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10 November 2022
U.S. Attorney's Office Joins Effort to Crackdown on Violent Crime in DenverRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado joined the Downtown Denver Partnership, Denver Mayor Michael Hancock and the City and County of Denver, the Denver Police Department, the Colorado Attorney General, and RTD to announce an infusion of resources to address both immediate health and safety concerns in the center city while targeting root problems and long-term solutions.
Comments from U.S. Attorney Cole Finegan as made at Public Safety News Conference in Denver on November 10, 2022:
Good afternoon. The United States Attorney’s Office here in Colorado is proud to be part of this effort to address the rise in violent crime, here in downtown Denver and across the state. When I came into this role nearly a year ago, we tried to figure out, is there a way that our office can help? What we have come up with is a creative and innovative solution to work together and help each other make Denver a safer place to live, work and visit.
The U.S. Attorney’s Office prosecutes the most serious offenders, who are most involved with violent crime in our community. We are focusing on violent criminals who carry or use firearms. Just yesterday, two separate federal juries returned guilty verdicts for felons who were caught with guns.
State differs from federal law and allows certain felons to still carry weapons. Federal law makes it illegal for a felon to possess a firearm or ammunition. Violators can face up to ten years in prison and a $250,000 fine.
Federal law also creates mandatory minimum sentences of between five and ten years in prison for possessing, brandishing, or discharging a firearm during the commission of violent crimes or drug crimes.
We have powerful tools in federal law, and we are not afraid to use them.
Take for example the gunman who forced his way into Children’s Hospital in September. Initially, he was charged at the state level, but was released on bond. We were able to charge him under federal law, and he is being held in jail pending his trial. He is charged with being a felon in possession of a gun, and possession of a machine gun.
Another example from just down the street: Two felons were involved in a shootout in September of 2018, at the corner of 15th and Market. An innocent bystander was hit and seriously wounded by the gunfire. Both defendants were charged with being felons in possession of firearms and ammunition. Armando Durete was convicted after trial and Nickie Rico pled guilty to the charge. Rico was sentenced to more than 8 years in prison. Durete was sentenced to 10 years in prison.
So, we have a federal law that will allow us to charge, detain, and prosecute felons and other dangerous criminals who are caught with a gun. But we have a challenge in making full use of federal law. We have a dedicated team of prosecutors working on violent crime, and we want to do more. Now, thanks to the Mayor, City Attorney, and funding from the Denver City Council, we are in the process of hiring four special prosecutors, who will be designated as "Special Assistant United States Attorneys”. These additional prosecutors will help us make sure we have the resources to charge as many of these dangerous criminals, as possible.
This should send a powerful message to criminals: We are bringing federal criminal charges against felons with guns and criminals using guns in crimes of violence or drug trafficking. Additional special prosecutors for the U.S. Attorney’s Office, funded by the City and County of Denver, will help us make sure we take these violent criminals off the streets and send them to prison for a long time.
We appreciate you helping us spread the message.
Two Defendants Sentenced for Conspiring to Distribute Ketamine to Aid in Kidnapping of Slidell Teenager, Resulting in His DeathRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on November 9, 2022, U.S. District Court Judge Jane Triche Milazzo sentenced WILLIAM HARRISON FARRIS (“FARRIS”), age 43, of New Orleans, and KACIE DOUCET (“DOUCET”), age 41, of Larose, Louisiana, for their participation in a scheme to drug and kidnap an 18-year-old Slidell resident, resulting in the teenager’s death. FARRIS was sentenced to serve 87 months in prison, followed by two years of supervised release, along with a $100 mandatory special assessment fee. DOUCET was sentenced to serve 88 months in prison, followed by two years of supervised release, along with a $100 mandatory special assessment fee.
Both defendants previously pleaded guilty to one count of Conspiracy to Distribute Ketamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(E), and 846. According to court records, FARRIS and DOUCET conspired with co-defendant Leilani Aspuria, along with Carlos Mario Cantu-Cox and Christopher Cantu-Cox (who were charged in a separate case), to kidnap the teenage victim and transport him to Texas against his will. The Cantu-Coxes were a married couple based in the Houston area who distributed methamphetamine in New Orleans. At the time of his kidnapping, the victim owed money to the Cantu-Coxes and was deliberately trying to avoid the two men.
FARRIS, who was a drug customer of the Cantu-Coxes and was aware that the Cantu-Coxes were trying to find the victim, knew that DOUCET was connected to the victim on Facebook. At the direction of FARRIS, DOUCET contacted the victim over Facebook on multiple occasions and suggested that they meet for a sexual encounter.
FARRIS and DOUCET were aware that DOUCET’s offer of a sexual encounter with the teenage victim was a ruse, and that the real purpose of picking up the victim was to provide him with a cocktail of powerful drugs and thus render him incapacitated so he could be delivered to the Cantu-Coxes, who were staying at a hotel in downtown New Orleans. The Cantu-Coxes supplied the drug cocktail, as well as instructions on how to mix the drugs with alcohol so that it could be administered to the victim without him knowing what he was taking.
To accomplish the scheme, FARRIS and DOUCET enlisted the help of Aspuria, the only one of the three with a car. On February 23, 2016, DOUCET and Aspuria picked up the victim from his grandfather’s home in Slidell. DOUCET gave the victim the Cantu-Coxes’ drug cocktail, which the couple referred to as an “elixir.” DOUCET, Aspuria, and the victim then drove around New Orleans for a number of hours, waiting for the victim to pass out. FARRIS, who was not in the car, assisted by serving as the intermediary between DOUCET, who was texting updates of the victim’s condition, and the Cantu-Coxes, who were waiting at the hotel.
At one point, DOUCET and Aspuria drove to the back of the hotel and attempted to deliver the victim to the Cantu-Coxes and FARRIS, who were waiting outside with a wheelchair. The victim was barely awake but not yet unconscious. When the car arrived, FARRIS attempted to pull the victim out of the car, but the victim woke up and became aggressive. DOUCET and Aspuria then drove off with the victim and continued to wait for the victim to pass out.
Later, DOUCET and Aspuria again drove to the hotel with the victim, who at that point was unconscious in the back seat. The Cantu-Coxes produced two needles containing ketamine. Aspuria injected one of the needles into the victim’s body, while DOUCET and FARRIS watched without objection. The victim did not move when he was injected, and no one checked to determine whether the victim was still breathing after the injection.
At that point, the teenager’s body was transferred to the Cantu-Coxes’ car, and the Cantu-Coxes began driving back to Texas. Somewhere near the Louisiana-Texas border, the Cantu-Coxes realized that the victim was no longer breathing. The Cantu-Coxes continued driving to their home in Pasadena, Texas and parked in their driveway. Because it was still daylight, they left the victim’s body in the car. At nightfall on February 24, 2016, the Cantu-Coxes drove to a bridge over Sims Bayou in the Houston area and put the victim’s body into the bayou. The victim’s body washed to the shore a week later. The Cantu-Coxes later paid FARRIS a quantity of methamphetamine for his efforts in capturing the victim.
On February 5, 2020, Judge Milazzo sentenced Leilani Aspuria to ten years of imprisonment. On June 29, 2021, U.S. District Court Judge Wendy Vitter sentenced Carlos Mario Cantu-Cox and Christopher Cantu-Cox to twenty years of imprisonment.
U.S. Attorney Duane A. Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Houston Police Department, and the Drug Enforcement Administration. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Two Defendants Charged for Nationwide Online Marketing Scheme That Fraudulently Enrolled Customers in Credit Monitoring Monthly SubscriptionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the indictment of MICHAEL BROWN and ANDREW LLOYD for wire fraud charges in connection with a nationwide online marketing scheme to post fake advertisements for rental properties across the United States on a classified advertisements website. The purpose of the scheme was to fraudulently induce potential customers to enter their credit card information on credit monitoring websites owned by BROWN and obtain a credit report under false pretenses in order to automatically enroll the customers in a monthly membership for credit monitoring services. BROWN was arrested at Newark Liberty International Airport in New Jersey on October 27, 2022, after he arrived on a flight from Mexico and was detained pending trial. LLOYD was arrested earlier today in Pennsylvania and will be presented in the United States District Court for the Western District of Pennsylvania later today. The case is assigned to United States District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “Online scams have spiraled out of control, to the point where nearly every online interaction must be approached with weariness of its validity. Nevertheless, as alleged, Michael Brown and Andrew Lloyd gave their victims no opportunity to suspect a scam as they enrolled thousands of victims to a nearly $30 a month fee using seemingly reputable websites and deceptive practices. I commend the efforts of this Office and our law enforcement partners in prosecuting these scams that have become a near-daily frustration, and today’s arrests show that we will continue to zealously investigate consumer fraud.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, the defendants operated a complex scheme, using phony advertisements to trick victims into unknowingly enrolling in a monthly credit monitoring service. The FBI remains steadfast in our efforts to investigate and eliminate online scams and hold the fraudsters accountable in the criminal justice system.”
According to allegations in the Indictment filed in Manhattan federal court:[1]
MICHAEL BROWN owned and operated Credit Bureau Center, LLC, formerly known as MyScore LLC (“MyScore”), a Delaware limited liability company which provided credit reports and credit monitoring services via the websites eFreeScore.com, FreeCreditNation.com, and CreditUpdates.com, among other sites (collectively, the “MyScore Websites”). ANDREW LLOYD was an affiliate that worked with a co-conspirator (“CC-1”), the owner of an affiliate marketing company, to drive potential customers to the MyScore Websites. In affiliate marketing, a seller of goods or services such as MyScore uses other firms or individuals known as “affiliates” to market the seller’s goods or services by attracting customers to the seller’s websites. BROWN contracted with CC-1 in order to increase customer traffic to the MyScore Websites.
From at least in or about 2014 through at least on or about January 10, 2017, BROWN, LLOYD, and CC-1 engaged in a nationwide online marketing scheme to post fake advertisements for rental properties across the United States on a classified advertisements website (the “Advertising Website”). The purpose of the scheme was to fraudulently induce prospective renters to enter their credit card information on the MyScore Websites and obtain a credit report under false pretenses in order to automatically enroll them in a monthly membership for credit monitoring services.
The advertisements used in the scheme typically contained photos of the rental properties and showcased properties in desirable locations for below-market prices in order to attract interest. The advertisements were posted for rental properties in metropolitan areas across the United States, including, among other locations, New York City, Miami, Atlanta, Houston, Los Angeles, and San Diego. In actuality, the rental properties did not exist as advertised or were not actually available for rent through the posts on the Advertising Website. The advertisements also did not disclose the specific address of the rental properties but instead contained a contact email address inviting prospective renters to contact the property owner if they were interested in the rental property.
When prospective renters inquired about the rental properties posted on the Advertising Website by responding to the advertisements, they received a form email purporting to be from the property owner requiring the prospective renter to obtain a copy of their credit report, and referring the prospective renter to one of the MyScore Websites to obtain a credit report, before scheduling a tour of the property. The form email typically described purported features of the advertised property and falsely informed the prospective renter, in substance and in part, that he or she was the second person to respond to the advertisement, that the first responder no longer needed the property, and that the property owner was ready to lease the property to the prospective renter with flexible terms and had just completed all new renovations.
