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1 November 2022
Seven Sentenced to Prison for Conspiracy to Distribute Methamphetamine and Methamphetamine DistributionRead the Press Release
ROCK ISLAND, Ill. – Seven individuals, four men and three women, engaged in a conspiracy to distribute methamphetamine in and around the McDonough County, Illinois, area, were sentenced on Friday, October 28, 2022, to multi-year terms in federal prison.
John William Yates, 56, of the 700 block of North Jackson Street in Bushnell, Illinois, was sentenced to 120 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine.
Christopher Allen Yates, 39, of the 1500 block of Jones Street in Joliet, Illinois, was sentenced to 168 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine.
Jeanna Rechkemmer, 36, of the 600 block of East Osborne Street in Bushnell, was sentenced to 135 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine.
Amber Michelle Phelps, 31, of the 600 block of Sherry Street, in Colchester, Illinois, was sentenced to 120 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine.
Jerel Jay Guarin, 44, of the 600 block of Sherry Street in Colchester, was sentenced to 144 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine and distribution of methamphetamine.
Amanda Sue Edwards, 42, of the 200 block of Poplar Street, in Bardolph, Illinois, was sentenced to 120 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine.
Trenton Lee Sealock, 28, of the 100 block of South Jackson Street in Bardolph, was sentenced to 144 months’ imprisonment, to be followed by a five-year term of supervised release, for conspiracy to distribute methamphetamine and distribution of methamphetamine.
Each of the defendants previously pleaded guilty to the offenses. One remaining member of the conspiracy, Shawn Thomas Connelly, has pleaded guilty and is set to be sentenced on January 5, 2023.
The statutory penalty for conspiracy to distribute methamphetamine is a mandatory minimum term of ten years up to a maximum of life imprisonment, to be followed by at least five years of supervised release. The statutory penalty for distribution of methamphetamine is up to a maximum of 20 years in prison, followed by at least three years of supervised release.
“This investigation and successful prosecution is another example of the dedication and collaboration of our law enforcement partners,” said Assistant U.S. Attorney Jennifer Mathew. “The devastating impact methamphetamine has, especially on smaller rural communities, is reflected in the significant penalties imposed in this case.”
“Methamphetamine has plagued our communities and region for many years, which a multitude of adults and children have been negatively impacted by the presence of this substance,” said Jerel Jones, Chief of the Macomb Police Department. “We will tirelessly labor to prevent the usage, sale, and delivery of this drug, as the safety and well-being of our residents remains a priority.”
The Macomb Police Department, and the McDonough County Sheriff’s Department investigated this case with the assistance of the Drug Enforcement Administration and the cooperation of the McDonough County State’s Attorney’s Office. Assistant U.S. Attorney Jennifer Mathew represented the government in the prosecution.
Serial Gun Offender Sentenced to 11.5 YearsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten today announced that Theron Darrell Perry II, 32, of Benton Harbor, was sentenced to a total of 138 months in prison for being a felon in possession of a firearm. U.S. District Judge Robert Jonker also imposed a 3-year period of supervised release to follow Perry’s incarceration.
“My office is focused on improving the safety of our communities and that includes reducing gun violence,” said U.S. Attorney Mark Totten. “One way to get guns off of our streets is by identifying repeat offenders who are illegally possessing firearms.”
In 2017, Judge Jonker sentenced Perry to 68 months in prison for being a felon in possession of a firearm. He was released from prison in January 2022 and was arrested for possession of a firearm in April. He was released from state custody shortly thereafter and acquired another firearm in May 2022 by having a friend purchase it on his behalf. When officers tried to arrest him later in May, he fled and while fleeing, hit another car, lost control of his vehicle, and crashed into a bank.
Judge Jonker sentenced Perry to 114 months in prison for the recent conduct and 24 months in prison for violating the terms of his supervised release on his 2017 offense. The sentences were imposed consecutively, meaning Perry will serve a total of 138 months in prison.
In imposing sentence, Judge Jonker noted that his prior prison term “did not deter Mr. Perry in the least,” that he was arrested with a firearm and when released he immediately went and got another firearm, which the court found “incredible.” Judge Jonker noted that Perry had a “long history of firearms and other criminal conduct.”
