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4 November 2022
Florida Man Sentenced to 45 Months in Prison for Laundering Funds Related to $50 Million Wire and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Florida man was sentenced to 45 months in prison for laundering funds obtained from a $50 million internet-enabled fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Denis Sotnikov, 39, of Hallandale Beach, Florida, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit money laundering. Judge Vazquez imposed the sentence on Nov. 3, 2022, in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2012 to October 2020, Allen Giltman, 56, of Irvine, California, and others engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from investors. At times, the fraudulent websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble seemingly legitimate financial institutions that did not exist.
Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs. The fraudulent websites advertised higher than average rates of return on the CDs to lure potential victims.
Sotnikov received funds from at least 18 victims of the fraud scheme, totaling approximately $6 million, in accounts at various domestic banks that were controlled by him or by a close relative. Of this amount, approximately $3.7 million was either frozen by the banks or returned to victims, and $707,380 was wired by Sotnikov overseas. The remaining stolen funds – approximately $1.5 million – were transferred to numerous other accounts controlled by Sotnikov, where they were used to fund personal expenditures.
To date, law enforcement has identified at least 150 fraudulent websites created as part of the scheme. At least 70 victims of the fraud scheme nationwide, including in New Jersey, collectively transmitted funds that they believed to be investments in the aggregate amount of at least approximately $50 million.
Giltman pleaded guilty for his role in the fraud scheme Jan. 5, 2022, and is awaiting sentencing.
In addition to the prison term, Judge Vazquez sentenced Sotnikov to three years of supervised release.
The U.S. Securities and Exchange Commission (SEC) previously filed a civil complaint against Sotnikov and several companies associated with him based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber/Financial Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
Fentanyl Kingpin Pleads Guilty to Drug and Money Laundering ConspiracyRead the Press Release
DETROIT - What began as a delivery of drugs in a Sony PlayStation box led agents to a stash location in Novi where a drug organization stored more than 30 kilograms of fentanyl and over half a million dollars. Yesterday, the California-based leader of that organization pleaded guilty to a drug trafficking and money laundering conspiracy.
United States Attorney Dawn N. Ison announced the plea and was joined in the announcement by Orville O. Greene, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration, and Charles E. Miller, Special Agent in Charge of the Detroit Field Division of the Internal Revenue Service.
Maurice Montain McCoy, Jr., 41, of Moreno Valley, California, led a drug and money laundering conspiracy that had distribution hubs in multiple cities across the United States, including Novi, Michigan, where the organization stored more than 30 kilograms of fentanyl and over half a million dollars. The DEA’s July 2017 raid resulting in the discovery of the drugs and cash was, at the time, the largest fentanyl seizure in Michigan and one of the largest in the country. The seizure was the result of agents’ creative investigative work after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the U.S. delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland, where the organization also operated. McCoy directed the organization’s activity and lived lavishly off the proceeds, purchasing a Porsche Panamera, expensive jewelry, including diamond and gold pendants for some members of his drug organization, and a half a million-dollar home in the greater Los Angeles area.
Of the 18 defendants charged, 16 have pleaded guilty and have been sentenced or are awaiting sentencing. Two defendants are scheduled for trial on November 16.
McCoy, who previously served ten years in federal prison for a drug conviction in California, faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison.
“Fentanyl is now the leading cause of overdose deaths. It is inherently dangerous and 50 times more potent than heroin. The number of lives saved by this seizure is infinite. Individuals who traffic deadly drugs in our community will be held accountable for the harm they inflict on our citizens,” stated United States Attorney Dawn Ison.
“More than 15 million deadly dosages of fentanyl were seized from this organization – that is more than enough to kill the entire population of Michigan. This case is testament to the hard work and innovative thinking on the part of the men and women of the DEA Detroit Division, and our federal state and local partners.”
McCoy is scheduled to be sentenced by Judge Terrence G. Berg on March 16, 2023.
The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
Federal Jury finds Defendant Guilty of Assault on Federal Law Enforcement OfficerRead the Press Release
Jackson, Miss. – Following a three-day trial, a federal jury in Jackson returned a guilty verdict against a Jackson man for assault on a law enforcement officer and discharging a firearm in furtherance of a crime of violence, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
De’Vadrick Markevin Booker, 24, was found guilty in U.S. District Court in Jackson.
The evidence at trial showed that on September 8, 2020, an ATF Agent responded to assist Jackson Police Officers with an ongoing investigation of an exchange of gunfire in a residential area of the city. As the agent drove down a residential street in the area of the gunfire, Booker emerged and fired several gunshots into the agent’s car.
Booker is scheduled to be sentenced on February 1, 2022, and faces a minimum sentence of 10 years in prison and a maximum sentence of life. A federal district judge will determine the sentence after considering the U.S. sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Jessica S. Terrill, Kevin J. Payne, and Bert Carraway prosecuted the case.
Federal Jury Convicts Silver Spring Man on Gun and Drug Conspiracy ChargesRead the Press Release
Greenbelt, Maryland – Late yesterday a federal jury convicted Darryl Colton Frazer, age 34, of Silver Spring, Maryland, on federal gun and drug conspiracy charges. Frazer’s co-defendant, Shamire Moore, age 31, of Bowie, Maryland, pleaded guilty on October 31, 2022, to possession with intent to distribute marijuana and to possession of a firearm in furtherance of drug trafficking.
The guilty verdict and plea were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Marcus Jones of the Montgomery County Police Department (MCPD).
According to the evidence presented at his three-day trial, on July 25, 2019, MCPD officers investigating a recent shooting approached Frazer and co-defendant Shamire Moore after noting that Moore appeared to match the description of an individual involved in the shooting. When Frazer and Moore saw the officers, they ran into a nearby residential area. Officers followed them and found Frazer in a nearby apartment building.
Witnesses testified that Frazer was ordered to stop and to drop the black bag that he was carrying. Instead, Frazer threw the black bag from the stairwell and away from himself. The black bag was immediately recovered by police, and Frazer was arrested. The black bag contained: a loaded 9mm semi-automatic pistol; 103 grams of marijuana packaged into four separate plastic bags; a digital scale, and latex gloves.
At the time of his arrest, Frazer was on supervised release for a previous federal conviction. Frazer also knew that as a result of his previous conviction, he was prohibited from possessing a firearm or ammunition.
According to Moore’s plea agreement, officers found Moore lying on the ground in a nearby wooded area. They ordered Moore to stand up and surrender, but instead, Moore scaled a fence and jumped onto an adjacent government property. Moore was eventually caught and arrested after a struggle. The black bag that Moore was carrying contained a loaded .38 caliber revolver, 106 grams of marijuana packaged into four separate plastic bags inside a larger Ziploc bag, and a digital scale, among other items. During a search of Moore’s clothing and effects, law enforcement also recovered $579 in cash, which represented proceeds of Moore’s drug trafficking offense. Moore admitted that he possessed the marijuana with intent to distribute it and that the firearm was in furtherance of drug trafficking since it was intended, at least in part, to defend his drug inventory and drug proceeds.
Frazer faces up to 20 years in federal prison for his conviction on charges of participating in a drug conspiracy, possession with intent to distribute marijuana, and being a felon in possession of a firearm. Separately, Frazer will be facing a maximum of two years in prison for violation of his supervised release in his previous federal case.
Moore and the government have agreed that, if the Court accepts the plea agreement, Moore will be sentenced to at least five years, but not more than six years, in federal prison.
U.S. District Judge Paul W. Grimm has not scheduled a sentencing for date for Frazer or Moore.
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.
United States Attorney Erek L. Barron commended the ATF and the Montgomery County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Adam K. Ake and Joel Crespo and Special Assistant U.S. Attorney Patrick Kibbe, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Erie Man Pleads Guilty in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
Randy Lee Eicher, 25, pleaded guilty to two counts before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from September 2018 to December 2018, Eicher received and distributed images and videos depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Judge Baxter scheduled sentencing for March 1, 2023 at 1:30 p.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Eicher on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Homeland Security Investigations and the Boone, North Carolina Police Department conducted the investigation that led to the prosecution of Eicher.
Enterprise Man Sentenced to 92 Months in Prison for Being a Felon in Possession of Firearms After a Fatal ShootingRead the Press Release
Montgomery, Alabama – On Thursday, November 3, 2022, Dorian Lamont Bell, 42, from Enterprise, Alabama, was sentenced to 92 months in prison for being a felon in possession of a firearm, announced United States Attorney Sandra J. Stewart. Following his prison sentence, Bell will be on supervised release for three years. There is no parole in the federal system.
According to the plea agreement and other court records, on May 25, 2021, the Enterprise Police Department went to a residence in response to a reported altercation between two men. When officers arrived, they discovered that one of the men involved in the argument had been shot and killed in the front yard. Bell’s sister resided at the house and told the officers that, after the shooting, her brother ran from the front yard, through the house and out of the back door, leaving a gun inside. The officers arrested Bell nearby. They later found two handguns inside the sister’s residence. During Bell’s federal plea hearing on June 7, 2022, he admitted to possessing the two guns found at his sister’s house. Before these events occurred, Bell had been convicted of numerous felony offenses and was therefore prohibited from possessing a firearm. A state murder charge and related drug charges are pending against Bell in the Circuit Court of Coffee County.
This case was investigated by the Enterprise Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Russell T. Duraski prosecuted the case.
Doctor Convicted at Trial of Illegally Distributing Oxycodone from Midtown Manhattan PracticeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that a federal jury found HOWARD ADELGLASS guilty for his participation in a conspiracy to illegally prescribe oxycodone. The defendant was found guilty following a two-week trial before U.S. District Judge Jed S. Rakoff. Sentencing is scheduled for March 8, 2023, before Judge Rakoff.
U.S. Attorney Damian Williams said: “Doctor Howard Adelglass was a drug dealer, but instead of peddling drugs on the street corner, he distributed drugs with a prescription pad from his Central Park South ‘pain-management clinic.’ For years, the defendant prescribed enormous quantities of highly addictive and deadly opioids to people he knew were suffering from substance abuse disorders or were dealers. By distributing mammoth quantities of oxycodone pills to people without a legitimate medical purpose, the defendant destroyed lives and families. Along with our law enforcement partners, we will continue to hold accountable those responsible for fueling the opioid crisis that is ravaging our community and nation.”
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
HOWARD ADELGLASS was a licensed physician. Together with Marcello Sansone, the defendant operated a pain-management clinic located in Midtown Manhattan (the “Clinic”). The Clinic serviced purported patients seeking oxycodone and other pain-relief medications commonly diverted for illicit purposes. In exchange for cash payments, and in some instances for cocaine, ADELGLASS wrote thousands of prescriptions for large quantities of oxycodone, and many he wrote to individuals whom ADELGLASS knew did not need the pills for a legitimate medical purpose. When they occurred, ADELGLASS’s examinations were perfunctory. The defendant’s purported patients included individuals addicted to opioids and, in some cases, who sold oxycodone on the street. Even when faced with clear evidence of his purported patients’ drug abuse and diversion, ADELGLASS continued to prescribe large quantities of oxycodone to them.
Initially, ADELGLASS staffed the Clinic with inexperienced young women, some of whom he addicted to oxycodone. In approximately October 2018, after serving as a primary source of patient referrals, Sansone took over as the Clinic’s office manager. In that role, Sansone helped to control access to ADELGLASS and the lucrative prescriptions he wrote for medically unnecessary oxycodone. With particularly vulnerable patients, the defendants solicited and, in some instances, received sex acts in exchange for oxycodone prescriptions.
Between in or about November 2017 and in or about September 2020, ADELGLASS prescribed more than 1.3 million oxycodone pills.
On October 13, 2022, Sansone pled guilty to conspiracy to illegally distribute oxycodone. Sansone is scheduled to be sentenced on February 13, 2023, before Judge Rakoff.