Once a prospective renter clicked on the hyperlink in the form email from the purported property owner to obtain a copy of their credit report, the prospective renter was directed to the “landing page” of one of the MyScore Websites. The landing page of the MyScore Websites typically featured a large banner that stated, in substance and in part, “Get Your Free Credit Score and Report” with significantly smaller text referencing an unspecified “7-day trial” and a “Monthly membership of $29.94 automatically charged after trial.” In order to get the credit report, prospective renters were required to enter identifying information and credit card information through a series of webpages. Once the prospective renter entered credit card information, the prospective renter was charged $1.00 and was automatically enrolled in a monthly membership for credit monitoring services with recurring charges of typically $29.94 per month until the membership was cancelled.
When prospective renters responded to the purported property owner asking to schedule a tour of the advertised property now that they had a copy of their credit report, there was typically no response, as the property was not actually available for rent as advertised and the scheme had succeeded in fraudulently generating a monthly membership subscription for MyScore. Many prospective renters who obtained a credit report from the MyScore Websites as a result of the scheme did not realize that they had been automatically enrolled in MyScore’s membership until they discovered the monthly charges on their credit card statements. Some prospective renters also had difficulties canceling the membership when they contacted MyScore’s customer service department.
BROWN, LLOYD, and CC-1 continued to execute the scheme through at least on or about January 10, 2017, despite numerous complaints during the course of the scheme from customers and consumer organizations about the fraudulent nature of the rental advertisements on the Advertising Website, the automatic enrollment of customers in MyScore’s monthly membership with recurring charges without their knowledge, and the difficulties in cancelling the monthly membership.
In total, the scheme caused over approximately 2.7 million unique visits to the MyScore Websites and generated approximately $6.8 million in revenue from approximately 169,000 customers who were automatically enrolled in MyScore’s monthly membership for credit monitoring services through the scheme.
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BROWN, 37, who was residing in Mexico, and LLOYD, 30, of Beaver, Pennsylvania, were each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI. Mr. Williams also thanked the Federal Trade Commission for their assistance with the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sagar K. Ravi is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Three New York City Correction Officers Charged with Fraud for Lying to Stay on Sick Leave for over a YearRead the Press Release
Two criminal complaints were unsealed today in federal court in Brooklyn charging three correction officers employed by the New York City Department of Correction (DOC) at Rikers Island with federal program fraud. Correction Officers Steven Cange, Monica Coaxum and Eduardo Trinidad were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon.
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 Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) announced the charges.
“As alleged, in the midst of an ongoing staffing crisis at Rikers Island, the defendants defrauded New Yorkers by fraudulently obtaining their full salaries while taking over a year of sick leave. These correction officers abandoned their oath to protect inmates and put the safety of their fellow correction officers at risk” stated United States Attorney Breon Peace. “Today’s arrests demonstrate that this Office remains committed to rooting out corruption at Rikers Island and protecting New Yorkers from public officials who steal their tax dollars.”
“As alleged, the defendants deliberately violated their oath when they participated in an elaborate scheme to defraud our community. The FBI and our partners are committed to disrupting these fraudulent scams and holding the public officials who perpetuate them accountable,” stated FBI Assistant Director-in-Charge Driscoll.
DOI Commissioner Jocelyn E. Strauber said, “As charged, these New York City Correction Officers feigned illness and submitted false medical documentation to take sick leave during a staffing crisis, defrauding the City of New York of hundreds of thousands of dollars. Today’s arrests hold these Correction Officers accountable for the shameful dereliction of duty alleged in the Complaints. I thank the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their continuing partnership and efforts to bring to justice those whose misconduct jeopardizes the safety and stability of the City’s jails.”
As alleged in one complaint, New York City Correction Officer Steven Cange fraudulently obtained more than $160,000 in salary by being on sick leave from March 2021 to the present. Although Cange claimed that he suffered from symptoms of vertigo and side effects from the COVID-19 vaccine, evidence obtained by law enforcement demonstrates that Cange was able to work. During his sick leave, Cange submitted more than 100 fraudulent medical notes to DOC demonstrating that he was at physical therapy or another medical provider when records subpoenaed from those providers demonstrate that Cange was not at those appointments. Law enforcement also observed Cange engaging in normal life activities with no apparent difficulty.
As alleged in a separate complaint, New York City Correction Officer Monica Coaxum fraudulently obtained more than $80,000 in salary by being on sick leave from March 2021 to May 2022, and her fiancée, Correction Officer Eduardo Trinidad, fraudulently obtained more than $140,000 in salary by being on sick leave from June 2021 to November 2022. Although Coaxum claimed to suffer from multiple injuries, evidence collected by investigators shows that she was able to work. During her sick leave, Coaxum submitted nearly 50 fraudulent medical notes to DOC stating that she had gone to a medical appointment at times law enforcement determined she was elsewhere. Additionally, evidence shows that on some occasions where Coaxum claimed to be injured and at home, she was traveling and at parties. When approached by law enforcement, Coaxum admitted to forging some medical documents.
Trinidad likewise obtained more than $140,000 by claiming to be too injured to work for over a year. Although he went to medical appointments with DOC wearing some combination of a sling, cane, and/or boot, photographic and video evidence during the same period showed Trinidad doing normal life activities like home improvement work, bowling and traveling abroad, without any difficulty or help from equipment like a boot, sling or cane.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. The government’s case is being prosecuted by Assistant United States Attorneys Philip Pilmar and Andrew Grubin.
The Defendants:
STEVEN CANGE
Age: 49
Brooklyn, NYE.D.N.Y. Docket No. 22-MJ-1204
MONICA COAXUM
Age: 36
Harrison, NYEDUARDO TRINIDAD
Age: 42
Yonkers, NYE.D.N.Y. Docket No. 22-MJ-1203
Stroudsburg Man Sentenced to 24 Months’ Imprisonment for Heroin and Fentanyl TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 10, 2022, United States District Court Judge Robert D. Mariani sentenced Keith Parson, age 50, of Stroudsburg, PA, to 24 months’ imprisonment and a 3-year term of supervised release, for Possession with Intent to Distribute Heroin and Fentanyl.
According to United States Attorney Gerard M. Karam, from approximately November 2020 until November 2021, in Monroe County, Parson distributed street level quantities of a substance containing heroin and fentanyl, including from his residence in Stroudsburg. On November 10, 2021, a search warrant was executed at Parson’s residence and authorities located approximately 5 grams of a substance containing heroin and fentanyl, along with packaging materials and other items consistent with both drug use and distribution.
The matter was investigated by the Federal Bureau of Investigation (FBI) and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant U.S. Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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St. Joseph Man Sentenced to 15 Years for Meth, Heroin Trafficking and Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was sentenced in federal court today for possessing methamphetamine and heroin to distribute and illegally possessing firearms.
Matthew J. Crossfield, 40, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
On June 1, 2022, Crossfield pleaded guilty to two counts of possessing methamphetamine with the intent to distribute, one count of possessing heroin with the intent to distribute, and two counts of possessing firearms in furtherance of drug-trafficking crimes.
St. Joseph police officers were called to a Dollar General Store on Dec. 11, 2019, in response to a theft that had just occurred. An officer checked the area where the thief had fled and saw Crossfield, who matched the description of the thief, walking into Oak Ridge Apartments. When Crossfield saw the officer, he immediately ran into an apartment building. The officer followed him into the building and caught up with him on the third floor. The officer ordered Crossfield to place his hands on the wall, but Crossfield started running with the officer in pursuit. The officer eventually caught up to Crossfield, tackled him to the ground, and detained him.
Crossfield had a loaded SCCY 9mm pistol in the front waistband of his jeans. Crossfield also had a fanny pack in his front left jacket pocket, which contained a plastic bag with approximately 10.9 grams of methamphetamine, a plastic bag that contained approximately 1.4 grams of heroin, and a plastic bag that contained 11.7 grams of heroin. Crossfield had another bag in his left front jeans pocket that contained approximately 14.1 grams of methamphetamine. His right front jeans pocket contained a bag with approximately 13.8 grams of marijuana and four suboxone strips.
On Jan. 13, 2021, investigators with the Buchanan County Drug Strike Force and the St. Joseph, Police Department were conducting surveillance on Crossfield, who had two active felony warrants for his arrest. They located Crossfield, who was driving a white PT Cruiser, in the area of Illinois Street and Stockyards Expressway in St. Joseph. When Crossfield pulled into the driveway at an Arby’s restaurant, a detective pulled in front of him and an investigator pulled behind him and activated his emergency lights. When Crossfield saw the detective pull in front of him, he attempted to get away by putting his car in reverse, striking the investigator’s patrol vehicle. After striking the patrol vehicle, Crossfield placed both hands in the air.
Investigators saw a loaded Taurus 9mm pistol with an extended magazine (that contained 25 rounds) in between Crossfield’s legs. officers took Crossfield into custody and found a loaded KelTec .22-caliber handgun in his back pocket. Crossfield also had a belt around his waist (under his shirt) that contained a plastic bag with approximately 2.1 grams of methamphetamine, a plastic bag with approximately 14.7 grams of heroin, a plastic bag with approximately 3.4 grams of heroin, and two plastic bags with approximately 20-25 ecstasy pills. Officers searched Crossfield’s vehicle and found two bags of marijuana and rolling papers, a bag of approximately 21.7 grams of methamphetamine, a bag with approximately 11.5 grams of methamphetamine, a bag with 1.6 grams of methamphetamine, a bag with 4.1 grams of methamphetamine, a jar with 92.4 grams of marijuana, and drug paraphernalia.
Crossfield told investigators he had been selling 10 ounces of heroin every eight days since approximately August 2020. He also admitted he had been selling drugs since he was released from prison in 2018.
This case was prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buchanan County Drug Strike Force, and the St. Joseph, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Seven Indicted for Trafficking Methamphetamine, Cocaine, and FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 24-count indictment today against seven defendants, charging them with drug trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
Cesar Losoya-Castrejon, 46, of Tulare, is charged with two counts of conspiracy to distribute methamphetamine and fentanyl, twelve counts of distribution of methamphetamine and fentanyl, one count of possession with intent to distribute methamphetamine, and one count of using a cellphone in aid of racketeering;
Arturo Farias-Zepeda, 52, of Atwater, is charged with one count of conspiracy to distribute methamphetamine, three counts of distribution of methamphetamine, and one count of using a cellphone in aid of racketeering;
Juan Cesar Valencia-Zepeda, 38, of Merced, is charged with one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine;
Roberto Soria-Cuevas, 62, of Yettem, Tulare County, is charged with one count of distribution of methamphetamine;
Ricardo Rivas-Arredondo, 31, of Earlimart, Tulare County, is charged with one count of distribution of methamphetamine;
Jose Adan Chaidez Ojeda, 38, of Earlimart, is charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine; and
Julio Cesar Vargas-Birrueta, 30, of Yettem, is charged with one count of distribution of fentanyl and one count of possession with intent to distribute fentanyl.
