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Monday 26 September 2022
Somerset County Woman Admits $1 Million Paycheck Protection Program and Economic Injury Disaster Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, woman today admitted fraudulently obtaining over $1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Nivah Garcis, 51, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging her with one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of money laundering.
According to documents filed in this case and statements made in court:
Garcis conspired with at least one individual to submit two fraudulent PPP loan applications to a lender on behalf of two purported businesses that she controlled, and further submitted three fraudulent EIDL loan applications to the U.S. Small Business Administration (SBA) on behalf of these businesses and another business that she owned. She then engaged in financial transactions with the loan proceeds, including for the purchase of property.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The applications Garcis submitted each contained fraudulent representations to the lender, a Federal Home Loan Bank member, and the SBA, including bogus federal tax documents purportedly from the IRS. Garcis also fabricated the existence of employees and wages paid through the purported businesses. According to IRS records, however, none of the purported tax documents that Garcis submitted in support of her loan applications were ever in fact filed with the IRS. Based on Garcis’ misrepresentations, her loan applications for her purported businesses were approved for approximately $1.05 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Garcis then used the proceeds to purchase property and for various personal expenses.
The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The counts of wire fraud each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000. The count of money laundering carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Jan. 31, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L Tomlins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard. W. Reinhold, in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sioux City Man Who Photographed His Sexual Abuse of a Minor Pleads Guilty in Federal CourtRead the Press Release
A Sioux City man who took photographs while sexually abusing a minor pled guilty on September 22, 2022, in federal court in Sioux City. Kenneth Miller, age 29, from Sioux City, Iowa was convicted of sexual exploitation of a minor.
In a plea agreement, Miller admitted that he sexually abused a seven-year-old child in their bedroom. A search of Miller’s email address revealed 6 photographs of the minor child, taken by the defendant, while he was sexually abusing the child. The defendant had previously been convicted of criminal attempt-visual depiction of sexually explicit conduct in Nebraska.
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.”
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Miller remains in custody of the United States Marshal pending sentencing. Miller faces a mandatory minimum sentence of 25 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $250,000 fine, and 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Federal Bureau of Investigations and the Sioux City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4052.
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Sacramento Man Pleads Guilty to Drug ConspiracyRead the Press Release
Gulfport, Miss. – A Sacramento, California man pled guilty to conspiracy to distribute methamphetamine announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Alvin Lucas, 41, pled guilty in U.S. District Court in Gulfport.
According to court documents and information presented to the Court, in the summer of 2019, an undercover agent ordered methamphetamine from Lucas, who instructed the undercover agent to send money for the purchase of the methamphetamine to Lucas’s girlfriend. Ultimately, Lucas’s girlfriend sent a package containing the methamphetamine to the undercover agent in Gulfport.
Lucas is scheduled to be sentenced on December 20, 2022. He faces a minimum sentence of 10 years imprisonment and a maximum sentence of life. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
Riverside Man Ordered to Spend 46 Months in Federal Prison in His Second Federal Case Stemming from Sale of Bogus Aircraft PartsRead the Press Release
LOS ANGELES – A Riverside man who previously served a lengthy prison sentence in two aircraft-related cases was sentenced today to nearly four years in federal prison for selling bogus aircraft parts and for falsifying related documents.
Aman Khan, who is also known as Amanullah Khan, 73, of Riverside, was ordered to serve 46 months in prison by United States District Judge R. Gary Klausner. In addition to the prison term, Judge Klausner ordered Khan to pay $1,538,054 in restitution and further ordered the forfeiture of all aircraft components seized from Khan’s former business.
Khan pleaded guilty on June 6 to two counts of fraud involving aircraft parts in interstate and foreign commerce, admitting that he sold fraudulent, counterfeit and unapproved aircraft parts from his Riverside-based company, California Aircraft and Avionics Corporation.
Court documents outline how Khan manufactured various parts – including wheel assemblies and aircraft turbine gas nozzles that had been ordered for NATO jets – and submitted documents that falsely certified the provenance of the equipment and conformity to approved design data.
“By selling fraudulent and unapproved parts to companies in the aircraft industry, [Khan] caused the risk that his parts would be installed on commercial and military aircraft instead of genuine aircraft parts,” Khan admitted in his plea agreement. “In so doing, [Khan] consciously and recklessly caused a risk of death or serious bodily injury to aircraft passengers and to the general public.”
Khan previously was convicted in this district of aircraft parts fraud and export violations. In 2005, Khan was sentenced to 188 months in federal prison for both falsely certifying flight-critical aircraft parts sold by his company and, in a separate case brought in the District of Columbia, for selling parts for military jet fighters to China.
The United States Department of Transportation, Office of Inspector General; the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Defense Criminal Investigative Service; the FBI, and NASA’s Office of Inspector General conducted the investigation that resulted in today’s sentencing.
Assistant United States Attorney Benjamin D. Lichtman of the Santa Ana Branch Office prosecuted this case.
Repeat Lebanon Felon Sentenced to over 6 Years in Federal Prison for Illegal Possession of a Firearm While Resisting ArrestRead the Press Release
INDIANAPOLIS –Justin Cain, 33, of Lebanon, Indiana, was sentenced to 77 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on November 16, 2019, Lebanon Police Department officers responded to a caller who indicated that a suspicious man in a grey sweatshirt was walking around their house in Lebanon. When officers arrived at the scene, they saw a man wearing a grey sweatshirt in the area, who was later identified as Cain.
Upon seeing the officers, Cain ran to a nearby truck and attempted to drive away. Officers ordered Cain to stop and exit the truck. As Cain exited the truck, he reached for a gun in his waistband. As officers attempted to arrest him, Cain grabbed his gun and threw it on top the truck. Officers ordered Cain to place his hands behind his back, but he refused. Cain continued to resist until officers were able to place him under arrest. Police recovered a .380 caliber semiautomatic handgun from the scene.
Cain has accumulated seven felony convictions over two decades for offenses including dealing marijuana, fraud, counterfeiting, and failure to return to a detention facility. Cain is prohibited from possessing firearms under federal law due to these prior felony convictions. Cain was on probation at the time of the current offense.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division; and Lebanon Police Department Chief Chad Morgan; made the announcement.
ATF investigated the case in conjunction with the Lebanon Police Department. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Cain be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Pierson Man Sentenced to over 11 Years in Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on September 23, 2022, in federal court in Sioux City.
Zackary Smith 35, from Pierson, Iowa, pled guilty on April 8, 2022, to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
At the plea and sentencing hearings, the evidence showed that from August 2018 through April 18, 2019, Smith and others conspired to distribute more than 11 pounds of methamphetamine in the Cherokee County area. In April 2019, law enforcement executed a search of a rural Cherokee County residence and seized about 1.5 pounds of pure methamphetamine at locations throughout the property. Also, at the time of the search, Smith was found flushing about 10 ounces of methamphetamine down a toilet before officers could seize it. Smith further admitted to traveling with other co-conspirators to Omaha, Nebraska to obtain pounds of methamphetamine to distribute in Northwest Iowa.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Smith was sentenced to 140 months’ imprisonment and must serve a five-year of supervised release following imprisonment. There is no parole in the federal system. Smith remains in the custody of the United States Marshal Service until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office as well as the Cherokee County Sheriff’s Department and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4048.
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Nigerian state official sentenced to 5 years in prison for stealing U.S. disaster aid and taxpayer refundsRead the Press Release
Tacoma – A 45-year-old resident of Lekki, Nigeria, was sentenced today in U.S. District Court in Tacoma to 5 years in prison for wire fraud and aggravated identity theft for his attempt to steal nearly $2.4 million from the United States government, including approximately $500,000 in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown. At the time of his arrest, Abidermi Rufai was the Special Assistant to the Governor of Nigeria’s Ogun State. He admitted a long history of using stolen identities to defraud U.S. disaster programs, including aid for Hurricanes Harvey and Irma, and file fraudulent U.S. tax returns. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “The motivation was greed, unrestrained greed, and a callousness towards those who have suffered.”
“Mr. Rufai was relentless in his scheme to use the stolen identities of Americans for fraud,” said U.S. Attorney Nick Brown. “He orchestrated ‘mystery shopper’ scams, business email compromise attempts, and filed fake tax returns to financially harm individuals and businesses. But when disaster struck, so did Mr. Rufai. Whether it was hurricane disaster relief, small business loans, or COVID unemployment benefits, he stole aid that should have gone to disaster victims in the United States.”
”Abdemi Rufai chose to exploit the pandemic for personal gain, using stolen identities of Americans to support his lavish lifestyle overseas,” said Associate Deputy Attorney General Kevin Chambers, the Justice Department‘s Director of COVID-19 Fraud Enforcement. “The U.S. Attorney’s Office and their law enforcement partners did exceptional work bringing this defendant to justice. The Department will continue to pursue fraudsters who abused these programs and seek to recover their ill-gotten gains, whether they are in the United States or overseas.”
According to records filed in the case, since 2017, Rufai stole the personal identifying information of more than 20,000 Americans to submit more than $2 million in claims for federally funded disaster relief benefits and fraudulent tax returns. The various agencies involved paid out more than $600,000.
The largest amount of fraud was committed against the Washington State Employment Security Department, which paid out $350,763 in fraudulent pandemic unemployment claims to accounts controlled by Rufai. Rufai also submitted fraudulent pandemic unemployment claims in at least 17 other states.
“The Employment Security Department deeply appreciates the tireless efforts of the Department of Justice, federal agencies and law enforcement in this matter,” said Cami Feek, Commissioner for the Employment Security Department. “We always stand ready to hold those accountable who steal public funds and we appreciate the partnership in catching and prosecuting this individual.”
Rufai also defrauded the Small Business Administration (SBA) by attempting to obtain Economic Injury Disaster loans (EIDL) tied to the COVID-19 pandemic. Between April 8, 2020, and June 26, 2020, he submitted 19 fraudulent EIDL applications. SBA paid out $10,000 based on the applications.
Between 2017 and 2020, Rufai attempted to obtain more than $1.7 million in IRS tax refunds by submitting 675 false claims. The IRS paid out $90,877 on these claims.
Rufai’s efforts to exploit disaster in the United States did not start with COVID-19. In September and October 2017, he submitted 49 disaster relief claims connected to Hurricane Harvey and Hurricane Irma. He filed $24,500 in false claims and was paid on 13 claims totaling $6,500.
In asking for a nearly six-year prison sentence Assistant United States Attorney Cindy Chang noted that Rufai’s scheme damaged real people who needed help. “In this case, Rufai successfully used the stolen identities of at least 238 real individuals who qualified for disaster aid and may have needed it urgently. This number does not account for the number of stolen identities Rufai attempted to use but failed.”
Rufai has agreed to pay full restitution of $604,260 to the defrauded agencies, however he has not fully cooperated with efforts to identify and forfeit assets that could be used for restitution.