“For years, this defendant has illegally obtained firearms and posed a potential threat to the citizens of Benton Harbor and its surrounding communities with impunity,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “I want to thank our partners on the Benton Harbor FBI Safe Streets Task Force for all of their hard work on this investigation and for their efforts to keep our communities safe.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Benton Harbor FBI Safe Streets Task Force, which includes law enforcement officers from the FBI, Michigan State Police, Berrien County Sheriff's Department, Benton Harbor Department of Public Safety, Benton Township Police Department, Pokagon Band Tribal Police Department, and the Michigan Department of Corrections.
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San Bernardino County Woman Found Guilty of Obtaining Custody of Infant for the Purpose of Producing Sexually Explicit VideosRead the Press Release
LOS ANGELES – A San Bernardino County woman was found guilty today of federal child exploitation charges, including that she obtained custody of an infant for the purpose of producing sexually explicit videos.
Stefani Kasey Marie Stevens, 31, of Yucaipa, was found guilty of one count of obtaining custody of a minor with intent to produce child pornography, six counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. United States District Judge Virginia A. Phillips issued the verdicts today after a four-day bench trial that ended last week.
Judge Phillips scheduled an April 24, 2023 sentencing hearing, at which time Stevens will face a mandatory minimum sentence of 30 years in federal prison and a statutory maximum sentence of life imprisonment.
According to evidence presented at the trial, between August 2019 and November 2019, law enforcement received information that three Kik online messaging application accounts associated with Stevens uploaded child sexual abuse material. Law enforcement also determined that a Google account associated with Stevens had uploaded seven sexually explicit images of the same victim, who was under the age of 12.
In November 2019, federal agents executed a search warrant at Stevens’ home. During subsequent interviews, Stevens admitted to making sexually explicit videos of herself performing oral sex on the infant victim and that she took eight to 10 nude photographs with a second victim under the age of 12.
Following the interviews, law enforcement accessed Stevens’ online accounts and learned that, the day before creating the sexually explicit videos of the infant in May 2019, Stevens and a like-minded user had online discussions about how Stevens was excited to take custody of the infant the next day so that she could create videos of herself engaging in sexual activity with the victim.
Law enforcement also learned that, in addition to the sexually explicit videos of the infant created in May 2019, Stevens took sexually explicit photographs of the infant in June 2019 and of a second victim under the age of 12 in October and November 2018, all of which she stored in an online account, along with hundreds of other child pornography images and videos.
Homeland Security Investigations and the San Bernardino County Sheriff’s Department investigated this matter.
Assistant United States Attorneys Robert S. Trisotto and Sonah Lee of the Riverside Branch Office are prosecuting this case.
Rutland Man with Prior Felony Conviction Charged with Possessing Stolen FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Nicholas Karov, 38, of Rutland, Vermont was charged yesterday by criminal complaint for unlawfully possessing a stolen firearm and possessing a firearm as a convicted felon. Karov was arrested yesterday after he was released on conditions following an appearance in Vermont Superior Court on related Grand Larceny charges. Karov is scheduled to appear before United States Magistrate Judge Kevin J. Doyle on Wednesday, November 2, 2022.
According to court records, on October 28, 2022, Karov was observed standing on the driver’s side running board of the theft victim’s Ford F-250 truck. When the victim yelled at Karov, Karov fled. The victim chased and apprehended Karov, and found Karov to be in possession of the victim’s CMMG Banshee .45 caliber pistol. Karov has multiple prior felony convictions and is therefore prohibited from possessing firearms under federal law. Court records indicate that at the time of his October 28, 2022 arrest, Karov had approximately 26 pending charges in Vermont Superior Court, with numerous arrests over the past two years.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Karov remains presumed innocent until and unless he is convicted of a crime. Karov faces a maximum sentence of 15 years of imprisonment for unlawfully possessing a firearm as a convicted felon, and a maximum sentence of 10 years of imprisonment for unlawfully possessing a stolen firearm.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Rutland City Police Department and Homeland Security Investigations.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Karov is represented by the Office of the Federal Public Defender.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
Restaurateur Pleads Guilty to Large-Scale COVID-19 Pandemic Loan Fraud and Interstate ThreatsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that restaurateur BESIM KUKAJ pled guilty today to bank fraud conspiracy and making interstate threats. KUKAJ pled guilty before U.S. District Judge Andrew L. Carter.
