficking prohibited wildlife species, and trafficking endangered species.
The criminal charges against Meyer and Rahman allege violations of the Endangered Species Act, under which jaguars are protected, and the Lacey Act, which prohibits wildlife trafficking.
Local and federal law enforcement agents in Houston are currently searching for Meyer. Rahman will be summonsed to appear in United States District Court in Riverside on November 9.
According to the indictment, Meyer sold Rahman a live jaguar (Panthera onca) cub in spring 2021. Prior to the sale, Meyer posted on Instagram photographs and videos of herself with the cub, according to an affidavit filed with a criminal complaint in this case. The cub’s sale price was approximately $30,000 and the animal was transported – for an additional $1,000 fee – from Texas to California.
Rahman owned the jaguar for one to two months before selling it for $20,000 to another buyer, identified in court documents as “H.G.” This individual lived in a house with a pregnant wife or girlfriend and later decided to allow the animal to be taken to a rescue center after someone expressed concerns about having a juvenile jaguar and a newborn infant in the same house, the affidavit states.
The person who expressed concerns about the jaguar – identified in court documents as “R.A.” – later told law enforcement that he and his roommate put the jaguar in a large dog kennel and drove it to an animal rescue center in Alpine. They dropped off the jaguar at the facility’s entrance on September 17, 2021, at approximately 9:50 p.m. The event was captured on security cameras and law enforcement was notified.
The jaguar remains at the animal sanctuary in Alpine.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Meyers would face a statutory maximum sentence of eight years in federal prison and a $700,000 fine. Rahman would face a statutory maximum sentence of seven years in federal prison and a $600,000 fine.
The United States Fish and Wildlife Service and the California Department of Fish and Wildlife are investigating this matter.
Assistant United States Attorney Joseph O. Johns of the Environmental and Community Safety Crimes Section is prosecuting this case.
Texas Man Sentenced to over 21 Years for Sex Trafficking A Minor from Texas to FloridaRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven today sentenced Jamel Muldrew (34, Houston, Texas) to 21 years and 10 months in federal prison for sex trafficking a minor, enticement of a minor to engage in sexual activity, use of a facility of interstate commerce in aid of racketeering, and interstate transportation of a person for prostitution. As part of his sentence, the court also ordered Muldrew to pay $27,740 in restitution to Victim 1, to forfeit electronic devices used in the commission of the offense, and to register as a sex offender. Muldrew had pleaded guilty on March 10, 2022.
According to court documents, on April 9, 2021, law enforcement coordinated an operation in Tampa to identify victims of human trafficking, rescue those victims, and identify and arrest their traffickers. As part of this operation, an undercover officer arranged with the minor victim to engage in prostitution in exchange for $800 at a local hotel. Muldrew arrived at the hotel driving the minor victim and was arrested on state charges. At the time of his arrest, officers recovered multiple fictious identity cards on Muldrew’s person, for both himself and the minor victim. The subsequent investigation revealed that Muldrew had been trafficking the minor victim across the country to engage in prostitution. Specifically, from February until April 2021, Muldrew had trafficked the minor victim for the purpose of commercial sex in Texas, New Jersey, Maryland, North Carolina, Georgia, and Florida, where he was ultimately arrested.
“This heinous predator trafficked his minor victim around the country to engage in prostitution, including in Texas, New Jersey, Maryland, North Carolina, Georgia, and Florida,” said Assistant Special Agent in Charge Kristopher Pagitt, Homeland Security Investigations (HSI) Tampa. “The success of this investigation is a direct result of the outstanding law enforcement partnerships we have in the Tampa Bay Human Trafficking Task Force, to include the Hillsborough County Sheriff’s Office and the Houston (Texas) Police Department, as well as non-governmental organizations such as Selah-Freedom.”
This case was investigated by Homeland Security Investigations, the Hillsborough County Sheriff’s Office, and the Houston Police Department. It was prosecuted by Assistant United States Attorneys Ilyssa M. Spergel and Carlton C. Gammons.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida, which is one of 13 task forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. More information about the Tampa Bay Human Trafficking Task Force can be found at www.justice.gov/usao-mdfl/humantrafficking. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Tampa Man Sentenced to 18 Months for Felonious Possession of Firearm ChargeRead the Press Release
Tampa, FL – United States District Judge Mary Scriven has sentenced Antwan Brown (22, Tampa) to 18 months in federal prison for possessing a firearm as a convicted felon. Brown had pleaded guilty on July 12, 2022. Brown was also ordered to forfeit a Taurus 9mm pistol and eighteen rounds of 9 mm ammunition used in the commission of the offense.
According to court documents, on February 23, 2022, Brown, a convicted felon, was in possession of a Taurus 9mm pistol and 18 rounds of 9 mm ammunition during an Instagram live video. As pictured below, Brown was brandishing the firearm online while traveling in a vehicle in Hillsborough County.
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.
This case was investigated by the Hillsborough Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Beckman.
Steinhatchee Church Deacon Convicted of Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA –Jonathan High, 30, of Steinhatchee, Florida, has been convicted of two counts of use of a child to produce child pornography. The guilty verdict, returned yesterday, at the conclusion of a one-day bench trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. Prior to the trial, High pleaded guilty to one count of possession of child pornography.
In August 2021, law enforcement officers received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) that a user of a cloud storage account uploaded files constituting child pornography. An investigation revealed the account belonged to High. Law enforcement officers obtained a search warrant for High’s cell phones and desktop computer, and after an examination of their contents, confirmed that High was in possession of multiple child pornography images and videos that depicted prepubescent boys engaged in sex acts or exposing their genitals in a lascivious manner. Further investigation revealed that some of these images and videos were produced by High personally; High produced separate video recordings of two young boys using the bathroom in a Perry, Florida church where High served as a deacon.
High’s sentencing hearing is scheduled for January 9, 2023, at 1:30 p.m., at the United States Courthouse in Tallahassee before United States District Judge Allen Winsor. High faces a minimum mandatory sentence of 15 years in prison and a combined maximum of 70 years in prison for all three counts.
This conviction was the result of a joint investigation conducted by Homeland Security Investigations, the Florida Department of Law Enforcement, and the North Florida Internet Crimes Against Children Task Force. Assistant United States Attorneys Justin M. Keen and Kaitlin Weiss prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
St. Paul Man Sentenced to 40 Months in Prison for his Role in Illegal Gun Buying ConspiracyRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 40 months in prison followed by three years of supervised release for his role in a firearms straw purchasing conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, between May 11, 2021, and October 17, 2021, Gabriel Lee Young-Duncan, 28, participated in a conspiracy to illegally purchase multiple firearms, including one that was used in the Seventh Street Truck Park Bar shooting on October 10, 2021. Young-Duncan and a co-conspirator agreed to work together to illegally acquire firearms by making false statements to Federal Firearms Licensees (FFLs) throughout the Twin Cities. Specifically, the co-conspirator would purchase the firearms, stating on the ATF Form 4473 that the co-conspirator was the actual buyer, and then transfer the firearms to Young-Duncan, who would keep the firearms, or further transfer them to third parties.
According to court documents, Young-Duncan and his co-conspirator worked together to illegally obtain dozens of firearms, including four Glock 9mm semiautomatic pistols and two Mossberg 9mm semiautomatic pistols.
Young-Duncan was sentenced earlier today in U.S. District Court before Senior Judge Donovan W. Frank. On May 25, 2022, Young-Duncan pleaded guilty to one count of conspiracy to make false statements in the purchase of firearms.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez prosecuted the case.
Springfield Woman Sentenced to More Than Seven Years in Prison for Drug Trafficking, Firearms and Money Laundering ConspiraciesRead the Press Release
BOSTON – A Springfield woman has been sentenced for her role in a large-scale drug trafficking conspiracy that distributed heroin and crack cocaine across western Massachusetts and into Vermont.
Nia Dinzey, a/k/a “Nia Moore-Bush,” 32 was sentenced on Oct. 3, 2022 by U.S. Senior District Court Judge William G. Young to 86 months in prison and four years of supervised release. On July 13, 2022, Dinzey pleaded guilty to one count of conspiracy to distribute heroin, crack cocaine, and 500 grams or more of cocaine; five counts of distribution and possession with intent to distribute heroin, cocaine, and/or crack cocaine; two counts of money laundering conspiracy; seven counts of money laundering; one count of conspiracy to engage in the unlicensed dealing of firearms; one count of engaging in the unlicensed dealing of firearms; one count of aiding and abetting the crime of engaging in the unlicensed dealing of firearms; and one count of aiding and abetting the crime of being a felon in possession of a firearm.
Nia Dinzey was arrested and charged in January 2018 and subsequently charged in a superseding indictment in December 2018 along with other members and associates of a Springfield-based drug trafficking organization (DTO) that allegedly distributed heroin and crack cocaine. Dinzey pleaded guilty to all counts in July of 2022.
“Trafficking drugs and firearms onto our streets fuel violence, trauma and chaos in our neighborhoods. This type of behavior will not be tolerated in our Commonwealth,” said United States Attorney Rachael S. Rollins. “Ms. Dinzey and her co-conspirators jeopardized the protection, health and safety of our communities and she will now have several years to focus on improving herself and finding better alternatives to crime.”
Nia Dinzey and her husband, Dinelson Dinzey, obtained narcotics in the Springfield area, transported them to Vermont themselves or via couriers and distributed the drugs in the Barre area. The two then conspired to launder the drug proceeds through bank accounts allegedly held by co-defendant Daphne Moore in trust for Nia Dinzey. The DTO would make cash deposits of its Vermont drug proceeds into the accounts. To obtain the proceeds, Nia Dinzey and, allegedly, Moore would facilitate withdrawals of those funds from the accounts in Massachusetts. Additionally, Nia Dinzey, her husband and others also conspired to engage in the unlicensed dealing of firearms and in a May 5, 2017 firearms sale. According to court documents, six firearms involved in this conspiracy were traced to individuals connected to Vermont or New Hampshire.
Dinelson Dinzey previously pleaded guilty and, in October 2019, was sentenced to 19 years in prison and 10 years of supervised release. Moore has pleaded not guilty and is pending trial.
U.S. Attorney Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Office made the announcement today. The case was investigated by the ATF’s Springfield Area Firearms Enforcement Task Force with assistance of the Internal Revenue Service’s Criminal Investigations in Boston, ATF’s Burlington Field Office, the Massachusetts State Police and the Vermont State Police. Assistant U.S. Attorney Catherine Curley of Rollins’ Springfield Office 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.
South Dakota Takes Part in the United States Department of Justice’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
SIOUX FALLS – The Justice Department has announced the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. This week, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Crimes that target older Americans are among the most deplorable. We take very seriously any allegations that older South Dakotans have been targeted. These crimes take many forms, often through mass-marketing scams, lottery schemes, or other false claims designed to gain access to financial accounts,” South Dakota U.S. Attorney Alison J. Ramsdell said. “Our office, in conjunction with our partner investigating agencies, is committed to finding these criminals and bringing them to justice.”
During the past year, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants across the nation, both bringing new cases and advancing those previously charged.