According to court documents, between October 2021 and October 2022, Losoya-Castrejon, with the assistance of Farias-Zepeda, Valencia-Zepeda, Soria-Cuevas, Arredondo, and Chaidez Ojeda, distributed over 130 pounds of methamphetamine to a DEA confidential source.
On Oct. 12, 2022, agents uncovered an active methamphetamine conversion laboratory in Ducor, in Tulare County, that allegedly was used to convert liquid methamphetamine into crystal methamphetamine for distribution. Large quantities of crystal and liquid methamphetamine were seized in the laboratory. In total, law enforcement seized approximately 500 pounds of crystal methamphetamine and approximately 500 gallons of liquid methamphetamine from the conversion laboratory.
The case is the result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the San Joaquin County Metropolitan Narcotics Task Force, and the Tulare County Sheriff’s Office, the Tulare County High Intensity Drug Trafficking Area Unit (HIDTA). Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. All of the defendants also face a mandatory minimum sentence of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Seffner Man Sentenced for Role in Construction-Related Wire and Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Ricky Gonzales to 48 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States. The court also entered an order of forfeiture in the amount of $500,731.13, the proceeds of the wire-fraud conspiracy. Gonzales had pleaded guilty to the charges on August 9, 2022.
According to court documents, Gonzales owned and managed a construction company that purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, the company that Gonzales operated was required to secure and maintain adequate worker’s compensation insurance coverage. Gonzales’ company had agreements with contractors and subcontractors to use workers purported to be Gonzales’ employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Gonzales or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Gonzales’ purported “employees” and other related expenses.
During the time period charged, Gonzales falsely and fraudulently represented in insurance applications that his company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Gonzales also falsely and fraudulently sent wire communications to numerous contractors representing that his company’s employees had full worker’s compensation coverage.
In reality, Gonzales’ company received and cashed more than $7,150,000 in checks from various construction contractors for these purported “employees”. These payroll figures far exceeded the very limited payroll figures that Gonzales had reported to his worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Gonzales’ company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well. As a result of this conspiracy, the IRS was unable to collect over $1,094,000 in employment taxes on these workers’’ wages.
“This criminal defrauded insurance companies out of thousands in premiums through undervalued workers’ compensation insurance policies, then profited off the backs of hundreds of non-citizen workers by renting those policies for a fee from their pay checks,” said HSI Tampa Assistant Special Agent in Charge John Dumas. “HSI special agents, alongside the Internal Revenue Service - Criminal Investigation, are committed to ensuring that all workers have the safety net of proper workman’s compensation insurance policy.”
“Gonzales and his conspirators used a shell of lies to evade their tax obligations and skirt workers’ compensation expenses. They short-changed not only the U.S. government but also honest hard-working construction companies,” said Brian Payne, IRS-CI Special Agent in Charge. “Employment tax and workers’ compensation schemes are rampant in Florida’s construction industry and will continue to be a top priority of IRS-CI.”
This case was investigated by the Homeland Security Investigations, the State of Florida Department of Financial Services, and the Internal Revenue Service-Criminal Investigation. It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Search Warrants Executed in Cook and Tift CountiesRead the Press Release
ALBANY, Ga. – Federal search warrants were executed at 13 locations in Cook and Tift Counties this morning in a joint law enforcement operation involving FBI, U.S. Postal Inspection Service, GBI, Cook Co. Sheriff’s Office, Lowndes County Sheriff’s Office, Adel Police Department and Hahira Police Department.
Search warrants were executed in Cook County, Georgia:
- 908 Lavind Way, Adel
- 611 West 6th Street, Adel
- 304 South Martin Luther King Drive South, Adel
- 609 West 6th Street, Adel
- 307 South Martin Luther King Drive South, Adel
- 418 South Martin Luther King Drive South, Adel
- 817 Turkey Drive, Adel
- 306 South Oak Street, Adel
- Cook County, Georgia, Parcel 0016104 (also known as 1041 and 1011 Antioch Greggs Road, Adel)
- 2301 South Hutchinson Avenue, Adel
- 1100 South Gordon Avenue, Apartment B, Adel
- 157 Deerfield Drive, Sparks
A search warrant was executed in Tift County, Georgia:
- 1319 Ty Omega Road, Lot 9, Tifton
This morning’s operation resulted in the seizure of 14 firearms: two assault rifles, one rifle, one shotgun and ten pistols. In addition, 3.2 kilograms of methamphetamine, 725 grams of cocaine, 288.8 grams of cocaine base, 74.4 grams of MDMA, 81.6 grams of suspected fentanyl, 9.8 kilograms of THC and 1,000 miscellaneous prescription pills were found.
Three individuals were taken into state custody and are facing state charges: Calvin James Smith, Sr., 54, of Adel, is charged with possession of firearm by a convicted felon; Joe Smith, 52, of Sparks, is charged with possession of methamphetamine with intent to distribute, trafficking methamphetamine and felony possession of a firearm during the commission of a crime; and Justin Thompson, 35, of Adel, is charged with unlawful street gang activity. A state warrant has been issued for the arrest of Calvin James Smith, Jr., 33, of Tifton, for trafficking methamphetamine, possession of cocaine, possession of methamphetamine with intent to distribute, possession of cocaine with intent to distribute and manufacturing/sale/possession of 28 grams or more of MDMA.
All defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. This is an ongoing investigation.
Russian and Canadian National Charged for Participation in Lockbit Global Ransomware CampaignRead the Press Release
NEWARK, N.J. – A Russian and Canadian national has been charged with participating in the LockBit global ransomware campaign, U.S. Attorney Philip R. Sellinger, Deputy Attorney General Lisa O. Monaco, Assistant Attorney General Kenneth A. Polite, and FBI-Newark Special Agent in Charge James E. Dennehy announced today.
Mikhail Vasiliev, 33, of Bradford, Ontario, Canada, is charged by complaint unsealed today in Newark federal court with conspiring with others to intentionally damage protected computers and to transmit ransom demands in connection with doing so. He was arrested Nov. 9, 2022, is awaiting extradition proceedings to bring him to the District of New Jersey.
“International ransomware threats like LockBit are the most pressing cybercrime challenge facing law enforcement today,” U.S. Attorney Sellinger said. “These attacks cause disruption and damage to their victims that far exceed the dollar figures of ransom demands or payments, which are themselves significant. However, the United States is up for this challenge and will use all legal means to find the perpetrators of these attacks and bring them to justice.”
“This arrest is the result of over two-and-a-half-years of investigation into the LockBit ransomware group, which has harmed victims in the United States and around the world,” Deputy Attorney General Lisa O. Monaco said. “It is also a result of more than a decade of experience that FBI agents, Justice Department prosecutors, and our international partners have built dismantling cyber threats. Let this be yet another warning to ransomware actors: working with partners around the world, the Department of Justice will continue to disrupt cyber threats and hold perpetrators to account. With our partners, we will use every available tool to disrupt, deter, and punish cyber criminals.”
“Cyber criminals who damage protected systems, exploit privileged information, or hold for ransom important files and data are a threat to our way of life,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI will not stand idly by while companies and government entities are bled dry or while their systems are corrupted by these criminal opportunists. We will utilize every tool in our arsenal – including our global partnerships – to shut down these types of schemes.”
According to documents filed in this case and statements made in court:
LockBit is a ransomware variant that first appeared as early as January 2020 and has been deployed against over 1,000 victims in the United States and around the world. LockBit members have made at least $100 million in ransom demands to those victims and have extracted tens of millions of dollars in actual ransom payments from those victims. The FBI has been investigating the LockBit conspiracy since in or around March 2020. Vasiliev participated in the LockBit campaign by conspiring with others to intentionally damage protected computers and to transmit ransom demands.
The charge of conspiring to intentionally damage protected computers and to transmit ransom demands is punishable by a maximum of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the scheme, whichever is greatest.
U.S. Attorney Sellinger credited the Newark Cyber Crimes Task Force, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked FBI Atlanta, FBI Pittsburgh, FBI Miami, the FBI’s Legal Attaché-Ottawa, the Jersey City Police Department, New Jersey State Police, New Jersey Office of Homeland Security and Preparedness, and members of the U.S. Attorney’s Office for the Northern District of Georgia and of the U.S. Attorney’s Office for the Western District of Pennsylvania for their assistance. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vasiliev’s arrest.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold of the Cybercrime Unit in Newark and by Trial Attorney Jessica C. Peck of the Computer Crime and Intellectual Property Section in Washington, D.C.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 7, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Stanford Points At Him, age 56, was sentenced to credit for time served through November 22, 2022, followed by five years of supervised release, and ordered to pay $100 special assessment to the Federal Crime Victims Fund.
Points At Him was indicted for Failure to Register as a Sex Offender by a federal grand jury in June of 2022. He pleaded guilty on August 8, 2022.
Points at Him was convicted of Sexual Abuse of a Minor in July 1997. As a result of this conviction, he is required to register as a sex offender every six months and update his registration within three business days of relocation or changing employment. Points At Him last registered in April of 2021 and failed to complete his bi-annual registration as required. Points At Him was non-compliant with his registration requirements until he was arrested on February 8, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Points At Him was immediately remanded to the custody of the U.S. Marshals Service.
Rockland Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Rockland man has been arrested on child pornography charges.
Donald J. Caruso, 40, was charged with one count of distribution of child pornography and one count of possession of child pornography. Caruso was arrested on Nov. 7, 2022 and, following an initial appearance in federal court in Boston on Nov. 8, 2022 before U.S. District Court Magistrate Judge Paul G. Levenson, was detained pending a detention hearing scheduled for Nov. 17, 2022.
According to the charging documents, a federal investigation determined that the user of an account on an online communication platform was distributing child sexual abuse material (CSAM). The user – who was later identified as Caruso – allegedly disseminated links to an undercover agent to folders containing CSAM. It is alleged that a preliminary forensic analysis of devices seized from Caruso’s residence on Nov. 4, 2022 revealed that they contained CSAM.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigation’s in New England; Rockland Chief of Police Nicholas Zeoli; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Indicted on Drug and Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Scott Deisinger, age 51, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 9, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in custody and/or a $5,000,000 fine, lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In August of 2022, in Rapid City, Deisinger, a previously convicted felon who is prohibited from possessing firearms, was found in possession of three 9mm semi-automatic pistols as well as methamphetamine, which was found after Deisinger came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charges are merely an accusation and Deisinger is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Deisinger was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Indicted for First Degree Murder, Assault, and Child AbuseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for First Degree Murder, Assault with a Dangerous Weapon to a Child, Assault Resulting in Serious Bodily Injury to a Child, and Child Abuse.
Noah Virgil White Lance, III, age 33, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 9, 2022, and pleaded not guilty to the Indictment.
The penalty upon conviction is mandatory life in custody and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between November 9 and November 13, 2022, at Mission, in Todd County, South Dakota, White Lance killed a minor victim while engaged in the perpetration or attempted perpetration of child abuse. The Indictment also alleges that White Lance assaulted and abused the minor victim and abused another minor victim during the same time frame.
The charges are merely accusations and White Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
White Lance was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Port Arthur Man Guilty of Glock Switch ViolationsRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Frankie Malik Cunningham, 23, pleaded guilty to possession of a machine gun and possession of a firearm in furtherance of a drug trafficking crime. Cunningham entered his guilty plea today before U.S. District Judge Marcia A. Crone.