U.S. Attorney Damian Williams said: “As he admitted in court today, Besim Kukaj conspired with others to try to secure more than $3.5 million dollars in government-backed loans intended for businesses devastated by the COVID-19 pandemic. Kukaj told banks that his restaurants operated with dozens of employees, when in fact he employed far fewer people. These brazen lies tricked banks into sending him approximately $1.5 million in loans. Even after his arrest, Kukaj continued to submit false loan applications. Kukaj now faces the possibility of a significant term of incarceration for these serious crimes.”
According to the allegations contained in filings in Manhattan federal court:
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 who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Small Business Administration’s Paycheck Protection Program (“PPP”). Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application.
From at least in or about April 2020 through at least in or about July 2020, KUKAJ, working with others, submitted applications for PPP loans to multiple banks on behalf of various restaurants KUKAJ or a relative of his owned. He did so on behalf of restaurants that were no longer operating or that had far fewer employees than were listed on the PPP loans. In total, KUKAJ and his co-conspirators applied for dozens of PPP loans, totaling approximately $3.9 million, from numerous financial institutions, using many different corporate entities, and they successfully received at least $1.5 million in PPP loans. KUKAJ was arrested in October 2020 and charged with bank fraud conspiracy and later indicted for the same charges in December 2020. He was released on pretrial release pursuant to an order that notified him of the potential effect of committing a criminal offense while on pretrial release.
In January 2021, however, KUKAJ filed another false loan application for one of the same restaurants he had previously filed a false application for in July 2020. The same month, KUKAJ also requested PPP loans for six businesses he owned and submitted false documentation about each of the six businesses. These January 2021 applications and requests were not funded by the banks to whom he submitted the false paperwork.
Separately, on November 6, 2019, at the urging of KUKAJ, a co-conspirator of his placed a telephone call, which traveled in interstate commerce, to a victim, during which call the co-conspirator threatened physical violence against the victim. KUKAJ instructed his co-conspirator to place this call because KUKAJ owed money to the victim.
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KUKAJ, 42, of New Jersey, pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of 40 years in prison, and one count of making interstate threats, which carries a maximum sentence of five years in prison. Under the terms of his plea agreement, KUKAJ also agreed to pay forfeiture in the amount of $1,500,000.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. KUKAJ is scheduled to be sentenced by Judge Carter on March 9, 2023, at 2:00 p.m.
Mr. Williams praised the outstanding work of FBI New York’s Balkans and Middle East Organized Crime Squad, as well as the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, and the New York State Liquor Authority for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Samuel L. Raymond and David R. Felton are in charge of the case.
Red Lion Man Sentenced for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 24, 2022, Waylon Hutcheson, age 22, of Red Lion, Pennsylvania, was sentenced to 12 months’ imprisonment by U.S. District Court Judge Christopher C. Conner for drug trafficking and firearms offenses.
According to United States Attorney Gerard M. Karam, Hutcheson pleaded guilty on October 26, 2021, to possession with intent to distribute marijuana and receipt or possession of a firearm made in violation of the National Firearms Act. The sentence is a result of an investigation into the sale of drugs from Hutcheson’s home. Following “controlled purchases” of marijuana from Hutcheson, a warrant was executed, and he was found in possession of marijuana, oxycodone, THC, U.S. Currency, and drug trafficking paraphernalia. Police also recovered three self-made 9mm handguns with no serial numbers, a .22 caliber long rifle, three silencers, and a 30-round magazine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant U.S. Attorney Johnny Baer prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Recidivist Fraudster Convicted at Trial of over $10 Million COVID-19 Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that earlier today a federal jury found ADEDAYO ILORI guilty of all six counts of an Indictment for his participation in a fraudulent scheme to obtain more than $10 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. The defendant was found guilty following a one-week trial before U.S. District Judge Mary Kay Vyskocil. The jury further found that ILORI committed these crimes while on pretrial release. Sentencing is currently scheduled for January 31, 2023, before Judge Vyskocil.