This past year, the South Dakota U.S. Attorney’s Office has prosecuted and civilly pursued various cases in which older Americans were targeted. In one, Nathan Peachey and John Rick Winer were prosecuted along with several co-conspirators for a sophisticated scheme that robbed victims of their life savings, retirement income, and other funds. They lied to their victims with claims that they were investing funds that were to be used for charitable and humanitarian projects. Instead, the money was stolen and laundered through a network of entities and banks around the world. Peachey was sentenced to 25 years, and Winer was sentenced to nearly 22 years in federal prison. They were also ordered to pay approximately $11 million in restitution.
In another case, the South Dakota U.S. Attorney’s Office prosecuted Robert “Larry” Lytle and two conspirators for marketing and selling fraudulent medical devices, often to older Americans, falsely promising that they were cure-alls for virtually every ailment. Lytle was sentenced to 12 years, Ronald D. Weir, Jr., was sentenced to 2 years, and Irina Kossovskaia was sentenced to 15 months in federal prison. They were ordered to pay millions in restitution to hundreds of victims. Those prison sentences were handed down in 2018, and the South Dakota U.S. Attorney’s Office has continued to vigorously pursue collection efforts. In recent months, $1,222,075 was received from various members of Lytle’s family after litigation commenced targeting assets that were transferred by Lytle to his family or their business entities. To date, $2,305,893.52 has been recovered to repay victims.
As part of the South Dakota U.S. Attorney’s Office’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization.
Nationally, the Department has highlighted three other efforts: the expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams. With regard to the Department’s continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice, the Department is expanding the Transnational Elder Fraud Strike Force by adding 14 new U.S. Attorney’s Offices to the effort. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department hs notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member, or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement’s efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Six admit to cocaine trafficking following searchRead the Press Release
McALLEN, Texas – Several men have pleaded guilty for their roles in a cocaine trafficking conspiracy, announced U.S. Attorney Jennifer B. Lowery.
Mexican citizens Jose Bernardo Gonzalez-Gomez, 55, and Jose Santiago Luna-Duran, 45; Arlando Garcia-Garcia, 40, and Martin Vela-Alanis, 58, both legal permanent residents of Edinburg; and Oscar Obed Manzanares, 21, and Martin Adrusbel Vela, 35, both of Edinburg, pleaded guilty today for their respective roles in a conspiracy to possess with the intent to distribute cocaine.
On March 22, Manzanares traveled into the United States from Mexico in a GMC truck and parked it at a local business in McAllen. Luna-Duran then took the vehicle to a property in Edinburg.
There, authorities observed individuals exchange items between the GMC and a Ford pickup truck. Garcia-Garcia drove the Ford to a separate residence on a property where Vela and Vela-Alanis resided. Upon his arrival, he removed a large duffel bag from the truck. Gonzalez-Gomez was also present at that time.
Law enforcement executed a search warrant at the residence and recovered a duffel bag containing 15 bundles of a white powdery substance. They also found over $90,000 and a black and gold Colt Model 1911 pistol.
Luna-Duran returned to the business where authorities ultimately detained him as well as Manzanares. A search of the GMC vehicle resulted in an additional discovery of over $238,000 in bulk cash.
Laboratory analysis later confirmed the bundles tested positive for cocaine and had a weight of approximately 15 kilograms.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing Dec. 15. At that time, each conspirator faces up to life in prison and a possible $10 million fine.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection Air and Marine Operations, Hidalgo County Sheriff’s Office and police departments in Hidalgo, Mission, McAllen, Alton, Pharr and Palmview. Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case.
Six People Indicted on Federal Charges Following Investigation of Fentanyl Distribution OperationRead the Press Release
WASHINGTON – Six people have been indicted in the District of Columbia on federal charges accusing them of operating a Fentanyl pill distribution organization in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
Collin Edwards, 28, of Largo, Maryland, Garnell Lucas, 32, of Upper Marlboro, Maryland, Justin James White, 27, of Cary, North Carolina, Laura Garvin, 29, of Annapolis, Maryland, Bilaal Briggs, 32, of Washington, D.C., and Chase Cole, 29, of Washington, D.C., were indicted on a charge of conspiracy to distribute and possess with intent to distribute Fentanyl and cocaine. Edwards remains at large. The other defendants were arrested on Sept. 20 and 21, 2022. They have pleaded not guilty to charges and remain detained pending further court proceedings.
The indictment was unsealed today. In addition to the drug count, Edwards and White were indicted on charges alleging that they fraudulently applied for and obtained unemployment insurance benefits by submitting illegally obtained personal identifying information to various states, including California, Maryland, and North Carolina. Both were indicted on one count of conspiracy to commit wire fraud, one count of conspiracy to commit aggravated identity theft, and two counts of aggravated identity theft.
According to the indictment, all six defendants distributed Fentanyl and cocaine from at least June 2020 through at least March 2022. According to court filings, the defendants are alleged to have operated a drug distribution organization that used a pill press machine to press Fentanyl into counterfeit prescription pills which the organization then distributed unlawfully, including to consumers who were unaware they were consuming Fentanyl.
Edwards and White also are accused of carrying out the unemployment insurance fraud scheme from at least June 2020 until at least May 2021. According to the indictment, Edwards, White, and others illegally obtained, from an unknown database, a large trove of personal identifying information from individuals throughout the United States. They then allegedly used this information to fill out unemployment insurance applications, using fraudulent user profiles that directed payments to electronic bank accounts and physical debit cards that they controlled.
Charges in a complaint or indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Washington Field Office and the U.S. Department of Labor, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Kevin Rosenberg and Special Assistant U.S. Attorney Marnee Rand, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorney Steven Wasserman assisted in the investigation.
Sharon, PA Drug Felon Sentenced for Illegally Possessing 3 Guns and AmmunitionRead the Press Release
PITTSBURGH – Le’Var Brown, formerly of Sharon, Pennsylvania, was sentenced to 57 months in prison for committing firearm and ammunition crimes, United States Attorney Cindy K. Chung announced today.
Brown, age 33, currently of Eastman, Georgia, was sentenced by United States District Judge Christy Criswell Wiegand. Brown was also ordered to serve three years of supervised release following his prison sentence.
On October 1, 2021, Brown possessed three guns, including a loaded Romarm/Cugir Mini Draco semi-automatic pistol, and corresponding ammunition at his residence in Sharon, Pennsylvania, and at his girlfriend’s residence in Sharon. Prior to that date, in 2018, Brown was convicted of a felony heroin and crack trafficking crime and had also been convicted of additional prior crimes.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania Attorney General’s Office, the Mercer County Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation conducted the investigation of 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.
Seven Individuals Indicted for Social Security FraudRead the Press Release
SAN JUAN, Puerto Rico – On September 29, 2022, a federal grand jury in the District of Puerto Rico returned seven separate indictments charging seven individuals with Social Security Fraud.
The Social Security Administration Office of Inspector General, Department of Health and Human Services Office of Inspector General, the FBI, and the Puerto Rico Police Bureau are investigating the cases.
“The seven defendants arrested yesterday stole thousands of dollars in Social Security benefits that didn’t belong to them- they stole from the government, from victims, and even from victims that had passed away. We remain steadfast in our commitment to bring to justice unscrupulous individuals who illegally seek personal financial gain,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
“These arrests represent our commitment to hold individuals responsible for defrauding Social Security programs. As evidenced by the more than one-million-dollar fraud loss in these collective cases, our collaborative efforts help to protect taxpayer funds and preserve much needed programs,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the FBI, the U.S. Department of Health and Human Services Office of the Inspector General, and the Puerto Rico Police Department for their assistance. I also appreciate the high level of support that the U.S. Attorney’s Office has shown us in seeking prosecution of those who commit Social Security fraud and I thank Special Assistant U.S. Attorney Vanessa Bonano for her outstanding work.”
The defendants and the charges are:
- Sonia I. Vargas-Rodríguez was the owner and representative of Hogar Sendero de Amor, Inc. (HSA), an elderly care facility located in Mayagüez, PR. She had S.R. and R.F under her care. They both passed away in 2013 and 2014 respectively, and the defendant failed to report their deaths to the SSA and continued collecting their Social Security checks. In addition, the Puerto Rico Family Department closed HSA in June of 2014 due to claims of negligence and abuse.
- Counts one and two- Wire Fraud. The defendant sent electronic transmissions of fraudulent Representative Payee Reports to SSA for S.R. and R.F.
- Count three- Theft of Government Property. The defendant received $114,590.40 illegally from the SSA.
- Yahaita Cruz-Cintrón
- Count one- Theft of Government Property. The defendant received $196,772.75 from the SSA illegally.
- Count two- False Statement. The defendant provided false statements to the SSA in a Work Activity Report; said she worked in the Continental United States for eight years when the reality was that she didn’t work.
- Count three- Health Care Fraud. The defendant received illegally $164,694.03 in Medicare Payments.
- Norberto Berríos-Rodríguez
- Count one- Theft of Government Property. The defendant received $129,346.30 from the SSA illegally.
- Count two- False Statement. The defendant provided false statements to the SSA in a Work Activity Report. He stated that he started working in August 2021 but, in fact, he had been working since before that date.
- Count three- Concealment or Failure to Disclose Event to SSA. The defendant failed to disclose that he was working and continued receiving the SSA benefits.
- Count four- Health Care Fraud. The defendant received illegally $33,608.00 in Medicare Payments.
- Pedro Medina-Medina
- Count one- Theft of Government Property. The defendant received $159,254.40 from the SSA illegally.
- Count two- False Statement. The defendant provided false statements to the SSA in a Work Activity Report. He stated that he only worked part-time for the years 2015 to 2017 knowing that he worked full-time since 2009.
- Count three- Concealment or Failure to Disclose Event to SSA. The defendant failed to disclose that he was working and continued receiving the SSA benefits.
- Count four- Health Care Fraud. The defendant received illegally $22,673.14 in Medicare Payments.
- Luis A. Soto-Torres
- Count one- Theft of Government Property. The defendant knowingly and willfully embezzled, stole, purloined, and converted to his own use $122,483.90 from the SSA, which payments were made payable to M.S.C. and the defendant knew he was not entitled to receive.
- Marialices Cora-Martínez
- Count one- Theft of Government Property. The defendant knowingly and willfully embezzled, stole, purloined, and converted to her own use $59,079.30 from the SSA, which payments were made payable to L.L.M. and the defendant knew she was not entitled to receive.
- Janice Rodríguez-Méndez
- Count one- Theft of Government Property. The defendant knowingly and willfully embezzled, stole, purloined, and converted to her own use $18,784.00 from the SSA, which payments were made payable to A.R.L. and the defendant knew she was not entitled.
If convicted, the defendants face the following maximum penalties: 10 years of imprisonment for Theft of Government Property and Health Care Fraud; 5 years of imprisonment for False Statements and Concealment or Failure to Disclose Event to SSA; and 20 years of imprisonment for Wire Fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
During fiscal year 2022, the U.S. Attorney’s Office prosecuted for Social Security fraud a total of eight additional cases via Information, six of which have been sentenced, for a total loss amount of $529,334.80.
Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez is prosecuting these cases.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Santa Ana Man Charged with Using Stolen Identities to Apply for More Than $1 Million in Pandemic-Related Unemployment BenefitsRead the Press Release
SANTA ANA, California – A federal grand jury today returned an eight-count indictment charging an Orange County man with defrauding California’s unemployment insurance program by using personal information stolen from people with similar names to apply for $1.25 million in COVID-19 unemployment benefits.
Nhan Hoang Pham, 36, of Santa Ana, was charged with three counts of mail fraud in relation to benefits connected to presidentially declared emergency, one count of wire fraud in relation to benefits connected to presidentially declared emergency, and four counts of aggravated identity theft. Pham is currently in state custody on unrelated charges, and he is expected to be arraigned on the federal indictment following his release later this month.
The indictment alleges that Pham, from approximately July 2020 through April 2021, submitted fraudulent applications for unemployment insurance after acquiring personal identifying information – such as dates of birth and Social Security numbers – from individuals with identical or similar names who lived in California, Texas and Michigan. Pham allegedly submitted 24 fraudulent applications to the California Employment Development Department (EDD), which administers unemployment insurance benefits for residents of California, including Pandemic Unemployment Assistance benefits to individuals who were unemployed because of the COVID-19 pandemic.
Pham directed that unemployment benefit cards issued by Bank of America on behalf of the EDD be sent to mail drops he controlled in Anaheim, according to the indictment, which alleges that Pham and co-schemers used the benefit cards to withdraw cash from ATMs across Orange County.
Pham allegedly filed applications that fraudulently sought $1,255,350 in unemployment benefits, and the total loss in this case is approximately $408,496.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the charges in the indictment, Pham would face a statutory maximum sentence of 30 years in federal prison for each of the four fraud counts. Additionally, the aggravated identity theft charges carry a mandatory two-year consecutive sentence.
The United States Secret Service; the United States Department of Labor’s Office of Inspector General; the California Employment Development Department, Investigation Division; the Orange County District Attorney’s Office, Bureau of Investigation; and the Santa Ana Police Department conducted the investigation into Pham
Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office is prosecuting this case.
Rockford Man Sentenced to 13 Years in Federal Prison for Conspiring to Traffic Heroin and CocaineRead the Press Release
ROCKFORD — A Rockford man has been sentenced to 13 years in federal prison for trafficking heroin and cocaine.
TERVARIE LOTTIE, 34, pleaded guilty earlier this year to conspiracy to distribute a kilogram or more of heroin, conspiracy to possess cocaine with intent to distribute, and possession of heroin and cocaine with intent to distribute.
U.S. District Judge John Robert Blakey imposed the prison sentence on Sept. 29, 2022, after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Office of the ATF; Carla Redd, Chief of the Rockford Police Department; Gary Caruana, Winnebago County Sheriff; and J. Hanley, Winnebago County State’s Attorney. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above law enforcement agencies and the Loves Park and Freeport Police Departments. The government was represented by Assistant U.S. Attorney Talia Bucci.
Lottie admitted in a plea agreement that he led a drug-trafficking organization that distributed heroin to other drug dealers and street-level customers in the Rockford area in 2017. Lottie and co-defendant TYSHON WATSON, of Rockford, shared a cell phone that the organization’s street-level customers contacted to arrange to buy heroin. On days when Watson had the phone, Watson sold heroin to those customers and provided proceeds to Lottie. On days when Lottie had the cell phone, Lottie personally sold heroin to the street-level customers. Lottie also personally sold larger quantities of heroin to other drug dealers in the Rockford area.
Another member of the drug-trafficking organization – co-defendant JOHNIA WILSON, of Rockford – recruited certain individuals to buy heroin from the organization, with Wilson brokering transactions between Lottie and the buyers. Wilson also helped Lottie collect drug-trafficking proceeds owed to the organization. As part of the conspiracy, Lottie maintained an apartment in Rockford that he used as a “trap house” to store and package heroin for sale, distribute to customers, and meet with Watson and Wilson.
Lottie separately conspired with another co-defendant – DEVONTE GORDON, of Rockford –to possess cocaine. As part of that conspiracy, Lottie arranged for Gordon to purchase two kilograms of cocaine from one of Lottie’s narcotics suppliers in 2017.
The three co-defendants were previously sentenced to federal prison terms. Gordon was sentenced to 87 months for conspiracy to distribute cocaine; Watson was sentenced to 57 months for conspiracy to distribute heroin; and Wilson was sentenced to 36 months for conspiracy to distribute heroin.
Rochester Man Sentenced to 72 Months for Possession with Intent to Distribute FentanylRead the Press Release
CONCORD – Christopher Archambault, 56, of Rochester, was sentenced today to 72 months in federal prison for possession with intent to distribute more than 40 grams of fentanyl, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, on November 24, 2020, after conducting surveillance of a residence in Weare, NH believed to be the site of drug activity, officers of the New Hampshire State Police conducted a motor vehicle stop of a car in which Mr. Archambault was a passenger. A search of the vehicle resulted in the seizure of a black cloth bag concealed in the cushion of the back passenger seat, which contained 250.6 grams of fentanyl, packaged for distribution in smaller baggies. Mr. Archambault admitted that the drugs belonged to him.
“We will prosecute drug dealers who poison the community with dangerous narcotics to the fullest extent of the law,” said U.S. Attorney Young. “This federal sentence reflects the recognized danger that narcotics, and those who sell them for a profit, pose to our state. Our office is working closely with our law enforcement partners to disrupt illegal drug distribution in a concerted effort to prevent the harm that narcotics such as fentanyl are causing New Hampshire residents.”
“DEA is committed to investigating individuals who are responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentence be a warning to those traffickers who distribute this poison in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes deadly drugs.”
This matter was investigated by New Hampshire State Police with the assistance of the United States Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Aaron Gingrande and Cam Le.
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Rancher Sentenced for Running $244 Million “Ghost Cattle” ScamRead the Press Release
A cattle rancher in Washington was sentenced yesterday to 11 years in prison for defrauding Tyson Foods Inc. (Tyson) and another company (Company 1) out of more than $244 million by charging the victim companies for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not exist.
According to court documents, Cody Allen Easterday, 51, of Mesa, used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and Company 1 under which Easterday Ranches agreed to purchase and feed cattle on behalf of Tyson and Company 1. Per the agreements, Tyson and Company 1 would advance Easterday Ranches the costs of buying and raising the cattle. Once the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced – plus interest and certain other costs – retaining the difference as profit.
“The Criminal Division is committed to holding those who carry out fraudulent schemes accountable, especially those that are complex, long-running, and seriously affect our nation’s food industry and commodities market,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
Between approximately 2016 and November 2020, Easterday submitted and caused others to submit false and fraudulent invoices and other information to Tyson and Company 1. These false and fraudulent invoices sought and obtained reimbursement from the victim companies for the purported costs of purchasing and raising hundreds of thousands of cattle that neither Easterday nor Easterday Ranches ever purchased, and that did not actually exist.
As a result of the fraud scheme, Tyson and Company 1 paid Easterday Ranches over $244 million for the purported costs of purchasing and feeding over 265,000 ghost cattle. Easterday used the fraud proceeds for his personal use and benefit, and for the benefit of Easterday Ranches, including to cover approximately $200 million in commodity futures contracts trading losses that Easterday had incurred on behalf of Easterday Ranches. In connection with his trading, Easterday also defrauded the CME Group Inc. (CME), which operates the world’s largest financial derivatives exchange, by submitting falsified paperwork, which resulted in the CME exempting Easterday Ranches from otherwise-applicable position limits in live cattle futures contracts.
“No one is above the law. Mr. Easterday amassed significant personal wealth, yet, he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed,” said U.S. Attorney Vanessa R. Waldref for the Eastern District of Washington. “But for the combined and incredible efforts of our law enforcement team, today’s sentence and the $244 million restitution award – one of the largest in our District’s history – would not have been possible. Fraud has a debilitating impact on society by draining our communities’ limited resources. Accordingly, we will continue to prosecute fraudsters to the fullest extent so we can keep our communities safe and strong in Washington State and throughout our great Nation.”
“Today’s sentence sends a strong message that individuals who commit fraud will be held accountable for the harm caused to banks, communities and the agricultural sector,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG). “The FDIC Office of Inspector General remains committed to investigating cases of swindle and deception that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”
“Cody Easterday spent years engaged in an extensive false billing scheme that resulted in millions of dollars in losses for the victim which led to sizable personal benefits for himself,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Today’s sentencing is proof that anyone who engages in deceptive practices like this will be held accountable for their actions. The Postal Inspection Service is proud to have partnered with the FDIC-OIG in this investigation.”
The FDIC-OIG and USPIS Criminal Investigations Group investigated the case.
Deputy Chief Avi Perry and Assistant Chief John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brian M. Donovan and Russell E. Smoot for the Eastern District of Washington prosecuted the case.
Quincy, Illinois, Man Sentenced to Ten Years in Federal Prison for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Marcus Moore, 35, formerly of the 2800 block of East Bluff Court, was sentenced on October 3, 2022 to 120 months’ imprisonment, to be followed by 60 months of supervised release, by United States District Judge Sue Myerscough for distributing over 200 grams of pure methamphetamine in Quincy.
At the sentencing hearing, Moore was held accountable for the following acts: on January 15, 2021, Moore distributed 54.3 grams of highly pure methamphetamine; on February 9, 2021, he distributed 55 grams; on March 18, 2021, he distributed 80.5 grams; and on August 17, 2021, he possessed with the intent to distribute 24.6 grams. Moore has been detained since his arrest in August of 2021.
The statutory penalties for distributing more than 50 grams of methamphetamine are a minimum of ten years and up to a life term of imprisonment, up to a $10,000,000 fine, and up to five years of supervised release.
The Drug Enforcement Administration, Illinois State Police West Central Illinois Task Force, Quincy Police Department, and Adams County States Attorney’s Office were involved in the investigation and prosecution of this case. Assistant U.S. Attorney Sarah Seberger represented the government in the prosecution.
The case against Moore was brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
Pittsburgh Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of Attempted Coercion and Enticement of a Minor, Distribution and Attempted Distribution of Material Depicting the Sexual Exploitation of a Minor, and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
Wayne Edward McNutt, age 57, pleaded guilty to four counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from Feb. 25, 2021, until July 26, 2021, McNutt used the Internet and a cellular telephone to knowingly attempt to persuade, induce, entice, and coerce an individual who had not attained the age of 18 years to engage in sexual activity. Specifically, McNutt engaged online with law enforcement acting in an undercover capacity and purporting to be a parent and child. McNutt expressed interested in meeting the child for sexual conduct and sent the purported minor’s parent money to enable the parent and child to travel to Pittsburgh to meet McNutt for sexual conduct. McNutt planned to meet the purported minor and parent at a hotel in Pittsburgh that he booked. On July 26, 2021, law enforcement intercepted McNutt when he arrived at the Pittsburgh-area hotel to meet the minor.
During the course of this investigation, on March 11 and March 16, 2021, McNutt sent to the undercover agent image and video files that depicted minors engaging in sexually explicit conduct. When agents encountered McNutt on July 26, 2021, he possessed a cell phone that contained additional videos of minors engaging in sexually explicit conduct. This child sexual abuse material included depictions of prepubescent minors.