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ADELGLASS, 67, of New York, New York, was convicted of conspiracy to illegally distribute oxycodone, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is 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 Federal Bureau of Investigation, the New York City Police Department, and the Department of Health and Human Services, Office of the Inspector General.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Marguerite B. Colson, and Daniel G. Nessim are in charge of the prosecution.
District Man Pleads Guilty to Charges for Armed Carjacking and Robbery in Northeast WashingtonRead the Press Release
WASHINGTON - Devin Gatewood, also known as James J. Williams, 23, of Washington, D.C., has pleaded guilty to felony charges stemming from an armed carjacking and robbery in the Trinidad area of Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Gatewood pleaded guilty on Nov. 3, 2022, in the Superior Court of the District of Columbia, to one count of robbery, one count of carrying a dangerous weapon, and one count of unauthorized use of a vehicle. The Honorable Jason Park scheduled sentencing for Jan. 6, 2023. At the time of the offense, Gatewood was on probation for an April 2022 misdemeanor firearms conviction in the Superior Court of the District of Columbia. The Honorable James A. Crowell IV has scheduled a probation revocation hearing in that case for Jan. 20, 2023.
According to the government’s evidence, on the evening of Aug. 28, 2022, Gatewood and an unidentified accomplice approached the victim, who was sitting in his parked vehicle in the 1100 block of Queen Street NE. The victim felt uneasy and got out of his car to make small talk with the men. Gatewood produced what appeared to be a 9mm handgun and communicated to the victim that he was being robbed. The victim laid down on the ground, while Gatewood and the accomplice took his iPhone, Apple Watch, car keys, and cash. Gatewood drove away in the victim’s vehicle, and the accomplice left in a separate vehicle.
The victim called the Metropolitan Police Department, which located the victim’s vehicle within minutes. Police followed behind the vehicle, which came to an abrupt stop. Gatewood jumped out of the vehicle’s driver’s seat and began to flee on foot but was quickly apprehended. No firearm was recovered. Gatewood has remained in custody since his arrest.
In announcing the guilty plea, U.S. Attorney Graves and Chief Contee commended the work of those investigating the case from the Metropolitan Police Department. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal L. Waddy. Finally, they commended the work of Assistant U.S. Attorney Paul V. Courtney, who investigated and prosecuted the case.
Delaware Man Charged with Interstate Transportation of Stolen GoodsRead the Press Release
TRENTON, N.J. – A Delaware man was arrested for transporting stolen goods obtained through a string of jewelry store thefts in New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Michael Larbi, 24, of Dover, Delaware, is charged by complaint with five counts of interstate transportation of stolen goods from October 2020 through February 2021. He made his initial appearance on Nov. 3, 2022, before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
From October 2020 through February 2021, Larbi engaged in a string of jewelry store thefts in multiple states, including New Jersey, Pennsylvania, Maryland, and Delaware, which resulted in hundreds of thousands of dollars in stolen jewelry. On Oct. 28, 2020, Larbi entered a jewelry store in Marlton, New Jersey, and asked to look at two engagement rings. Larbi then took two rings that were left on a counter and took a ring from the store employee’s hand and ran out of the store. The value of the three stolen rings was $77,420. Larbi then traveled with the rings across state lines to Philadelphia.
On Nov. 2, 2020, Larbi entered a jewelry store in Haddon Heights, New Jersey. After asking to see jewelry, he forcibly took a box containing diamonds valued at $97,829 from the store employee’s hands and fled to Philadelphia. On Jan. 11, 2021, Larbi entered a jewelry store in Blackwood, New Jersey, and stole two rings valued at approximately $8,500 before fleeing to Delaware. On Feb. 6, 2021, Larbi entered a jewelry store in Clifton, New Jersey, stole two rings valued at approximately $15,600, and fled to Bronx, New York.
Each count of interstate transportation of stolen goods is punishable by a maximum penalty of 10 years in prison and $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay, with the investigation leading to the charges. He also thanked the FBI in Newark, Delaware, and Wilmington, Delaware, officers of the Evesham, New Jersey, Police Department, Hainesport, New Jersey, Police Department, Haddon Heights, New Jersey, Police Department, Gloucester Township, New Jersey, Police Department, and the Clifton, New Jersey, Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Danville Woman Pleads Guilty to Student Loan FraudRead the Press Release
ROANOKE, Va. – A Danville, Virginia woman, who used the personal identifying information of others to submit and receive fraudulent student loans, pled guilty this week in federal court.
Karren Warren, 43, waived her right to be indicted and pleaded guilty today to one count of student loan fraud and one count of unlawful transfer or possession of identification affecting interstate commerce.
According to court documents, between 2013 and 2018, Warren devised a scheme to defraud the United States Department of Education (USDOE), the American Public University System (APUS) and Capella University by preparing and submitting false FAFSA (Free Application for Federal Student Aid) forms.
Warren admitted to recruiting others to provide her with their personal identifying information, which she then used to prepare and submit fraudulent enrollment applications to USDOE, APUS, and Capella.
Once the financial aid was obtained, Warren enrolled the individuals, whose names had been submitted using the false FAFSAs, in online educational institutions. Most individuals enrolled in this manner either did not participate or withdrew from the courses. Warren then converted the federal financial aid funds for her personal use, thus failing to use the funds solely for education-related expenses as required by USDOE.
In all, Warren caused a loss of at least $264,000 to APUS, Capella, and the USDOE.
Warren faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The United States Department of Education and the U.S. Postal Inspection Service investigated the case.
Assistant U.S. Attorney Charlene R. Day is prosecuting the case.
Convicted Leader of Meth, Fentanyl Trafficking Network Sentenced to PrisonRead the Press Release
ALBANY, Ga. – A documented member of a criminal street gang organization who led a drug distribution network responsible for trafficking more than 150 kilograms of methamphetamine, fentanyl, heroin and other illegal drugs into Southwest Georgia was sentenced to federal prison today for his crimes.
Jamie Lorell Keith aka JGottiDaBoss aka Cocho, 41, of Albany, was sentenced to serve 420 months in prison to be followed by five years of supervised release after he was convicted on June 27 of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute methamphetamine following a week-long jury trial before U.S. District Judge Leslie Abrams Gardner. There is no parole in the federal system.
A co-defendant, Artarious Davis aka Showboat aka Boat, 41, of Albany, was convicted of possession with intent to distribute methamphetamine and possession with intent to distribute fentanyl during the same trial and faces a maximum of life imprisonment. His sentencing is scheduled for Dec. 15.
“This case is a significant victory for the overall safety of our region,” said U.S. Attorney Peter D. Leary. “Thanks to the efforts of the Organized Crime Drug Enforcement Task Force and our federal prosecution team, a dangerous criminal network pushing large volumes of the deadliest controlled substances into Southwest Georgia has been stopped.”
“These criminals once profited by spreading this insidious poison throughout a number of communities in Southwest Georgia, but the DEA and our law enforcement partners are in the business of protecting lives and serving those communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Justice was served thanks to strong and strategic partnerships between the DEA and its local law enforcement counterparts.”
“This case demonstrates the commitment of law enforcement agencies at every level to end an epidemic in our society that is killing our citizens,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work diligently along our partners in the Organized Crime Drug Enforcement Task Force to investigate and dismantle drug trafficking organizations.”
“These convictions illustrate that drug trafficking will not be tolerated in Georgia. The GBI is committed to investigating and dismantling large scale drug trafficking organizations such as this one operating in Southwest Georgia, in coordination with our local and federal partners,” said GBI Director Michael Register.
“The Albany Police Department will continue working with our local, state and federal law enforcement partners to combat drug trafficking and its associated crimes in Albany, Dougherty County and Southwest Georgia. This sentencing warns those seeking fortune from this illicit trade that ill-gotten gains lead to harsh consequences,” said Albany Police Department Chief Michael Persley.
“The Lee County Sheriff’s Office is working with all of our law enforcement partners at every level to combat criminal activity in our community and ultimately put a dent in crime,” said Lee County Sheriff Reggie Rachals.
“The Worth County Sheriff’s Office has and will continue to work diligently with local, state and federal law enforcement and community partners across the area to find, investigate and prosecute criminals trafficking drugs in Worth County and the Southwest Georgia area,” said Worth County Sheriff Don Whitaker. “Drugs are a multibillion-dollar criminal enterprise that targets our vulnerable populations, our neighbors and even our family members. Because of this, we can’t slow down, we must aggressively pursue this criminal element. We have found that by taking down these drug distributors, it also helps in the reduction of other crimes. With this in mind, we welcome a partnership with all agencies to fight this problem and make our communities safer.”
According to court documents and evidence presented at trial, Keith and Davis were criminally involved in a large drug trafficking network responsible for distributing more than 150 kilograms of methamphetamine, more than 2000 fentanyl tablets pressed to resemble Percocet, more than one kilogram of heroin, more than five kilograms of cocaine and other drugs in the metro Albany area in 2019. Trial testimony revealed that now-deceased co-defendant Demarcus Cook, of Sylvester, Georgia, was a documented member of the Piru set of the Bloods criminal street gang organization. Keith, a member of a rival organization and the leader of this drug trafficking organization, bonded Cook—who was ill—out of jail in exchange for access to Cook’s drug sources of supply and customers. Using Cook’s sources and Keith’s cash and distribution network, the two began delivering large quantities of drugs to Albany and Sylvester to be sold at locations including 122 Moultrie Road and 610 Johnson Road in Albany and 214 Albany Avenue in Sylvester. Cook has since died of cancer. Keith was the manager of the drug network. Davis protected the drug loads on behalf of the organization and served a subsidiary customer base of drug users and redistributors in the Albany area.
The other 29 defendants federally prosecuted as part of this investigation have pleaded guilty for their crimes.
This effort is part of an Organized Crime Drug Enforcement Task Force (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. The case was investigated by FBI, DEA, GBI, the Albany Police Department, Lee County Sheriff’s Office and Worth County Sheriff’s Office. Assistant U.S. Attorney Leah McEwen prosecuted the case.
Cleveland Man Sentenced to Prison for COVID-19 Loan Fraud and Illegal Possession of a FirearmRead the Press Release
CLEVELAND – Demetrius Moore, 42, of Cleveland, Ohio, was sentenced on Friday, Oct. 28, 2022, to three and a half years in prison by U.S. District Judge Pamela A. Barker and was ordered to pay $183,215.47 in restitution to the Small Business Administration (SBA). Judge Barker pronounced the sentence after Moore pleaded guilty to his role in a scheme to defraud the (SBA) by unlawfully acquiring Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan funding.
Moore previously pleaded guilty to one count of theft of government funds, two counts of wire fraud and one count of being a felon in possession of a firearm.
According to court documents, between July 2020 and March 2021, Moore devised and participated in a scheme to defraud the SBA by obtaining PPP and EIDL loans through false and fraudulent pretenses and spent loan funding on personal expenses, such as a Rolex watch, a Volvo Sleeper Truck Tractor and retail purchases at Best Buy and Louis Vuitton.
As part of the scheme, in July 2020, Moore opened a business bank account in the name of a purported investment company with no legitimate business operations and no employees. Moore and an unnamed coconspirator then used that bank account to apply for and receive PPP and EIDL loans.
Court documents state that Moore provided false and fictitious information on his PPP and EIDL loan applications, including declaring that his company had 10 employees and substantial annual revenues when, in fact, it had neither. As a result of these fraudulent loan applications, Moore received $183,215.47 in funding from both the PPP and EIDL. After the funds were deposited into his bank account, Moore then used the funds to make personal purchases.
On Nov. 19, 2020, during the execution of a search warrant, authorities found Moore to be in possession of a firearm. Moore is prohibited from possessing a firearm due to previous drug trafficking and firearms offense convictions in the United States District Court and the Cuyahoga County Court of Common Pleas.
At the time of the offense conduct, Moore was on federal supervised release for some of these violations.