"Mr. Rufai did not care if the disaster was the pandemic or a hurricane, or if the victim was a hard-working American taxpayer, a small business, or the U.S. government," said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. "He could have used his influence to be a role model in his community. Instead, he stole the identities of Washington state residents and money meant for those in need.”
“Mr. Rufai said, ‘The choices we make are ultimately our responsibility,’ and he is correct. This sentence is a result of the culmination of choices he made funding his luxurious lifestyle. His fraud schemes began with filing fraudulent tax returns from stolen identities to pilfering economic aid designed to help disadvantaged workers and families suffering through the COVID-19 pandemic,” said Seattle Field Office Special Agent in Charge Bret Kressin. “IRS-CI continues to provide our financial expertise to investigate large-scale fraud with our law enforcement partners.”
“Rufai used stolen personal identifying information of thousands of Americans in order to defraud more than $600,000 in government benefits, including approximately $350,000 from the Washington Employment Security Department. We will continue to work with our law enforcement partners to aggressively investigate and prosecute those who defrauded unemployment insurance programs during the global health crisis,” said Quentin Heiden, Special Agent-in-Charge of the U.S. Department of Labor, Office of Inspector General, Los Angeles Region.
Abidemi Rufai has been in custody since his arrest at New York’s JFK airport in May 2021. The Eastern District of New York U.S. Attorney’s Office assisted with detention hearings following Rufai’s arrest.
This case was investigated by the FBI, with assistance from the Department of Labor Office of Inspector General, Internal Revenue Service Criminal Investigations, Department of Homeland Security Office of Inspector General, and the United States Small Business Administration Office of the Inspector General, and the Washington Employment Security Department (ESD).
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Malden Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
BOSTON – A Malden man has pleaded guilty in federal court in Boston in connection with distributing methamphetamine to an undercover law enforcement officer.
David Desousa, 32, pleaded guilty on Sept. 22, 2022 to one count of distributing 50 grams or more of methamphetamine, one count of distributing five grams or more of methamphetamine, one count of distributing a mixture or substance containing methamphetamine and three counts of possessing 50 grams or more of methamphetamine with intent to distribute. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 25, 2023. Desousa was arrested in August 2020 and subsequently indicted by a federal grand jury in November 2020.
In February 2020, federal agents began an undercover investigation into DeSousa’s methamphetamine distribution activities. On three separate occasions in February, March and July 2020, Desousa met with and sold various quantities of methamphetamine to an undercover agent. Desousa was arrested on Aug. 6, 2020 in Medford while he was travelling to deliver two ounces of methamphetamine to the undercover agent. More than 55 grams of 99% pure methamphetamine and 10.814 grams of cocaine base were seized from Desousa’s vehicle. During a subsequent search of Desousa’s residence, agents seized more than 75 grams of methamphetamine and a loaded Remington .380 caliber pistol. An additional 83 grams of 99% pure methamphetamine and $90,000 in cash were also seized from Desousa’s storage unit.
The charges of distributing 50 grams or more of methamphetamine and possessing 50 grams or more of methamphetamine with intent to distribute each provide for a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, a fine of up to $10 million and forfeiture. The charge of distributing five grams or more of methamphetamine provides for a mandatory minimum sentence of five years and a maximum of 40 years in prison, at least four years and up to a lifetime of supervised release, a fine of up to $5 million and forfeiture. The charge of distributing a mixture or substance containing methamphetamine provides for a maximum sentence of 20 years in prison, at least three years and up to a lifetime of supervised release, a fine of $1 million and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Arlington Police Chief Juliann Flaherty; Medford Police Chief Jack Buckley; and Malden Police Chief Glenn Cronin made the announcement. Assistant U.S. Attorneys Philip C. Cheng and James E. Arnold of Rollins’s Narcotics & Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Licking County man pleads guilty to committing $1.5 million in fraudRead the Press Release
COLUMBUS, Ohio – Jeremie Adam Elkins, 45, of Newark, Ohio, pleaded guilty in U.S. District Court to causing more than $1.5 million in fraud in connection with access devices. Elkins committed wire fraud and illegally possessed a firearm after previously being convicted of a felony crime.
According to court documents, from July to October 2020, Elkins used his company-issued credit card to pay for personal expenses like hotels/resorts, restaurants, bars, pawn shops and auction houses. Elkins had been employed as a Network Engineer at Verizon, Inc.
Elkins also used an old Verizon work order number to place multiple fraudulent orders with vendor W.W. Grainger, Inc. Grainger provides tools and equipment for Verizon service vans.
Elkins placed 46 unauthorized orders to Grainger and personally picked up the majority of the equipment, which totaled approximately $936,000. He used the illicit proceeds to purchase two boats and a motorcycle.
The defendant placed an additional 20 unauthorized orders to Grainger, for items totaling nearly $954,000, but never obtained the equipment.
As part of his plea, Elkins agrees to pay nearly $24,000 in restitution to Verizon and more than $936,000 in restitution to W.W. Grainger.
When he was arrested in August 2021, Elkins illegally possessed a pistol. Elkins was previously convicted of a felony crime in Licking County. Elkins also admitted to investigators that he has sold 15 to 20 firearms.
Wire fraud is a federal crime punishable by up to 20 years in prison. Fraud in connection with access devices is a federal crime punishable by up to 15 years in prison. Possessing a firearm after being convicted of a felony carries a potential maximum sentence of 10 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be 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, announced the plea entered Sept. 22 before U.S. District Judge Edmund A. Sargus, Jr. and commended the investigation by the United States Secret Service. Assistant United States Attorney Brenda S. Shoemaker is representing the United States in this case.
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Level 2 Sex Offender Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A Taunton man pleaded guilty on Sept. 23, 2022 in federal court in Boston to possessing hundreds of images and videos depicting child pornography.
Rudy Frabizio, 60, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Patti B. Saris scheduled sentencing for Dec. 9, 2022. Frabizio was arrested and charged by criminal complaint in May 2021 and subsequently indicted by a federal grand jury in September 2021.
During a search of Frabizio’s residence on May 19, 2021, agents found a “microSD” memory card that contained at least hundreds of images and videos depicting child pornography. The image and video files included material involving prepubescent minors, as well as the abuse of infants or toddlers. In addition, Frabizio uploaded images depicting child pornography via his Google account. Frabizio is a registered Level 2 sex offender due to an April 2009 conviction for possession of child pornography.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, five years and up to a lifetime of supervised release and a fine of $250,000. Due to his prior conviction, Frabizio faces a minimum mandatory sentence of 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. The Taunton Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Adam W. Deitch of Rollins’ Criminal Division is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
La Crosse Man Sentenced to 24 Months for Illegal Firearm PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Shoua Lee, 41, La Crosse, Wisconsin, was sentenced on Thursday, September 22, by U.S. District Judge William M. Conley to 24 months in federal prison for possession of a firearm by a felon. The prison term will be followed by 36 months of supervised release. Lee pleaded guilty to this charge on July 5, 2022.
On July 15, 2020, La Crosse Police Department (LCPD) officers were investigating the drug trafficking activity of Kong Vang and Pader Yang in La Crosse, Wisconsin. Shoua Lee was observed with others at their residence that day. LCPD officers searched the residence and found multiple firearms, including a Hi-Point .40 caliber handgun, and a large quantity of methamphetamine. LCPD discovered a surveillance video from the same residence from two weeks earlier which shows Vang and Lee possessing the same Hi-Point .40 caliber handgun that was seized by LCPD officers.
Lee was prohibited from legally possessing a firearm due to multiple prior felony convictions. He was on state supervision at the time of this offense for, among other things, possession of a firearm by a felon and marijuana trafficking. Lee’s state supervision has since been revoked and he is currently serving three years in state prison with an anticipated release date of August 13, 2023.
At sentencing, Judge Conley highlighted several aggravating factors including Lee’s possession of a firearm while using methamphetamine, that he possessed a gun less than six months after being sentenced for a similar charge, and a prior criminal history that included prison time for drug trafficking.
Co-defendant, Kong Vang, pleaded guilty to conspiring to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime and was sentenced to 12 years in federal prison by Judge Conley on April 29, 2021. Co-defendant, Pader Yang, pleaded guilty to conspiring to distribute 50 grams or more of methamphetamine and was sentenced to 6 years in federal prison by Judge Conley on May 14, 2021.
The charge against Lee was the result of an investigation conducted by the La Crosse Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Awards over $250,000 in Grants to State of LouisianaRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the Department of Justice’s Bureau of Justice Assistance has awarded $253,191 collectively to the Ascension Parish Sheriff’s Office, the East Baton Rouge Sheriff’s Office, and the Iberville Parish Sheriff’s Office.
The Ascension Parish Sheriff’s Office was awarded $28,412, the East Baton Rouge Parish Sheriff’s Office was awarded $210,193, and the Iberville Parish Sheriff’s Office was awarded $14,586. These awards will be used to support a broad range of activities to prevent and control crime based on each agency’s state and local needs and conditions.
Joint Operation Targets Massive Dogfighting ConspiracyRead the Press Release
COLUMBIA, SOUTH CAROLINA — Over the weekend, a joint team of more than 60 federal and state law enforcement officers executed nearly two dozen warrants for various properties in the Midlands area in what is believed to be the biggest takedown of a dogfighting operation in South Carolina history.
On Saturday, officers with the operation interrupted a scheduled dogfighting match in Richland County. The following morning, the officers executed 23 search warrants at various residences and properties in Richland, York, Orangeburg, Clarendon, Lee, and Sumter Counties that were known dogfighting kennels or associated with dogfighting. In total 305 dogs were rescued this weekend, with 275 believed to be associated with dogfighting. The Humane Society of the United States and Bark Nation supported the operation by assisting with animal handling and are currently assisting with the care of the animals. During the weekend operation, officers seized approximately 30 firearms, $40,000 in cash, and various evidence related to dogfighting. More than 20 individuals were arrested for state charges relating to animal cruelty and dogfighting.
“To force dogs to fight, often to the death, for the enjoyment of others is not only a federal crime, it is also cruel, sadistic, and can create a haven for other illicit activities involving drugs and firearms,” said U.S. Attorney Adair F. Boroughs. “This joint operation, which has been months in the making, makes clear that dogfighting operations will find no refuge here in South Carolina. I especially want to thank our state and federal partners, the Governor’s Office, and our community partners for their leadership and work on this issue.”
“The depravity involved in carrying out a dogfighting conspiracy is unimaginable to most people, and those involved in such a crime must be rooted out and punished,” said Governor Henry McMaster, who started a dogfighting task force as Attorney General. “On behalf of all South Carolinians, I would like to thank the dedicated state and federal law enforcement officers who uncovered and disrupted this unspeakable cruelty. Our state is safer because of their hard work on this investigation.”