According to information presented in court, on May 17, 2022, law enforcement officers arrived at a Port Arthur residence where Cunningham was located to serve an outstanding felony warrant. They received consent to search from the owner of the residence and located Cunningham in a bedroom. In the bedroom with Cunningham, they also located two Glock pistols, a rifle with a drum magazine, a pound of suspected marijuana, and several Hydrocodone pills. One of the pistols was outfitted with a “Glock Switch.” A Glock Switch is a device used to convert a standard, legal handgun into a fully automatic machine gun.
At the time, Cunningham was under felony indictment for possession of a controlled substance. Federal law prohibits the possession of a firearm or ammunition while under felony indictment.
Cunningham was indicted by a federal grand jury on July 6, 2022. He faces up to 15 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Port Arthur Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service and the Jefferson County Sheriff’s Office. This case is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman with assistance from the Jefferson County District’s Attorney’s Office.
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Plaquemines Parish Man Pleads Guilty to Drug Trafficking and Firearm OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – ERIC METZ, age 39, a resident of Plaquemines Parish, Louisiana, pled guilty on November 1, 2022, before U.S. District Judge Susie Morgan to conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine, and methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, and possession of a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), announced U.S. Attorney Duane A. Evans.
According to court documents, a DEA investigation revealed that METZ was involved in a large narcotics distribution conspiracy in Plaquemines Parish. On June 5, 2021, Plaquemines Parish Sheriff’s Office deputies conducted a traffic stop on a vehicle driven by METZ in Belle Chasse, Louisiana. During the traffic stop, deputies established probable cause to search the vehicle. During the search, they discovered six clear plastic bags containing crack cocaine, a fully loaded FN, nine-millimeter, semi-automatic handgun, and $3,238.00 in U.S. currency.
For the drug conspiracy charge, METZ faces up to twenty years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. For possessing a firearm in furtherance of a drug trafficking offense, METZ faces a minimum of five years of imprisonment, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, up to five years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
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 Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Physician and Medical Office to Pay over $2.6 Million to Settle False Claims Act and Kickback AllegationsRead the Press Release
United States Attorney Vanessa Roberts Avery and Connecticut Attorney General William Tong today announced that FEEL WELL HEALTH CENTER OF SOUTHINGTON, P.C. (formerly doing business as “Feel Well Health Center”) and KEVIN P. GREENE, M.D. (“Greene”) have entered into a civil settlement agreement with the federal and state governments and agreed to pay more than $2.6 million to resolve allegations that they violated the federal and state False Claims Acts by improperly billing federal and state healthcare programs, and that they received illegal kickbacks.
Greene is a physician and the principal member and owner of Feel Well Health Center (now doing business as “Confidia Health Institute”), a primary care medical practice with offices in Southington and Bristol. Greene also operated a medical practice in Indialantic, Florida until mid-2019.
The federal and state governments allege that Greene and Feel Well Health Center violated the federal and state False Claims Acts by improperly billing Medicare, Connecticut Medicaid, and the State of Connecticut Comptroller Healthcare Programs. Between April 2016 and January 2020, Greene and Feel Well Health Center submitted false claims for payment for medical visits when, in fact, the patients had received fitness-related services with no legitimate medical component at a gym they operated that was staffed by a medically unlicensed coach and yoga instructor. Greene and Feel Well Health Center created false medical records for these gym visits and attached false diagnoses in association with these claims.
In addition, the governments allege that between April 2016 and March 2020, Greene and Feel Well Health Center submitted false claims for services allegedly rendered by Greene in an office setting when he was not physically present in the office suite, including when he was out of the country, on vacation, or in a different office at the time. For instances where Greene and Feel Well Health Center submitted claims for alleged telemedicine, they did not meet applicable telemedicine requirements for office location or use an interactive telecommunications system.
It is also alleged that Greene and Feel Well Health Center also submitted false claims for medically unnecessary testing or procedures for neurofeedback, ultrasounds, and autonomic function testing between April 2016 and August 2021.
The governments further allege that Greene and Feel Well Health Center violated the Anti-Kickback Statute by receiving remuneration from Boston Heart Diagnostics Corp. in return for ordering from the company clinical laboratory services for Medicare patients. The payments were in the form of purported “processing and handling” fees between October 2012 and June 2014, and “speaker” fees, which were for rates greater than fair market value, between January 2017 and December 2018.
To resolve their liability, Greene and Feel Well Health Center agreed to pay $2,656,685.52, plus interest. Greene and Feel Well Health Center have also entered into a three-year billing Integrity Agreement with the U.S. Department of Health and Human Services designed to ensure future compliance with the requirements of federal healthcare programs.
“We allege in this case that Dr. Greene and his medical practice fraudulently billed federal and state healthcare programs for several years, and also received illegal kickbacks involving laboratory services ordered for Medicare patients,” said U.S. Attorney Avery. “Physicians and medical practices who participate in taxpayer funded healthcare plans have an obligation to bill for services honestly and accurately, and comply with other federal laws. Those who don’t will be held accountable.”
“Dr. Greene and Feel Well Health Center billed the state both for services he did not provide as well as for costly tests that were medically unnecessary,” said Attorney General Tong. “He falsified records and diagnoses to bill the state for fitness services with no legitimate medical component. He accepted illegal kickbacks for lab testing, enriching himself in violation of federal law. Our settlement forces him to pay $2.6 million, as well as commit to a series of rigorous oversight measures to ensure this unacceptable misconduct never happens again.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Sarah Gruber, and by Deputy Associate Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
The allegations resolved by today’s settlement stem from an investigation based on a critical analysis of Medicare claims data. People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Peoria Business Owner Sentenced to 24 Months for Tax EvasionRead the Press Release
PHOENIX, Ariz. – Sung Hwan Lee, 64, of Peoria, Arizona, was sentenced on October 26, 2022, by United States District Judge David G. Campbell, to 24 months in prison, followed by three years of supervised release. Lee previously pleaded guilty to Tax Evasion on March 23, 2022.
Lee owns and operates BBB Fashion, a chain of clothing stores in and around Phoenix and Tucson, Arizona. Between 2012 and 2016, Lee implemented a scheme to avoid paying taxes he owed on income earned through BBB Fashion. At Lee’s direction, his employees gave him the cash received from sales and then prepared false sets of records omitting the cash receipts. Through this cash-skimming scheme, Lee underreported his income for tax years 2012-2016 by $9,355,894, resulting in a tax loss of $3,696,786 to the federal government.
BBB Fashion’s bookkeeper, Young Bok Lee, previously pleaded guilty to Conspiracy to Defraud the United States. Young Bok Lee is scheduled to be sentenced December 1, 2022, by United States District Judge Susan R. Bolton.
IRS-Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorney Caitlin Noel, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00212-PHX-DGC
RELEASE NUMBER: 2022-207_Lee# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Orange County Man Sentenced for Federal Drug Trafficking and Firearms OffensesRead the Press Release
BEAUMONT, Texas– A Bridge City man has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Rian Blayke Savoy, 32, pleaded guilty on June 14, 2022, to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Savoy was sentenced to 137 months in federal prison for the drug trafficking violation and 60 months in federal prison for the firearms violation today by U.S. District Judge Marcia A. Crone. He sentences were ordered to served consecutively for a total of 197 months in federal prison.
According to information presented in court, in the early morning hours of Jan. 30, 2022, Savoy led officers from multiple Orange County, Texas law enforcement agencies on a high-speed chase for several miles through Orange County before eventually being pulled over near the border of Orange and Newton Counties. During the chase, law enforcement officers observed Savoy discarding several objects out of the window of the vehicle as he was driving. Officers were dispatched to the area where Savoy was observed to have thrown objects out of the vehicle during the police pursuit and discovered plastic baggies containing methamphetamine and a firearm. Savoy was indicted by a federal grand jury on April 6, 2022.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case was investigated by the Bridge City Police Department, the Orange Police Department, the Pinehurst Police Department, the West Orange Police Department, the Orange County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Ohio State University Pays over $875,000 to Resolve Allegations that It Failed to Disclose Professor’s Foreign Government SupportRead the Press Release
The Ohio State University (OSU), a public university in Columbus, Ohio, has paid $875,689 to resolve civil allegations that it failed to disclose an OSU professor’s affiliations with and support from a foreign government in connection with federal research funding.
This settlement relates to Army, National Aeronautics and Space Administration (NASA), and National Science Foundation (NSF) grants and research support agreements that provided funding to OSU from November 2012 to August 2020. In the funding application process, the Army, NASA the NSF require disclosures of, among other things, foreign government support received by any principal investigator (PI) or co-PI on the grant or agreement. The settlement resolves allegations that an OSU professor failed to disclose funding that he was receiving from a foreign government in connection with: (1) employment at a foreign public university; (2) participation in a foreign talent plan, a program established by the foreign government to recruit individuals with knowledge or access to foreign technology intellectual property; and (3) a grant from the foreign government’s natural science foundation. As part of its settlement, OSU has agreed to cooperate with the United States government’s investigation of others involved in the alleged violations of law.
“Universities, institutions and researchers are required to make certain disclosures when applying for federal grants so that the government can assess whether to fund their research and development,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable applicants who undermine the integrity of the grant process by knowingly failing to submit complete and truthful applications.”
“Failing to comply with federal disclosure obligations is not tolerable. Period,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Institutions, agencies, and researchers who do so will be held accountable.”
“The Department of the Army Criminal Investigation Division uses all available resources to see that those who attempt to bypass full disclosure rules when working with foreign governments are held accountable,” said Special Agent in Charge Scott Moreland of the Major Procurement Fraud Field Office.
“This settlement demonstrates NASA Office of Inspector General (OIG)’s commitment to identifying and holding accountable those who conceal affiliations with foreign entities to obtain research funding,” said Assistant Inspector General Robert Steinau of Investigations for NASA-OIG. “I am proud of the exceptional teamwork of our law enforcement partners, the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Ohio, that resulted in securing this settlement and ensuring aggressive oversight of taxpayer funds awarded for academic research.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Ohio, with assistance from the FBI, Army, NASA-OIG and NSF.
This matter was handled by Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Michael J.T. Downey for the Southern District of Ohio.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Ohio Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Scott Edward Snook, 47, of Mechanicsburg, Ohio, was sentenced today to five years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, admitted to possessing a Hi-Point, Model C, 9mm semi-automatic pistol in Charleston on August 3, 2020. Snook further admitted to possessing a .22-caliber rifle that had been modified to be less than 26 inches in length on the same date.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Snook knew he was prohibited from possessing a firearm because of his felony conviction for possession with intent to deliver heroin in Kanawha County Circuit Court on November 14, 2017.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Putnam County Sheriff’s Department and the Kanawha County Sheriff’s Office.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-10.
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North Carolina Man Pleads Guilty to Sex Offense Against A MinorRead the Press Release
CHARLESTON, W.Va. – Brian Mathew Wittmann, 33, of Madison, North Carolina, pleaded guilty today to traveling in interstate commerce to engage in illicit sexual conduct with a minor.