This case was investigated by IRS Criminal Investigations (CI) and the Drug Enforcement Administration (DEA) . This case was prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Elliot D. Morrison and Alejandro A. Abreu.
The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal law enacted in or around March 2020 and was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. Under the CARES Act, the SBA provided financial assistance, in part, via the EIDL and PPP program to businesses negatively affected by the COVID-19 pandemic.
City of Kyle Agrees to Ensure Persons with Disabilities Equal Access to Its Reduced-Fare Transportation ProgramRead the Press Release
AUSTIN – U.S. Attorney Ashley C. Hoff of the Western District of Texas announced today that the City of Kyle (“Kyle” or the “City”) has entered into a settlement agreement with the United States to ensure that individuals with disabilities have equal access to the City’s reduced-fare transportation program.
The “Uber Kyle $3.14 Program” allows Kyle residents and visitors to travel in an UberX vehicle to anywhere within Kyle’s city limits for as little as $3.14. After a rider pays the first $3.14 of an UberX fare for a qualifying trip, the City subsidizes the next $10. Individuals with disabilities may participate in the program by requesting wheelchair accessible vehicles through the UberWAV platform. Individuals who request UberWAV vehicles also pay the first $3.14 of a qualifying trip, while the City subsidizes the next $10 plus any additional charges specific to providing UberWAV services.
In 2020, the U.S. Attorney’s Office opened an investigation to determine whether the Uber Kyle $3.14 Program complied with Title II of the Americans with Disabilities Act (“ADA”). Under Title II, no qualified individual with a disability may be excluded from participation in or be denied the benefits of the services, programs or activities of a public entity.
During its investigation, the United States observed significant disparities in the availability of UberX vehicles and UberWAV vehicles in Kyle. UberWAV vehicles were not available more than 40% of the time. Even when an UberWAV vehicle was available, the average wait time was substantially longer than the average wait time for an UberX vehicle. The United States also learned that a Kyle resident who uses a wheelchair had complained to the City regarding the lack of accessible vehicles in the Uber Kyle $3.14 Program.
After the United States informed it of these findings, the City proactively contracted with a vendor to supplement the Uber Kyle $3.14 Program with additional wheelchair accessible vehicles. The settlement requires the City to maintain its contract or a similar contract or program that will increase the availability of wheelchair accessible vehicles. Among other things, the settlement also requires the City to track response time details for requests for wheelchair-accessible vehicles compared to requests for non-wheelchair-accessible vehicles. The City must also advertise the improvements that are being made to the Uber Kyle $3.14 Program to increase accessibility on the City’s website and Twitter account.
“In the Western District of Texas, people with disabilities must be able to count on accessible transportation service that is equal to the service provided to others,” said U.S. Attorney Hoff. “We commend the City’s collaborative approach to promoting equal access for Kyle residents with disabilities.”
Assistant U.S. Attorneys Liane Noble and Thomas Parnham handled this matter for the United States. As part of the agreement, the City did not admit to any past wrongdoing or violation of law or applicable law or regulations.
For more information on the ADA or this settlement agreement, please call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD) or access the ADA website at http://www.ada.gov.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Charity Operator Charged with Diverting Millions of Dollars of Charitable Funds and Evading Federal Income TaxRead the Press Release
MIAMI - Douglas Sailors, 71, formerly of Parkland, Fla., and now living in Owensboro, Ky., was charged with conspiracy to commit mail and wire fraud as well as subscribing to a false tax return.
As set forth in the indictment, from approximately 2009 through 2018, Sailors formed and operated charities for his personal benefit. He hand-picked nominees to serve as board of directors and officers of the charities to conceal his participation in the fraud scheme. Sailors also had a nominee apply for tax exempt status from the IRS and secure a nonprofit designation. To confuse donors, he chose names that sounded similar to legitimate charities—such as Breast Cancer Research and Support Fund; Disabled Veterans Services; United States Firefighters Association, among others.
To further the scheme, Sailors directed the officers and directors of the charities to pay unreasonable fees to management companies owned by nominees yet controlled by Sailors. These management fees were the proceeds of the fraud scheme, which Sailors appropriated for himself to fund his lavish lifestyle.
Sailors used lawyers and accountants to create opinion letters that falsely stated that the fees paid to him were reasonable. He diverted hundreds of thousands of dollars from a charity that was intended to financially support nurses in the Dominican Republic. Management fees were deposited in a defined benefit pension plan where Sailors unlawfully withdrew those funds for his personal benefit and failed to report the income on his personal income tax returns.
Sailors faces a statutory maximum term of imprisonment of 29 years and a fine of $1,000,000 or twice the amount of the gross gain or gross loss.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Matthew D. Line, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Robert Dewitt, acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
IRS-CI and the FBI investigated the case. Assistant U.S. Attorneys Paul Schwartz and Jeffrey N. Kaplan are prosecuting it.
An Indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bronx Gang Member Charged with 2021 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging JALEEL SHAKOOR with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, and illegal possession of ammunition. The charges relate to SHAKOOR’s murder of Gerry Mazzella on June 3, 2021, in the Bronx, New York. As alleged in the Indictment, SHAKOOR shot Mazzella in the back of the neck from point-blank range.
SHAKOOR, who was already in federal custody, will be presented today before Magistrate Judge Barbara C. Moses. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “As alleged, the defendant committed a murder as part of his gang membership: he shot Gerry Mazzella from point-blank range, killing him. With these charges, we continue our daily work of investigating and prosecuting those who perpetrate these senseless acts. We hope this prosecution brings some measure of comfort to the victim’s loved ones.”
NYPD Commissioner Keechant L. Sewell said: “This case is an outstanding example of what the NYPD and our law enforcement partners can accomplish when we strike back at the relatively few people responsible for spreading violence and fear in New York City. Together, we remain committed to thwarting gang activity in all its forms, and to reinforcing the severe consequences that await anyone who dares to jeopardize safety in our neighborhoods.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
From at least 2020 to 2022, JALEEL SHAKOOR, a/k/a “Midnight,” was a member of the Untouchable Gorilla Stone Nation (“Gorilla Stone”), which is a set of the national Bloods gang. Gorilla Stone operated primarily in the northeast United States, including in the Bronx, and in the jails and prisons of New York City and the State of New York.
Members of Gorilla Stone committed robberies and distributed controlled substances in order to enrich themselves. They also murdered and assaulted members of rival gangs and members of Gorilla Stone in order to resolve disputes within the gang. Gorilla Stone members promoted and celebrated the gang’s criminal conduct — including drug distribution, acts of violence, and firearms usage — on social media.
On June 3, 2021, in the vicinity of West 165th Street and Woodycrest Avenue in the Bronx, SHAKOOR shot Mazzella in the back of the neck, causing Mazzella’s death. SHAKOOR committed this murder to maintain and increase his position in Gorilla Stone.
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SHAKOOR, 27, of the Bronx, New York, is charged with one count of racketeering conspiracy, which carries a statutory maximum sentence of life in prison; one count of murder in aid of racketeering, which carries a statutory maximum sentence of death or life in prison and a mandatory minimum sentence of life in prison; one count of murder through use of a firearm, which carries a statutory maximum sentence of death or life in prison and a mandatory minimum sentence of five years in prison; and one count of possessing ammunition after a felony conviction, which carries a statutory maximum of 10 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD. He also thanked the Bronx District Attorney’s Office for its assistance.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Christopher D. Brumwell, Emily A. Johnson, and Patrick R. Moroney are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Baltimore Man Sentenced to 20 Years in Federal Prison for Using Female Aliases on Social Media and Messaging Applications to Entice Boys to Send Him Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Matthew K. Walsh, age 25, of Baltimore, Maryland, today to 20 years in federal prison, followed by 30 years of supervised release, for sexual exploitation of a minor in order to produce child pornography. Specifically, Walsh created fictitious online profiles purporting to be a teenage girl to contact and induce minor males between the ages of 12 and 17 to send sexually explicit images and videos to the individual they believed to be a minor female, but was, in fact, Walsh.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, from at least 2016 through 2021, Walsh created fictitious profiles on several online platforms posing as a minor female to make contact with minor males between the ages of twelve and seventeen to induce them to produce sexually explicit images and videos to send to the purported minor female. Once Walsh obtained the sexually explicit images and videos, he extorted the minor males into producing more sexually explicit images and videos at his instruction and threatened that if they failed to do so, Walsh would send the previously provided images and videos to the minor victims’ friends, family, and classmates. Walsh directed the minor males to send him the images and videos he directed them to produce, and that the images and videos needed to include their face.
In some of the communications, by text, email, and video, the minor victims are crying and begging Walsh not to send the images and videos to their families and classmates, to leave them alone, and not to make them do more, but Walsh persisted with his threats and demands. Walsh admitted that he harassed some of the victims for years and obtained hundreds of files depicting sexually explicit conduct from some of the victims. In total, Walsh obtained approximately 2000 images and videos depicting sexually explicit conduct of the various minor males.
As detailed in the plea agreement, once Walsh received the sexually explicit files from the victims, he saved them into folders of fake names or a variation of the victim’s real name in a cloud storage account. Walsh also uploaded the minor males’ files to various Twitter accounts and sold the sexually explicit files of the minors to others, obtaining approximately $8000 from the sale of the files. Specifically, Walsh communicated with at least 50 different Twitter users interested in purchasing either individual files of child sex abuse material (CSAM), or Walsh’s “collections” of CSAM. The “collections” contained over 100 different victims’ files. In several messages, the Twitter users were aware that some of the individuals in the sexually explicit files were as young as 14-years-old. Several Twitter users exchanged “tips” with Walsh on how to evade law enforcement and discussed methods for enticing and extorting victims’ nude images and videos. Walsh was also a member of online groups which included other offenders who would post, sell, and trade CSAM.
During the investigation, federal search warrants were executed on 17 Google accounts, 22 Twitter accounts, 4 Facebook accounts, 7 Instagram accounts, 6 Snapchat accounts, 3 Dropbox accounts, 3 TextNow accounts, a Kik account, an Apple account, and an Oath/Yahoo! account, all created and utilized by Walsh. To date over 40 minor males have been positively identified as victims of Walsh’s conduct. At least 30 victims’ pictures and videos were sold and/or distributed to others by Walsh.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI and Baltimore Police Department for their work in the investigation and thanked the Noblesville, Indiana Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Atlanta-area man and his company charged in attempted stolen-car smuggling operationRead the Press Release
SAVANNAH, GA: A Douglas County man and his company are named in a 16-count federal indictment alleging a scheme to ship stolen cars to another country.
Prince Bediako, 40, of Douglasville, Ga., and his Atlanta company, Fastlane Logistix LLC, are charged with four counts of Submitting False or Misleading Export Information; four counts of Smuggling; and eight counts of Interstate Transport of Stolen Property, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges carry a statutory penalty of up to 10 years in prison and substantial financial penalties, and up to three years of supervised release following completion of any prison term. There is no parole in the federal system.
“The vigilant staff at the Port of Savannah perform a tremendous duty in protecting our country from dangerous imports, and identifying those who use the ports for illegal export activity,” said U.S. Attorney Estes. “These charges should send a warning to those intent on circumventing our nation’s import and export controls.”
As described in the indictment, in early 2020, Bediako and Fastlane are alleged to have transported eight stolen vehicles to Georgia from Florida, North Carolina, Mississippi, Missouri, and New Hampshire. They are then alleged to have provided false and fraudulent information to a freight company in an attempt to ship the vehicles to another country.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Bureau of Industry and Security Office of Export Enforcement, U.S. Customs and Border Protection, the Savannah Ports Police, and the Douglas County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Jenna G. Solari and Darron J. Hubbard.
5 local men sentenced to prison for participating in methamphetamine ringRead the Press Release
DAYTON, Ohio – Five are men were sentenced in U.S. District Court today to prison for their roles in a drug trafficking organization distributing bulk amounts of methamphetamine to the greater Dayton region.