“SLED continues to see the devastating impacts of dog fighting across South Carolina. Law enforcement often finds that guns, illicit drugs, human trafficking, and child abuse are involved with instances of animal abuse,” said South Carolina Law Enforcement Division (SLED) Chief Mark Keel. “This operation was only a success because multiple agencies made up of dedicated professionals worked tirelessly for justice. Dog fighting is both inhumane and illegal - it will not be tolerated.”
“Even after the many years we have worked to protect dogs from the calculated brutality that dogfighting perpetuates, our responders are still struck by the resilience of these dogs who have suffered unthinkable cruelty,” said Kitty Block, president and CEO of the Humane Society of the United States. “We are grateful to the federal and state officials for intervening on behalf of these dogs and for the opportunity to work together to get them the care they deserve.”
The Animal Welfare Act makes it a felony punishable by up to five years in federal prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dogfighting.
This is the first step in a continuing investigation by the U.S. Department of Agriculture’s Office of Inspector General and SLED. The U.S. Marshals Service, South Carolina Department of Natural Resources, Richland County Sheriff’s Department, York County Sheriff’s Office, Rock Hill Police Department, Indiana Gaming Commission, and Wayne County Prosecutor’s Office Criminal Investigations Division are also assisting in the investigation. U.S. Attorneys Jane B. Taylor, Elle E. Klein, Elizabeth Major, and Carrie Fisher Sherard are prosecuting the case.
If you have any information on dogfighting operations here in South Carolina, please call 1-800-424-9121.
Images and media from the operation are available here.
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Jacksonville Man Pleads Guilty to Escaping from Halfway HouseRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Daryl D. Shack (32, Jacksonville) has pleaded guilty to escaping from federal custody. Shack faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, in 2018, Shack was convicted in federal court of possessing a firearm as a convicted felon and sentenced to 51 months’ imprisonment. While completing his sentence, the Bureau of Prisons transferred Shack into the custody of Keeton Corrections, Inc. Jacksonville Residential Reentry Center. When he arrived at that halfway house, a Keeton official advised Shack that his failure to remain at Keeton would be deemed an escape from the custody of the Attorney General, which could subject him to prosecution and further punishment.
In the evening of March 3, 2021, an alarm sounded at Keeton’s men’s dormitory, indicating that someone had exited the dorm without authorization. In response, an official conducted a count of all residents. Shack was not present. After searching the facility, Keeton officials could not locate him.
On July 26, 2022, Deputy U.S. Marshals and Task Force Officers arrested Shack in Jacksonville. In the intervening period (more than 16 months), Shack never returned to Keeton or Bureau of Prisons custody.
This case was investigated by the U.S. Marshals Service and the Florida-Caribbean Regional Fugitive Task Force. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Irvine Man Sentenced to 4 Years in Federal Prison for Obtaining More Than $5 Million in COVID-Relief Loans for Sham BusinessesRead the Press Release
LOS ANGELES – An Orange County man was sentenced today to 48 months in federal prison for fraudulently obtaining more than $5 million in COVID-relief loans for three shell companies.
Raghavender Reddy Budamala, 36, of Irvine, was sentenced by United States District Judge Otis D. Wright II, who also ordered Budamala to pay $5,151,497 in restitution.
Budamala pleaded guilty on June 21 to one count of bank fraud and one count of money laundering. As part of his plea agreement, Budamala agreed to forfeit real estate in Orange County, Malibu and Los Angeles, as well as approximately $4,119,662 in funds from bank and investment accounts and cryptocurrency.
From January 2019 to August 2019, Budamala formed or acquired three shell companies with no operations – Hayventure LLC, Pioneer LLC, and XC International LLC. Following the outbreak of the COVID-19 pandemic and the enactment of federal programs designed to address the resulting economic fallout, Budamala submitted to the Small Business Administration seven applications for pandemic-relief loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
As part of the applications filed from April 2020 through March 2021, Budamala falsely represented to the banks administering the COVID-relief business loan programs that his companies employed dozens of individuals and earned millions of dollars in revenue, and that he needed the money for payroll and business expenses.
The addresses listed for the companies were bogus, nonexistent or residential. The states where Budamala’s companies purportedly operated have no records of those companies paying wages to any employees, and bank records for the companies reflect no significant business income or operating expenses.
The SBA and the banks funded six of the loans and disbursed a total of $5,151,497. Budamala applied to have several of the loans forgiven and falsely represented that he had used the SBA money entirely for payroll.
Once the loans were funded, Budamala used the money to pay for personal expenses, including the purchase of a $1.2 million investment property in Eagle Rock, the purchase of a $597,585 property in Malibu, the purchase of a personal residence in Irvine, a $970,000 investment in an EB-5 Immigrant Investor Visa Program and a nearly $3 million deposit into Budamala’s personal TD Ameritrade account.
Budamala has been in federal custody since his arrest on February 23, when he attempted to abscond from the United States to Mexico via the San Ysidro border crossing. A criminal complaint was filed against him on February 24.
IRS Criminal Investigation, the FBI, and the Small Business Administration’s Office of Inspector General investigated this matter.
Assistant United States Attorney Gregory D. Bernstein of the Major Frauds Section and Assistant United States Attorney Maxwell K. Coll of the Asset Forfeiture and Recovery Section prosecuted this case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Indictment Charges New Haven Teen with Carjacking, Firearm and Conspiracy OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, on September 22, a federal grand jury in Hartford returned a superseding indictment charging TIHAJA ORTIZ-TUCKER, also known as “TJ,” 19, of New Haven, with carjacking, firearm and conspiracy offenses.
As alleged in court documents, on at least three occasions between March 2022 and July 2022, Ortiz-Tucker and others posed as interested buyers of motor vehicles advertised by Connecticut residents (the “victim-sellers”) on Facebook Marketplace. Ortiz-Tucker and his co-conspirators then arranged to meet in person with the victim-sellers for the purported purpose of test driving and purchasing the motor vehicles. At the conclusion of the purported test drives, Ortiz-Tucker and his co-conspirators stole, at gunpoint, the vehicles, as well as certificates of title, bills of sale, and other ownership documents. Ortiz-Tucker and his co-conspirators then posed as the legitimate owners of the stolen motor vehicles and advertised them for sale on the OfferUp online platform.
It is further alleged that Ortiz-Tucker was involved in two carjackings of Uber drivers in May 2022. In both instances, an Uber driver picked up the carjacker in New Haven and drove to Wallingford where the cars were taken from the Uber drivers at gunpoint. Both cars were later recovered in the same area of Hamden.
Ortiz-Tucker was arrested on a criminal complaint on July 22, 2022.
The indictment charges Ortiz-Tucker with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years; three counts of taking a motor vehicle from a person by force, violence and intimidation (“carjacking”), an offense that carries a maximum term of imprisonment of 15 years on each count; and one count of carrying, using and brandishing a firearm in connection with a crime of violence, an offense that carries a mandatory consecutive sentence of at least seven years.
Ortiz-Tucker has been detained since September 2, 2022, when his bond was revoked.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Safe Streets Violent Crime Task Force, the Connecticut State Police and the Wallingford, New Haven, Hamden, Waterbury, and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Tara E. Levens.
U.S. Attorney Avery encouraged those who sell and purchase items online, and need to meet an individual in person to complete the sale, to use a visible, monitored location. Contact your local police department to see if it offers a monitored meeting location, or search online for a nearby monitored location.
Hardy County man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – David Abreu, of Fisher, West Virginia, was sentenced today to 51 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Abreu, 42, pleaded guilty in April 2022 to one count of “Distribution of Methamphetamine – Aiding and Abetting.” Abreu admitted to selling methamphetamine, also known as “crystal meth” and “ice,” in Hardy County in February 2021.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Georgia Resident Sentenced to 5 Years in Prison for International Lottery Fraud Scheme that Victimized Elderly People in California and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Adedayo Akinwunmi Agbayewa, 45, of College Park, Georgia, was sentenced today to five years in prison and ordered to pay $7,784,415 in restitution for a mail fraud and money laundering conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Agbayewa and his co‑conspirators were involved in a lottery or sweepstakes telemarketing scheme that targeted elderly victims. The conspirators used false names and falsely notified the victims by mail or telephone that they had won a sweepstakes or lottery. The victims were told that they had to pay taxes or fees before they could receive their winnings. The victims mailed checks or deposited money into bank accounts as directed by the individuals involved in the scheme. However, the victims never received any prize money; in fact, no lottery or sweepstakes ever existed.
This case was the product of an investigation by the Federal Bureau of Investigation and IRS‑Criminal Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.
The U.S. Department of Justice, through the Elder Justice Initiative, works to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Through the Elder Justice Initiative, the department provides community presentations, educational webinars, summits, and resources to help older victims and their families. The Elder Justice Initiative’s website is: https://www.justice.gov/elderjustice. The National Elder Fraud Hotline number is: 1-833–FRAUD–11 (or 833–372–8311).
Former Washington County Jail Sergeant Pleads Guilty to Role in Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, pleaded guilty on Friday in federal court to violating federal law, United States Attorney Cindy K. Chung announced today.
Andrew Molinaro, 45, pleaded guilty to accessory after the fact to conspiracy to distribute and possess with intent to distribute cocaine on or about July 15, 2020, before United States District Judge J. Nicholas Ranjan. Mr. Molinaro is one of 20 defendants charged in the Superseding Indictment returned in this case.
In connection with the guilty plea, the Court was advised that in 2020 the Federal Bureau of Investigation began investigating a drug trafficking organization that operated throughout the greater Washington County area. Beginning in April of 2020 and continuing through October of 2020, the FBI received authorization to conduct a Title III wiretap investigation into the organization. The organization was responsible for orchestrating and directing the movement of drugs from New Jersey to the Western District of Pennsylvania for distribution throughout Washington County. Mr. Molinaro, who was a sergeant in the intake department of the Washington County Jail during this investigation, utilized his law enforcement position to provide a member of the drug trafficking organization with law enforcement sensitive information to aid that individual in evading law enforcement detection.
Judge Ranjan scheduled sentencing for Jan. 19, 2023, at 10:00 a.m. The law provides for a total sentence of not more than 10 years of imprisonment, a fine of up to $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Mark V. Gurzo and Jerome A. Moschetta are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Mr. Molinaro. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Methuen Resident Pleads Guilty to Fentanyl and Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A former Methuen man has pleaded guilty in federal court in Boston to his role in a Lawrence-based drug trafficking conspiracy involving fentanyl and cocaine.
Pablo Rosario Pablo a/k/a “Angel Ayala Roque” a/k/a “Cuco,” 57, formerly of Methuen, pleaded guilty on Sept. 21, 2022 to one count of conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine, and other controlled substances and one count of possession with intent to distribute cocaine and other controlled substances. U.S. District Court Judge Angel Kelley scheduled sentencing for Feb. 8, 2023.