According to court documents and statements made in court, on May 11, 2022, Wittmann contacted an individual he believed to be a minor female on Instagram after finding her profile. Wittmann admitted that he asked for the minor female’s phone number and began sending her text messages that included a photo of his genitals. Wittmann further admitted that he continued to text the minor female for about a week, seeking to entice her into engaging in illicit sexual conduct with him.
On May 19, 2022, Wittmann arranged by text message to meet the minor female the following day at a location in Nicholas County, West Virginia, to engage in illicit sexual conduct. Wittmann admitted to driving the next day from North Carolina to Nicholas County, where he was met by law enforcement officers. Wittmann admitted that he told the officers that he had sent sexually explicit messages to the minor female as well as to other minor females on Instagram. Officers searched Wittmann’s vehicle and found condoms, blankets, a pillow and a morning-after pill, a type of emergency birth control. Wittmann admitted to buying the morning-after pill to prevent pregnancy.
Wittmann is scheduled to be sentenced on February 2, 2023, and faces a maximum penalty of 30 years in prison, three years of supervised release, and a $1 million fine. Wittmann must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crime Against Children (VCAC) Task Force.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-120.
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North Carolina Man Indicted for Committing Child Sexual Exploitation OffensesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging David Wayne Hogle, Jr. (29, Cherry Point, North Carolina) with one count of attempted online enticement of a minor to engage in sexual activity, one count of online transportation of depictions involving the sexual abuse of children, and two counts of attempted production of child sexual abuse materials. If convicted of attempted online enticement of a minor to engage in sexual activity, Hogle faces a minimum mandatory penalty of 10 years, up to life, in federal prison. If convicted of online transportation of depictions involving the sexual abuse of children, Hogle faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. If convicted of attempted production of child sexual abuse materials, Hogles faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison on each count.
According to court documents, Hogle committed the charged criminal offenses between July 13 and July 27, 2022. He was arrested in Cherry Point, North Carolina by FBI agents and had his initial appearance in federal court in Greenville, North Carolina. He was subsequently transported to Jacksonville by the United States Marshals Service for prosecution in this case. His detention hearing is scheduled for November 14, 2022, at 3:30 p.m. in Jacksonville.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Greenville, North Carolina, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
New York Woman Faces up to 20 Years in Federal Prison, $1M Fine Following Conviction for Fentanyl TraffickingRead the Press Release
PORTLAND, Maine: A federal jury convicted a New York woman today for possessing fentanyl with intent to distribute following a four-day jury trial in U.S. District Court in Portland. The announcement was made by United States Attorney Darcie N. McElwee
According to court records and evidence presented at trial, on December 26, 2018, Jenny Santana-Vasquez, 36, was stopped by a Maine State Trooper on I-95 northbound near Biddeford for exceeding the speed limit. Santana-Vasquez’s license was suspended as was the vehicle registration. Following an alert from a drug detection dog, Santana-Vasquez admitted to the trooper that she had something hidden on her person. Further investigation revealed approximately 99 grams of fentanyl.
Santana-Vasquez faces up to 20 years in prison, three years of supervised release, and a $1,000,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police, and the United States Drug Enforcement Administration, with assistance from the Maine Health and Environmental Testing Laboratory (HETL) Forensic Chemistry Section.
The U.S. Attorney’s Office prosecuted the case as part of the Department of Justice’s Operation Synthetic Opioid Surge, a program designed to reduce the supply of deadly synthetic opioids.
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New Jersey Woman Sentenced to Prison for Immigration Marriage FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on AUDREY BONET JOHNSON, 34, of Irvington, New Jersey, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to seven months of imprisonment, followed by two years of supervised release, for an immigration marriage fraud offense. Judge Shea also ordered Johnson to serve 45 days in a halfway house when she is released from prison.
According to court documents and statements made in court, on March 1, 2012, Johnson, a U.S. citizen, and Shanon St. Aubyn Stephenson, a citizen of Jamaica, entered into a fraudulent marriage. Shortly thereafter, Johnson and Stephenson applied to the U.S. Citizenship and Immigration Service (“USCIS) for Stephenson to become a lawful permanent resident of the U.S., often called a “green card.” Following an interview with the USCIS in 2012, Stephenson was issued a temporary, two-year green card. In subsequent submissions and statements to the USCIS, Johnson and Stephenson claimed to be married and living together in Brooklyn, New York. In fact, Stephenson married Jodian Stephenson, also known as Jodian Gordon, in 2010, and lived with her, and not Johnson, in Bridgeport, Connecticut.
This investigation revealed that Jodian Stephenson, a citizen of Jamaica, operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, she conspired with others to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining green cards. One of the sham marriages was between Johnson and Shanon Stephenson, and another was between Jodian Stephenson and a U.S. citizen.
On October 1, 2021, Johnson pleaded guilty to conspiracy to commit immigration marriage fraud. Johnson, who was released on bond, was remanded to custody at the conclusion of the sentencing proceeding.
Jodian Stephenson and Shanon Stephenson pleaded guilty to the same charge. On August 26, 2021, Jodian Stephenson was sentenced to six months of imprisonment. Shanon Stephenson awaits sentencing.
Ten individuals were charged as a result of this investigation, and all pleaded guilty. Removal proceedings have been or are being commenced against all individuals whose green card applications were found to have been based on sham marriages.
This investigation has been conducted by Homeland Security Investigations (HSI) and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
New Jersey Man Sentenced to Three Years in Federal Prison for Defrauding Investors Out of up to $1.5 MillionRead the Press Release
CHICAGO — An investment manager has been sentenced to three years in federal prison for swindling clients out of up to $1.5 million.
EUGENE Z. NOWAK, 57, of Jersey City, New Jersey, represented himself as the president of Global Funding Partners, a Nevada corporation that purported to be an investment firm with complex business dealings with large multinational banking and financial services institutions. Nowak pleaded guilty to one count of wire fraud in the United States District Court for the Northern District of Illinois on May 10, 2022. In his plea agreement, Nowak admitted that, between 2013 and 2016, he falsely represented to investors, including Chicago-based investors, that their funds would be used to provide “bridge funding,” or temporary funding, for Global Funding Partners to close a $33 million financial transaction involving a large international bank. Nowak admitted to falsely promising that investors would receive high-yield returns in a short amount of time, and that they could cancel their investment at any time for a full refund with interest.
In reality, Nowak and Global Funding Partners were not parties to a transaction with any large international bank. Nowak instead diverted investor funds to cover his personal expenses, including payments to a car dealership and pawn shop in Naples, Fla. Nowak further admitted that he thereby caused multiple investors to suffer losses up to $1,500,000.
On November 9, 2022, at Nowak’s sentencing hearing, U.S. District Judge Matthew F. Kennelly imposed a 36-month prison sentence, to be followed by 2 years’ supervised release, and ordered that Nowak pay restitution to the defrauded investors.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kai Pickens, Acting Inspector in Charge of the U.S. Postal Inspection Service Chicago Division; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Kartik K. Raman.
Mt. Olive Man Sentenced to 25 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Mt. Olive man was sentenced to 300 months in federal prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Stokes Marque Wells, 30, was sentenced in U.S. District Court in Hattiesburg. Wells was also ordered to serve a five-year term of supervised release following completion of his prison term and pay a $10,000 fine.
According to court documents, in April 2020, DEA agents intercepted communications of Stokes Marque Wells and his co-defendants conspiring to distribute methamphetamine. Specifically, on April 24, 2020, agents intercepted methamphetamine related communications leading to the seizure of approximately 3 pounds of methamphetamine. Wells was responsible for the possession and distribution of approximately 20 pounds of methamphetamine to the Hattiesburg, Mississippi and surrounding areas.
The case is the result of an extensive investigation, dubbed “Don’t Tell On Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell On Me Bro” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, Lamar County Sheriff’s Office, Mississippi Bureau of Narcotics, Hattiesburg Police Department, Forrest County Sheriff’s Office, and the Columbia Police Department.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Monongalia County man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Woody, of Morgantown, West Virginia, weas sentenced today to 136 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Woody, 43, pleaded guilty in March 2022 to one count of Possession with Intent to Distribute Methamphetamine.” Woody admitted to distributing methamphetamine in April 2020 in Monongalia County.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Court Judge Thomas S. Kleeh presided.
Middlesex County Man Charged with Communicating Threat to Attack SynagogueRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested today for transmitting via the internet a manifesto containing threats to attack a synagogue and Jewish people, U.S. Attorney Philip R. Sellinger announced.
Omar Alkattoul, 18, of Sayreville, New Jersey, was arrested this morning and is charged by complaint with one count of transmitting a threat in interstate and foreign commerce on or about Nov. 1, 2022. He is scheduled to appear this afternoon before U.S. Magistrate Judge Jessica S. Allen in Newark federal court.
“No one should be targeted for violence or with acts of hate because of how they worship,” U.S. Attorney Sellinger said. “According to the complaint, this defendant used social media to send a manifesto containing a threat to attack a synagogue based on his hatred of Jews. Along with our federal, state and local law enforcement partners, we acted swiftly to respond to the alleged threat. There is nothing the U.S. Attorney’s Office takes more seriously than threats to our communities of faith and places of worship. Protection of these communities is core to this office’s mission, and this office will devote whatever resources are necessary to keep our Jewish community and all New Jersey residents safe.”
“When we learn of credible threats to our community – whether based in hate toward religion, race, sexual orientation, or gender – we call on law enforcement and community partners to assist in identifying and mitigating that threat,” Special Agent in Charge James E. Dennehy said. “Thanks to the collaborative efforts among our Joint Terrorism Task Force Members, a potentially harmful situation was averted. I would like to commend and show our appreciation for the resources from the District of New Jersey’s U.S. Attorney’s Office, New Jersey State Police, the New Jersey Office of Homeland Security and Preparedness, the New Jersey Attorney General's Office, the Sayreville Police Department, and the Middlesex County Prosecutor’s Office. Let it be known that when a threat of violence comes to our attention, the FBI and our partners will respond to keep the public safe.”
According to documents filed in this case and statements made in court:
On Nov. 1, 2022, Alkattoul used a social media application to send an individual a link to a document entitled “When Swords Collide” and admitted to this individual that he wrote the document, stating: “It’s in the context of an attack on Jews.” According to a second individual, Alkattoul also sent the document to at least five other people using another social media application. In the document, Alkattoul wrote the following:
I am the attacker and I would like to introduce myself. . . I am a Muslim with so many regrets but I can assure you this attack is not one of them and Insha’Allah many more attacks like these against the enemy of Allah and the pigs and monkeys will come.
I will discuss my motives in a bit but I did target a synagogue for a really good reason according to myself and a lot of Muslims who have a brain. Let’s be aware of the fact that the Jews promote the biggest hatred against Muslimeen even in the west. The Jews are in fact a very powerful group in the west which is why western countries today shill for them on top of the murtadeen in Saudi Arabia and every Arab country.