They include:
Name
Age
City
Prison Sentence Imposed
Justus Ruby
26
Englewood, Ohio
78 months
William Green III
27
Dayton, Ohio
97 months
Robert Walker
30
Dayton, Ohio
110 months
Andre Figures
38
Dayton, Ohio
36 months
D’Erius Warfield
28
Dayton, Ohio
74 months
According to court documents, from September 2020 until January 2021, investigators with the Drug Enforcement Administration investigated a group of individuals who used the alias “Jose” and distributed methamphetamine and fentanyl in the Dayton area.
The defendants distributed and possessed with the intent to distribute more than 400 grams of methamphetamine and other narcotics.
During the investigation, investigators witnessed Ruby selling fentanyl to drug users from the state of Indiana. When they executed a search warrant at his properties, agents discovered bulk amounts of methamphetamine, a loaded firearm, and more than $13,000 in cash.
Investigators also executed a search warrant at Green’s property. Officers seized a respirator, rubber gloves, paraphernalia, and bulk amounts of methamphetamine and fentanyl.
Walker is currently incarcerated in Indiana for conspiracy to commit murder. He will serve his federal sentence partially consecutive to his state term of imprisonment.
Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration; announced the sentences imposed by U.S. District Court Judge Douglas R. Cole. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
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12 Defendants Charged with Federal Drug Trafficking and Firearms Offenses in a Multi-Agency OperationRead the Press Release
BAKERSFIELD, Calif. — Following an 18-month investigation targeting local criminal street gangs in Bakersfield, 12 defendants have been charged federally and another 17 defendants were arrested on state charges. The charges include drug trafficking, conspiracy, and firearms offenses.
Seized in the operation were 13 firearms, over 15,000 suspected fentanyl pills, approximately 990 grams of fentanyl, approximately 10 pounds of methamphetamine, approximately 7 pounds of heroin, approximately 112 pounds of marijuana , and over $60,000 in U.S. currency.
“Today’s announcement is the result of a coordinated federal, state, and local law enforcement action, and I commend all of our partners for their hard work on this case,” said U.S. Attorney Phillip A. Talbert. “It is precisely this kind of coordinated effort that allows us to most effectively protect our communities and hold gang members accountable for their crimes.”
“The continued support of the US Attorney’s Office and our federal partners is a key element in truly impacting violent and deadly criminal activity in our community,” said Bakersfield Police Chief Greg Terry. “We will continue these collaborative investigations to hold those who victimize our community accountable.”
“The Kern County Sheriff’s Office is grateful for the cooperation we have with all the law enforcement agencies in the County of Kern,” said Sheriff Donny Youngblood, “These outstanding relationships allow us to work together on the mission of taking illegal drugs off the streets to make it a safer place for all the residents and visitors of our great county.”
“The success of yesterday’s operation represents another important stride in our ongoing effort to combat gang-related crime in the Central Valley and all of Northern California and also highlights the importance of law enforcement partnerships across the spectrum,” said HSI San Francisco/NorCal Special Agent in Charge Tatum King. “I’m proud of our agents’ exhaustive investigative work in bringing these subjects to justice. HSI will continue to work closely with Bakersfield PD and all of our other local, state, and federal law enforcement partners to dismantle these dangerous criminal enterprises and hold their members accountable for their flagrant disregard for the law.”
Kern County District Attorney Cynthia Zimmer said, “Congratulations to all our law enforcement partners on their efforts in this operation which will certainly disrupt criminal street gangs and their distribution of narcotics.”
The federal defendants charged include:
William Arthur Poush, 43, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Rosa Fernandez, 43, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Timothy Robert Hingston, 39, of N. Hollywood, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Spencer Matthew Hopper, 35, of Montrose, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Dale Vincent Perez, 39, of Bakersfield, charged with possession with intent to distribute a controlled substance and conspiracy to possess with intent to distribute a controlled substance;
Dale Wesley Hubbard, 49, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Darlene Crystal Viera, 40, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Manuel Yanes, 25, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Jorge Luis Yanes, 28, of Bakersfield, charged with distribution of a controlled substance and conspiracy to distribute a controlled substance;
Luis Mauricio Castenon, 33, of Bakersfield, charged with distribution of a controlled substance; and
David Garcia, 35, of Bakersfield, charged with possession with intent to distribute a controlled substance and felon in possession of a firearm.
Bryan Steven Reyes, 28, of Bakersfield , charged with distribution of a controlled substance.
These cases are the product of an investigation conducted by Homeland Security Investigations (HSI), the Bakersfield Police Department, the Kern County Probation Department, the Kern County District Attorney’s Office, and the Kern County Sheriff’s Office, with assistance from the Drug Enforcement Administration, the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), and the California Highway Patrol. Assistant U.S. Attorney Jessica A. Massey is prosecuting the cases.
If convicted, the defendants face various maximum sentences between 10 years and life in prison and $250,000 to $10 million in fines. 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
3 November 2022
Wilmington Felon Receives 12 Years for Meth and Gun OffensesRead the Press Release
WILMINGTON, N.C. – Charles Hunter Nixon, 28, of Wilmington, was sentenced today to 144 months in prison for possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in the furtherance of a drug trafficking crime. On May 17, 2022, Nixon, pleaded guilty to the charges.
“Our office will continue to work closely with law enforcement at every level to make communities safer by investigating and prosecuting individuals that are bringing illegal and deadly drugs and guns into our neighborhoods,” said U.S. Attorney Michael Easley.
“Nixon is off the street today thanks to the hard work of the Wilmington Police Department. The partnership with the U.S. Attorney's Office, coupled with the financial support of New Hanover County, makes results like the one we saw in court possible. Our offices remain committed to keeping our community safe by taking violent offenders and narcotics off the street," said District Attorney Ben David.
“I am very proud of the men and women of the Wilmington Police Department for making this arrest and getting this violent criminal off our streets,” said Wilmington Police Department Chief Donny Williams. “I also would like to thank the U.S. Attorney’s Office and our partner agencies both local, state, and federal who work with us consistently to put these individuals behind bars. We are committed to reducing violence and illegal drug distribution within our community and will continue to work tirelessly to create a safe environment for all.”
According to court documents and other information presented in court, on May 14, 2021, officers with the Wilmington Police Department conducted a traffic stop on the defendant’s vehicle for reckless driving. During the traffic stop, officers observed an AM-15 semi-automatic rifle on the floorboard of the backseat and discovered the defendant was a convicted felon and had outstanding warrants for his arrest for cutting off his GPS ankle monitor. During a search of the vehicle, officers located an ammunition belt with four rifle magazines, approximately 101 rounds of rifle ammunition, 12 bindles of heroin, digital scales, and miscellaneous drug paraphernalia. Officers also located approximately 38 grams of methamphetamine in the defendant’s pocket. At the time of this offense, the defendant was on supervised release for a 2019 conviction for assault with a deadly weapon inflicting serious injury.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The FBI’s Coastal Carolina Safe Street’s Gang Task Force, the FBI’s Transnational Organized Crime Western Hemisphere Unit (TOC-West), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Drug Enforcement Administration and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the U.S. Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-cr-00139M.
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White River Junction Man Sentenced for Stealing Social Security Benefit PaymentsRead the Press Release
The United States Attorney for the District of Vermont announced that John O’Hara, Jr., 43, of White River Junction, Vermont, was sentenced today in United States District Court in Burlington to three years of probation following his guilty plea to a charge that he fraudulently converted tens of thousands of dollars in Social Security benefit payments. U.S. District Judge Christina Reiss ordered O’Hara to pay restitution to the Social Security Administration in the amount of $51,346.
On June 10, 2022, the U.S. Attorney filed a one-count information charging O’Hara with receiving stolen Government money. O’Hara pleaded guilty to that charge in July. According to court records, O’Hara’s father, John O’Hara, Sr., received monthly Social Security benefit payments that were deposited into O’Hara Sr.’s bank account in Florida. O’Hara Sr. died in February 2018, at which time his SSA benefits should have terminated. O’Hara Jr. never notified SSA of his father’s death and SSA continued to make benefit payments to O’Hara Sr.’s account until October 2020. O’Hara Jr. fraudulently converted those unauthorized payments to his own use by transferring the funds to an account he controlled in North Carolina, and then accessing those funds from Vermont for personal purposes. The total loss to the Social Security Administration was $51,346.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the SSA’s Office of Inspector General.O’Hara Jr. is represented by David Silver, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
White Haven Woman Sentenced to Probation for Conspiring to Deal in Explosive Materials Without A LicenseRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Danielle Condron, age 35, of White Haven, Pennsylvania, was sentenced yesterday to two years’ probation by United States District Court Judge Robert D. Mariani for conspiracy to deal in explosive materials without a license.
According to United States Attorney Gerard M. Karam, Condron previously pleaded guilty to one count of conspiracy. As part of her guilty plea, Condron admitted that between June 2017 and September of 2018, Condron, along with her two co-defendants, agreed to sell commercial grade fireworks without a license under Chapter 40 of Title 18 of the United States Code. In total, the conspiracy was responsible for distributing more than 250 pounds of explosives in the form of commercial grade fireworks.
Condron’s co-defendants, Glen Matra and Kevin Condron, are presently pending trial.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Connecticut State Police, and the United States Attorney’s Office for the District of Connecticut. Assistant United States Attorney James Buchanan is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Wheeling man guilty of cocaine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher Louis Park, of Wheeling, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Park, 50, pleaded guilty to one count of “Possession with Intent to Deliver Cocaine.” Park admitted to the charge after agents seized over two kilograms of powder cocaine and several ounces of crack cocaine from him. A large portion of the cocaine recovered was shipped from Phoenix, Arizona to Mr. Park in Wheeling. Agents also recovered $4,800 in cash and a loaded handgun.
Park faces up to 20 years of incarceration and a fine of up to $1,000,000. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Wheeling Police Department; and the Belmont County, Ohio Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterville Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BANGOR, Maine: A Waterville man pleaded guilty in U.S. District Court in Bangor today to possessing fentanyl with intent to distribute, U.S. Attorney Darcie N. McElwee announced.
According to court records, on October 15, 2021, officers with the Waterville Police Department arrested Patrick Hanson, 31, after receiving information that he had threatened another individual. After his arrest, Hanson was found to have a total of seven packages of suspected narcotics on his person or in his immediate possession, including one package that he had kicked under a door at the police station. In total, police seized approximately 43 grams of a mixture containing fentanyl. Hanson was convicted in 2013 for conspiracy to distribute and possess with the intent to distribute oxycodone and 500 grams or more of cocaine.
Hanson faces up to 30 years in prison and a fine of up to $2 million. He also faces a minimum of six years and up to life of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Waterville Police Department, U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Kennebec County Sheriff’s Office investigated the case.
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Waterbury Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TYSON QUINONES, also known as “Ty,” 36, of Waterbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl, heroin, cocaine and crack cocaine.
According to court documents and statements made in court, in late 2019, the DEA New Haven Task Force began an investigation into the distribution of heroin and fentanyl in New Haven and Waterbury. The investigation, which included thousands of intercepted communications over court-authorized wiretaps, revealed that Wilton Reynoso was receiving large quantities of fentanyl and heroin from a source in New York and then selling the narcotics to other drug distributors in Connecticut. Reynoso supplied Quinones with heroin and fentanyl, which Quinones then sold to his own customers in Waterbury, and also distributed to other dealers, including Deeshawn Pittman in New Haven. Pittman then worked with Quentine Davis to sell fentanyl, heroin and crack cocaine to a large customer base in and around New Haven.
Quinones was also involved in a separate conspiracy that involved the shipments of kilogram-quantities of cocaine from Puerto Rico to Connecticut, the conversion of cocaine to crack cocaine, and the sale of the drug to other distributors and customers.