According to court documents and information presented in court, in May 2020, law enforcement agents began investigating a Lawrence-based drug trafficking organization (DTO). Between December 2020 and December 2021, intercepted communications between members of the DTO and their associates revealed that the defendants allegedly distributed fentanyl and cocaine in and around the Merrimack Valley. Rosario Pablo was intercepted communicating in furtherance of drug trafficking. During a search of Rosario Pablo’s residence on Dec. 15, 2021, agents seized fentanyl, powder cocaine, crack cocaine, marijuana and steroids, as well as drug paraphernalia.
The charges of conspiracy to distribute fentanyl, cocaine, and other controlled substances, and possession with intent to distribute cocaine and other controlled substances carry a maximum sentence of 20 years in prison, a mandatory minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and statutes that govern the determination of a sentence in a criminal case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement. Assistant U.S. Attorney Katherine Ferguson, Deputy Chief of Rollins’ Narcotics & Money Laundering Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former High School Assistant Coach Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Acting United States Attorney Steve Russell announced that Nathan R. Rogers, 27, formerly of South Sioux City, Nebraska, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard for production of child pornography. Rogers was sentenced to 15 years in prison and 5 years of supervised release. There is no parole in the federal system. Rogers was additionally ordered to pay $3,000 which will contribute to funds established for victims of these types of cases.
On or about March 3, 2021, the Nebraska State Patrol began investigating a complaint of a sexual assault allegedly committed by Rogers. The minor complainant alleged that Rogers, who was an assistant coach at the high school she attended, had forcibly sexually assaulted her in December of 2020. On March 26, 2021, investigators interviewed Rogers regarding the alleged sexual assault. During the interview, Rogers admitted to investigators that he had sexual intercourse with her. Also, during the interview, Rogers admitted that he and the minor had communicated through text messages from his cellphone. Rogers was arrested for First Degree Sexual Assault of a Child and Child Abuse. During the arrest, investigators seized Rogers’ cellphone and a search warrant was obtained on March 30, 2021.
During the investigation, investigators interviewed another minor female (“Victim 1” as listed in the Indictment). Investigators reviewed the downloaded information from Rogers’ cellphone and observed numerous video clips of Rogers engaged in sexual intercourse with Victim 1. Investigators observed the date stamp of the video clips to be between October 11, 2020 through February 20, 2021. Victim 1 would have been 15-16 years old at the time of the videos. In total there were around 23 videos which contained some type of sexually explicit conduct involving Victim 1 located on Rogers’ cellphone. Similar to Minor 1, Victim 1 attended the high school where Rogers was employed as an assistant coach.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Nebraska State Patrol.
Former Fort Hood Army Sergeant Sentenced for Fentanyl DistributionRead the Press Release
AUSTIN – Last week, U.S. District Judge Lee Yeakel sentenced Eri Gutberto Parra-Lopez, 25, of Phoenix, AZ, to 72 months in prison for distributing fentanyl.
According to court documents, between May 2021 and July 2021, Parra, a then active-duty Army Sergeant stationed at Fort Hood, sold approximately 3,150 tablets of fentanyl, weighing about 3,349 kgs., to undercover officers in and around the Austin area.
On April 20, 2022, Parra pleaded guilty to one count of distribution of fentanyl.
“Fentanyl is flooding the United States at an alarming rate and our communities in Central Texas are not immune from its devastation,” said U.S. Attorney Ashley C. Hoff. “This case underscores our resolve to address the dangerous trafficking of fentanyl with all available resources. We will continue to prioritize and prosecute crimes involving this deadly poison and we are thankful for the outstanding work of our local, state, and federal partners.”
“This case demonstrates the lengths Mexican cartels are willing to go to infiltrate our communities with deadly fentanyl for their own selfish gains,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux of the Houston Division. “We remain committed to our collaborative efforts with our local partners to reverse the overdose and poisoning epidemic and bring to justice those fueling it.”
“This sentencing is the result of the great teamwork we have with our local, federal and state law enforcement partners,” said Special Agent in Charge Maria Thomas of the Department of the Army Criminal Investigation Division (CID). “Army CID and our partner agencies take the threat of fentanyl to the public, and the Army, very seriously. We will continue to work with our law enforcement partners to interdict the distribution of fentanyl wherever it may occur.”
The DEA, Pflugerville and Austin Police Departments, and Army CID investigated the case with assistance from the Travis County Sheriff’s Office.
For more information on the dangers of fentanyl and DEA’s One Pill Can Kill campaign, please visit https://www.dea.gov/onepill.
Assistant U.S. Attorney Mark H. Marshall prosecuted the case.
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Former CEO of Health Clinic Convicted of Medicaid FraudRead the Press Release
A federal jury convicted a former CEO of a health clinic for defrauding the Louisiana Medicaid Program over several years.
According to court documents and evidence presented at trial, Victor Clark Kirk, 73, of Baton Rouge, Louisiana, was the CEO of St. Gabriel Health Clinic Inc. (St. Gabriel), a Louisiana nonprofit corporation that provided health care services to Medicaid recipients and others. St. Gabriel was a federally qualified health center (FQHC) that contracted with the Iberville Parish School Board to provide medical services within the school district. As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses – provided that such services were medically necessary – among other requirements.
Evidence at trial showed that St. Gabriel practitioners, at Kirk’s direction, provided character development and other educational programs to entire classrooms of students during regular class periods. Kirk then caused the fraudulent billing of these programs to Medicaid as group psychotherapy. To facilitate the fraudulent scheme, Kirk directed that St. Gabriel practitioners falsely diagnose students with mental health disorders. From 2011 through 2015, Kirk caused over $1.8 million in fraudulent claims for purported group psychotherapy services.
Kirk was convicted of conspiracy to commit health care fraud and five counts of health care fraud. He is scheduled to be sentenced on Jan. 12, 2023, and faces a maximum penalty of 10 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Gathe, Jr. for the Middle District of Louisiana; Special Agent in Charge Douglas A. Williams, Jr. of the FBI New Orleans Field Office; Director Jodi Edmonds LeJeune of the Louisiana Medicaid Fraud Control Unit (MFCU); and Acting Special Agent in Charge Jason Meadows of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) made the announcement.
The FBI, MFCU, and HHS-OIG investigated the case, which was brought as part of the Gulf Coast Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.
Assistant Chief Justin M. Woodard and Trial Attorney Kelly Z. Walters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig for the Middle District of Louisiana are prosecuting the case.
The Health Care Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 16 strike forces operating in 27 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Federal Indictment Charges Man with Murdering Chicago Teenager During RobberyRead the Press Release
CHICAGO — A man has been charged in federal court with murdering a Chicago teenager during a robbery last fall.
DEANDRE NORELS JR., 20, of Chicago, is charged with one count of using a firearm to cause a murder, one count of using a firearm during a crime of violence, one count of conspiracy to commit robbery, and one count of robbery, according to an indictment returned Sept. 13, 2022, in U.S. District Court in Chicago. Norels and a co-conspirator allegedly murdered William McGee on the afternoon of Nov. 11, 2021, while carrying out a planned robbery of McGee on the South Side of Chicago. McGee, 18, was fatally shot near the 900 block of East 98th Street in Chicago’s Pullman neighborhood.
The charges in the indictment are punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of death. Norels is currently detained in federal custody while awaiting trial. He has pleaded not guilty. A status hearing is set for Oct. 28, 2022, at 9:30 a.m., before U.S. District Judge Thomas M. Durkin.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Michelle Kramer and Margaret Steindorf.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Ex-Labor Leader Charged with Embezzling Tens of Thousands of Dollars from Local UnionRead the Press Release
Assistant U. S. Attorney Rebecca S. Kanter (619) 546-7304
NEWS RELEASE SUMMARY – September 23, 2022
SAN DIEGO – A former Department of Homeland Security officer and President of American Federation of Government Employees Local 2805 has been indicted by a federal grand jury for wire fraud and making false statements stemming from his alleged embezzlement of tens of thousands of dollars of union funds from Local 2805.
Felix Luciano was an Enforcement Removal Officer for Immigration and Customs Enforcement. From approximately 2011 through December 2018, Luciano served as the President of Local 2805, a labor union which represents DHS-ICE employees in San Diego and Imperial Counties. Among his legal duties were maintaining the fiscal integrity of the organization, which prohibited him from engaging in business or financial interest that conflicted with his duty to Local 2805 and its members.
The indictment alleges that Luciano embezzled union funds for his own benefit between December 2013 and continuing into January 7, 2019. Luciano retired in December 2018 in the course of an audit of Local 2805 by the Department of Labor’s Office of Labor-Management Standards (OLMS). Luciano is alleged to have used Local 2805’s union dues to enrich himself and pay for personal expenses for himself and his spouse. Some of those expenses included luxury travel, payments to his personal credit card, payments to support his wife’s business (such as paying for the business’ website design), purchase of a custom gun safe storage, retail purchases, dining, and groceries.
The indictment alleges that Luciano carried out this scheme to defraud Local 2805 by using its debit and credit card to pay his personal expenses and by writing checks to himself from the Local’s checking account with false descriptions such as “per diem” in the memo line.
In order to conceal and obscure his embezzlement, Luciano fraudulently reported false information on Local 2805’s annual financial reports. Labor organizations are required to file financial reports with the OLMS annually. On behalf of Local 2805, Luciano prepared, signed - under penalty of perjury - and filed the financial reports (known as Form LM-3s) with false information that disguised the nature, volume, frequency and purpose of the unauthorized checks and other personal transactions. For example, on the 2017 financial report, he falsely reported that Local 2805 only disbursed $3,068 to him (directly or indirectly), when in fact the correct figure was over $20,000.
In doing so, Luciano hid the embezzlement from the Department of Labor, his fellow union officers, as well as the union membership whose dues were the source of the embezzled funds.
“When employees pay their hard-earned money into labor unions, they reasonably expect the officers of those organizations to be honest stewards of their dues,” said U.S. Attorney Randy Grossman “Our office will work diligently to pursue justice against offenders who have allegedly stolen from their own unions at the expense of members.” Grossman thanked the prosecution team and investigating agencies for their excellent work.
“The Office of Labor-Management Standards will always work hard to expose and bring to justice any official who chooses to break the law and the faith of their union members by stealing,” said Ed Oquendo, District Director, Los Angeles District Office, U.S. Department of Labor, Office of Labor-Management Standards.
Postal Inspector in Charge of the Los Angeles Division Carroll N. Harris said, “When a public official misuses the U.S. Mail for personal gain, Postal Inspectors will aggressively pursue that official to restore the public’s confidence in the mail.”