This attack was just to remind the Jews that as long as 1 Muslim remains in this world they will never live a pleasant life until the Muslims in Palestine, Syria, West Africa, and South Asia are living a pleasant life. The Jews support terror against the muslimeen and they always have . . . . So the motive of this attack is hatred towards Jews and their heinous acts and I don’t want anyone to tell me for a second that “not all Jews support terror against Muslims” yes they do! They have since day one. Their Torah justifies their acts and let’s keep in mind it was a Jew that tried to kill the nebi SAW.
The charge of transmitting a threat in interstate and foreign commerce is punishable by a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s arrest. He also thanked agents of the FBI Field Office in Tampa, Florida, under the direction of Special Agent in Charge David Walker; the FBI Field Office in New York, under the direction of Assistant Director in Charge Michael J. Driscoll; and the FBI Washington Field Office, under the direction of Assistant Director in Charge Steven D’Antuono; as well as the New Jersey Office of the Attorney General, under the direction of Attorney General Matthew J. Platkin; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and officers of the Sayreville Police Department, under the direction of Chief Daniel Plumacker.
The government is represented by Assistant U.S. Attorneys Jonathan Peck, Christopher Amore, and Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican National Residing in Bakersfield Pleads Guilty to Illegal Cockfighting in Violation of the Animal Welfare ActRead the Press Release
Horacio Ortega-Martinez, 35, a Mexican national residing in Bakersfield, pleaded guilty today to unlawful possession of animals for an animal fighting venture, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2022, Ortega-Martinez communicated frequently with Jorge Calderon-Campos, 41, (charged separately) about illegal cockfighting events, including an event Calderon-Campos attended on February 12 at which 15 roosters fought to win a $5,000 purse. On April 26, 2022, numerous law enforcement agencies served a search warrant at Ortega-Martinez’s residence and discovered approximately 250 roosters, approximately 250 “gaffs” (razor-sharp steel blades that are tied to the birds’ legs), training mitts commonly used for training and fighting roosters, and miscellaneous antibiotics, vitamins, and supplements that are commonly used for breeding and training roosters for fighting.
Ortega-Martinez and Calderon-Campos were arrested on April 26, 2022, along with six other Kern County residents who were also charged with various drug trafficking offenses.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Kern County High Intensity Drug Trafficking Area, the U.S. Marshals Service, the U.S. Customs and Border Protection, the Bakersfield Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the U.S. Secret Service, the U.S. Department of Agriculture Office of Inspector General and the California Highway Patrol. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Ortega-Martinez is scheduled to be sentenced on Feb. 3, 2023, by U.S. District Judge Jennifer L. Thurston. Ortega-Martinez faces a statutory maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against Calderon-Campos. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Metairie Man Pleads Guilty to Receiving Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL GERALD MARCHESE, age 45, a resident of Metairie, Louisiana, pleaded guilty on November 8, 2022 before United States District Judge Wendy Vitter after previously being charged in a one-count indictment with receiving images and videos depicting the sexual exploitation of children, including children as young as approximately one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2).
According to court documents, in about July 2021, law enforcement authorities received information that an unidentified individual, subsequently determined to be MARCHESE, was using an internet-based peer-to-peer network that allows users to anonymously share files, chat on message boards, and access websites within the network, to view, download, and store computer files depicting the sexual victimization of children. FBI agents executed a search warrant on MARCHESE’S residence on December 9, 2021 and seized several electronic items, including four (4) portable external hard drives. A review of the items revealed that MARCHESE used the internet and peer-to-peer platforms numerous times throughout 2020 and 2021 to download depictions of children being sexually exploited. The review further confirmed that MARCHESE downloaded at least approximately 4,201 images and 339 videos depicting the sexual victimization of children, including prepubescent minors as young as less than one (1) year old, and that some of the images and videos portrayed sadistic or masochistic conduct or other depictions of violence.
MARCHESE faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of twenty (20) years in prison. MARCHESE also faces a lifetime of supervised release, up to a $250,000 fine, a mandatory $100 special assessment fee and can be required to register as a sex offender. Sentencing before Judge Vitter is scheduled for February 14, 2023, at 1:00 pm.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Meridian Man Sentenced to 5 Years in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Jackson, Miss. - A Meridian man was sentenced today to 5 years in prison for possession of cocaine with intent to distribute, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt H. Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on May 24, 2021, during the execution of a search warrant of the residence of Kerwin Ronriquez Dawson, 42, officers of the Lauderdale County Sheriff’s Office found over a half of kilogram of cocaine. The cocaine was intended for distribution in the Lauderdale County area.
The Lauderdale County Sheriff’s Office and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
Merced Man Pleads Guilty to $60,000 Credit Card FraudRead the Press Release
FRESNO, Calif. — Ruben Chavez III, 36, of Merced, pleaded guilty today to committing credit card fraud and related identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from April 2021 through March 2022, Chavez used or attempted to use more than 20 victims’ credit cards to make over $60,000 in fraudulent purchases at retail stores, including home appliances. He also changed the victims’ mailing addresses to his own address and created fake identification cards in their names to help further his fraud.
This case is the product of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Chavez is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 10, 2023. Chavez faces a maximum statutory penalty of 10 years in prison and fine of up to $250,000 for the credit card fraud, and a mandatory two-year consecutive sentence for the identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Member of Large Drug Trafficking Organization Sentenced to 360 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced the sentencing of Travis R. James, age 38 of Baton Rouge, Louisiana, as part of Operation Hidden Fee, an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in Baton Rouge.
Chief Judge Shelly D. Dick sentenced James to 360 months in federal prison following his convictions of conspiracy to distribute cocaine, crack cocaine, and heroin, conspiracy to launder monetary instruments, and possession of firearms by a convicted felon. James must also serve five years of supervised release following his term of imprisonment. In imposing James’ prison term, the Court found that for years, James was a leader and organizer of a drug trafficking group consisting of thirteen individuals. It found that this group was generating large amounts of drugs and drug trafficking proceeds. His significant criminal history, in large part, consisting of criminal conduct committed while on supervision, and his history of violence were also factors militating in favor of the sentence it imposed. The Court further ordered that the firearms involved be forfeited and ordered James to pay a personal money judgment of $139,632 equal to the combined value of the proceeds and property used to facilitate the drug trafficking conspiracy.
According to admissions made as part of his guilty plea, James led a group of individuals consisting of Troy James, Joshua Mansion, Kim Murphy, Yascia LaFrance, Belinda Carter, Cornelius Carter, and others in a venture to obtain kilograms of cocaine from various sources in Houston, Texas, transporting those amounts of cocaine to stash houses located in Baton Rouge and Prairieville, where amounts where some amounts of cocaine were broken down for distribution to others, and other amounts converted by James into crack cocaine, for sale to others.
In many instances, the amounts transported by this group into the Middle District involved five or more kilograms of cocaine per trip. During this investigation authorities seized and forfeited over $500,000 in drug trafficking proceeds from James as well as approximately eight firearms, two kilo presses, and heroin and cocaine testing kits. The investigation also revealed that James was making plans to branch out into heroin trafficking using the money he had accumulated from the sale of crack and powder cocaine. He was planning to commence that enterprise by purchasing a kilogram of heroin.
Earlier, Chief Judge Dick imposed a 115 month term of imprisonment upon Troy James; a 120 month term of imprisonment upon Joshua Mansion; a 168 month term of imprisonment upon Kim Murphy; a 90 month term of imprisonment upon Yascia LaFrance; a 120 month term of imprisonment term upon Cornelius Carter; and 19 months for Belinda Carter.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration with invaluable assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Internal Revenue Service, the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge City Police Department, and the Louisiana State Police. Other agencies also assisted in apprehending the defendants, including the U.S. Marshal’s Service, and the Sheriffs’ Offices in Ascension, Iberville, and West Baton Rouge Parishes. These cases were prosecuted Assistant U.S. Attorneys Robert Piedrahita and Lyman E. Thornton III.
Maryland Man Pleads Guilty to “DMV Board” Dogfighting ConspiracyRead the Press Release
ALEXANDRIA, Va. – Today a Forestville, Maryland, man pleaded guilty to conspiring to engage in dogfighting.
According to court documents, from at least May 2015 through August 2020, Laron Mecco “Frog” West, 46, and other conspirators from Virginia, D.C., and Maryland, used a messaging app private group, which they generally referred to as "The DMV Board" or "The Board," as a place where they and their associates could discuss training fighting dogs, exchange videos about dogfighting, and arrange and coordinate dog fights, away from the view of law enforcement authorities. Members of The DMV Board also used the messaging app to compare methods of killing dogs that lost fights, as well as to circulate media reports about conspirators who had been caught by law enforcement and discuss methods to minimize the likelihood that they would be caught themselves.
According to court documents, in June 2017, West posted on the DMV Board that “we kill” fighting dogs that quit. In October 2018, West posted on the DMV Board that dogs that failed to fight aggressively enough had been killed. West wrote that he “loves to throw [the dogs] over the bridge and into the water.”
Court documents further reflect that, in March 2018, West drove coconspirator Charles Edward Williams, III, of Capitol Heights, Maryland, to a warehouse in Philadelphia, Pennsylvania, where Williams entered his dog into a dogfight attended by dozens of people. In November 2018, Williams warned members of the DMV Board to be sure to confirm the death of the dogs that they try to kill upon losing a fight.
In April 2019, Williams and coconspirator Michael Roy Hilliard, 37, of Fort Washington, drove to Bunnlevel, North Carolina, with a dog belonging to Williams, so that he could enter the dog in a dog fight. The fight lasted less than 10 minutes before being won by the dog belonging to Williams. An unindicted conspirator shot and killed the dog that lost the fight.
In August, West, Williams, Hilliard, and four others were indicted for a dogfighting conspiracy involving the “DMV Board.” Earlier this month, Williams and Hilliard pleaded guilty to the same conspiracy as West. Trial for three of the remaining defendants is set for December 6.
West, Williams, and Hilliard are each scheduled to be sentenced on February 21, 2023. Each faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Significant assistance was provided by The U.S. Department of Agriculture Office of Inspector General.
Assistant U.S. Attorneys Cristina Stam and Gordon Kromberg are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-154.
Marion County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randall Richard Stebbins, of Monongah, West Virginia, has admitted to distributing methamphetamine, United States Attorney William Ihlenfeld announced.
Stebbins, 36, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Stebbins admitted to having methamphetamine in April 2021 in Marion County.
Stebbins faces up to 20 years in prison and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Manchester Man Sentenced to 72 Months for Possession of Powder and "Crack" Cocaine with Intent to Distribute and Being a Felon in Possession of a FirearmRead the Press Release
CONCORD – Kevin Scott, 46, of Manchester was sentenced today to 72 months in federal prison for possession with intent to distribute powder cocaine and cocaine base (“crack” cocaine), and for possessing a firearm as a convicted felon, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, officers of the Litchfield Police Department received information from a confidential source that the defendant, Mr. Scott, was using an apartment in Litchfield to cook crack cocaine. Surveillance revealed Mr. Scott coming in and out of the apartment, carrying a fanny pack from the apartment into his car. A traffic stop of Scott’s car was conducted, and a subsequent search of his car revealed a Glock 9 mm pistol, lactose powder (a known cutting agent for cocaine), and $10,982 in cash inside the fanny pack. Litchfield police officers also found a baggie near where Mr. Scott had been standing prior to his arrest, which contained 5.83 grams of crack cocaine and 5.86 grams of powder cocaine. Text messages from Mr. Scott’s phone confirmed his involvement in drug trafficking.