On June 13, 2020, investigators sought to arrest Reynoso and Quinones after intercepting a series of calls indicating that they were planning to conduct a 200-gram heroin transaction. On that date, Quinones was arrested at the anticipated meeting place. Reynoso fled from the meeting scene in his vehicle, which was found abandoned nearby. He was arrested a short time later after he returned to the vehicle. A search of a location in Waterbury that Reynoso used to store narcotics revealed more than kilogram of a mixture of fentanyl and heroin, and items used to process and package narcotics. Investigators also seized a loaded 9mm handgun from Quinones’s residence.
On July 23, 2021, Quinones pleaded guilty to conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl and 500 grams or more of cocaine.
Quinones, who is released on bond, is required to report to prison on January 23, 2023.
Reynoso, Pittman and Davis also pleaded guilty. On September 13, 2021, Reynoso, a citizen of the Dominican Republic, was sentenced to 60 months of imprisonment. On May 26, 2022, Davis was sentenced to 63 months of imprisonment. On October 31, 2022, Pittman was sentenced to 120 months of imprisonment.
This investigation was conducted by the DEA New Haven Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Elena L. Coronado through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
United States Attorneys Breon Peace and Damian Williams announced today that Assistant United States Attorneys (AUSAs) will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Erik Paulsen has been appointed to serve as the District Election Officer (DEO) for the Eastern District of New York, and David J. Kennedy has been appointed to serve as the DEO for the Southern District of New York. In their capacity as DEOs, these AUSAs are responsible for overseeing the Districts’ handling of Election Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Peace said, “The right of all citizens in the district to cast their votes and have their votes counted fairly and without interference, discrimination or threat of violence, is a cornerstone of our democracy and this Office will vigorously defend that right with the full force of federal law.”
United States Attorney Williams said, “Free and fair elections are principal to democracy, and every vote counts. It is the solemn privilege of this Office to work together with our law enforcement partners to ensure that New Yorkers are able to exercise their inherent right to select their representatives unencumbered by unlawful intimidation or interference. We encourage anyone who finds their civic voting protections subject to hindrance to please contact the numbers below.
The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorneys Peace and Williams stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs will be on duty in this District while the polls are open.”
In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 8, 2022, and to ensure that such complaints are directed to the appropriate authorities, the United States Attorneys said that their Offices will be available to receive complaints at the following numbers through Tuesday, November 8, 2022:
(646) 369-4739 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and
(718) 254-7000 (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (212) 384-1000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (866) 868-3692
TTY #: 212-487-5496
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-8683
Orange (845) 360-6500
Orange (Spanish language) (855) 331-2444
Putnam (845) 808-1300
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 807-0400
Westchester (914) 995-5700
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
United States Attorneys Damian Williams and Breon Peace announced today that Assistant United States Attorneys (AUSAs) will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA David J. Kennedy has been appointed to serve as the District Election Officer (DEO) for the Southern District of New York, and AUSA Erik Paulsen has been appointed to serve as the DEO for the Eastern District of New York. In their capacity as DEOs, these AUSAs are responsible for overseeing the Districts’ handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Williams said: “Free and fair elections are principal to democracy, and every vote counts. It is the solemn privilege of this Office to work together with our law enforcement partners to ensure that New Yorkers are able to exercise their inherent right to select their representatives unencumbered by unlawful intimidation or interference. We encourage anyone who finds their civic voting protections subject to hindrance to please contact the numbers below.”
United States Attorney Peace said: “The right of all citizens in the district to cast their votes and have their votes counted fairly and without interference, discrimination or threat of violence, is a cornerstone of our democracy and this Office will vigorously defend that right with the full force of federal law.”
The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorneys Williams and Peace stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs will be on duty in this District while the polls are open.”
In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 8, 2022, and to ensure that such complaints are directed to the appropriate authorities, the United States Attorneys said that their Offices will be available to receive complaints at the following numbers through Tuesday, November 8, 2022:
(646) 369-4739 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and Westchester counties) and
(718) 254-7000 (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (212) 384-1000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (866) 868-3692
TTY #: 212-487-5496
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-8683
Orange (845) 360-6500
Orange (Spanish language) (855) 331-2444
Putnam (845) 808-1300
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 807-0400
Westchester (914) 995-5700
U.S. Attorney’s Office Secures FCA Judgment of over $15 Million Against Chiropractor in National P-Stim Insurance Coding SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the Honorable Mitchell S. Goldberg of the Eastern District of Pennsylvania entered a default judgment against Timothy Warren of Wichita, Kansas and his company, Titan Medical Compliance, LLC (“Titan”), in the amount of $15,270,066, for violations of the False Claims Act (“FCA”).
This judgment is the latest action in the national investigation into the scheme of improper billing involving P-Stim electro-acupuncture devices. P-Stim is also branded as, among other things, ANSiStim, Stivax, NeuroStim, and NSS-2 Bridge. Federal healthcare programs do not reimburse for P-Stim devices, whether they are characterized as an electro-acupuncture device or as an implantable neuro-stimulator. The Eastern District of Pennsylvania has led the national Department of Justice effort to pursue and resolve various FCA cases against P-Stim providers, marketers, distributors, and coders, recovering tens of millions in the last two years.
As alleged in the Complaint, Timothy Warren, a chiropractor in Wichita, Kansas, along with his company, Titan, falsely promoted auricular electro-acupuncture devices as reimbursable by Medicare and other federal insurers, and as approved by the Food and Drug Administration (“FDA”). Warren promoted himself to providers as a medical reimbursement consultant, and his company, Titan, as a compliance consulting firm. As a result, various marketers and distributors of P-Stim devices paid Warren a monthly fee to provide coding recommendations to customers. Certain providers also paid Warren directly for coding guidance.
Beginning in 2014, Warren promoted P-Stim devices as reimbursable by Medicare and other federal healthcare programs and provided instructions on what codes to bill. Those codes, generating a high amount of reimbursement, however, were meant for legitimate, surgically implanted neurostimulators to manage chronic pain. P-Stim, on the other hand, could be applied in a few minutes in an office setting without anesthesia and by someone with minimal training. During this time, Warren and Titan had knowledge that the P-Stim devices were not reimbursable by federal healthcare programs, but continued to promote the non-surgical devices anyway.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a Complaint against Warren and Titan on October 14, 2021, and has litigated the case since then, including defeating a motion by Warren and Titan to transfer the case to the District of Kansas. The United States moved for a default judgment after Warren’s and Titan’s counsel withdrew and the defendants then failed to respond. Judge Goldberg granted the motion and entered a default judgment, finding, among other things, that the United States “has stated cognizable claims under the False Claims Act against Defendants, and Defendants have failed to present any litigable defense.”
Warren and Titan are now responsible for statutory penalties totaling $15,270,066, for causing approximately 1,200 claims to be falsely submitted to the federal healthcare programs in violation of the FCA. Given inability-to-pay concerns and the default nature of the judgment, Judge Goldberg recognized this “appropriate” approach to damages in that the United States sought only minimum statutory penalties, rather than actual damages under the FCA, which were far more significant.
“This office has led the national charge to hold individuals and entities responsible for P-Stim fraud,” said U.S. Attorney Romero. “With Warren’s judgment, our office has held accountable those responsible for the tainted claims paid by federal healthcare programs. Even those who never applied P-Stim themselves can be held accountable for causing others to submit false claims through marketing and disseminating fraudulent coding advice.” She continued with a warning to other providers and medical device marketers: “If a scheme seems too good to be true, it probably is—and you should be wary.”
The Warren and Titan cases in this District were investigated by the U.S. Department of Health and Human Services Office of the Inspector General. These cases have been handled by Assistant U.S. Attorneys Deborah W. Frey and Matthew E. K. Howatt, as well as former Assistant U.S. Attorney John T. Crutchlow, Auditor Dawn Wiggins, and Investigator Frank O’Connor.
U.S. Attorney Avery Announces 2022 Election Day ProgramRead the Press Release
U.S. Attorney Vanessa Roberts Avery today announced that Assistant U.S. Attorney Jonathan Francis will lead the U.S. Attorney’s Office’s efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Francis serves as the District Election Officer for the District of Connecticut and is responsible for overseeing the District’s handling of Election Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Avery. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“The right to vote is the cornerstone of American democracy,” said U.S. Attorney Avery. “We all must ensure that those who are entitled to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
U.S. Attorney Avery noted that in order to respond to complaints of voting rights concerns and election fraud during the election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Francis will be on duty while the polls are open and will be in regular communication throughout the day with the FBI and with state election and law enforcement authorities.
The Connecticut State Elections Enforcement Commission (SEEC) is staffing a hotline during polling hours on Election Day. Anyone with knowledge of election fraud or voting rights abuses is encouraged to call 1-866-733-2463 (1-866-SEEC-INFO) to report suspected violations. The SEEC staff will answer questions, advise on complaint procedures and, if appropriate, request the assistance of state criminal or federal law enforcement authorities in the investigation and possible prosecution of the matter.
The FBI in Connecticut and across the country will have special agents available to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office in New Haven can be reached directly at 203-777-6311.
In addition, complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C., by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said U.S. Attorney Avery. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
U.S. Attorney Avery stressed that in the case of a crime of violence or intimidation, individuals should call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney Announces Environmental Justice InitiativeRead the Press Release
SPRINGFIELD, Ill. – U.S. Attorney Gregory K. Harris today announced an initiative to address environmental justice concerns in the Central District of Illinois. The mission of this initiative is to protect overburdened and underserved communities from the harm caused by environmental crimes, pollutions, and climate change. The U.S. Attorney’s Office will work closely with the Department of Justice’s Office of Environmental Justice, the United States Environmental Protection Agency, state and local agencies, and community advocates to secure environmental justice for all communities, to ensure that everyone enjoys the same degree of protection from environmental and health hazards, and to protect equal access to a healthy environment in which to live, learn, play, and work.
This initiative is part of the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy, which strives “to advance environmental justice through timely and effective remedies for systemic environmental violations and contaminations and for injury to natural resources in underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities.”
“Our office is dedicated to protecting everyone in the Central District of Illinois from suffering the harmful effects of environmental crimes, which are all too often borne by our underserved communities,” said U.S. Attorney Harris. “I urge those aware of the commission of environmental crimes within our district to report those offenses.”
The Department of Justice enforces the Nation’s civil and criminal environmental laws, including the Clean Air Act, Clean Water Act, and hazardous waste laws. Residents may contact the U.S. Attorney’s Office at (217) 492-4450 to notify the Environmental Justice Coordinator of potential violations of environmental, health, and safety laws. This reporting procedure is in addition to other methods of reporting environmental concerns to the federal government, such as the online portal maintained by the United States Environmental Protection Agency: https://echo.epa.gov/report-environmental-violations.
To learn more about this initiative, please visit https://www.justice.gov/usao-cdil/environmental-justice.
Two Men from Lake Charles Area Sentenced for Illegal Possession of FirearmsRead the Press Release
LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced the resolution of two cases in the Lake Charles Division of the Western District of Louisiana. United States District Judge James D. Cain, Jr. sentenced the following two defendants today:
Johnathan Wade Thierry, 49, of Lake Charles, Louisiana, was sentenced to 46 months in prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On April 20, 2021, law enforcement officers with the Combined Anti-Drug Task Force team in Lake Charles, Louisiana, were conducting home surveillance to execute active arrest warrants for Thierry. Officers observed Thierry depart from his residence and they initiated a traffic stop, taking him into custody for the outstanding warrants. He consented to a search of his vehicle but would not give consent for them to search his residence. A search warrant was obtained for search of Thierry’s residence and upon execution, officers recovered a loaded Guardian .25 caliber pistol, as well as a box of .25 caliber ammunition. Because he was a convicted felon, it was illegal for Thierry to have a firearm or ammunition in his possession.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Calcasieu Parish Sheriff’s Office, and Louisiana State Police, and prosecuted by Assistant U.S. Attorney Jamilla A. Bynog.