An important mission of the Office of Inspector General is to investigate allegations of fraud related to union corruption. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
Luciano was arraigned on the indictment by U.S. Magistrate Judge Michael Berg and entered a plea of not guilty. Judge Berg set Luciano’s bond at $30,000 and ordered him to appear before U.S. District Court Judge Thomas Whelan on October 3, 2022, at 9 a.m. for a motion hearing.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number 22CR2201-W
Felix Luciano Age: 60 San Diego, CA
SUMMARY OF CHARGES
False Statements – Title 18, U.S.C., Section 1001
Maximum penalty: Five years in prison and $250,000 fine
Wire Fraud – Title 18, U.S.C. Section 1343
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCY
Department of Labor – Office of Labor-Management Standards
Department of Labor – Office of Inspector General
Homeland Security Investigations – Office of Inspector General
United States Postal Inspector
EDVA Honors Law Enforcement for Exceptional ServiceRead the Press Release
ALEXANDRIA, Va. – Today U.S. Attorney Jessica D. Aber recognized over 300 officers and agents from federal, state, and local law enforcement agencies with Public Service Awards.
The Eastern District of Virginia (EDVA) typically holds an annual awards ceremony to recognize the law enforcement officials for their service and contribution to various criminal and civil cases investigated and prosecuted here in EDVA. For the first time since 2019, this ceremony was held in person at venues near each of the four EDVA offices.
“The awardees went above and beyond to investigate these cases and are emblematic of the good that law enforcement can do for our local, state, and national communities,” said Jessica D. Aber, U.S Attorney for the Eastern District of Virginia. “However, they also represent a fraction of the incredible work that goes on every day with state and federal law enforcement. Both them and their agencies at large should be commended for their sustained efforts.”
The awards highlighted federal cases, operations, and initiatives from 2021. The federal, state, and local law enforcement agencies listed below had officers and/or agents who were recognized for their bravery, outstanding collaboration, investigative achievement, investigative excellence, and victim assistance.
Alexandria
Newport News
Norfolk
Richmond
Virginia State Police
ATF Washington Field Division
ATF Washington Field Division
ATF Washington Field Division
Dept. of State, Diplomatic Security Service
United States Postal Inspection Service
Virginia Medicaid Fraud Control Unit
Dept. Health & Human Services, OIG
Transportation Security Administration OGC
DHS Homeland Security Investigations
North Carolina State Police
DHS Homeland Security Investigations
Loudoun County Sheriff’s Office
DEA Washington
Northampton County Sheriff’s Office
Department of Justice, OIG
Dept. Health & Human Services, OIG
FBI-Norfolk Field Office
Dept. Health & Human Services, OIG
DEA Washington
DHS Homeland Security Investigations
Mathews County Sheriff’s Office
DHS Homeland Security Investigations
FBI-Richmond Field Office
Stafford County Fire Marshal
Hampton Police
DEA
Virginia State Corporation Commission
Army Criminal Investigation Division
IRS-Criminal Investigations
FBI-Norfolk Field Office
Henrico Police
Dept. of Transportation, OIG
Virginia Department of Forensic Science
Suffolk Police Department
U.S. Army – Criminal Investigations
DEA Washington
York-Poquoson Sheriff’s Office
IRS-Criminal Investigations
Eden Prairie (Minnesota) Police Department
Department of State OIG
Newport News Police
Bureau of Prisons
Colonial Heights Police Department
Fairfax County Police
U.S. Secret Service
Norfolk Police
U.S. Postal Inspection Service
FBI Washington Field Office
Virginia State Police
Defense Criminal Investigative Service
Commodity Futures Trading Commission
Coast Guard Investigative Service
Housing and Urban Development OIG
U.S. Marshals Service
Virginia State Police
IRS-Criminal Investigations
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Virginia Office of Attorney General
U.S. Postal Inspection Service
Naval Criminal Investigative Service
U.S. Postal Inspection Service
Export-Import Bank OIG
General Services Administration OIG
Virginia Dept. of Forensic Science
Southside Drug and Gang Task Force
Prince George’s County Police
Virginia Beach Police
Caroline County Sheriff’s Office
Prince William County Police
Chesapeake Police Department
Chesterfield County Police Department
Defense Criminal Investigative Services
U.S. Attorney’s Office
National Aeronautics and Space Administration (OIG)
Portsmouth Police Department
Defense Criminal Investigative Service
Food and Drug Administration
Dept. of Labor OIG
Arlington County Police
Culpeper County Sheriff’s Office
U.S. Secret Service
United States Army
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Daphne Methamphetamine Dealer Sentenced to 12 Years in PrisonRead the Press Release
MOBILE, AL – A Daphne man was sentenced to 12 years in prison for possessing methamphetamine with intent to distribute it.
According to court documents, Tony David Bass, Jr., 41, of Daphne was arrested by deputies with the Baldwin County Sheriff’s Office on October 8, 2021, in possession of more than half a pound of pure methamphetamine. Deputies found the drugs stuffed inside a pillowcase on a bed where Bass had been sleeping. The drugs were packaged in eight separate baggies near Bass’s cell phone and clothing. During an interview with deputies, Bass admitted that he was on federal probation and had just been released from custody two weeks earlier. Bass had been convicted of being a felon in possession of a gun in federal court in April 2016.
United States District Judge Terry F. Moorer imposed a sentence of 120 months in prison, to run consecutively to a 24-month custody sentence for Bass’s supervised-release violation, for a total sentence of 144 months. The court ordered Bass to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Bass to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Baldwin County Sheriff’s Office and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Dallas Man Charged in $26 Million Real Estate ScamRead the Press Release
A Dallas man who allegedly scammed Chinese investors out of more than $26 million has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Timothy Lynch Barton, the 59-year-old president of real estate development firm JMJ and CEO of real estate investment firm Carnegie Development, was indicted Tuesday on seven counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of securities fraud. He made his initial appearance before U.S. Magistrate Judge David L. Horan today.
According to the indictment, Mr. Barton allegedly traveled to Hangzhou, China to market real estate investment opportunities in Texas to Chinese investors.
During his presentations – which highlighted his supposed ties to U.S. politicians – Mr. Barton allegedly claimed that the properties in question were located in sought-after neighborhoods in the Dallas Fort Worth Metroplex. He introduced a builder, identified in court documents as S.W., who he claimed would purchase lots to build on to sell to future home buyers.
Mr. Barton allegedly promised investors annual interest payments for two years, followed by the return of their initial investment at the end of the second year. He allegedly claimed that the investors would contribute 80 percent of the funds necessary for the project, and he and others would contribute the remaining 20 percent. Mr. Barton also allegedly represented that no commissions would be paid out of investor funds.
In loan agreements signed by the investors, Mr. Barton allegedly inflated the cost of each property by as much as 195 percent, and in some instances, never actually purchased the property. Mr. Barton also allegedly paid interest payments to early investors with investor funds from later projects.
Contrary to his loan agreements, Mr. Barton allegedly paid commissions out of investors’ funds, and even funneled investors’ money into unrelated projects. Still other funds were used to pay consultants or even to pay an unrelated company’s AmEx bill. According to the indictment, investors lost more than $26,000,000 to the scheme.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Barton is presumed innocent unless proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison for each count of wire fraud, up to 20 years in federal prison for conspiracy to commit wire fraud, and up to 20 years in federal prison for securities fraud.
He is also the subject of a parallel civil action filed by the U.S. Securities and Exchange Commission.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Corrections Officer, Inmate, and Alleged Supplier Charged with Bribery and Other OffensesRead the Press Release
WASHINGTON—A District of Columbia Department of Corrections (DOC) Officer, an inmate at the facility, and an alleged supplier have been charged with facilitating bribes to bring prohibited items, including drugs, into the District’s Central Detention Facility (CDF).
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Tom Faust, Director of the District of Columbia Department of Corrections.
The correctional officer, Beverly Williams, 52, of Upper Marlboro, Maryland, was arrested today and is charged in a criminal complaint with conspiracy, bribery, and smuggling. Also charged by criminal complaint with the same offenses is Andre Gregory, 31, who is currently an incarcerated inmate at CDF awaiting trial. A third individual, Keywaune McLeod, 27, of Washington, D.C., was arrested on Sept. 23, 2022. Both Williams and McLeod made their initial court appearance today before Magistrate Judge Moxila A. Upadhyaya. Gregory’s initial appearance is expected in the coming days.
The complaint was filed in the U.S. District Court for the District of Columbia.
The charging documents allege that Williams was involved in a months-long smuggling operation with Gregory and McLeod in which she accepted money from Gregory’s family member, McLeod, to bring prohibited items—including drugs—into the D.C. jail for Gregory to use and distribute among inmates. As alleged in the charging documents, before Williams was caught with drugs when entering CDF on Sept. 6, 2022, Gregory’s “short-term goal” was to make $100,000 in proceeds from distributing smuggled contraband in DOC.
This case is being investigated by the FBI’s Washington Field Office and the D.C. Department of Corrections’ Investigative Services Branch. This case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Sex Offender Sentenced to More than 11 Years in Prison for Possession of Child PornographyRead the Press Release
HUNTINGTON, W.Va. – James Gipson, 59, was sentenced today to 11 years and two months in prison, to be followed by a lifetime on supervised release, for possession of child pornography and a violation of supervised release.
According to court documents and statements made in court, on April 25, 2020, Gipson was living in a Charleston homeless facility when facility staff observed him in a common area looking at child pornography on his laptop. The staff summoned police, who recovered the laptop. A forensic analysis found more than 300 images depicting child pornography on the laptop. Gipson admitted that the laptop was his and that he knew he should not have possessed it.
Gipson was previously convicted of possession of child pornography in United States District Court for the Southern District of West Virginia. On March 5, 2012, he was sentenced to 10 years and six months in prison and placed on lifetime supervised release. Today’s sentence of 11 years and two months incudes one year and two months for violating his lifetime supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the South Charleston Police Department. Thompson also credited the shelter staff for their vigilance in protecting their facility and its residents.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Kristin F. Scott prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-92.
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Convicted Bank Robber Sentenced to 30 Months in Prison for Bribing a Corrections OfficerRead the Press Release
MOBILE, AL – A Selma man was sentenced to 30 months in prison for bribing a corrections officer while awaiting a federal trial for armed bank robbery.
According to court documents, Stanley Young, 34, was an inmate at the Escambia County Detention Center (“ECDC”) in Brewton from January to October 2020. Young was being held at ECDC pending his federal trial for armed bank robbery in the Southern District of Alabama in October 2020. Young was convicted of armed bank robbery and later sentenced to a 17-year prison term for that offense.
While incarcerated at ECDC, Young admitted that he bribed a corrections officer at the jail. In exchange for the officer engaging in corrupt actions on his behalf, Young paid the officer more than $5,000 from his CashApp account, including payment of a $4,000 down payment toward the purchase of an Infiniti vehicle at a car dealership in Mobile. At various times, the officer provided Young with prohibited objects while on duty at ECDC, including money, cell phones, and K2 spice paper. In August 2020, the officer admitted to federal agents that she had a personal relationship with Young and had smuggled cell phones and K2 spice paper into ECDC for him.