Judge Conti scheduled sentencing for Feb. 1, 2023, at 11:00 a.m. The law provides for a total sentence of not less than 15 years and not more than life in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, McNutt remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, the FBI Albany Mid-State Child Exploitation Task Force, and the FBI Albany Child Exploitation and Human Trafficking Task Force conducted the investigation that led to the prosecution of McNutt.
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.justice.gov/psc.
Philadelphia Man Admits Drug Trafficking Conspiracy Involving over 100 Kilograms of CocaineRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted conspiring to distribute five kilograms or more of cocaine as part of a drug-trafficking organization operating in Philadelphia and southern New Jersey, U.S. Attorney Philip R. Sellinger announced.
Iran Soler, 43, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Soler and his conspirators traveled to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport on numerous occasions between March 2019 and August 2020. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Soler and the conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, where a conspirator, Jose Gonzalez, resold the cocaine to other drug dealers in the Philadelphia area for a profit. Soler and the other conspirators purchased and shipped over 100 kilograms of cocaine to Philadelphia and southern New Jersey between March 2019 and August 2020.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. Soler is scheduled to be sentenced on Feb. 6, 2023.
Gonzalez previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced Jan. 30, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Paducah Man Sentenced to 21 Months in Federal Prison for CARES Act FraudRead the Press Release
Paducah, KY – A Paducah man was sentenced yesterday to 21 months in prison and was ordered to pay restitution in the amount of $10,000 for fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Jerry C. Templet, Jr. Special Agent in Charge of the Department of Homeland Security Investigations made the announcement.
According to court documents, between June 30, 2020, and July 3, 2020, Travon D. Jones, 27, of Paducah, Kentucky, stole $10,000 from the Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA). The EIDL program is a CARES Act financial assistance program which provided loan assistance (including $10,000 advances) for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the COVID-19 disaster not occurred. The EIDL application Jones submitted through the SBA online portal contained false statements and misrepresentations.
Jones was also sentenced to 3 years of supervised release upon completion of his term of imprisonment. There is no parole in the federal system.
The Department of Homeland Security Investigations investigated the case with the assistance of the Paducah Police Department and the Small Business Association Office of Inspector General.
Assistant U.S. Attorney Raymond McGee of the U.S. Attorney’s Paducah Branch Office prosecuted the case.
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 by, among other methods, 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 visit https://www.justice.gov/coronavirus.
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 at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Oshkosh Man Sentenced to 8 ½ Years for Methamphetamine Trafficking & Money LaunderingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Cory Freyermuth, 39, Oshkosh, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 8 ½ years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine and money laundering. Freyermuth pleaded guilty to these charges on January 31, 2022.
The government’s investigation revealed that co-defendants Levi Bagne and Krista Sparks routinely mailed packages containing methamphetamine from Arizona to Freyermuth in Oshkosh, Wisconsin. Once Freyermuth received the methamphetamine, Bagne would drive to Oshkosh from Arizona and personally distribute the methamphetamine. However, after a period of time, Freyermuth began distributing the methamphetamine to dealers in Oshkosh and Stevens Point, Wisconsin, based on Bagne’s instructions. After being paid by the local dealers, Freyermuth would either store the cash until Bagne picked it up, or he would return the money to Bagne through bank deposits or cashier’s checks. Freyermuth also drove large amounts of drug proceeds to Bagne in Arizona.
On November 12, 2019, and again on February 15, 2020, Bagne and Sparks mailed packages containing methamphetamine from Arizona to Freyermuth’s residence in Oshkosh, Wisconsin. The packages were seized by law enforcement and subsequent searches of the packages revealed a total of six pounds of methamphetamine.
On September 2, 2020, agents executed a search warrant on a storage unit belonging to Bagne and Freyermuth in Stevens Point. During the search, agents recovered approximately ten pounds of methamphetamine.
At the sentencing hearing, Judge Peterson stated that a significant sentence was warranted because the conspiracy involved a tremendous amount of methamphetamine being distributed in central Wisconsin. Judge Peterson described Freyermuth’s role in the large-scale conspiracy as multifaceted, including transportation, storage, and distribution of methamphetamine. Judge Peterson also concluded that Freyermuth played a key role in the money laundering scheme which allowed Bagne to continue to purchase methamphetamine in Arizona. Finally, Judge Peterson noted that Freyermuth’s criminal history was concerning and included a conviction for violence against his own family members.
A total of six individuals have been charged for participating in this methamphetamine distribution scheme. All six individuals have pleaded guilty. Bagne’s sentencing hearing is scheduled for October 18, 2022, at 10:00 a.m.
The charges against Freyermuth are the result of a joint investigation by the Central Wisconsin Narcotics Task Force, Drug Enforcement Administration, Lake Winnebago Area Metropolitan Unit, and Merrill Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Monmouth County Man Admits Corrupt Interference with Administration of Internal Revenue LawsRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted his corrupt interference with the administration of the Internal Revenue laws, U.S. Attorney Philip R. Sellinger announced.
Thomas Bertoli, 65, of Matawan, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of an indictment charging him with corrupt interference with the administration of the Internal Revenue laws.
According to documents filed in this case and statements made in court:
Bertoli operated the following businesses: The Doormen Inc.; City Street Associates LLC aka CSA LLC; and Urban Logistics LLC (Urban Logistics). Bertoli, individually and through the Bertoli companies, obtained payments from clients for services provided, including payments from developers and construction firms for expediting services on real estate development and construction projects, primarily in Jersey City, New Jersey, and payments from political campaigns for political consulting services in New Jersey. Expediting in the construction industry typically refers to facilitating the acquisition of building permits and other government agency approvals required for the completion of real estate development and construction projects.
On June 5, 2014, Bertoli was interviewed by an IRS collections officer at Bertoli’s residence. Bertoli had not filed tax returns for calendar years 2009 to 2013, despite earning income during that period and owing a total of $195,889 in taxes for those calendar years. At that time, Bertoli was earning income principally from his operation of Urban Logistics, a company which he owned and for which he was the sole employee. Bertoli falsely claimed, however, that he was employed as a construction worker at a construction company to conceal the existence of Urban Logistics and the income that he earned from his operation of Urban Logistics.
After the June 2014 interview until November 2015, Bertoli was aware of certain actions taken by the IRS to collect taxes that he owed, including applying levies and requiring that he make an estimated tax payment for calendar 2014. In communications with the IRS during this period, Bertoli continued to purposefully conceal the existence of Urban Logistics and that he was earning substantial income from his operation of Urban Logistics. Bertoli admitted that, by his concealment of the existence of Urban Logistics from the IRS, he acted knowingly and corruptly, that is, with the purpose to obtain an unlawful benefit for himself by obstructing and impeding the collections activity of the IRS.
The charge of corrupt interference with the administration of the Internal Revenue laws carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. If accepted by the court at the time of sentencing, the parties’ plea agreement provides that Bertoli will be sentenced to up to 18 months in prison and make full restitution of $1.17 million to the IRS for unpaid taxes for calendar years 2009 to 2016. Sentencing is scheduled for Feb. 7, 2023.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh, Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney J Fortier Imbert of the Special Prosecutions Division.
Middle Georgia Man Sentenced to 30 Years in Prison for Producing Child Sexual Assault MaterialRead the Press Release
MACON, Ga. – A Barnesville, Georgia, resident who admitted to producing child sexual assault material involving a minor victim was sentenced to the maximum prison term allowed by federal law for his crime.
Marty Allan Kinard, 47, was sentenced to serve a total of 360 months in prison to be followed by a lifetime term of supervised release by U.S. District Judge Tilman E. “Tripp” Self, III on Oct. 4 after he pleaded guilty to one count of production of child sexual assault material. In addition, Kinard will have to register as a sex offender for life upon his release from federal prison. There is no parole in the federal system.
“The actions of all those who film and upload the sexual assault and exploitation of children in the Middle District of Georgia will not be tolerated; our office is pursuing maximum punishment allowed under law for these criminal actions,” said U.S. Attorney Peter D. Leary. “The Barnesville Police Department took immediate action when they received a cybertip from the National Center of Missing and Exploited Children that a child in their community was in danger; working closely with GBI, law enforcement prevented further harm to a minor and brought a child predator to justice.”
“The defendant justly received the maximum sentence allowed under law. However, I am well aware that the imposed sentence can never equal the physical and emotional trauma that the victim will have to deal with for the rest of the victim’s life,” said Captain Al Moltrum, Barnesville Police Department. “We were able to stop a child predator thanks to our collaboration with GBI and the Greene County Sheriff’s Office, who assisted our agency with obtaining the forensic evidence found on the defendant’s cellular phone.”
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation. We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice,” said GBI Director Michael Register.
According to court documents, the Barnesville Police Department (BPD) began an investigation after receiving a cybertip on May 27, 2021, from the National Center for Missing and Exploited Children (NCMEC) originating from Tumblr of an uploaded file containing child sexual assault material. On May 28, 2021, BPD obtained a state search warrant at the residence. A search of the residence recovered two cell phones belonging to Kinard; one of the phones contained child sexual assault material Kinard produced involving a minor child. Days later, on June 2, 2021, GBI received a cybertip from NCMEC of several files for the social media application Kik which contained child sexual assault material. Both IP addresses linked back to the same residence in Barnesville where Kinard resided. Kinard now admits that from Feb. 1, 2021, until May 28, 2021, he enticed a minor child to produce child sexual assault material which he uploaded online.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Barnesville Police Department and the Georgia Bureau of Investigation (GBI) Internet Crimes Against Children (ICAC) Task Force with assistance from the Greene County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Alex Kalim.
Middle District of Louisiana Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
U.S. Attorney Gathe stated, “The protection of older adults from all forms of abuse is among our highest priorities at the Department of Justice. Older adults are targeted by some of the most sophisticated criminals, and it requires the coordinated resources of all law enforcement partners to bring these offenders to justice.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
In the Middle District of Louisiana, Shawn Phillips was prosecuted and convicted for defrauding an elderly man out of over $50,000. Phillips befriended the victim and took advantage of that friendship to get the victim to “loan” Phillips money over a 16-month period with no intention of paying it back. Phillips was sentenced to 33 months in federal prison and ordered to pay full restitution to the victim.
Additionally, a member of a nationwide computer fraud scheme that defrauded elderly victims out over $340,000 was brought to justice in the Middle District of Louisiana. Mohammad Alam pled guilty for his role in the scheme. As the money mule, he assisted the fraudsters by receiving money from victims of fraud and forwarded it to the fraud organizers, some of whom were located abroad.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 5:00 a.m. to 10:00 p.m.CST. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican national indicted for downloading pornography of prepubescent minorsRead the Press Release
McALLEN, Texas – A 26-year-old man from Reynosa, Mexico, has been charged for receipt and possession of child pornography depicting prepubescent minors, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the two-count indictment against Ricardo Reyes-Garcia. He is expected to appear before U.S. Magistrate Judge Nadia S. Medrano in the near future.
According to the criminal complaint originally filed in the case, an investigation revealed Reyes-Garcia uploaded multiple files of child pornography into his Google account while in the United States. He allegedly downloaded approximately 200 videos depicting children between the ages of five and 13 and categorized them into a folder designated for child pornography.