Robert Edward Wright, 68, of Lake Charles, Louisiana, was sentenced to 24 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of firearms. This charge stems from an incident that occurred on August 6, 2020 when deputies from the Calcasieu Parish Sheriff’s Office responded to a domestic violence call. When deputies arrived on the scene, they learned that Wright had shoved a female and grabbed her by the throat with both hands. While at the residence, deputies found two loaded firearms in the residence, a Smith and Wesson 9mm handgun and a Remington 770 rifle. Wright’s girlfriend admitted to deputies that she had purchased the firearms at the direction of Wright because he knew as a convicted felon he could not purchase one or have any in his possession. Wright has prior felony convictions for aggravated burglary in Louisiana and DWI in Texas prohibiting him from possessing any firearms or ammunition.
The case was investigated by the ATF and Calcasieu Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney LaDonte A. Murphy.
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Two Lawrence Men Arrested for Conspiring to Distribute Fentanyl at Veterans Affairs Medical CenterRead the Press Release
BOSTON – Two Lawrence men have been arrested for allegedly distributing fentanyl and targeting veterans at the Bedford Veterans Affairs Medical Center.
Deiby Bladimil Casado Ruiz and Pedro Antonio Sanchez Bernabel, both of Lawrence, were indicted on one count of conspiracy to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. Casado Ruiz was charged with an additional count of distribution of fentanyl. The defendants were arrested on Nov. 2, 2022 and, following an initial appearance yesterday before U.S. Magistrate Judge Judith G. Dein, were detained pending detention hearings scheduled for Nov. 9, 2022.
According to the charging document, between July 27, 2022 and Oct. 26, 2022 Casado Ruiz and Bernabel conspired to distribute more than 40 grams of fentanyl in Bedford. Specifically, it is alleged the defendants targeted veterans seeking treatment for substance use disorder at the Bedford Veterans Affairs Medical Center.
“Every day, veterans risk their lives to protect our country, our freedom and our civil liberties. These sacrifices often come at great expense to their families, loved ones, and mental and physical health. One of the few benefits veterans receive is life-long healthcare services at any of the 170 VA medical centers and outpatient clinics throughout the country. If a veteran has a substance use disorder or mental health issue, a VA can offer life-saving treatment and services. We allege that these two defendants conspired to sell fentanyl to veterans at or near the VA medical center/outpatient clinic in Bedford,” said United States Attorney Rollins. “Fentanyl continues to be the main driver of overdose deaths in our Commonwealth and nationwide. Last year alone, we lost over 2,000 people in Massachusetts to drug poisonings. The opioid crisis is real and growing. Individuals who seek to distribute fentanyl, especially those who target vulnerable populations, are a grave threat to our communities. We are committed to finding and prosecuting them. That is a promise.”
“Veterans seeking treatment for substance abuse are often at their most vulnerable. The VA Office of Inspector General is committed to ensuring VA medical centers are safe for veterans receiving care,” said Special Agent in Charge Christopher Algieri of the VA Office of Inspector General’s Northeast Field Office. “We thank the US Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.”
“What these two men are accused of doing is absolutely appalling. We believe they targeted veterans who have valiantly defended our country’s freedoms and are now seeking treatment for their substance abuse disorder, and plied them with fentanyl, a deadly narcotic 50-100 times stronger than morphine,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This investigation clearly demonstrates that the grave consequences of the opioid crisis extend far beyond street level dealing, and the FBI’s resolve to work closely with our law enforcement partners to do everything we can to rid our communities of this deadly and destructive substance.”
“Massachusetts is in the midst of a devastating opioid crisis as deaths from fentanyl climb,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “The DEA will continue to use every resource available to identify those who are contributing to this crisis across our communities. Today’s arrests serve as a warning to those traffickers who are fueling the opioid epidemic and addiction.”
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl provides for mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, VA OIG SAC Algieri, FBI SAC and DEA SAC Boyle made the announcement today. Valuable assistance in the investigation was provided by the Bedford VA Medical Center Police Service and the Lawrence Police Department. Assistant U.S. Attorneys Patrick Callahan, Lauren Graber and Kelly Lawrence of Rollins’ Health Care Fraud Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Trafficking of Methamphetamine Results in 18+ Year Federal Prison Sentence for Lafayette Area ManRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Joshua Cade Labit, 37, of Rayne, Louisiana was sentenced today by United States District Judge David C. Joseph to 220 months (18 years, 4 months) in prison, followed by 5 years of supervised release, for his role in a drug trafficking conspiracy.
Labit was indicted by a federal grand jury in Lafayette and he pleaded guilty to the charge of conspiracy to distribute and possess with intent to distribute methamphetamine on January 13, 2022.
According to evidence introduced in court, during the early morning hours on March 10, 2021, law enforcement agents conducted a traffic stop of a vehicle near Crowley, Louisiana. Labit was a passenger in the vehicle and one of his co-defendants, William Tarleton, was driving. A search of the vehicle was conducted, and agents located multiple packages containing a large quantity of crystal methamphetamine, a box containing 12 bottles of promethazine/codeine syrup, and a small bag containing approximately 5 grams of marijuana. The methamphetamine was found inside a duffle bag on the floorboard. The approximate weight of the methamphetamine was 2.65 kilograms.
At the guilty plea hearing on June 2, 2022, Labit admitted that he conspired with Tarleton and others to purchase the methamphetamine for future distribution.
The case was investigated by the U.S. Drug Enforcement Administration and Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John W. Nickel.
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Three Miami Men Found Guilty of Pawn Shop Robbery Spree and MurderRead the Press Release
MIAMI—Three Miami men have been found guilty by a Fort Lauderdale jury on all counts of a 21-count indictment—including robbery and murder.
Jonathan Cruz (“Cruz”), 36, Eric Ortiz Melendez (“Ortiz Melendez”), 28, and Jorge Aponte Figueroa (“Aponte Figueroa”), 25, were charged with conspiracy to commit Hobbs Act robberies and the actual carrying out of committing Hobbs Act robberies of nine pawn shops in Miami-Dade, Broward, and Palm Beach Counties. The men brandished and discharged firearms in furtherance of those robberies and murdered a pawn shop customer in Little Havana. Additionally, Cruz was found guilty of being a felon in possession of ammunition.
According to trial evidence, beginning in October 2016, Cruz, Ortiz Melendez, and Aponte Figueroa, along with their five previously convicted co-conspirators, agreed to commit armed robberies of pawn shops throughout South Florida in order to obtain jewelry to illicitly sell. Cruz organized and directed the teams of robbers after scouting the desired locations. Cruz provided the guns and tools needed for the robberies.
The men would travel from Cruz’s home, rob the stores, then return to Cruz’s place. Cruz would then sell the stolen jewelry to an unknown person and give each defendant his cut of the profits. Trial evidence also showed that during robberies in Pembroke Park, West Park, and Miami, the robberies resulted in multiple shootings—one of which resulted in the murder of an elderly pawn shop customer in Little Havana.
The robbery spree began to unravel once three of the defendants were caught during a high-speed chase by the Hialeah Police Department after an armed robbery in that city. According to evidence, the remaining members of the group were planning their next heist in Miami Gardens by the time Cruz was arrested.
Sentencing for all three has been set for February 9, 2023. A]ponte Figueroa also was convicted after trial in March of 2022 of carjacking and murder. The sentencing in that matter has been set for January 4, 2023.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigations (FBI), Miami Field Office, made the announcement.
FBI, Miami Field Office, investigated the case with assistance from Broward County Sheriff’s Office; the Miami-Dade Police Department; the City of Miami Police Department; the Hialeah Police Department; the City of Hollywood Police Department; the City of Miami Gardens Police Department; the City of Palm Springs Police Department; and the Fort Lauderdale Police Department. This case was prosecuted by Assistant U.S. Attorneys Alejandra L. López and Jodi Anton.
Anyone with information related to possible gun crimes is asked to call Crime Stoppers at 305-471-TIPS.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 17-cr-20487.
Three Chicago Men Charged with Odometer and Title FraudRead the Press Release
A federal grand jury in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging three Illinois men with operating an odometer and title fraud scheme that involved hundreds of used cars over the course of many years.
According to court documents, Laith Ghzo, 36, of Oak Lawn, Hussein Ghzo, 40, of Palos Heights, and Musab Sawai, 35, of Worth caused the mileage of hundreds of used vehicles to be rolled back and altered title documents to reflect the false, low mileage. Those used vehicles were then sold to unsuspecting wholesale buyers and ultimately consumers, who paid more for those vehicles than they would have paid if they had known the truth about the vehicles’ mileages.
Laith Ghzo and Hussein Ghzo are charged with conspiracy to make counterfeit securities and commit mail fraud, making counterfeit securities and mail fraud. Musab Sawai is charged with conspiracy to make counterfeit securities and mail fraud. The defendants made their initial court appearances yesterday before U.S. Magistrate Judge Jeffrey Cole of the U.S. District Court for the Northern District of Illinois. If convicted, Laith Ghzo and Hussein Ghzo face a maximum penalty of 20 years in prison for each mail fraud count, and Musab Sawai faces a maximum penalty of five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA) made the announcement.
The NHTSA Office of Odometer Fraud Investigations and the Postal Inspection Service are investigating the case.
Trial Attorneys Joshua D. Rothman and Thomas Rosso of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Chicago Men Charged with Odometer and Title FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging three Illinois men with operating an odometer and title fraud scheme that involved hundreds of used cars over the course of many years.
According to court documents, Laith Ghzo, 36, of Oak Lawn, Hussein Ghzo, 40, of Palos Heights, and Musab Sawai, 35, of Worth caused the mileage of hundreds of used vehicles to be rolled back and altered title documents to reflect the false, low mileage. Those used vehicles were then sold to unsuspecting wholesale buyers and ultimately consumers, who paid more for those vehicles than they would have paid if they had known the truth about the vehicles’ mileages.
Laith Ghzo and Hussein Ghzo are charged with conspiracy to make counterfeit securities and commit mail fraud, making counterfeit securities and mail fraud. Musab Sawai is charged with conspiracy to make counterfeit securities and mail fraud. The defendants made their initial court appearances yesterday before U.S. Magistrate Judge Jeffrey Cole of the U.S. District Court for the Northern District of Illinois. If convicted, Laith Ghzo and Hussein Ghzo face a maximum penalty of 20 years in prison for each mail fraud count, and Musab Sawai faces a maximum penalty of five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA) made the announcement.
The NHTSA Office of Odometer Fraud Investigations and the Postal Inspection Service are investigating the case.
Trial Attorneys Joshua D. Rothman and Thomas Rosso of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
Thirty-Four-Year-Old Houston Man Pleads Guilty to Trafficking 13-Year-Old Female into the New Orleans Area to Perform Commercial Sex ActsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RANDI LEWIS (a/k/a “Teddy,” a/k/a “Teddy P.”), age 34, from Houston, Texas, pleaded guilty on November 2, 2022 before United States District Judge Lance M. Africk to Count 2 of the indictment pending against him, charging LEWIS with sex trafficking of a child under the age of 14, in violation of Title 18, United States Code, Section 1591(a) and 1591(b)(1). The charges stem from LEWIS’S role in bringing a thirteen-year-old female from Houston to New Orleans for the purpose of her engaging in commercial sex acts in June 2021.
According to court documents, LEWIS met his co-conspirator, Chelsea Gee, a female born in 2003, in about late 2019 or early 2020. LEWIS recruited Gee to engage in commercial sex acts under his direction, and she complied. LEWIS also instituted a series of rules Gee was to follow, including how to behave, what to wear, with whom she was allowed to interact (i.e., look at and speak to), and how much she was expected to earn from engaging in commercial sex acts daily. LEWIS routinely tracked Gee’s location using a location sharing cellular phone application. LEWIS also regularly engaged in sexual acts with Gee.