Agents obtained records from Young’s Facebook account, which he accessed using the contraband phones that the officer smuggled into the jail and gave to him. The records included messages detailing Young’s relationship with the officer; photographs of Young in his ECDC inmate uniform holding K2 spice paper; text and voice messages between Young and third parties discussing methods of smuggling K2 spice paper into jails and the prices at which it could be sold to inmates; videos that Young took of other ECDC inmates whom Young described as being “high” on K2 spice paper; and messages between Young and the corrections officer regarding the officer selling marijuana to individuals outside of ECDC on Young’s behalf.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and the Escambia County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Justin Roller and Sinan Kalayoglu prosecuted the case on behalf of the United States.
Construction Firm Owner Admits Failing to Report $4.8 Million to IRSRead the Press Release
LOS ANGELES – The owner of an Inland Empire business pleaded guilty today to filing false tax returns that failed to report more than $4.8 million over a five-year period, resulting in his failure to pay $1.6 million in taxes due to the IRS.
Liang “Paul” Chen, 63, the owner of the Chino-based construction company Mass Development Inc. (MDI), who is identified in court documents as a resident of Los Angeles County, admitted in court today that he filed false corporate tax returns for the years 2013 through 2016.
Chen pleaded guilty to one count of aiding and assisting in the preparation of a false income tax return. In a plea agreement filed in federal court, Chen agreed to pay the IRS restitution of $1,642,935.
According to his plea agreement, from January 2013 through October 2017, Chen was in charge of MDI’s daily business activities and was listed as the owner of MDI on its financial documents. To conceal income, Chen deposited only a portion of the checks made payable to MDI into the company’s bank account and then cashed nearly $5 million of additional checks made payable to MDI at a bank and a local liquor store that offered check-cashing services.
In relation to MDI’s federal tax returns, Chen provided the tax return preparer with statements from MDI’s business bank account as and falsely advised the tax return preparer that all of MDI’s income had been deposited into the business bank account.
By failing to tell MDI’s return preparer that he had cashed a substantial portion of business checks made payable to MDI, Chen caused MDI to falsely report its gross receipts to the IRS. This underreporting resulted in an underpayment of federal taxes totaling $1,642,935.
Chen is scheduled to be sentenced by United States District Judge Mark C. Scarsi on December 12, at which time Chen will face a statutory maximum sentence of three years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section is prosecuting this case.
Chinese National Convicted of Acting Within the United States as an Unregistered Agent of the People’s Republic of ChinaRead the Press Release
CHICAGO — A federal jury in Chicago today convicted a Chinese national of acting illegally within the United States as an agent of the People’s Republic of China.
JI CHAOQUN, 31, was found guilty on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army. The jury acquitted Ji on two counts of wire fraud.
The conviction for acting as an unregistered Chinese agent is punishable by up to ten years in federal prison, while the conspiracy and false statement convictions are each punishable by up to five years. U.S. District Judge Ronald A. Guzman did not immediately set a sentencing date.
The verdicts were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice; and Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Army 902nd Military Intelligence Group provided valuable assistance. The government is represented by Assistant U.S. Attorneys Vikas Didwania and Barry Jonas of the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
Evidence presented at the two-week trial in U.S. District Court in Chicago revealed that Ji worked at the direction of high-level intelligence officers in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China. Ji, a Chinese citizen residing in Chicago, was tasked by Xu Yanjun, a Deputy Division Director within the Ministry of State Security, with providing an intelligence officer with biographical information on certain individuals for possible recruitment by the JSSD. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom worked for U.S. defense contractors. This tasking was part of an effort by the Jiangsu provincial department to obtain access to advanced aerospace and satellite technologies being developed by companies within the U.S. Xu was convicted last year in the Southern District of Ohio of conspiracy and attempting to commit economic espionage and theft of trade secrets.
In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with a foreign intelligence officer.
California Woman Indicted for Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a California woman for wire fraud, identity theft, and filing false tax returns after embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as manager she had nearly unfettered access to the victim homeowner’s associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents, intended to pay for maintenance, construction, and other costs incurred by the victim associations.
As part of the scheme, Xiong repeatedly accessed the HOAs’ bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mis-labeling them to make it appear as if they were legitimate HOA expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits.
Xiong is charged with five counts of wire fraud, one count of aggravated identity theft, four counts of making and subscribing a false return, and one count of failure to file an individual return. She was arrested on September 22, 2022, and made her initial appearance before Magistrate Judge Barbara A. McAuliffe in U.S. District Court in the Eastern District of California.
This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Sentenced for Distributing Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 23, 2022, Tyrish Stevenson, 48, of Brooklyn, New York, was sentenced by U.S. District Judge Christina Reiss to 37 months’ imprisonment and a 3-year term of supervised release for distributing cocaine base on September 9, 2021.
According to court records, throughout August and September 2021, investigators with the Burlington Police Department, with the assistance of members of the Drug Enforcement Administration, Burlington Resident Office, conducted multiple controlled purchases of narcotics from traffickers who were working together in Burlington, Vermont.
As part of this investigation, on September 9, 2021, a confidential informant purchased cocaine base from Stevenson in downtown Burlington. On September 23, 2021, investigators apprehended multiple traffickers involved in drug distribution, including Stevenson, who admitted to possessing with intent to distribute over 16 grams of cocaine base found nearby at the time of Stevenson’s arrest. That day, investigators also executed a search warrant at a Church Street residence in downtown Burlington. Within the Church Street residence, investigators recovered over 40 grams of cocaine base and over 18 grams of fentanyl, which Stevenson, with others, admitted to possessing with intent to distribute. Investigators also recovered a Mossberg .410 pump shotgun and a Savage Arms .22 Long Rifle from the Church Street residence.
United States Attorney Nikolas P. Kerest commended the efforts of the Burlington Police Department as well as the Drug Enforcement Administration, Burlington Resident Office, in the investigation and prosecution of Stevenson.
This case was prosecuted by Assistant U.S. Attorney Andrew Gilman. Stevenson was represented by Assistant Federal Public Defender Steven Barth, Esq.
Biogen Inc. Agrees to Pay $900 Million to Settle False Claims Act Allegations Related to Improper Physician PaymentsRead the Press Release
BOSTON – Pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations that it violated the False Claims Act by causing the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.
The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit.
In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen held programs through which it offered and paid remuneration, including speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera in violation of the Anti-Kickback Statute.
“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said United States Attorney Rachael S. Rollins. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public healthcare programs.”
“Bawduniak doggedly pursued this matter on behalf of the United States for over seven years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The settlement announced today underscores the critical role that whistleblowers and their attorneys play in utilizing the False Claims Act to combat fraud affecting federal healthcare programs.”
Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. The United States will pay Bawduniak a share of the federal recovery.
The case was monitored by the Department of Justice’s Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Biogen Inc. Agrees to Pay $900 Million to Settle Allegations Related to Improper Physician PaymentsRead the Press Release
Pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.
The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the federal False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit.
In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen offered and paid remuneration, including in the form of speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera, in violation of the Anti-Kickback Statute.
“The relator diligently pursued this matter on behalf of the United States for over seven years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The settlement announced today underscores the critical role that whistleblowers play in complementing the United States’ use of the False Claims Act to combat fraud affecting federal health care programs.”
“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public health care programs.”
Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. Bawduniak will receive approximately 29.6% of the federal proceeds from the settlement.
The case is captioned United States ex rel. Bawduniak v. Biogen Idec, Inc., No. 12-cv-10601-IT (D. Mass.), and was monitored by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Baltimore man admits to fentanyl chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Bernard Parker, Jr., of Baltimore, Maryland, has admitted to selling a large amount of fentanyl, United States Attorney William Ihlenfeld announced.
Parker, also known as “Mac Man,” 35, pleaded guilty today to one count of “Distribution of Forty Grams or More of Fentanyl.” Parker admitted to selling 40 grams or more of fentanyl in June 2021 in Berkeley County.
Parker is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Allport Woman Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Allport, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Tammie Brolin, age 54, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Brolin did conspire to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for January 31, 2023. The law provides for a minimum sentence of 10 years in prison and maximum sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Brolin. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Saturday 24 September 2022
Former Caldwell Police Department Lieutenant Convicted of Falsifying Records, Witness Tampering, and Destruction of RecordsRead the Press Release
BOISE – A federal jury convicted a former Caldwell Police Department Lieutenant of falsifying a record or document in a federal investigation, witness tampering by harassment, and destroying a record to impair its use in an official proceeding. The jury found Hoadley not guilty of willful deprivation of rights under color of law.
Joseph Alan Hoadley, 42, of Caldwell, was convicted after a five-day jury trial in U.S. District Court before the Honorable Scott W. Skavdahl, U.S. District Court Judge for the District of Wyoming. He faces up to 20 years imprisonment and a $250,000 fine on each of the three charges. Sentencing is scheduled for December of 2022.
During the trial, the jury heard evidence that Hoadley, while employed as a Lieutenant with the Caldwell Police Department, used force against B.H. in Caldwell in 2017 while he was detained and handcuffed. Hoadley falsified a subsequent police report detailing his actions during the incident. In 2021, knowing that he was the target of an FBI investigation, Hoadley harassed and intimidated C.H. with the intent to dissuade him from cooperating with the FBI investigation. In April of 2022, after being indicted by a federal grand jury, Hoadley destroyed data on his city‑issued laptop and cellphone one day before turning them over to the acting Caldwell Police Chief, who had placed Hoadley on administrative leave because of the charges.
“The safety of our communities and our ability to uphold the rule of law depend on the honesty and integrity of law enforcement officers,” said U.S. Attorney Josh Hurwit. “And so we will never waiver in prosecuting violations of the law, even when a police officer is the offender. I am proud of our prosecutors and staff for their work on this difficult case. I also commend the FBI for its thorough and fair investigation. Finally, I want to recognize the current and former Caldwell Police officers who testified under extremely difficult circumstances.”
A press conference will be held at the U.S. Attorney’s Office in Boise at noon on Monday, September 26, 2022.
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Friday 23 September 2022
Upshur County woman admits to fentanyl chargesRead the Press Release
ELKINS, WEST VIRGINIA – Michaela Dawn Gregory, of Buckhannon, West Virginia, has admitted to selling fentanyl, United States Attorney William Ihlenfeld announced.
Gregory, 26, pleaded guilty today to one count of “Distribution of Fentanyl” and two counts of “Possession with Intent to Distribute Fentanyl.” Gregory admitted to having and distributing fentanyl in November 2020 in Upshur County.
Gregory faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force and the Buckhannon Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Attorney's Office Honors Law Enforcement Personnel for Exceptional ServiceRead the Press Release
BOSTON – United States Attorney Rachael S. Rollins announces the recipients of the 2022 Law Enforcement Awards. Over 60 federal, state and local law enforcement personnel and community leaders who contributed to the success of federal cases during the 2021 calendar year are being recognized for their commitment to pursuing justice and public safety. Each year the U.S. Attorney in Massachusetts holds a formal ceremony to honor award recipients, which will take place in October 2022 at the John Joseph Moakley Courthouse.