If convicted, Reyes-Garcia faces up to 20 years in federal prison.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Devin V. Walker is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Methuen Man Sentenced to Seven Years in Prison for Role in Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Methuen man has been sentenced in federal court in Boston for selling a fentanyl and acetyl fentanyl mixture to an undercover agent on five occasions.
Andi Guerrero-Lara, a/k/a “Manny Sierra,” 25, was sentenced on Sept. 28, 2022 by U.S. District Court Judge Richard G. Stearns to seven years in prison and four years of supervised release. On Jan. 5, 2022, Guerrero-Lara pleaded guilty to a seven count superseding indictment charging him with one count of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of acetyl fentanyl; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl and 10 grams or more of acetyl fentanyl; two counts of distribution and possession with intent to distribute 10 grams or more of acetyl fentanyl and fentanyl; and one count of possession with intent to distribute 100 grams or more of acetyl fentanyl and 40 grams or more of fentanyl.
In December 2019, Guerrero-Lara was indicted along with co-defendant Angel Rivera-Valle. He was subsequently charged in a superseding indictment on Sept. 2, 2020.
The defendants were members of a drug trafficking organization operating in the Merrimack Valley area of Massachusetts that regularly sold large quantities of fentanyl. Between September and October 2019, an undercover agent purchased a fentanyl and acetyl fentanyl mixture from the defendants on five separate dates. According to court documents, after Rivera-Valle was arrested, Guerrero-Lara led agents on a high-speed car chase in 2019 that spanned numerous miles and three cities during which Guerrero-Lara endangered multiple lives, as he narrowly missed crashing into a construction zone and police vehicles. Ultimately, Guerrero-Lara stopped his vehicle at an apartment complex in Lawrence and was arrested.
On Sept. 8, 2020, Rivera-Valle was sentenced by Judge Sterns to 64 months in prison and four years of supervised release.
“Drug traffickers like Mr. Guerrero-Lara are a danger to our communities. This individual pumped deadly opioids into our neighborhoods and, when he was finally exposed, recklessly endangered multiple lives in lengthy, a high-speed car chase,” said United States Attorney Rachael S. Rollins. “Opioids are the leading cause of now record-high drug overdose deaths – cutting short the lives of far too many. This sentence should serve as a warning to drug traffickers: you will be identified, prosecuted and held accountable.”
“Massachusetts is in the midst of a devastating opioid crisis as deaths from fentanyl soar. The DEA will continue to use every resource available to identify those, like Mr. Guerrero-Lara, who are contributing to the crisis,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. “This sentence holds Mr. Guerrero-Lara accountable for his crimes and we will continue to work to put other callous distributers like him behind bars.”
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
U.S. Attorney Rollins and DEA SAC Boyle made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Member of Multistate Drug Trafficking Organization Pleads GuiltyRead the Press Release
PITTSBURGH – A Pennsylvania resident pleaded guilty on Monday in federal court to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Romondo Oatis, 48, of Farrell, Pennsylvania, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine from March of 2019 through September of 2020 before United States District Judge J. Nicholas Ranjan. Oatis is one of 13 defendants charged in the Indictment returned in this case.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration (DEA) began investigating a cocaine and fentanyl trafficking organization that operated throughout the United States, including Florida, Ohio, Pennsylvania, and Puerto Rico. Beginning in December of 2019 and continuing through August of 2020, the DEA received authorization to conduct a Title III wiretap investigation into the organization. Oatis, as a member of this multistate drug trafficking organization, was intercepted discussing acquiring and distributing cocaine throughout western Pennsylvania. In addition to the intercepted communications, agents seized cocaine, heroin, fentanyl, methamphetamine, ecstasy, marijuana, firearms, and bulk United States Currency from members of the organization, including Oatis.
Judge Ranjan scheduled sentencing for March 3, 2023. The law provides for a total sentence of not less than 10 years to a maximum of life imprisonment, a fine not to exceed $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Oatis remains in custody pending sentencing.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The DEA in Pittsburgh, PA; the DEA, Columbus, OH; the DEA, Harrisburg, PA; Homeland Security Investigations (HSI), Pittsburgh, PA; HSI, Orlando, FL; Internal Revenue Service-Criminal Investigations; United States Postal Service, Columbus, Ohio; Pennsylvania Office of Attorney General; Lawrence County Drug Task Force – Special Investigations Unit; and New
Castle Police Department conducted the investigation leading to the prosecution of Oatis.This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money aunderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Maryland Man Sentenced to 24 Months in Prison for Attempted Robbery in Northwest WashingtonRead the Press Release
WASHINGTON – Stephen Waller, 32, of Laurel, Maryland, was sentenced today to 24 months in prison on an attempted robbery charge, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department.
Waller pleaded guilty in August 2022, in the Superior Court of the District of Columbia, to attempted robbery. He was sentenced by the Honorable J. Michael Ryan. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on July 10, 2022, at approximately 11 p.m., Waller approached a stranger with a knife and demanded the victim’s cell phone. The victim escaped and flagged down MPD officers near 6000 Georgia Avenue NW, directing them to Waller’s location. MPD officers stopped Waller near the scene of the crime. He had a knife in his pocket. At the time of the offense, Waller was on probation for Maryland convictions of second-degree assault and theft of property or services. He has been held since his arrest.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Carlos A. Valdivia and Jared English, who investigated and prosecuted the matter.
Lynn Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
BOSTON – A Lynn man pleaded guilty on Sept. 28, 2022 in federal court in Boston to firearm and narcotics charges arising from a traffic stop in Dorchester.
Rahiym Mervin, 29, pleaded guilty to one count of being a felon in possession of a firearm, and one count of possession with intent to distribute fentanyl and cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 8, 2023. Mervin was indicted by a federal grand jury on March 30, 2022.
“Despite his multiple past encounters with the criminal legal system and being out on bail for a separate state gun and drug case, Mr. Mervin continued engaging in illegal activity involving narcotics and firearms,” said United States Attorney Rachael S. Rollins. “Now he is in the federal system. We will continue to work with our local law enforcement partners to assist in removing dangerous, violent individuals from our communities. The hard-working people in these communities deserve to feel safe.”
“Residents in Boston suffering from substance use disorder are often the most vulnerable to violent crime in the neighborhoods of Boston,” said Boston Police Commissioner Michael A. Cox. “The Boston Police Department, with our law enforcement partners, are committed to saving lives by stopping the flow of narcotics and illegal firearms into our neighborhoods, and I commend these efforts to hold offenders accountable for preying on our most vulnerable. I look forward to continued collaboration to target those individuals causing this harm”.
On the evening of Dec. 15, 2021, Mervin was observed speeding on Blue Hill Avenue in Dorchester and was subsequently pulled over by local police. A search of Mervin’s rented vehicle resulted in the recovery of two high-capacity firearm magazines, 380 grams of cocaine, 135 grams of a mixture of methamphetamine, cocaine and caffeine and 96 grams of a fentanyl analog – an extremely potent opioid, substantially more powerful than heroin. A loaded 9mm handgun and a portion of the narcotics were also discovered inside a “hide” behind the climate control panel in the dashboard. Mervin was arrested on scene and has been in custody since.
At the time of his arrest, Mervin was on bail on similar gun and narcotics charges pending in Norfolk County arising from an incident in Quincy in May 2019. In addition, Mervin was previously convicted in June 2016 in Plymouth County of possessing a firearm without a license, for which he was sentenced to three years in prison.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, six years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, Commissioner Cox and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney John T. McNeil of Rollins’ Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Louisville Man Indicted on Federal Firearms ChargeRead the Press Release
Louisville, KY – A federal grand jury returned an indictment yesterday charging James Hickman III with illegal possession of a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and U.S. Marshal Gary B. Burman of the U.S. Marshal Service for the Western District of Kentucky made the announcement.
According to the indictment, James Hickman III, 29, of Louisville, was charged with one count of possession of a firearm by a convicted felon. Hickman was previously convicted in Jefferson County, Kentucky, with the felonies of facilitation of robbery in the first degree, assault under extreme emotional disturbance, and tampering with physical evidence.
The defendant will make an initial court appearance on a later date before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky. If convicted, Hickman faces up to 15 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
This case is being investigated by the ATF, United States Marshals Service, and the Louisville Metro Police Department.
This case is being prosecuted by Assistant United States Attorney Josh Porter.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Lebanon County Man Indicted on COVID-19 Unemployment Fraud ChargesRead the Press Release
HARRISBURG, The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stacy Taylor, age 27, of Lebanon, Pennsylvania, was indicted by a federal grand jury on 52 counts of Wire Fraud and 52 counts of Mail Fraud.
According to United States Attorney Gerard M. Karam, the indictment alleges that between March 21, 2020, and December 30, 2020, Taylor made materially false and fraudulent pretenses to the Pennsylvania Department of Labor and Industry and the Employment Development Department for the State of California, to obtain Pandemic Unemployment Assistance unemployment benefits, meant for individuals not eligible for regular unemployment compensation or extended unemployment benefits.
The case was investigated by the U.S. Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, the Pennsylvania Department of Probation/Parole, the Lebanon County Drug Task Force, and the Lebanon City Police Department. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations”, stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
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 by, among other methods, 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 visit https://www.justice.gov/coronavirus.
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 at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The maximum penalty under federal law for each of these offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Leader and Member of Southwest Baltimore “NFL” Gang Admit to Participating in a Racketeering Conspiracy Related to Their Gang Activities, Including Murder and a Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Gang leader Gregory Butler, a/k/a “Gotti,” “Sags,” and “Little Dick,” age 31, and member James Henry Roberts, a/k/a “Bub,” age 32, both of Baltimore, Maryland, pleaded guilty to conspiracy to participate in a racketeering enterprise related to their activities in the NFL gang, which operated in the Edmondson Village area in Southwest Baltimore, specifically, Normandy, Franklin, and Loudon streets. The guilty pleas were entered on October 3, 2022.
The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Baltimore District Office; Secretary Robert L. Green of the Maryland Department of Public Safety and Correctional Services; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to their guilty pleas, from 2016 to March 2020, Butler was the leader of, and Roberts was a member of, the NFL enterprise and participated in its illegal activities with other members, including the NFL drug trafficking organization (DTO). The term “NFL” stands for Normandy, Franklin, and Loudon, three adjacent streets that run through the Edmondson Village in Baltimore. Members of NFL have social and familial ties to the Edmondson Village neighborhood in southwest Baltimore.
During the conspiracy, NFL members distributed large quantities of heroin and cocaine to drug customers and re-distributors from Maryland, Virginia, West Virginia and Pennsylvania. Butler and Roberts admitted that they obtained narcotics from multiple sources of supply and stored the narcotics in a stash houses that they controlled. Over the course of the charged conspiracy, Butler and Roberts and their co-conspirators distributed over one kilogram of heroin and more than 280 grams of cocaine base. Butler also admitted that he and his co-conspirators also distributed more than 400 grams of fentanyl
Butler admitted that the NFL enterprise sold heroin and fentanyl to multiple drug customers who subsequently overdosed and died. Butler agreed that these fatal overdoses were reasonably foreseeable to him, in light of his direct oversight of the enterprise’s drug trafficking activities. For example, on about August 16, 2018, Butler coordinated the sale of heroin to customer in Rockville, Maryland, who, later that day, used the heroin and died.