Together, LEWIS and Gee met the minor victim, who was thirteen years old, in the Houston, Texas area not later than June 21, 2021. At LEWIS’s direction, Gee recruited the minor victim to perform commercial sex acts also under LEWIS’s direction. Soon thereafter, Gee introduced the victim to LEWIS. After the victim agreed, LEWIS arranged for he, Gee, and the victim to travel to New Orleans on a Greyhound bus for the purpose of his co-conspirator and the victim to engage in commercial sex acts. Between June 22, 2021, and June 24, 2021, Gee and the victim performed multiple commercial sex acts in the New Orleans area. LEWIS required the minor victim to turn over all, or most, of the money she earned from commercial sex acts to LEWIS. LEWIS and Gee gave the minor victim instruction and guidance on matters related to the successful performance of commercial sex activities, including ways to behave, what to wear, how to identify and avoid law enforcement, and how to best solicit and engage in commercial sex activities under LEWIS’S direction.
Acting at LEWIS’S direction, Gee and the minor victim solicited commercial sex “dates” in several ways. First, they walked along streets soliciting customers. Additionally, LEWIS created and caused to be created advertisements on an online classified ad service commonly used to advertise sexual services in exchange for money, through which LEWIS received telephone calls, text messages, and messages via social media applications inquiring about, scheduling, and arranging prostitution calls with his co-conspirator and the minor victim. LEWIS arranged for sexually explicit pictures of the minor victim to be used in the advertisements. LEWIS and his co-conspirator also gave the minor victim illicit and mood-altering drugs, including marijuana, to numb her senses, control her behavior, and/or to encourage her to engage in commercial sex acts. Law enforcement authorities recovered the minor victim at a hotel in Terrytown, Louisiana, on June 24, 2021.
LEWIS faces a mandatory minimum term of imprisonment of fifteen (15) years and up to a maximum term of life in prison, a fine of up to $250,000.00, a lifetime of supervised release after imprisonment, and a mandatory $100 special assessment fee. LEWIS may also be required to register as a sex offender and make restitution payments to the minor victim. Sentencing has been scheduled for March 8, 2023, at 2:00 pm before Judge Africk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Ten defendants charged in Augusta-area drug trafficking operationRead the Press Release
AUGUSTA, GA: Ten people have been indicted in an Augusta-area drug trafficking conspiracy linked to another large-scale drug trafficking prosecution.
As described in the newly unsealed indictment in USA v. Fields et. al, the investigation parallels the indictments in USA v. Wheatley et. al, together dubbed Operation Wheat Fields, and describes a conspiracy to transport and distribute large amounts of methamphetamine and heroin in the areas of Richmond and Emanuel counties in Georgia, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Each defendants faces a conspiracy charge that carries a maximum statutory penalty of up to life in prison, and there is no parole in the federal system.
“Illegal drug trafficking operations generate misery in our communities and produce significant illicit funds and generate rivalries that fuel violent crime,” said U.S. Attorney Estes. “By closely collaborating with our law enforcement partners, we will continue to identify, disrupt and dismantle these organizations and make our citizens safer.”
Operation Wheat Fields is an Organized Crime Drug Enforcement Task Forces investigation that identified a pipeline of illegal drugs from Mexico routed through Atlanta and into the greater Augusta area, facilitated by defendants that included those housed in Georgia prisons who used contraband devices to communicate via text message and Facebook. The investigation led to multiple searches and evidence seizures from residences, vehicles, and hotel rooms.
Those charged in the October 2022 indictment in USA v. Fields, et. al, include:
- Justin Wayne Fields, 39, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; three counts of Distribution of Methamphetamine; and 11 counts of Use of Communication Facility, related to the use of a cell phone or Facebook Messenger to facilitate the conspiracy;
- Joshua Brooks Woodward, a/k/a “Jay Wood,” 30, of Augusta, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; and five counts of Use of a Communication Facility;
- Elizabeth Sarah Hagan, 38, of Augusta, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; Possession of Methamphetamine; and four counts of Use of a Communication Facility;
- Coley Alexander Greene, a/k/a “Henry Jones,” 30, of Wrens, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; and three counts of Use of a Communication Facility;
- James Edmund Beasley, 34, of Grovetown, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; Possession with Intent to Distribute Heroin; and three counts of Use of a Communication Facility;
- Cameron Ruth Young, 35, of Grovetown, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; Possession with Intent to Distribute Heroin; and Use of a Communication Facility;
- David Marshall Hood, 45, of Kite, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; two counts of Distribution of Methamphetamine; Possession with Intent to Distribute Methamphetamine; and Use of a Communication Facility;
- James Richard Faircloth, 39, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; five counts of Distribution of Methamphetamine; Possession with Intent to Distribute Methamphetamine; and three counts of Use of a Communication Facility;
- Leann Nicole Faircloth, 39, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; and three counts of Distribution of Heroin; and,
- Casey Alton Henry, 45, of Swainsboro, charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 500 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine and an Amount of Heroin; two counts of Distribution of Methamphetamine; and Use of a Communication Facility.
All of the defendants charged in the indictment have appeared before a magistrate in U.S. District Court.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
In the related prosecution in USA v. Wheatley et al., lead defendant Jayson Dwayne Wheatley, 41, of Augusta, awaits sentencing after pleading guilty Sept. 23 to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of a Mixture Containing a Detectable Amount of Methamphetamine. Two other defendants also await sentencing after pleading guilty to related charges, and the remaining four defendants are presumed innocent unless and until proven guilty.
The case was investigated under the 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.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer.
Operation Wheat Fields is being investigated by the Georgia Bureau of Investigation; the Swainsboro Police Department; the Emanuel County Sheriff’s Office; the Richmond County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; and the Columbia County Sheriff’s Office, and is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney and Criminal Division Chief Patricia G. Rhodes.
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Taylorsville, N.C. Woman Is Sentenced to Eight Years in Prison for Embezzling More Than $15 Million from Former EmployerRead the Press Release
CHARLOTTE, N.C. – Donna Osowitt Steele, 53, of Taylorsville, N.C., was sentenced today to eight years in prison for embezzling more than $15 million from her former employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Steele to serve three years under court supervision after she completes her prison term and to pay $17,189.748.26 in restitution. Steele previously pleaded guilty to wire fraud in connection with the scheme.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2013 to January 2020, Steele executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S.-based subsidiary of a foreign company that manufactures carbide products. Steele began working for Victim Company A’s shipping department in 1999. Over the next 20 years, Steele was promoted to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020.
Court records show that, while serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for a family wedding, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company owned by the defendant. Steele also issued and caused to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A’s bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A’s bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A’s bank accounts to her personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.
According to court documents, over the course of the scheme, Steele embezzled more than $15 million from Victim Company A. As a result of Steele’s embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, employees not being paid on time, and/or employees having their insurance cancelled without warning. Court records show that, in an effort to hide the fraudulent scheme, Steele limited communications and interactions between the employees and the owners of Victim Company A. Steele also convinced employees that company owners should be feared and lied to employees about the true nature of Victim Company A’s financial trouble.
On January 12, 2022, Steele pleaded guilty to wire fraud. She is currently released on bond and will be ordered to report the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.
Assistant United States Attorney Maria Vento of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Tampa Man Sentenced to More Than 3 Years in Federal Prison for CyberstalkingRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Dominique Dragan (29, Tampa) to three years and one month in federal prison, followed by three years supervised release, for cyberstalking two victims. Dragan had pleaded guilty on May 25, 2022.
According to court documents, from approximately January 2020 through July 2021, Dragan engaged in a course of conduct with the intent to harass and intimidate multiple victims. Using Instagram, Dragan cyberstalked, harassed, and threatened the victims with a series of continuous messages. He made specific threats to kill the victims, including by stating, “I can’t wait to hear the bones in your neck break,” “I’m gonna put a bullet in your forehead,” and “I can’t wait to murder you.” Dragan also included racially charged language and warned the victims not to report his threats to law enforcement. Dragan’s conduct placed the victims in reasonable fear of serious injury and death.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
Syracuse Man Indicted on Firearms ChargeRead the Press Release
SYRACUSE, NEW YORK – Cedric L. Hudson, Jr., 36, of Syracuse, New York, is charged in a federal indictment filed today alleging he possessed a firearm and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Acting Superintendent Steven A. Nigrelli.
Hudson was previously charged by a federal criminal complaint and made his initial appearance on October 21, 2022, before United States Magistrate Judge Andrew T. Baxter. Hudson is detained without bail pending a trial. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Hudson carries a maximum sentence of 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by Federal Bureau of Investigation (FBI), and the New York State Police (NYSP), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Onondaga County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Richard Southwick as 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.
Sully County Men Convicted of Crop Insurance FraudRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that James Garrett, age 68, and Levi Garrett, age 44, of Sully County, South Dakota, were found guilty of three counts of False Statement in Connection with Federal Crop Insurance, as a result of a federal jury trial in Pierre, South Dakota. The defendants were found not guilty on four other crop insurance fraud charges and two charges of Major Fraud Against the United States. The verdict was returned on October 31, 2022.
The charges carry a maximum penalty of 30 years in custody and/or a $250,000 fine, five years of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
The defendants were indicted by a federal grand jury in October of 2021.
In 2018, the defendants falsely certified to a crop insurance company that they planted 2,200 acres of sunflowers in Sully County. In fact, the defendants did not plant sunflowers, and they wrongfully received a total indemnity from the insurance company of $495,048. In 2019, James Garrett falsely certified he planted 47.5 acres of corn in Sully County. In fact, no corn was planted, and he wrongfully received a total indemnity from the insurance company of $484,405.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General and the U.S. Department of Agriculture, Risk Management Agency. Assistant U.S. Attorneys Cameron J. Cook and Alexis A. Warner prosecuted the case.
A presentence investigation was ordered, and a sentencing date has not been set. The defendants were released pending sentencing.
Stratford Doctor Pleads Guilty to Health Care Fraud and Illegal Kickback OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, announced that ANANTHAKUMAR THILLAINATHAN, MD, 44, of Stratford, waived his right to be indicted and pleaded guilty today in Hartford federal court to health care fraud and kickback offenses.
According to court documents and statements made in court, Thillainathan is a medical doctor and the owner and president of MDCareNow LLC, a medical practice with offices in Stratford and Milford. MDCareNow has been a participating provider enrolled as both an internal medicine group and as a behavioral health clinician group in the Connecticut Medicaid program. Between approximately June 2019 and May 2022, Thillainathan submitted or caused to be submitted to Connecticut Medicaid approximately $839,724 in fraudulent claims for psychotherapy services that he knew patients did not receive from his employees. Thillainathan knew that the billed psychotherapy Current Procedural Terminology (CPT) codes, which identify the nature and complexity of the services provided, were not supported by medical records provided by his employees, and that the services were not provided. The investigation revealed that Thillainathan submitted fraudulent claims to Medicaid for reimbursement that falsely represented his employees had rendered 60-minute psychotherapy sessions when, in fact, his employees only had very brief conversations with patients, had only left a voicemail for patients, or had no contact with patients at all.
In pleading guilty, Thillainathan also admitted that, in violation of his Connecticut Medical Assistance Program (CTMAP) provider agreement, he paid a third-party “patient recruiting” company for each Connecticut Medicaid patient the company recruited and provided with transportation to MDCareNow for medical services. Thillainathan paid the patient recruiting company approximately $100 per patient for an initial visit to MDCareNow and approximately $40 per patient for any subsequent visit. Between approximately November 2019 and May 2021, Thillainathan paid the patient recruiting company for the recruitment of approximately 1,018 Connecticut Medicaid patients, and Connecticut Medicaid reimbursed MDCareNow a total of approximately $1,071,328 for services provided to these patients.