These awards recognize federal agents, state troopers, local officers, investigators and community leaders for exceptional leadership, outstanding collaboration, investigative achievement and excellence, victim assistance and excellence in community engagement. Assistant U.S. Attorneys who prosecuted the cases nominated the honorees. In one instance, U.S. Attorney Rollins herself nominated the recipient due to their outstanding and unwavering commitment to the City of Boston – Former Acting Boston Police Commissioner Gregory Long.
“The typical workday does not exist for law enforcement professionals, they work around the clock. Day in and day out, law enforcement professionals work tirelessly in the pursuit of justice, often putting their lives on the line to protect the people of our Commonwealth against criminal operators,” said U.S. Attorney Rollins. “It is directly because of these dogged, relentless efforts that my office can hold perpetrators accountable through successful investigations and prosecutions. The Annual Law Enforcement Awards are an important opportunity to recognize and honor the professionals whose work has been instrumental to our cases and to keeping our communities safe.”
The category of Investigative Achievement Award is reserved for those who substantially contributed to the mission of the U.S. Attorney’s Office and the Department of Justice. The following cases and agencies will be honored:
U.S. v. Bruce Brown
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Newton Police Department
U.S. v. Hubley
Agency/Organization of Recipient(s): IRS Criminal Investigation
U.S. v. Jasiel Correia
Agency/Organization of Recipient(s): Federal Bureau of Investigation; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Internal Revenue Service, Criminal Investigation; Massachusetts Office of Inspector General
U.S. v. John Casey
Agency/Organization of Recipient(s): Marshfield Police Department; Burlington Police Department
U.S. v. Leslie Caraceni et al., and U.S. v. Meghan Giacomuzzi
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Homeland Security Investigations
U.S. v. Stefanie Hirsch et al.
Agency/Organization of Recipient(s): Federal Bureau of Investigation; U.S. Health and Human Services, Office of Inspector General
U.S. v. Sunil Akula
Agency/Organization of Recipient(s): Federal Bureau of Investigation
The category of Investigative Excellence recognizes an individual whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal conspiracy. The following case and agency will be honored:
U.S. v. Anthony Deordio and U.S. v. Jonathan Monson
Agency/Organization of Recipient(s): Federal Bureau of Investigation
The category of Excellence in Community Outreach and Prevention Award recognizes individuals, or a team of individuals, who have shown outstanding commitment and/or innovation in the area of law enforcement and community outreach to include training, relationship building, prevention programs and other similar activities. The following programs and agencies will be honored:
Civil Rights Opioid Work
Agency/Organization of Recipient(s): New England Americans with Disabilities Act Center, a project of the Institute for Human Centered Design in Boston
Project Safe Childhood Cape and Islands Education Series
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Barnstable Police Department; Chatham Police Department, Orleans Police Department; Cape & Islands District Attorney’s Office
Project Safe Childhood in the Berkshires Education Series
Agency/Organization of Recipient(s): Department of Homeland Security, Federal Protective Service; North Adams Police Department; Berkshire District Attorney’s Office; North Adams Public Schools
The category of Exceptional Leadership recognizes an individual who has shown exceptional leadership of an organization or department in the face of adversity or significant challenges. The following agency will be honored:
Exceptional Leadership in the City of Boston
Agency/Organization of Recipient(s): Boston Police Department
The category of Outstanding Collaborative Award recognizes investigators from a multi-agency collaboration whose exceptional efforts to overcome significant challenges led to a successful conclusion. Recipients in one case also received the Victim Service Award. The following cases and agencies will be honored:
U.S. v. Anthony Howard
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Boston Police Department
U.S. v. Derek Sheehan
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Norwell Police Department; Massachusetts State Police
*Victim Service Award
U.S. v. Samuel Rodriguez, et al.
Agency/Organization of Recipient: Massachusetts State Police; Fairhaven Police Department; United States Drug Enforcement Administration; United States Postal Inspection Service
Two men sentenced to long prison terms for brutal murder on federal land near Spanaway, WashingtonRead the Press Release
Tacoma – A 53-year-old Tacoma man was sentenced today in U.S. District Court to 26 years in prison for second degree murder and being a felon in possession of a firearm, announced U.S. Attorney Nick Brown. Bobbie Anson Pease pleaded guilty in July 2021 to the 2018 murder of a 34-year-old woman on federal land, part of Joint Base Lewis-McChord (JBLM). Jeremy Jay Warren, 34, of Forks, Washington, was sentenced today to nearly 22 years in prison for his role in the murder. At the sentencing hearing for Pease, U.S. District Judge Robert J. Bryan called the crime “a tragic event” saying “What happened here is beyond the realm of normal human activity.”
“These two men violently took the life of a young woman – a single parent – who had trusted them to provide a ride and assistance,” said U.S. Attorney Nick Brown. “Instead, they viciously beat her with a metal baseball bat and shot her in the head. In order to protect our community from this wanton and senseless depravity, these lengthy sentences are appropriate.”
According to records in the case, Pease was temporarily sharing a house with the victim, her daughter, co-defendant Jeremy Warren and others in August and September 2018. On September 4, 2018, the victim asked Pease and Warren for a ride to a Spanaway convenience store. The men had a pistol and an aluminum baseball bat in the car. After going to the store and allowing the victim to purchase groceries, Pease drove the victim and Warren to a wooded area nearby, claiming he wanted to do some target shooting. At the wooded area, which was an undeveloped plot of federal land outside the fenced boundaries of JBLM, the men claim they confronted the victim about items they accused her of stealing – a drug pipe and pocket-knife – although the investigation did not confirm the victim had actually taken these items. The men beat the victim with the bat causing significant head injuries and broken bones. Then Pease took the pistol and fired three shots into the victim’s head, killing her instantly. The men left the body in the wooded area and disposed of the bat and the gun at various locations in the Tacoma and Spanaway area. The gun was ultimately recovered from the Puyallup River. The two made calls to the police attempting to mislead them during the investigation by claiming the victim has left the convenience store with someone else and moved out of state. On September 13, 2018, the victim’s body was discovered by railroad workers. Pease and Warren were arrested in late October 2018 after they had relocated to Forks, Washington, to avoid authorities and following an extensive manhunt.
Describing the victim as someone with a “big heart, a loud laugh and was exceptionally trusting,” Assistant United States Attorney Grady Leupold said the men’s “cruelty and violence put a hole in the hearts” of all the victim’s family members.
The victim’s parents and brothers spoke to the court of the pain of loss they feel. The victim’s father asking defendant Pease “Can you give me an honest answer why? That’s all I want to know. Why? – you took a valuable part of me.”
Pease has a lengthy criminal history dating back to 1991 in Washington State including: Assault and attempting to elude (Pierce County 2013); Escape (Jefferson County 2003); robbery with a deadly weapon enhancement (Pierce County 2003); witness tampering (Thurston County 2003); theft and attempting to elude (Pierce County 1999); car theft (Thurston County 1999); burglary (Pierce County 1992) and possession of stolen property (Pierce County 1991). The convictions mean Pease could not legally possess a firearm.
Warren was sentenced to 262 months in prison and 5 years of supervised release to follow the prison term.
“This case is truly horrific and demonstrates the subjects’ utter lack of regard for human life,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “So many elements of this case are senseless and tragic: luring the victim into the woods under the pretense of friendship, attacking a defenseless person with multiple types of weapons, and then covering up the murder and fleeing. Addressing violent crime remains a top priority of the FBI.”
The investigation was led by the FBI with assistance from Army CID, the Pierce County Sheriff’s Office, the Tacoma Police Department, and the Forks Police Department. The case was prosecuted by Assistant United States Attorneys Grady J. Leupold and Ye-Ting Woo.
Two Men Plead Guilty in $30 Million Foreign Exchange Fraud SchemeRead the Press Release
A Massachusetts man and a Florida man pleaded guilty today for their roles in perpetrating a foreign exchange trading scheme to steal $30 million from their investor victims.
According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Florida, devised a scheme in which they would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on previous trading results that they had fabricated. They told the victims that their funds would be traded using an online trading platform provided by a co-conspirator’s company, IB Capital. Instead, Gallagher and Dion were working with other co-conspirators in the Netherlands to steal the victim investors’ money. In May 2012, Gallagher and Dion executed their scheme by intentionally creating losing trades for the investors and effectively stole $30 million from their victims. After fabricating the massive trading loss, Gallagher and Dion routed the stolen money through shell companies they had set up all over the world.
Gallagher and Dion each pleaded guilty to one count of conspiracy to commit securities fraud, and each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
The USPIS is investigating the case.
Trial Attorneys Brittain Shaw, Vasanth Sridharan, and Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Individuals or entities who believe they may be a victim in this case should contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected].
Two Members of Fentanyl Trafficking Ring Indicted for Conspiracy Resulting in the Death of a Toddler and Non-Fatal Overdose of an InfantRead the Press Release
EVANSVILLE – A federal grand jury in Evansville, Indiana, returned a superseding indictment charging Arcinial Montreal Watt, 34, and Jazmynn Alaina Brown, 24, both of Evansville, with federal crimes including conspiracy to distribute fentanyl resulting in death, conspiracy to distribute fentanyl resulting in serious bodily injury, and possession with the intent to distribute fentanyl.
According to court documents, during the conspiracy, Watt obtained significant quantities of fentanyl-laced counterfeit pills from an unknown source of supply and stored those pills inside a bedroom he shared with his girlfriend, Brown, at her residence on East Sycamore Street in Evansville. Watt further supplied Brown with fentanyl-laced counterfeit pills that Brown would sell to her own customers.
On October 26, 2021, two children living at that residence – a three-year-old girl and a one-year-old girl – accessed a quantity of fentanyl-laced counterfeit pills stored by Brown inside the bedroom she shared with Watt. Both children subsequently suffered a fentanyl overdose. The three-year-old girl was pronounced dead the following morning, and the one-year-old girl was taken to the hospital, where she was placed on a NARCAN drip. The one-year-old girl survived.
During the investigation, investigators seized over 5,000 fentanyl-laced counterfeit pills, over $30,000 in United States currency, and a firearm. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
“This did not need to happen. A toddler is dead, and a baby was hospitalized because of the greed and utter disregard for human life displayed by those who traffic deadly drugs in our community,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The serious charges announced today demonstrate that federal law enforcement and our local partners are determined to hold criminals accountable for pushing poison on our streets.”