Butler and Roberts paid members and associates of the NFL enterprise to commit multiple murders on behalf of the enterprise. For example, in 2018, Roberts and others offered a bounty in exchange for the murder of Victim 1, who Roberts believed was cooperating with law enforcement. On June 16, 2018, an NFL member (Co-conspirator 1) murdered Victim 1 as well as a bystander (Victim 2). Shortly after the murders, Roberts paid Co-conspirator 1 with money from another NFL related enterprise.
Additionally, in October 2018, Roberts learned of a bounty for the murder of Victim 3. In an effort to collect the bounty, Roberts recruited two NFL members to murder Victim 3 and share he proceeds. Ultimately, the two NFL members shot and killed Victim 3 on October 31, 2018, then notified Roberts of Victim 3’s murder.
If the Court accepts the sentence agreed upon by the defendants and the government, Butler and Roberts will each be sentenced to 30 years in federal prison. U.S. District Judge Paul W. Grimm has not yet scheduled sentencing for the defendants.
More than 30 defendants in this and related cases have pleaded guilty and been sentenced to between 15 years and time served. Four other defendants, including Butler and Roberts have pleaded guilty and are awaiting sentencing. The final defendant is scheduled to go to trial on November 28, 2022.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI, DEA, DPSCS, the Montgomery County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., James T. Wallner, and Robert I. Goldaris who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Last Defendant Sentenced in Large Fentanyl Trafficking ConspiracyRead the Press Release
LEXINGTON, Ky. — A Richmond, Ky., man, Bud Hembree, 49, was sentenced on Tuesday to 230 months in prison, by Chief U.S. District Judge Danny Reeves, for conspiracy to distribute 40 grams of more of fentanyl and possession with intent to distribute fentanyl.
According to Hembree’s plea agreement, on December 14, 2020, law enforcement arrested Hembree and found approximately 17 grams of fentanyl on his person. Law enforcement monitored Hembree’s jail calls while he was detained, revealing that he directed his other co-defendants to distribute fentanyl while he was in jail.
Hembree pleaded guilty in May 2022. Hembree’s co-defendants have previously been sentenced for their roles in the conspiracy and received the following sentences:
- Leon H. Benson, 37, of Berea, Ky., received 105 months in prison, followed by six years of supervised release.
- Shanquenta V. Bulley, 27, from Berea, received 36 months in prison, followed by five years of supervised release.
- Claudia D. Gibson, 39, from Richmond, received 37 months in prison, followed by three years of supervised release.
- Justin M. Howell, 38, from Richmond, received 255 months in prison, followed by eight years of supervised release.
- Tiffany A. McCormick, 42, from Richmond, received 87 months in prison, followed by six years of supervised release.
- Joseph W. McElroy, 42, from Richmond, received 240 months in prison, followed by six years of supervised release.
- Misty D. Riddell, 30, from Berea, received 120 months in prison, followed by eight years of supervised release.
Under federal law, Hembree and his co-defendants must serve 85 percent of their prison sentences. Upon his release from prison, Hembree will be under the supervision of the U.S. Probation Office for six years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Col. Phillip Burnett, Commissioner, Kentucky State Police; Chief James Ebert, Richmond Police Department; Chief Eric Scott, Berea Police Department; and Sheriff Mike Coyle, Madison County Sheriff’s Office; jointly announced the sentences.
The investigation was conducted by the DEA, KSP, Madison County High Intensity Drug Trafficking Area (HIDTA) Task Force, Richmond Police Department; Berea Police Department; and Madison County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney David Kiebler.
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Las Vegas Resident Sentenced to over Seven Years in Prison for Attempting to Solicit Child for SexRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced on September 30, 2022, by U.S. District Judge Cristina D. Silva to 87 months in prison followed by a lifetime term of supervised release for attempting to solicit sex from a minor in exchange for money.
Mario Demarlo Alston (57) pleaded guilty in June 2022 to coercion and enticement. In addition to imprisonment, Alston will be required under the Sex Offender Registration and Notification Act to register as a sex offender.
According to court documents, on May 3, 2020, Alston communicated online with someone he believed to be 15 years old. During the message exchange, he attempted to coerce and entice an individual to meet for the purpose of engaging in sexual activity for money. Law enforcement arrested Alston at the meeting place.
In 2017, Alston was investigated for soliciting a 13-year-old child for sex and then sexually assaulting that child. He pleaded guilty to Nevada state charges, but, after he failed to appear for his sentencing, a bench warrant was issued. The bench warrant was active when he was arrested in this case. He was sentenced in his state case.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad prosecuted the case.
The 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Cruces man faces federal firearms chargeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and James VanVliet, Acting Special Agent in Charge of the Dallas Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that Delbert Tyler Trevino was charged with possession of an unregistered short barrel rifle. Trevino, 31, of Las Cruces, New Mexico, appeared in federal court today for a detention hearing and will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, in response to a report of suspicious activity, investigators with the Doña Ana Sheriff’s Office obtained a search warrant for a residence in Mesilla Park, where Trevino was house sitting. While conducting the search on Sept. 2, deputies located a multi-caliber rifle in the bedroom in which Trevino was staying.
Investigators concluded that the barrel of the rifle was only 13 inches. Rifles with a barrel length under 16 inches are considered short barrel rifles and must be registered in the National Firearms and Transfer Record. A query of the record indicated that the rifle was not registered.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Trevino faces up to 10 years in prison.
The Las Cruces Field Office of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case with assistance from the Doña Ana County Sheriff’s Office and the Las Cruces Police Department. Anyone with information relating to this matter is encouraged to contact ATF at 1-888-ATF-TIPS or [email protected].
Assistant United States Attorneys Maria Y. Armijo and Luke Rizzo Cascio are prosecuting the case.
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Las Cruces man charged after standoff with policeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and James VanVliet, Acting Special Agent in Charge of the Dallas Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that Edward Lee Walters was charged with possession of firearms by a person subject to a court order. Walters, 54, of Las Cruces, New Mexico, appeared in federal court today for a detention hearing and will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on June 15, a stipulated order of protection was filed restraining Walters from committing acts of abuse or threats of abuse and from having any contact with his former intimate partner, identified as V1, with whom he shares a child. That order is in effect until June 15, 2024. On July 21, an order of protection restraining Walters was issued and is effective until July 21, 2036.
On Sept. 14, Doña Ana Sheriff Deputies responded to a 911 call reporting that Walters was in V1’s residence in Las Cruces. As alleged in the complaint, deputies found Walters with V1 in the garage. Deputies escorted V1 and her child out of the residence.
Walters then allegedly barricaded himself inside the residence, but later surrendered. Deputies executed a search warrant on the residence and located a handgun, a rifle, two pipe bombs and a lighter. Walters was placed under arrest.
Under federal law, as a person subject to a protective order, Walters cannot possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Walters faces up to 10 years in prison.
The Las Cruces Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Doña Ana County Sheriff’s Office. Assistant United States Attorney Maria Y. Armijo is prosecuting the case.
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Lake City Man Pleads Guilty to Federal Firearm and Drug OffensesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that John Nathan Hemingway (52, Lake City) has pleaded guilty to possession with the intent to distribute methamphetamine, cocaine, and cocaine base (also known as “crack” cocaine) and possession of a firearm in furtherance of a drug trafficking crime. Hemingway faces a minimum mandatory sentence of five years, and up to life, in federal prison. He had been indicted on March 9, 2022.
According to the plea agreement, on multiple occasions, a confidential informant (CI) purchased crack cocaine that had been supplied by Hemingway at his home in Lake City. Following these controlled purchases, a Special Agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives obtained a federal search warrant authorizing the search of Hemingway’s home. On February 15, 2022, law enforcement searched the home and located a digital scale, plastic baggies, $11,216.11 in cash, a loaded semi-automatic pistol, methamphetamine, powder cocaine, and crack cocaine.
As part of his plea, Hemingway agreed to forfeit the cash, firearm, and ammunition found in his home.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia County Sheriff’s Office, the Lake City Police Department, the Drug Enforcement Administration, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Michael J. Coolican. Assistant United States Attorney Mai Tran is handling the forfeiture of assets.
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.
Justice Department Expands Transnational Elder Fraud Strike Force to NDTX to Protect Older Americans from FraudRead the Press Release
The Justice Department has announced that as part of its continuing efforts to protect older adults and to bring perpetrators of fraud schemes to justice, it is expanding its Transnational Elder Fraud Strike Force, adding 14 additional U.S. Attorney’s Offices, including the Northern District of Texas.
Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, the FBI, U.S. Postal Inspection Service, and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure, and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland, and New York.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
The strike force expansion will further enhance the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.
Over the past year, the Northern District of Texas has convicted five defendants of conspiracy to commit wire fraud stemming from various romance scams targeting elderly individuals. Five additional defendants are awaiting trial. Agents put the loss amount at roughly $9.3 million to date.
Northern District of Texas Assistant U.S. Attorneys have also participated in numerous outreach efforts. Assistant U.S. Attorney Donna Max provided elder abuse training to first responders and victim advocates at the 17th Annual National Conference on Crimes Against Women in May. Assistant U.S. Attorney Mary Walters provided training on building elder fraud cases against domestic and international defendants to other federal prosecutors at the Justice Department’s Elder Justice Coordinator Training in October.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Justice Department Awards a Total of Nearly $100 Million to Help Reduce Recidivism and Support Successful Reentry to CommunitiesRead the Press Release
The Department of Justice today announced awards totaling almost $100 million to reduce recidivism and support adults and youths in successfully returning to their communities after a period of confinement.
Office of Justice Programs’ (OJP) Bureau of Justice Assistance (BJA) Director Karhlton F. Moore made the announcement during an event in Brooklyn, New York. The event was hosted by the Osborne Association, a recipient of a grant awarded as part of BJA’s Second Chance Act Community-Based Reentry program. He was joined by U.S. Attorney Damian Williams for the Southern District of New York and U.S. Attorney Breon Peace for the Eastern District of New York.
“As we work to build safer and stronger communities, these grants will prepare and support people coming out of America’s prisons, jails and juvenile facilities, creating a path to opportunity and supplying the tools needed to build productive, successful lives,” said Associate Attorney General Vanita Gupta. “The investments we are making today will help us ensure that individuals returning home are in the best position to succeed.”
OJP’s BJA and Office of Juvenile Justice and Delinquency Prevention (OJJDP) are awarding grants to jurisdictions, nonprofit organizations, research institutions and other agencies to advance the Department’s goals to address the needs of people in correctional facilities and to empower those who have been incarcerated to return home as productive and thriving members of their communities.
The grants announced today will support a wide range of services for people who come into contact with the criminal and juvenile justice systems and for those leaving prisons, jails and youth confinement facilities. Funding will extend the Department’s significant investments in Second Chance Act adult and juvenile reentry programs, promote education and employment activities, support incarcerated parents of minor children, advance evidence-based community supervision services and protect incarcerated individuals from sexual assault.
Almost 550,000 people were released from state and federal prisons in 2020. Yearly releases from local jails are estimated in the millions, based on the number of jail admissions recorded each year and an average turnover rate of less than a month for each person admitted. And based on a one-day count, more than 36,000 youth are in residential placement, poised to return home.