“Felons like the defendant who carry guns and deal drugs pose a unique threat to the safety of our communities,” said U.S. Attorney Young. “Due to the efforts of the Litchfield Police Department, working in collaboration with ATF and the DEA, the defendant’s efforts to distribute dangerous narcotics were thwarted and he has been held accountable for his crimes.”
“DEA is committed to investigating individuals involved in drug trafficking like Mr. Scott in Litchfield, New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “As we all know, drug trafficking in our communities, along with the gun violence that often accompanies it, is a serious threat to our families and communities. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
“ATF remains dedicated in our efforts to keep firearms out of the hands of those who are prohibited from possessing them” said James M. Ferguson Special Agent in Charge of the ATF Boston Field Division. “ATF will continue to work with our state, local and federal, law enforcement partners to combat violent crimes that occur within our communities.”
This matter was investigated by the Litchfield Police Department in conjunction with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Aaron Gingrande and Cam Le.
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Man who stole revolver sentenced to 8 years in prison for illegally possessing firearmRead the Press Release
DAYTON, Ohio – A convicted felon was sentenced in U.S. District Court today to 96 months in prison for illegally possessing a firearm that he stole.
Timothy Crider, 29, of Dayton, stole a pink revolver and a gold Jaguar vehicle from a victim in Dayton, Ohio.
According to court documents, on March 13, 2021, Dayton police officers responded to a suspected overdose at the intersection of Watts Street and Burkhart Avenue, where they discovered Crider in the stolen Jaguar. Crider had an active warrant for grand theft auto and theft of a firearm, specifically the pink revolver.
Officers discovered the pink revolver under the driver’s seat, where Crider had been sitting. DNA lab reports confirmed his DNA on the weapon.
Crider has prior convictions for robbery resulting in injury and aggravated robbery with a deadly weapon, both felony offenses. As a previously convicted felon, Crider is prohibited from possessing firearms.
Crider pleaded guilty to the instant offense in July 2022.
Crider’s federal sentence will be served after he is released from his current term of imprisonment in Shelby County, Ohio. Crider was sentenced to 30 months in prison in Shelby County Common Pleas Court for spitting on a corrections officer while in pre-trial detention for the instant offense, when he knew he was hepatitis C positive.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN). Through the violent-crime reduction program, a broad spectrum of stakeholders works 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.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Dayton Police Chief Kamran Afzal announced the sentence imposed by U.S. District Court Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
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Man Charged for Participation in LockBit Global Ransomware CampaignRead the Press Release
A criminal complaint filed in the District of New Jersey was unsealed today charging a dual Russian and Canadian national for his alleged participation in the LockBit global ransomware campaign.
Mikhail Vasiliev, 33, of Bradford, Ontario, Canada, is in custody in Canada and is awaiting extradition to the United States.
“This arrest is the result of over two-and-a-half-years of investigation into the LockBit ransomware group, which has harmed victims in the United States and around the world,” said Deputy Attorney General Lisa O. Monaco. “It is also a result of more than a decade of experience that FBI agents, Justice Department prosecutors, and our international partners have built dismantling cyber threats. Let this be yet another warning to ransomware actors: working with partners around the world, the Department of Justice will continue to disrupt cyber threats and hold perpetrators to account. With our partners, we will use every available tool to disrupt, deter, and punish cyber criminals.”
“Yesterday's successful arrest demonstrates our ability to maintain and apply relentless pressure against our adversaries,” said FBI Deputy Director Paul Abbate. “The FBI's persistent investigative efforts, in close collaboration with our federal and international partners, illustrates our commitment to using all of our resources to ensure we protect the American public from these global cyber threat actors.”
According to court documents, LockBit is a ransomware variant that first appeared in or around January 2020. It has become one of the most active and destructive ransomware variants in the world. Since first appearing, LockBit has been deployed against at least as many as 1,000 victims in the United States and around the world. LockBit members have made at least $100 million in ransom demands and have extracted tens of millions of dollars in actual ransom payments from their victims. The FBI has been investigating the LockBit conspiracy since in or around March 2020.
According to court documents, Vasiliev allegedly participated in the LockBit campaign. He is charged with conspiracy to intentionally damage protected computers and to transmit ransom demands. If convicted, he faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge James Dennehy of the FBI Newark Field Office made the announcement.
Trial Attorneys Jessica C. Peck and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold of the Cybercrime Unit for the District of New Jersey are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Attorney’s Office for the Western District of Pennsylvania.
The case is being investigated by the FBI Newark Field Office, Newark Cyber Crimes Task Force, with assistance from the FBI Atlanta Field Office, the FBI Pittsburgh Field Office, the FBI Miami Field Office, the FBI’s Legal Attaché-Ottawa, the Jersey City Police Department, the New Jersey State Police, and the New Jersey Office of Homeland Security and Preparedness. The Justice Department’s Office of International Affairs has also provided valuable assistance.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maine Resident Pleads Guilty to Fraud and Tax Offenses Stemming from $1.8 Million Embezzlement SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EDWARD F. ZIEGLER II, 63, of Bridgton, Maine, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to fraud and tax offenses stemming from a 15-year embezzlement scheme.
According to court documents and statements made in court, Ziegler was employed as the office manager for a small, family-owned business, identified in court documents in “Company A,” based in Berlin, Connecticut. In approximately 2006, Ziegler opened a bank account in his name and with the qualifying language “Doing Business As [Company A].” Over the course of approximately 15 years, Ziegler diverted more than 400 checks, totaling approximately $1.8 million, from Company A’s customers and deposited them into the secret bank account he had established. Ziegler also made fraudulent entries in Company A’s books and record keeping system to cover up the fact that he had diverted the checks and used the funds for his own benefit.
In addition, Ziegler failed to pay $173,003 in federal income taxes on his embezzled income for the 2015 through 2019 tax years.
Ziegler was arrested on March 16, 2022.
Ziegler pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. Judge Dooley scheduled sentencing for February 3.
Ziegler is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Bridgton (Maine) Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Madison Man Sentenced to 4 Years for Illegal Receipt of a FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Ka’Toine Richardson (a.k.a. Kado), 20, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 4 years in federal prison for receiving a handgun while facing state felony charges. This prison term will be followed by three years of supervised release.
On March 18, 2022, Richardson faced eleven felony charges in Dane County, Wisconsin cases. Charges included burglary armed with a dangerous weapon and burglary to building or dwelling, bail jumping felonies, possession of a firearm after being adjudicated delinquent, resisting an officer, and 1st and 2nd degree recklessly endangering safety. These charges are pending, and Richardson is presumed innocent until and unless proven guilty.
Despite these charges, Richardson obtained a firearm on March 18, 2022, by stealing it from another person. Richardson possessed the firearm until March 23, 2022, when he was arrested.
In imposing the four-year sentence, Judge Peterson reflected on Richardson’s criminal history, his pending state charges, and the threat he posed to public safety. In addressing Richardson, Judge Peterson stated that he “makes people unsafe” and that the “community reasonably perceives [Richardson] as a threat.“ The four-year sentence, Judge Peterson concluded, specifically deterred Richardson from endangering the public, and, with three years of federal supervision, gave Richardson on opportunity to turn his life around.
The charge against Richardson was the result of an investigation conducted by the Fitchburg Police Department with assistance from the Madison Police Department, the Dane County Sheriff’s Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Timothy M. O’Shea 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.
MS-13 Clique Leader Sentenced to over 13 Years in PrisonRead the Press Release
BOSTON –The leader of a local MS-13 clique was sentenced on Nov. 8, 2022 in federal court in Boston.
Manuel Adan Yanez Cruz, a/k/a “Rocky,” a/k/a “Flaco,” 22, was sentenced by U.S. District Court Judge Leo T. Sorokin to 162 months in prison and three years of supervised release. Yanez Cruz is an El Salvadoran citizen and will be subject to deportation proceedings upon completion of his sentence. On March 18, 2022, Yanez Cruz pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy.
MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala who often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement and others whom the gang views as a threat. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. Yanez Cruz was a member and local leader of the Huntington Locos Salvatrucha (HLS) clique, which operated in the cities of Boston, Lynn, Everett, Chelsea, Somerville and other parts of Massachusetts.
On Dec. 24, 2016, Yanez Cruz was involved in the murder of a teenage boy in East Boston. Specifically, Yanez Cruz informed at least one individual of the murder before it occurred and participated in the planning of the victim’s murder, which was based on the belief that the victim may have been associated with a rival gang. Yanez Cruz was present at the murder along with other MS-13 members to serve as both a witness for El Salvador leaders and to assist as needed. At the time the murder was committed, Yanez Cruz was a juvenile.
Following the murder, Yanez Cruz boasted about his involvement in the murder to help recruit others, including minors, into the MS-13 gang and to earn elevated gang status. Intercepted communications showed that Yanez Cruz communicated with both national and international MS-13 leaders and members about MS-13 gang matters, including the transmission of fees to El Salvador.
Although Yanez Cruz was not charged with the 2016 murder, as part of the Nov. 8, 2022 sentence for federal RICO conspiracy, the Court held him responsible for his involvement in the murder.
In April 2018, Yanez Cruz was also involved in the attempted murder of a victim whom he, along with other MS-13 members, suspected of being a gang rival. MS-13 members lured the victim to the Belle Isle Marsh where a member shot the victim in the head. The gun malfunctioned, however, and the victim survived.
In September 2018, Yanez Cruz was arrested for an assault on a rival gang member in which he possessed a knife on a public street in broad daylight. In phone communications following the incident, another MS-13 member present at the incident told an associate about the violent nature of the event and that they had almost killed the victim.
Yanez Cruz had entered into the United States unlawfully in 2015 and, following his arrest and conviction on the state knife offense, was transferred into the custody of immigration authorities for deportation proceedings. Authorities sought to remove Yanez Cruz from the United States and pointed to his association with MS-13 as part of the reasons to oppose his petition for asylum and other relief. Yanez Cruz testified under oath at his removal proceedings and made a number of false statements, telling the Court that he was not associated with MS-13 and was unfamiliar with HLS. The immigration judge found Yanez Cruz’s testimony to be credible. However, Yanez Cruz was federally indicted in this case before any ultimate ruling was issued on his immigration status.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Kevin Hayden; Boston Police Commissioner Michael Cox; and Lynn Police Chief Christopher Reddy made the announcement.
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.
Lower Brule Man Found Not Guilty of Sexual AbuseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Lower Brule, South Dakota, man was acquitted of Sexual Abuse of a Person Incapable of Consent as a result of a federal jury trial in Pierre, South Dakota, on November 10, 2022.
Darren Flute, age 45, was indicted by a federal grand jury in July of 2021.
The charge related to an alleged incident that occurred on August 15 or 16, 2020, in Lyman County, South Dakota.
The investigation was conducted by the FBI and the Bureau of Indian Affairs – Office of Justice Services, Lower Brule Agency. The U.S. Attorney's Office prosecuted the case.