“Alleged drug traffickers like Mr. Watt and Ms. Brown who are knowingly dealing poisonous and lethal fentanyl must be held accountable for their actions, especially when they show careless disregard for possessing and storing fentanyl pills that resulted in the death of an infant child and the overdose of another child who required life-saving medical intervention to survive the overdose,” said Michael Gannon, DEA Assistant Special Agent in Charge. “DEA remains committed to working hand in hand with our state, local and federal partners to keep our communities safe. DEA commends the outstanding work by the Evansville Police Department, the Evansville Vanderburgh County Drug Task Force, the Vanderburgh County Prosecutor’s Office, and the United States Attorney’s Office, Southern District of Indiana.”
“I’d like to express how grateful we are to have federal partners that share an objective of ridding our community and our neighborhoods of these very terrible drugs,” said Billy Bolin, Chief of Evansville Police Department. “In this particular incident a child, is no longer with us because of the choices made by adults. Our hearts go out to the loved ones that are left picking up the pieces of this destruction. The message we have is clear, if you choose to deal harmful drugs in our communities and neighborhoods, we will act and bring you to justice. I want to thank the men and women of the Evansville Police Department that responded to this run, The JTF Detectives that spent countless hours on this investigation, and our federal partners for seeing to it that these individuals face the consequences of their actions.”
If convicted of conspiracy to distribute fentanyl resulting in death or serious bodily injury, Watt and Brown face 20 years to life in prison, a fine of up to $10,000,000, and at least 5 years’ supervised release. If convicted of possession with the intent to distribute 400 grams or more of fentanyl, Watt faces 10 years to life in prison, a fine of up to $10,000,000, and at least 5 years’ supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was the result of an investigation by the Evansville Police Department and the Drug Enforcement Administration. The Vanderburgh County Prosecutor’s Office Cyber Crime Task Force also provided invaluable assistance.
U.S. Attorney Myers thanked Assistant United States Attorney Kristian R. Mukoski, who is prosecuting this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Maryland Men Charged with Trafficking Thousands of Fentanyl Pills into ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned an indictment yesterday charging OSCAR FLORES, 34, of Mount Rainier, Maryland, and SEVERO ALELAR, 25, of Hyattsville, Maryland, with fentanyl trafficking offenses.
As alleged in court documents and statements made in court, on September 8, 2022, Flores, Alelar and others arrived in an SUV at a meeting location in Wethersfield to sell approximately 15,000 fentanyl pills to an undercover DEA agent. After Flores showed the undercover agent a sample on the fentanyl pills, the agent indicated that he needed to travel to another location to pick up the money. Flores, Alelar and the others followed the undercover agent’s vehicle as they traveled south into Rocky Hill. When a Rocky Hill police officer attempted to stop the SUV for a traffic violation, the SUV sped and ran over a roadside curb onto a grass area along the side of the road where law enforcement vehicles boxed it in. Investigators searched the SUV and found numerous Nerds candy boxes and Skittles candy bags containing thousands of fentanyl pills.
“Trafficking fentanyl is already and undoubtedly a serious offense, but one doesn’t have to stretch their imagination too far to consider how disguising fentanyl pills in children’s candy packaging, as we allege, can result in even more tragic consequences in the community,” said U.S. Attorney Avery. “I thank the DEA Task Force members for their work in this investigation and for taking this substantial quantity of fentanyl off the street.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy people’s lives,” said DEA Special Agent in Charge Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take pills containing fentanyl off the streets, lives are undoubtedly saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Offices.”
The indictment charges Flores and Alelar with conspiracy to distribute, and to possess with intent to distribute, 40 grams or more of fentanyl, and with possession with intent to distribute 40 grams or more of fentanyl. Each charge carries a mandatory minimum term of imprisonment of five years a maximum term of imprisonment of 40 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Flores and Alelar have been detained since September 8, 2022.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone 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.
Two Drug Traffickers Receive Federal Prison Sentences Totaling over 30 YearsRead the Press Release
SHREVEPORT, La. – Two defendants have been sentenced for their involvement in the trafficking of methamphetamine in the Shreveport/Bossier City area, announced United States Attorney Brandon B. Brown. United States District Judge Donald E. Walter sentenced both defendants as follows:
Justin Lamar Shealey, 40, of Bossier City, Louisiana, was sentenced to 210 months (17 years, 6 months) in prison, followed by 5 years of supervised release, on drug trafficking charges. His co-defendant, John Chaz Bernos, 39, was previously sentenced on August 26, 2022 to spend 162 months (13 years, 6 months) in prison, followed by 5 years of supervised release.
Shealey and Bernos each pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. On February 24, 2021, Louisiana State Police troopers conducted a traffic stop of Bernos. At the time of the stop, Bernos had an active arrest warrant outstanding. Troopers searched the vehicle Bernos was driving and discovered methamphetamine, marijuana, testosterone, and other assorted prescription pills. Bernos was arrested and later admitted to law enforcement officers with the U.S. Drug Enforcement Administration (DEA) that he purchased the methamphetamine and had intended to distribute to others. The methamphetamine was sent to the DEA laboratory for analysis and determined to be 61.8 grams of pure methamphetamine.
Further investigation led DEA agents to Shealey after learning he had sold methamphetamine out of his vehicle. Agents found Shealey at a local casino and received consent to search his vehicle. Inside, they found that he had over 600 grams of methamphetamine in the vehicle. Shealey later admitted to agents that he had been purchasing the methamphetamine in the Dallas area and would bring it back to the Shreveport/Bossier City area for distribution.
This case was investigated by the DEA and Louisiana State Police and prosecuted by Assistant U.S. Attorney Robert F. Moody.
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Three Sentenced in Violent Robbery AttemptRead the Press Release
CHARLOTTESVILLE, Va. – Three Charlottesville men, who admitted to the attempted armed robbery of an Albemarle County man, were sentenced Tuesday in federal court.
Tyreek Saquan Ragland, 23, the leader of the group who organized the robbery plan, pled guilty to one count of attempted Hobbs Act robbery and was sentenced to 77 months in federal prison.
Madison Wonne Zelee, 26, and Tyrel Anthony Dowell, 23, also pled guilty to one count each of Hobbs Act robbery as well as possession of a firearm by a convicted felon. Zelee was sentenced to 60 months in prison while Dowell received a sentence of 52 months.
According to court documents, Ragland, Zelee, and Dowell targeted the victim because they believed he would be in possession of a large quantity of marijuana and cash at his home in Albemarle County.
On the afternoon of September 30, 2021, Zelee knocked on the intended victim’s front door asking about a lost dog. Before opening the door, the intended victim saw Dowell emerging from the woods nearby wearing a ski mask. The intended victim refused to open the door, and Zelee and Dowell then fled the scene in a getaway vehicle driven by Ragland.
Shortly after this confrontation, the intended victim contacted his father about the incident, and they decided to go in search of the vehicle in which Ragland, Zelee, and Dowell had fled.
While the intended victim and his father were out searching for the getaway vehicle, a witness, who had remained at the intended victim’s residence, called them to report that a pizza delivery person was at the house trying to deliver a pizza. Aware that no pizza order had been placed, the intended victim instructed the witness not to open the door.
After immediately returning home, the intended victim observed a vehicle parked along the side of the road near his home that matched the getaway vehicle seen earlier in the day. Sensing danger, the intended victim and his father decided to leave again, but as they did, Zelee and Dowell came out of the nearby woods and began shooting at them, striking their vehicle. After the gunfire, Zelee and Dowell rejoined Ragland in the getaway vehicle and fled the scene for a second time.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
The Federal Bureau of Investigation and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Ronald M. Huber prosecuted the case.
Three Georgia Men Sentenced for Conspiring to Distribute Meth at Macon State PrisonRead the Press Release
MACON, Ga. –Three co-conspirators guilty of attempting to distribute methamphetamine intended for Macon State Prison were sentenced to prison for their crimes today.
Raquan Emahl Gray, 26, of Conley, Georgia, was sentenced to serve 240 months to be followed by three years of supervised release after he was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine by a federal jury on May 24. Daquann Marquez Epps, 26, of Columbus, Georgia, was sentenced to serve 75 months to be followed by three years of supervised release after he previously pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Demarea Demond Carey, 28, of Fairburn, Georgia, was sentenced to serve 75 months to be followed by three years of supervised release after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. U.S. District Judge C. Ashley Royal handed down the sentences. There is no parole in the federal system.
“Those who facilitate drug trafficking into our prisons – putting both inmates and staff at risk – will be held accountable at the federal level,” said U.S. Attorney Peter D. Leary. “Preventing contraband from entering our prison system remains a high priority for our office and our law enforcement partners.”
“These defendants attempted to get drugs into a prison, but instead have landed themselves there,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success because of the spirited efforts of all law enforcement agencies involved.”
“Illegal drugs have no place in Georgia, including in our prison system. They are dangerous and threaten the safety of all populations. We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations no matter where they are,” said GBI Director Michael Register.
According to court documents and evidence presented at Gray’s trial, Gray and Epps were the passengers of a vehicle driven by Carey that was pulled over by a Crawford County Sherriff’s Office deputy in Roberta, Georgia, for traveling 25 mph over the posted speed limit on Sept. 2, 2019. A strong odor of marijuana was emanating from the car and Carey admitted he had smoked marijuana. A probable cause search of the vehicle found various packages wrapped in different colored duct tape and some were numbered. Some packages were softball shaped and wrapped in electrical tape. The packages contained 494 grams of methamphetamine, 150 pills which tested as methamphetamine, 50 cell phones, two large bags of cell phone chargers, approximately three pounds of marijuana, 19 bags of tobacco, a large bag of cigars and 19 lighters. Carey’s GPS destination on his cell phone was set for Macon State Prison. Gray has an extensive criminal history including felony convictions for robbery, burglary and theft by taking.
The DEA, GBI, Crawford County Sheriff’s Office, the Peach County Sheriff’s Office and the Georgia Department of Corrections investigated the case.
Assistant U.S. Attorneys Will Keyes and Leah McEwen prosecuted the case.
Taunton Man Sentenced for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for illegally possessing a firearm and ammunition.
Jerrod Lee, 30, was sentenced by U.S. District Court Judge Indira Talwani to 37 months in prison and three years of supervised release. Lee was indicted in October 2020 with co-defendant Ronney Fullard. In December 2021, Lee pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
In August 2020, during the execution of an arrest warrant in connection with pending state firearms charges, law enforcement found Lee and Fullard each in possession of a loaded firearm at Lee’s residence. Specifically, Lee possessed a Ruger .45 caliber pistol, Model P90 loaded with five rounds of .45 caliber ammunition and Fullard possessed a Taurus PT 709 9mm pistol loaded with six rounds of 9mm ammunition. Due to prior felony convictions, federal law prohibits both defendants from possessing firearms and ammunition.
On March 10, 2022, Fullard was sentenced to time served (approximately 14 months) and three years of supervised release after previously pleading guilty to the same charge.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Commissioner Michael Cox; and Taunton Police Chief Edward James Walsh made the announcement today. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit 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.