The President’s Executive Order on Effective, Accountable Policing and Criminal Justice Practices called for the creation of an interagency Alternatives and Reentry Committee that is developing an evidence-informed strategic plan for reforms on the federal, state and local levels. The Justice Department is an active member of the committee. The Department is also partnering with the Department of Education to ensure that the field is ready for full Pell implementation for incarcerated individuals under the Second Chance Pell Initiative.
“The safety of our communities greatly depends on the educational, employment, treatment and other opportunities we afford to all who come into contact with the justice system,” said Director Moore. “We are pleased to make these resources available to our state, local and Tribal partners so that they can continue the vital work of welcoming recently incarcerated individuals back into society and providing them the tools they need to succeed.”
“The road to a more humane and effective juvenile justice system begins with a collective commitment to keeping young people out of the system and helping those who are already there find a path to a productive and successful future,” said OJJDP Administrator Liz Ryan. “These investments will open the door for youth to rejoin their communities, reconnect with their families and neighborhoods, and fulfill their true potential.”
Below is a summary of some of the awards tailored to support currently and formerly incarcerated individuals:
- BJA is awarding $16.5 million through its Second Chance Act Community-Based Reentry Program, which provides funding to community-based nonprofit service providers to implement or expand reentry programs that demonstrate strong partnerships with corrections, parole, probation and other reentry service providers.
- BJA is awarding $23.3 million under its Improving Reentry Education and Employment Outcomes program, which is designed to improve correctional educational and employment programs that serve individuals during incarceration and throughout their period of reentry into the community.
- BJA is awarding $5 million through its Second Chance Act Pay for Success Initiative, which provides funding for state, local and Tribal governments to enhance or implement performance-based and outcomes-based contracts with reentry, permanent supportive housing or recovery housing providers to reduce recidivism and address substance use disorder among participants.
- BJA is awarding $3.9 million through its Swift, Certain, and Fair Supervision Program: Applying the Principles Behind Project HOPE program, which provides funding to state, local and Tribal community supervision agencies to develop and test new or enhanced applications of the swift, certain and fair principles of intervention to reduce recidivism and improve outcomes for people under community supervision.
- BJA is awarding $6.4 million under the Smart Reentry and Supervision: Grants, Tools, and Technical Assistance to Facilitate Change initiative, which supports states and units of local government in planning, implementing or expanding effective reentry and supervision practices and service delivery systems that address individuals’ needs and reduce recidivism. The initiative provides technical assistance in addition to site-based funding.
- BJA is awarding $8.5 million under its Improving Adult and Juvenile Crisis Stabilization and Community Reentry Program, which provides funding to state, local and Tribal governments, as well as community-based nonprofit organizations, to enhance or implement clinical services and other evidence-based responses to improve reentry, reduce recidivism and address the treatment and recovery needs of people with mental health, substance use or co-occurring disorders who are currently or were formerly involved in the criminal justice system.
- BJA is awarding $2 million to establish a Community Supervision Resource Center to support the translation of best practices and innovations in community supervision among state, local and Tribal entities responsible for adult probation, parole and pretrial supervision. This new center will complement the work of the BJA-supported National Reentry Resource Center.
- BJA is awarding $1 million under the Tribal Corrections Capacity Building Training and Technical Assistance Program, which will support Tribal communities in implementing and/or enhancing alternatives to incarceration; enhancing Tribal justice system capacity to identify and meet the rehabilitation needs of probationers and those incarcerated; and embracing victim-centered community supervision and reentry approaches to better serve victims of crime.
- BJA is awarding $2.1 million under the Implementing the PREA Standards, Protecting People Who Are Incarcerated, and Safeguarding Communities, which will support projects designed to prevent, detect and respond to sexual abuse and sexual harassment in confinement facilities, and to achieve and maintain compliance with the Prison Rape Elimination Act standards.
- OJJDP is awarding $12.2 million under the Second Chance Act Youth Reentry Program, which is designed to reduce recidivism among youth returning to their communities following confinement and under community supervision, while promoting the fair administration of justice and advancing public safety.
- OJJDP is awarding $5.9 million under its Second Chance Act Addressing the Needs of Incarcerated Parents and Their Minor Children program, which enables states and units of local government to develop programs within detention or correctional facilities to respond to the needs of incarcerated parents who have children younger than the age of 18.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Johnstown Man Pleads Guilty to Conspiring to Distribute and Possess Cocaine, Heroin, and MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Darren Alston, age 30, of Johnstown, PA, pleaded guilty to a lesser included offense at Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from on or about April 2019, to on or about July 2021, Alston did conspire to distribute and possess with intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a quantity of a mixture and substance containing a detectable amount of heroin, and a quantity of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for February 9, 2023. The law provides for a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Alston. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jacksonville Health Care Provider Physicians Group Services Agrees to Pay $700,000 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces today that Physicians Group Services, P.A. (“PGS”) has agreed to pay the United States and the State of Florida $700,000 to resolve allegations that PGS violated the False Claims Act by submitting false or fraudulent claims to the Florida Medicaid Program, which is a state and federal partnership that provides access to health care coverage for low-income families and individuals in Florida.
The United States’ investigation focused on urine drug testing (“UDT”) by PGS. UDT occurs in a variety of health care settings. In a pain management practice, UDT is used to monitor whether a patient is taking prescribed drugs, is taking non-prescribed drugs, or is consuming with prescribed drugs other dangerous substances, such as alcohol. UDT is either “qualitative” or “quantitative.”
The clinical value of quantitative UDT depends in part on whether the qualitative UDT result is expected or unexpected, as well as the patient’s history of drug abuse, history of medication adherence and compliance, clinical presentation, and medical history. The settlement announced today resolves allegations that PGS submitted claims to Florida Medicaid for quantitative urine drug testing, which claims the United States and the State of Florida allege were medically unnecessary because the testing was not individualized to the particular needs of the patient.
“A primary mission of the United States Attorney’s Office is protecting the Medicaid program and other federal health care programs from fraud,” said U.S. Attorney Roger Handberg. “Our Civil Division works tirelessly in the pursuit of providers who overbill federal health care programs through indiscriminate testing.”
“Health care providers that submit fraudulent claims to Medicaid for medically unnecessary services undermine this safety net program for their own personal gain," said Special Agent in Charge Omar Pérez Aybar with the U.S. Department of Health and Human Services Office of Inspector General. “We continue to work tirelessly with our law enforcement partners to protect the integrity of federal health care programs and to ensure the appropriate use of U.S. taxpayer dollars.”
Attorney General Ashley Moody said, “My Medicaid Fraud Control Unit is committed to stopping fraud that bilks the Medicaid program and takes advantage of our taxpayers. I am proud of my Medicaid Fraud Control Unit for working with our federal partners to secure this action.”
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the Department of Health and Human Services Office of Inspector General, and the Florida Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorneys Lindsay Saxe Griffin and Sean Keefe led the civil investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Iredell Health System Subsidiary Agrees to Pay over $130,000 to Resolve Allegations That It Improperly Retained Overpayments Owed to Medicare and Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. - Statesville-based Iredell Physician Network, LLC (IPN) has agreed to pay $138,612 to resolve the allegations that it knowingly avoided an obligation to repay money owed to the Medicare and Medicaid programs, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
IPN is a wholly-owned subsidiary of Iredell Health System, which operates a hospital and multiple medical practices in and around Statesville, North Carolina. The settlement resolves allegations that IPN knowingly retained overpayments, or payments to which it was not entitled, obtained as the result of its billing for evaluation and management services performed by one of its providers during the time period of January 1, 2016, through December 31, 2019.
The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act also allows the government to intervene and take over the action. The government conducted the investigation and intervened in this action to effectuate the settlement.
The lawsuit resolved by this settlement is United States ex rel. Jill Reid v. Iredell Physician Network, LLC and Ruby Grimm, M.D., Case No. (5:20-cv-73), filed in the Western District of North Carolina. The claims resolved in this settlement are allegations only and there has been no determination of liability.
Assistant United States Attorneys Julia Wood and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are in charge of the civil proceedings.
Indianapolis Drug Trafficker Sentenced to 19 Years in Federal Prison for Trafficking Methamphetamine and Fentanyl While on Community CorrectionsRead the Press Release
INDIANAPOLIS – Lamar Taylor, 31, of Indianapolis, was sentenced to 19 years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
According to court documents, on July 18, 2019, officers executed a search warrant at Lamar Taylor’s residence on Bolton Court in Indianapolis. Taylor was serving a community corrections sentence after pleading guilty to drug possession in Marion County. Officers found a loaded .380 handgun, $12,451.00 in U.S. currency, approximately 22.88 grams of fentanyl, 10.06 grams of cocaine, and 2.73 grams of marijuana, all in Taylor’s bedroom. Officers found 595 grams of methamphetamine above a furnace directly across the hall from Taylor’s bedroom. Digital scales and materials used to cut narcotics were found in the kitchen. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
Taylor was interviewed by law enforcement officers and admitted to selling narcotics when he was released from jail about six weeks before this incident. Taylor also admitted to selling two to three ounces of methamphetamine, two to three ounces of cocaine, and fourteen grams of heroin daily. Taylor indicated there was approximately one pound of methamphetamine inside his residence at the time of his arrest. Taylor told officers that he believed he had sold four to five pounds of methamphetamine since he was released from jail.
Taylor has prior felony convictions in state court in Marion County, Indiana, for drug possession, resisting law enforcement and carrying a handgun without a license. Taylor is prohibited from possessing a firearm under federal law due to these felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Columbus Field Division (ATF), made the announcement.
ATF investigated the case in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Taylor be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton 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.
Illegal Possession of Firearm Lands Shreveport Man in Federal PrisonRead the Press Release
SHREVEPORT, La. - Troy Lee Washington, 27, of Shreveport, Louisiana, has been sentenced in U.S. District Court, announced United States Attorney Brandon B. Brown. Chief United States District Judge S. Maurice Hicks, Jr. sentenced Washington today to 48 months in prison, followed by 3 years of supervised release, for illegally possessing a firearm. Washington was indicted by a federal grand jury, and he pleaded guilty to the charge on June 8, 2022.
The charge stems from an incident that occurred on July 27, 2021 when Washington was arrested for having an active arrest warrant through Louisiana Probation and Parole. Officers with the Shreveport Police Department conducted a traffic stop of Washington’s vehicle on that date and during the stop, observed a pistol protruding from underneath his driver’s seat. The firearm was seized by officers and found to be loaded with 19 rounds of ammunition in an extended magazine. It was later identified as a Glock .357 pistol and law enforcement agents found that it had been reported stolen. DNA taken from the pistol was tested and found to be a match with Washington’s DNA.