Thillainathan pleaded guilty to one count of health care fraud and one count of kickbacks involving federal health care programs, offenses that carry a maximum term of imprisonment of 10 years on each count. He is scheduled to be sentenced by U.S. District Judge Stefan R Underhill in Bridgeport on January 26, 2023. As part of his plea, Thillainathan has agreed to pay $1,674,880 in restitution.
Thillainathan, a citizen of Sri Lanka and a lawful permanent resident of the U.S., is released on a $100,000 bond pending sentencing.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services.
The matter is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Elena L. Coronado.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
St. Louis County Man Sentenced to 22 Years for Multiple RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday sentenced a man from St. Louis County, Missouri to 22 years in prison for the armed robbery of four stores and for trying to rob a fifth.
Demetrius Smith, 35, pleaded guilty July 25, just before his jury trial was set to begin, to four robbery counts and one attempted robbery. He admitted committing armed robberies of a T-Mobile store in Creve Coeur on Nov. 15, 2018, a MetroPCS in Bridgeton on Nov. 21, 2018 and a Bucky’s Express gas station and a QuikTrip in Maryland Heights on Nov. 24, 2018. He also tried to rob a 7-Eleven in St. Louis County on Nov. 24, 2018.
A total of six separate employees were present during the robberies, including a woman who was grabbed, threatened and forced to her knees by Smith, Assistant U.S. Attorney Jason Dunkel said during Thursday's sentencing hearing.
Smith used his cell phone to call the stores before the robberies to see if a manager was present, because he thought a manager was more likely to be able to access the safe. He then walked by the stores, waiting for a moment when there were no customers and only a single employee in the store before robbing it. If a customer came in during the robbery, he abandoned the robbery and fled.
On November 26, 2018, police from the Overland Police Department located Smith at his apartment as they were investigating the robbery of the Bucky’s Express. Police searched the car that Smith rented and used during the robberies and found a duffel bag, gloves and clothing that he used at some of the robberies and the firearm he used in all five robberies.
In addition to the prison time, Judge White ordered Smith to pay $25,370 in restitution.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Overland Police Department, the Bridgeton Police Department, the Creve Coeur Police Department, the Maryland Heights Police Department and the St. Louis County Police Department. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Six People Indicted for Retaliatory Kidnapping PlotRead the Press Release
DETROIT – Four individuals were arrested today on charges of kidnapping and conspiracy to commit kidnapping in November 2021 when the defendants are alleged to have kidnapped and beaten an individual they wrongly believed participated in a carjacking, announced United States Attorney Dawn N. Ison.
U.S. Attorney Ison was joined in the announcement by Special Agent in Charge Paul Vanderplow, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The six individuals were charged in an October 12, 2022, indictment which was unsealed today.
Charged were:
Cortez Blake, 21, Detroit, MI
Karamoh Turner, 21, Detroit, MI
Semaj Ayers, 20, Detroit, MI
Maijah Greene, 22, Detroit, MI
Shatonnia Kimbrough, 19, Detroit, MI
Armond Williams, 20, Detroit, MI
As alleged in the indictment, beginning on November 14, 2021, and continuing into November 15, 2021, the defendants joined other unnamed individuals in the kidnapping and beating of a person as part of an organized effort to extract information about a carjacking the conspirators wrongly believed the person took part in. The victim of the carjacking, Cortez Blake, is alleged to have participated in the kidnapping conspiracy.
Four of the defendants will be making their appearance in federal court today.
If convicted, the defendants each face up to life in prison, a $250,000 fine, and up to five years of supervised release.
“The coordinated effort to victimize and seek retaliation in this case is stunning,” said U.S. Attorney Ison. “This is a clear example of what we see too often: violence causing more violence, and it has to stop. Today’s arrests should send a clear message to those thinking about carrying out street justice – it will not be tolerated.”
“Criminal groups who violently terrorize our communities will be aggressively pursued, and eradicated from our communities,” said ATF Special Agent in Charge Paul Vanderplow. “We are proud of the collaborative effort with the U.S. Attorney’s office, our Federal, State of Michigan, and Local partners resulting in getting these violent gang members off our streets.”
The United States Attorney’s Office and the ATF are focused on prosecuting those individuals who are using firearms to commit violent acts against people in the Eastern District of Michigan. The strategy is a part of the United States Attorney’s Office’s Project Safe Neighborhoods (PSN) initiative. PSN continues to be the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them. PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.
These charges are just some of the tangible results of this joint effort. The United States Attorney’s Office and our law enforcement partners will continue to work together to reduce violence in our communities. Along with ATF, this case has been investigated with the assistance of the Office of Inspector General – U.S. Department of Labor, the United States Marshals Service, the Detroit Police Department’s Gang Intelligence Unit, and the Michigan Department of Corrections.
An indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Serial Burglar Sentenced to 42 Months in PrisonRead the Press Release
MADISON, WIS. – Chief Judge James D. Peterson of the Western District of Wisconsin sentenced Ahmeeshadye Curtis, 36, Madison, Wisconsin to 42 months in federal prison for conspiring to transport and transporting stolen goods worth over $5,000 across state lines. Judge Peterson ordered the federal sentence be served consecutive to the 30-month state sentence Curtis is currently serving for burglary-related crimes in Ohio. Curtis was convicted following a four-day trial in federal court in Madison.
The government presented evidence at trial that from November 2019 through December 24, 2019, Curtis conspired with Carl Carter, 39, also of Madison, to commit seven burglaries and attempt another of stores in Iowa, Ohio, Minnesota, and Wisconsin, and to travel across state lines with the stolen merchandise. The stolen merchandise included cell phones (primarily Apple iPhones), other electronics, and jewelry. Two of the burglaries occurred in Janesville, Wisconsin on November 28, 2019.
At sentencing, Judge Peterson described the burglaries as “high-level property crimes” and emphasized the impact the crimes had not only on the owners of the stores, but on the workers of the stores who no longer felt that they worked at a safe and secure location. Curtis’ criminal history, which included numerous other thefts and a burglary in Ohio that occurred after Curtis was federally indicted and failed to report to jail in this case, also played a role in the significant sentence.
Carter pleaded guilty to the conspiracy charge and was sentenced on January 4, 2021, to 30 months in federal prison.
The case was investigated by the Federal Bureau of Investigation; the Janesville, Wauwatosa, West Allis, Wausau, and Everest Metro Police Departments in Wisconsin; the Creston and Cedar Falls Police Departments in Iowa; the Cuyahoga Falls Police Department in Ohio; the Minnetonka and Woodbury Police Departments in Minnesota; and the Rockton Police Department in Illinois. The prosecution was handled by Assistant U.S. Attorneys Zachary Corey and David Reinhard.
Schuylkill County Man Sentenced to 93 Months’ Imprisonment for Drug Trafficking and Firearm OffensesRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Walter Gray, age 37, of Ashland, Pennsylvania, was sentenced yesterday to 93 months’ imprisonment by United States Chief District Court Judge Matthew W. Brann for drug trafficking and firearm offenses.
According to United States Attorney Gerard M. Karam, Gray previously pleaded guilty to one count of possession with the intent to distribute fentanyl, and one count of possession of a firearm in furtherance of a drug trafficking offense. In June of 2020, Gray failed to appear in Schuylkill County Court for previous drug and firearm charges and an arrest warrant was issued.
In April of 2021, members of the Pennsylvania State Police Fugitive Task Force and United States Marshals executed an arrest warrant for Gray at an Airbnb rental property in Snyder County, Pennsylvania. Gray was found in possession of fentanyl, drug paraphernalia, a Glock 21 .45 caliber pistol, various pistol magazines and pistol ammunition, small quantities of other controlled substances, and over $7,000 in cash.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshals Service, the Pennsylvania State Police, the Schuylkill County District Attorney’s Office, the Snyder County District Attorney’s Office, the Schuylkill County Drug Task Force, and the Frackville Borough Police Department. Assistant United States Attorney James M. Buchanan 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 opioids. 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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Schenectady County Felon Indicted for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Jason Seminary, age 44, of Duanesburg, New York, was ordered detained today following his indictment last week for unlawfully possessing a firearm and ammunition on December 26, 2021.
The announcement was made by United States Attorney Carla B. Freedman and Guilderland Police Chief Daniel P. McNally.
The indictment charges Seminary, a previously convicted felon, with possessing a loaded Ruger .22 caliber rifle on December 26, 2021, in Schenectady County.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Seminary was arraigned on November 1 and, following a detention hearing held today before United States Magistrate Judge Daniel J. Stewart, ordered detained pending trial.
This case is being investigated by the Town of Guilderland Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Town of Rotterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Salem, Iowa Man Pled Guilty to Possession of Child PornographyRead the Press Release
DAVENPORT, Iowa — On Friday, October 7, 2022, Jason Robert Wesely, age 39 of Salem, Iowa, pled guilty in federal court to Possession of Child Pornography. Wesely is scheduled to be sentenced on February 28, 2023. A federal judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on or about June 4, 2020, Wesely knowingly possessed visual depictions of child pornography. Wesely knew that the visual depictions were of minors engaging in sexually explicit conduct, the depictions included minors who had not attained 12 years of age, and the visual depictions had been shipped or transported in interstate or foreign commerce by any means including by computer and cellular phone. Wesely used his phone and a DVD to commit the crime. IP addresses connected to a social media account used in the crime were tracked to Wesely’s residence in Salem, as well as his workplace at the National Guard in Mount Pleasant, Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Homeland Security Investigations.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexual abused are encouraged o call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Ponte Vedra Beach Man Pleads Guilty to Tax Evasion and Agrees to Pay IRS More Than $1.9 Million in RestitutionRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Patrick Brian Hines has pleaded guilty to willful evasion of the payment of taxes. Hines faces a maximum penalty of 5 years in federal prison and has agreed to pay restitution to the IRS in the amount of $1,927,077.90.
According to the plea agreement, Hines owned and operated telecommunication companies from 2004 through 2011. In April 2011, after several lawsuits against the entities and Hines, the entities filed for bankruptcy. In 2012, a new telecommunication company was established in Hines’s wife’s name. Hines operated the company through nominees for his personal benefit from 2012 through 2018, during which time the company generated more than $4 million in revenue. The Federal Communications Commission issued a forfeiture order for the previous entities and Hines to pay $1.6 million. In addition, in 2016, the California
Public Utilities Commission filed a complaint against Hines and his companies, which resulted in a finding that Hines was responsible for $9.8 million plus interest, which remains outstanding. Hines used multiple nominee owners for the new company in an attempt to distance himself from the company, and to evade and defeat the payment of income taxes and other obligations.
From 2012 through 2018, Hines arranged for $2.5 million to be spent on personal expenses from nominee accounts, to include $38,000 in personal training sessions, dues for two private clubs, $275,000 in mortgage payments for a multimillion-dollar residence, and tuition for his children’s private schooling.
Hines and his spouse continued to reside in a house on Ponte Vedra Boulevard until it was sold in May 2016 for $5.3 million. Hines and his spouse personally benefitted over $1.79 million through the sale of the residence. Hines had outstanding taxes due to the IRS for tax years 2010, 2011, and 2014. Beginning as early as November 28, 2011, the IRS sent Hines collection notices of his unpaid taxes, yet Hines failed to pay. Despite advice from his accountant to pay his taxes, Hines claimed to be “broke” and living off of the proceeds from the sale of the house. On June 29, 2016, Hines filed an IRS Form 433-A, in which he falsely claimed to have no income, but was supported by his spouse who gave him $3,479 per month, even though he knew that he had received the personal benefit of at least $2 million from 2012 through 2018. Hines has accrued penalties and interest as a result of his delinquent taxes, resulting in total outstanding balance of $1,927,077.90.
“Spending money on personal trainers, private schools and private clubs instead of fulfilling legal tax obligations is a disgrace and a theft from the American public," said Brian Payne, IRS-CI Special Agent in Charge. “Hines’ plea should help reassure honest taxpayers that those who are not paying their fair share will be held responsible.”
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.