Lincoln Man Sentenced to More Than 7 Years in Prison for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced that Ismael R. Cuevas, 32, of Lincoln, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard for receipt of child pornography. Cuevas was sentenced to 7 years and 3 months in prison and 7 years of supervised release. There is no parole in the federal system. Cuevas was additionally ordered to pay $3,000 which will contribute to funds established for victims of these types of cases.
On October 3, 2020, a Nebraska State Patrol investigator used peer-to-peer software to connect to an IP address (later identified to be Cuevas’s residence) and downloaded four files containing child pornography. On January 7, 2021, a federal search warrant was executed at Cuevas’s residence. During the search, Cuevas’s cellphone was seized. The agents unlocked his phone using the biometric access permission within the search warrant. Immediately upon looking at the phone, the investigators saw an application on the phone and witnessed that it was in the middle of downloading multiple child pornographic files.
Several devices were seized during the execution of the search warrant. A laptop computer used by Cuevas, a USB drive belonging to Cuevas, and his cellphone. A forensic download and examination were completed for each of those devices. The examination of his cellphone revealed more than 100 video files of child pornography and 17,430 images of child pornography, the laptop revealed 24 images of child pornography, and the USB drive revealed more than 50 files of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Laveen Man Sentenced to Five Years for Possessing Methamphetamine with Intent to DistributeRead the Press Release
PHOENIX, Ariz. – On October 31, 2022, Sherwin Tracy Lewis, 48, of Laveen, Arizona, was sentenced by United States District Judge Douglas L. Rayes to five years in prison, followed by four years of supervised release.
Between June 7, 2021, and June 21, 2021, Lewis possessed 152 grams of methamphetamine within the confines of the Gila River Indian Community. Lewis pleaded guilty on April 28, 2022, to Possession with Intent to Distribute five grams or more of Actual Methamphetamine.
The Gila River Police Department and the Bureau of Indian Affairs conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-01016-01-PHX-DLR
RELEASE NUMBER: 2022-206_Lewis# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Large-Scale Drug Traffickers Convicted by Federal JuryRead the Press Release
EL PASO, Texas – A federal jury convicted two men Tuesday of multiple counts of drug trafficking. Additionally, one of the defendants was convicted of domestic and international money laundering.
Jorge Sanchez-Morales aka “Capulina,” 47, was convicted of two counts of Conspiracy to Possess with Intent to Distribute; two counts of Conspiracy to Import a Controlled Substance; one count of Conspiracy to Commit International Money Laundering; and one count of Conspiracy to Commit Domestic Money Laundering.
Luis Reyes-Perez aka “Cubano,” 51, was convicted of one count of Conspiracy to Possess a Controlled Substance with Intent to Distribute, and one count of Conspiracy to Import a Controlled Substance.
According to court documents and evidence presented at trial, Sanchez-Morales ran a large-scale drug trafficking organization, spanning from Mexico to El Paso and on to Atlanta, from 2002 to 2019. In the early 2000s, Sanchez-Morales worked out of Atlanta, trafficking cocaine and other drugs with Sinaloa Cartel operatives.
In 2014, Sanchez-Morales returned to Mexico to run his organization, which would then primarily traffic methamphetamine, often in liquid form. The liquid methamphetamine would cross the border from Juarez, Mexico into El Paso, and then was transported to Atlanta in semi tractors. The liquid methamphetamine would be poured into one of the semi-tractor’s fuel tanks that had been disconnected from the truck’s fuel system and then converted to crystalline form once it arrived in Atlanta. Sanchez-Morales was at this time affiliated with Jalisco New Generation Cartel, or CJNG, and oversaw the operation.
Reyes-Perez was one of the truck drivers who transported the liquid methamphetamine from El Paso to Atlanta and was responsible for the delivery of several hundred gallons of the highly addictive substance.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Drug Enforcement Administration Special Agent in Charge Greg Millard; and Homeland Security Investigations Special Agent in Charge Frank Burrola made the announcement.
The DEA, HSI, United States Border Patrol, El Paso Sheriff’s Office, Texas Department of Public Safety and Socorro Police Department investigated the case.
Assistant U.S. Attorneys Steven Spitzer and Nathan Brown prosecuted the case.
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Lansing, Illinois Man Sentenced and Ordered to Pay $210,000 in RestitutionRead the Press Release
HAMMOND- Shaquiel Seaton, 29 years old, of Lansing, Illinois, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to wire fraud, announced United States Attorney Clifford D. Johnson.
Seaton was sentenced to 24 months in prison, 2 years of supervised release and was ordered to pay $210,000 in restitution to the victim of the offense, the Small Business Administration (SBA). A $6,000 forfeiture money judgment was also imposed.
According to documents in the case, between June 10 and July 17, 2020, Seaton filed 44 fraudulent applications for $10,000 grants from the SBA pursuant to the COVID-19 Economic Injury Disaster Loan (EIDL) Program. As a result of his fraudulent scheme, the SBA paid out $10,000 grants from 21 of those applications. The investigation revealed that Seaton typically charged a $3,000 fee to fraudulently prepare and file applications for other people. Since applications were only to be submitted by businesses, Seaton fabricated business information on the applications to include revenue, costs, type of business, and the number of employees.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorney Alexandra McTague.
Korean National Sentenced to 7 Years and 9 Months in Prison for “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Kyung Min Kong, 55, a citizen and national of South Korea, was sentenced today to seven years and nine months in prison for bank fraud, money laundering and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014, and March 2018, Kong participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
Kong is associated with opening source accounts or draining victim accounts from at least 25 different financial institutions. These bust-outs resulted in an actual loss of $2,574,161 to the banks, and an intended loss of $3,698,465 based on additional, unsuccessful bust-out attempts.
Kong is the first defendant to be sentenced in this case. Co-defendant Jeffrey Kim is scheduled to be sentenced Jan. 26, 2023, and co-defendant Jong Eun Lee is scheduled to be sentenced on Dec. 1, 2022. Charges are pending against the remaining co-defendants: Ki Jang, Hee Soung Oh, and Bon Soke Hong, who were all indicted on Oct. 21, 2021. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Kanawha County Man Sentenced to 10 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Mark Jason Pearson, 32, of Dunbar, was sentenced today to 10 years in prison, to be followed by five years of supervised release, for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, Pearson sold quantities of methamphetamine to a confidential informant on four occasions between June 6, 2022, and July 8, 2022. On July 13, 2022, officers executed a search warrant at Pearson’s Dunbar home and found approximately five pounds of methamphetamine. Pearson admitted to possessing the methamphetamine and to planning to sell it. Pearson further admitted to traveling outside of West Virginia on at least six separate occasions over the previous eight months to obtain approximately 18 pounds methamphetamine for distribution in the Dunbar area.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Metropolitan Drug Enforcement Network Team (MDENT).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-156.
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KC Pediatrician Pleads Guilty to $300,000 Medicare FraudRead the Press Release
KANSAS CITY, Mo. – A Kansas City-area pediatrician pleaded guilty in federal court today to his role in causing fraudulent Medicare claims to be submitted for more than 1,000 beneficiaries for medications and equipment they didn’t need, which was part of a larger nationwide scheme to defraud Medicare.
“A physician abused his position of trust to cause fraudulent claims to be filed for more than 1,000 Medicare beneficiaries,” said U.S. Attorney Teresa Moore. “This theft of public funds was part of a larger nationwide scheme that includes prosecutions in other districts where additional perpetrators are being held accountable for their criminal actions.”
“To help protect the federal health care system, doctors participating in the Medicare program are obligated to provide medically appropriate services and prescriptions to their patients and bill the program properly,” stated Special Agent in Charge Curt L. Muller with the U.S. Department of Health and Human Services Office of Inspector General. “Our agency and law enforcement partners are dedicated to identifying and pursuing providers who disregard these vital responsibilities in exchange for personal enrichment.”
Frederick Scott Dattel, 57, of Leawood, Kansas, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with making a false statement related to a health care matter.
Dattel, a licensed medical doctor with a specialty in pediatrics, owns and operates his own medical practice, Kansas City Pediatrics, L.L.C., in Kansas City, Mo.
Between August 2017 and February 2018, Dattel worked as a physician for RediDoc, L.L.C., a commercial telemedicine company. RediDoc’s owners unlawfully profited by paying kickbacks and bribes to doctors so those doctors would sign high volumes of expensive prescriptions and durable medical equipment orders that were not medically necessary.
National Health Care Fraud Conspiracy
RediDoc owners Stephen Luke and David Laughlin have pleaded guilty in the District of New Jersey to conspiracy to commit health care fraud. In this scheme, marketers identified Medicare beneficiaries to target for expensive medications and durable medical equipment, and persuaded beneficiaries to try the medications and medical equipment – even when the beneficiary’s need for those items was not clear and was not discussed with the beneficiary’s doctor. The marketers then transmitted the beneficiaries’ medical information to RediDoc along with the proposed prescriptions or doctors’ orders for medical equipment that included pre-marked check-off boxes for particular drugs or equipment that would yield large reimbursements.
The marketers paid reimbursement proceeds to RediDoc and its owners. These orders were then filled by providers and pharmacies around the country who received lucrative reimbursements from federal health care benefit programs, including Medicare. In many circumstances, the providers and pharmacies then returned a portion of the health insurance reimbursements as kickbacks to the telemedicine companies, who, in turn, paid the doctors who had prescribed or ordered the unnecessary medical equipment and compounds. RediDoc ensured doctors would sign a high volume of expensive beneficiary prescriptions or medical equipment orders by paying the doctors bribes and kickbacks.
Dattel’s Guilty Plea
By pleading guilty today, Dattel admitted that, while working as a physician for RediDoc, he unlawfully caused false and fraudulent Medicare claims to be submitted for prescriptions for durable medical equipment and compounds without examining or speaking to patients and without any physician-patient relationship.
Between August 2017 and February 2018, while practicing telemedicine for RediDoc, Dattel reviewed 1,077 patient files. He issued orders or prescriptions for 1,075 beneficiaries for durable medical equipment, orthotics, and/or compounds. Dattel issued the orders and prescriptions without seeing, speaking to, or otherwise communicating or examining the beneficiaries, and without regard to whether the beneficiaries actually needed the durable medical equipment and compounds. These orders and prescriptions, as Dattel knew, were used to submit false and fraudulent claims to Medicare.
Almost the entirety of Dattel’s completed, signed prescriptions and orders for durable medical equipment and compounds, as he knew, were not legitimately prescribed, not needed, and not used.
As a result of Dattel’s RediDoc prescriptions and orders, between Aug. 28, 2017, and Feb. 26, 2018, Medicare was billed at least $312,392 for durable medical equipment and compounds, and paid at least $211,542 for these orders. Under the terms of today’s plea agreement, Dattel must pay restitution in the full amount of $211,542.
During the same timeframe, RediDoc deposited a total of $22,270 in 13 payments into Dattel’s bank accounts.
Under federal statutes, Dattel is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman and Nicholas P. Heberle. It was investigated by Health and Human Services, Office of Inspector General, the FBI, and the U.S. Office of Personnel Management, Office of Inspector General.