Washington has prior felony convictions, including six counts of simple burglary and nine counts of attempted simple burglary in 2016, and illegal possession of stolen things in 2014. These felony convictions prohibit him from possessing any firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Shreveport Police Department, and Louisiana Probation and Parole, and was prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
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Georgia Man Pleads Guilty to Conspiring to Defraud the IRS and to Commit Wire Fraud Through the Operation of Bogus Credit Repair BusinessesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Kevin Edward Hargrave (50, Locust Grove, Georgia), formerly known as Kevin Edward Wade, has pleaded guilty to conspiring to commit wire fraud and to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service. Hargrave faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Hargrave controlled a number of companies, including WSA Optimization Firm, Inc., that purported to offer “credit repair services” to the public. Hargrave promoted these services through multiple company-specific websites, radio advertising, emails, text messages, and posts on YouTube.com and other social media sites. Among other things, these marketing campaigns promised to “erase bad credit” information from consumers’ credit reports within 90 days – “guaranteed.” Notwithstanding these promises, multiple customers reported to federal investigators that they paid for credit repair services, saw no such results, and were denied refunds. When an undercover federal agent called to inquire about these credit repair services, he was told that WSA Optimization used “federal laws to remove all negative derogatory items off your credit.” Further, he was told “we are able to remove those items off your credit without you paying [creditors] back.” A company representative also claimed that WSA Optimization employed a team of 5 attorneys and 23 paralegals who worked to remove negative credit information from credit reports. In reality, WSA Optimization did not employ a team of attorneys or paralegals. Instead, supposedly to improve its customers’ credit scores, company representatives would send form letters to each credit reporting agency and falsely claim that all negative credit information on the customers’ credit reports was the product of identity theft or fraud. These letters, which did not disclose that they were mass produced by WSA Optimization, were sent in envelopes listing a fictional return address.
An analysis of bank records establishes that more than $8 million in deposits were made into the business bank accounts controlled by Hargrave and a family member, and that significant funds were diverted from those accounts to pay for luxury vehicles, mortgage payments on their residence, personal credit cards, jewelry, items at retail stores, utilities, restaurants, and other living expenses.
For example, business funds were used to make more than $128,000 in mortgage payments on Hargrave’s residence in Fernandina Beach, which he sold in 2022 for $870,000. Similarly, approximately $300,000 in business funds were used to make down payments and monthly financing payments on automobiles owned by Hargrave and a family member, including a Lamborghini Gallardo, a Rolls Royce Wraith, a Porsche Boxster, a Range Rover, a Ford F-150, and two Mercedes Benz vehicles.
An analysis of Hargrave’s real and personal property, certain business records, credit card statements, and the bank records collectively demonstrate that his joint tax returns for tax years 2016 through 2019 underreported taxable income and improperly claimed certain business expenses. A financial investigator with the IRS estimates that since 2015, by underreporting his and a family member’s tax liability, Hargrave has caused the United States to lose more than $250,000 in tax revenue.
As part of his plea agreement, Hargrave agreed to pay restitution to both the IRS for the tax loss that he caused and to victims of the credit repair services/wire fraud scheme that he operated. He also agreed to forfeit to the United States $1.5 million, as proceeds of wire fraud conspiracy.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican. Assistant United States Attorney Mai Tran is handling the forfeiture of assets.
Gambino Crime Family Associate Sentenced to 40 Years in Prison for Murder and Robbery of Brooklyn ManRead the Press Release
Earlier today, in federal court in Brooklyn, Anthony Pandrella, an associate of the Gambino organized crime family, was sentenced by United States Chief District Judge Margo K. Brodie to 40 years’ imprisonment for the murder of 77-year-old Vincent Zito, Hobbs Act robbery and unlawful use of a firearm. Pandrella was convicted of the charges following a one and a half-week trial in June 2022. Restitution will be determined at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“All for greed, the defendant ruthlessly executed his longtime friend after being welcomed into his home,” stated United States Attorney Peace. “Pandrella’s cold-blooded crime has cost him dearly with the loss of his freedom for decades.”
“With today’s sentence, the NYPD and our law enforcement partners reaffirm our commitment to hold every violent criminal in our community accountable,” stated NYPD Commissioner Sewell. “This defendant showed a callous disregard for human life, and his association with organized crime will not shield him from justice. I thank and commend the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and everyone who worked on this important case.”
The defendant and Zito were friends for more than 30 years. Zito was running an illegal loansharking business and had been warned by Pandrella that he was “hot,” meaning that he was under investigation by law enforcement. Zito had given Pandrella $750,000 from the business to hold for safekeeping, but when he tried to collect the money back from Pandrella, the defendant failed to return it. On the morning of October 26, 2018, Pandrella went to the Sheepshead Bay home of Zito and while there, shot his friend in the back of the head at close range. Pandrella also stole expensive foreign-made wristwatches that the victim was holding as collateral for a customer’s loan. Pandrella was captured on security camera footage entering and leaving Zito’s residence at the time of the murder and robbery. After leaving the victim’s residence, Pandrella went home and additional security video from his neighborhood showed that the defendant changed his shoes and clothing, and removed the driver’s side floor mat of his vehicle so it could be cleaned. Zito’s body was discovered by his 11-year-old grandson when the boy returned home from school. The murder weapon was recovered at the scene and Pandrella’s DNA was found on the trigger and grip of the firearm.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys M. Kristin Mace and Matthew R. Galeotti are in charge of the prosecution with the assistance of Paralegal Specialist Teri Carby.
The Defendant:
ANTHONY PANDRELLA
Age: 63
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-122 (MKB)
Green Bay-Based In-Home Caregiving Service Agrees to Pay $10,000 to Resolve Americans with Disabilities Act AllegationsRead the Press Release
United States Attorney Gregory J. Haanstad announced on October 5, 2022, that the U.S. Attorney’s Office for the Eastern District of Wisconsin had reached a settlement agreement under Title III of the Americans with Disabilities Act (“ADA”) with Helping Hands Caregivers LLC (“Helping Hands”) to resolve allegations that the company refused to provide in-home caregiving services to an individual with human immunodeficiency virus (“HIV”). The agreement includes adoption of a non-discrimination policy, training of staff, written notification to the Department of Justice of future complaints, and $10,000 in compensatory damages for the individual.
Helping Hands offers in-home caregiving services in nine counties throughout Northeastern Wisconsin, with its main office in Green Bay, Wisconsin. The United States had alleged that a number of Helping Hands caregivers refused to provide service to an individual with HIV and that Helping Hands terminated the relationship with that individual as a result.
“The U.S. Attorney’s Office prioritizes the protection of the civil rights of all individuals,” said United States Attorney Haanstad. “As this settlement demonstrates, our office is committed to using all available tools to enforce the ADA and prevent discrimination.”
Assistant United States Attorney Maura Flaherty represented the government in this matter. The settlement agreement states allegations only; the defendant does not admit liability for the allegations.
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For further information contact: [email protected] (414) 297-1700
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GM Financial to Pay over $3.5 Million to Resolve Servicemembers Civil Relief Act ClaimsRead the Press Release
The Justice Department announced that GM Financial has agreed to pay over $3.5 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing 71 servicemembers’ vehicles and by improperly denying or mishandling over 1,000 vehicle lease termination requests.
“Members of our Armed Forces should not have to suffer financial hardship as a result of their service to our nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains steadfast in its commitment to enforcing laws that safeguard the rights of our servicemembers so that they can devote their energy and attention to the defense of our country.”
“The last thing servicemembers should be worried about while deployed is paying off vehicle leases they don’t want and can’t use,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “As members of our armed forces put their lives on the line for our country, we are determined to protect their rights here at home.”
The SCRA is a federal law that provides certain legal and financial protections for servicemembers and their families. The law prevents an auto finance or leasing company from repossessing a servicemember’s vehicle without first obtaining a court order, as long as the servicemember made at least one payment on the vehicle before entering military service. The SCRA also allows servicemembers to terminate a vehicle lease early after entering military service or receiving certain qualifying military orders. If a servicemember terminates a vehicle lease under the SCRA, the leasing company may not impose any early termination charges and must refund, within 30 days, any rent or lease amounts paid in advance.
The Justice Department began investigating GM Financial after receiving a complaint about a potential violation involving U.S. Army Chief Warrant Officer 3 (CW3) Thomas Gorgeny. In September 2017, CW3 Gorgeny received orders to deploy overseas for 10 months and requested that GM Financial allow him to terminate his vehicle lease early pursuant to the SCRA. Although GM Financial told CW3 Gorgeny that his early termination request was approved and he returned his vehicle to the dealer, months later, while he was deployed overseas, CW3 Gorgeny received a letter from GM Financial demanding that he pay over $15,000 to cover the entire remaining period of the lease, as well as costs associated with the sale of the vehicle.
In a complaint filed in the U.S. District Court for the Northern District of Texas, the department alleges that, since 2015, GM Financial has improperly denied servicemembers’ lease termination requests, charged servicemembers improper early termination fees or lease amounts after the date of termination, and failed to provide servicemembers timely refunds of lease amounts they paid in advance. The department alleges that GM Financial’s failure to properly handle servicemembers’ lease termination requests resulted in over 1,000 SCRA violations. The complaint also alleges that, since 2015, GM Financial has unlawfully repossessed 71 vehicles owned by SCRA-protected servicemembers.
Under the consent order, GM Financial has agreed to pay $3,534,171 to the affected servicemembers and a $65,480 civil penalty to the United States. GM Financial will pay at least $10,000 to each of the 71 servicemembers who had their vehicles unlawfully repossessed. For the servicemembers who were charged an improper fee when they terminated their vehicle leases, GM Financial will refund the fee and will pay additional damages of three times the fee or $500, whichever is greater. Servicemembers whose requests to terminate their vehicle leases were improperly denied will receive a refund of certain payments plus up to $5,000 in additional damages. The order also requires GM Financial to repair the servicemembers’ credit, provide SCRA training to its employees, and implement policies and procedures that comply with the SCRA.
GM Financial is a wholly-owned subsidiary of General Motors, and provides financing for vehicle sales and leases. In 2021, GM Financial had revenue exceeding $13 billion.
This case was handled by the Civil Rights Division’s Housing and Civil Enforcement Section, with the assistance of the U.S. Attorney’s Office for the Northern District of Texas.
Since 2011, the Justice Department has obtained over $480 million in monetary relief for over 123,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Freedom, PA Man Charged with Attempted Sex Trafficking of a Child and Receiving Images of a Minor Engaging Sexually Explicit ConductRead the Press Release
PITTSBURGH – A resident of Freedom, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on Receipt of Material Involving the Sexual Exploitation of a Minor as well as Attempted Sex Trafficking of a Child, United States Attorney Cindy K. Chung announced today.
The two-count Indictment, returned on Sept. 27, 2022, and unsealed on Friday, named Mark Kriss, 64, as the sole defendant.
According to the Indictment, on or about May 22, 2021, Kriss did knowingly receive a visual depiction of a minor using any means and facility of interstate and foreign commerce, namely, the Internet and a cellular telephone, the production of which visual depiction involved the use of a minor engaging in sexually explicit conduct, and that depicted a minor engaging in sexually explicit conduct. Further, Kriss knowingly attempted to solicit the child to engage in a commercial sex act.
Specifically, the indictment alleges Kriss was engaged in a text message conversation with the minor and asked the child to send him sexually explicit images of herself. Kriss received the images and also solicited the child to have sex with him for money. Kriss later picked up the child in a church parking lot before taking her to a motel room and sexually assaulting her.
The law provides for a maximum total sentence of not less than ten years and up to life in prison, a fine not to exceed $250,000.00, and a term of supervised release of at least five years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Northern Regional Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.