U.S. Attorney Damian Williams said: “Adedayo Ilori used the stolen identities of innocent victims to steal Government money that was set aside to help small businesses stay afloat during the COVID-19 pandemic. Ilori illegally profited from a national emergency. Making matters worse, he did so while on pretrial release in another serious criminal case brought by this Office. Thanks to the hard work of the Department of Justice-Office of Inspector General and the career prosecutors in this Office, a unanimous jury has found Ilori guilty of committing another fraud scheme.”
According to the Superseding Indictment and the evidence presented at trial:
From at least in or about August 2020 through at least in or about October 2021, ILORI and his co-defendant, Chris Recamier, engaged in a rampant COVID-19 loan fraud scheme. Utilizing false identities, sham tax records, and corporate documents, ILORI and Recamier successfully obtained more than $1 million and attempted to obtain more than $10 million through two loan programs of the U.S. Small Business Administration (“SBA”) designed to provide relief to small businesses during the COVID-19 pandemic, namely the Paycheck Protection Program ( “PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program. In particular, ILORI and Recamier applied for 14 PPP and EIDL loans. In applying for these loans, ILORI and Recamier claimed stolen identities of third parties and claimed full control of a number of companies, which they purported, cumulatively, employed more than 200 people and paid monthly salaries of more than $3.2 million in wages. In reality, they did not operate these companies. In submitting these applications, ILORI and Recamier, among other things, submitted falsified tax documents which were never actually filed with the Internal Revenue Service.
ILORI and Recamier transferred the majority of these stolen government funds toward cryptocurrency investments, the purchase of stocks, cash withdrawals, and personal expenses, including leasing luxury apartments and a Mercedes. The investment accounts were also opened by ILORI and Recamier in the stolen identities of third parties.
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 who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. The CARES Act also expanded the separate EIDL Program, which provides small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.
ILORI committed these offenses while facing charges in a separate case filed in the Southern District of New York involving fraud, identity theft, and money laundering in United States v. Ilori, 20 Cr 378 (LJL). As part of that case, ILORI was sentenced on March 3, 2022, to 63 months in prison by U.S. District Judge Lewis J. Liman in connection with a commercial loan fraud and bank bribery scheme.
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ILORI, 43, of Queens, New York, was convicted of: (1) major fraud against the United States, which carries a maximum sentence of 20 years in prison; (2) conspiracy to commit wire and bank fraud, which carries a maximum sentence of 40 years in prison; (3) wire fraud, which carries a maximum sentence of 40 years in prison; (4) bank fraud, which carries a maximum sentence of 40 years in prison; (5) aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison; and (6) conspiracy to commit money laundering, which carries a maximum sentence of 30 years in prison.
The maximum potential sentences in this case, which are increased by the jury’s finding that these crimes were committed while ILORI was on pretrial release, are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ILORI’s co-defendant, Chris Recamier, 59, of New York, New York, previously pled guilty to major fraud against the United States and was sentenced on October 17, 2022, by Judge Vyskocil to nine years in prison.
Mr. Williams praised the investigative work of the DOJ-OIG. Mr. Williams also thanked the U.S. Secret Service, the Drug Enforcement Administration, the New York City Police Department, the Federal Bureau of Investigation, and the Federal Aviation Administration for their assistance in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Juliana Murray, David R. Felton, and Daniel G. Nessim are in charge of the prosecution.
Rancho Cordova Man Pleads Guilty to Second Federal Charge for Being a Felon in PossessionRead the Press Release
SACRAMENTO, Calif. —Kevin Lester Wise, 68, of Rancho Cordova, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, a federal search warrant of Wise’s residence resulted in the discovery of a Ruger .22 caliber rifle and a silencer. Wise had previously attempted to unlawfully import another silencer from China. In 1990, Wise was convicted in Sacramento County for unlawful assault by an officer while he was serving as a deputy sheriff. In 2013, Wise was previously convicted in federal court in the Eastern District of California for a being a felon in possession of a firearm. As a convicted felon, Wise is prohibited from owning firearms, including silencers.
This case was the product of an investigation by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Wise is scheduled to be sentenced on March 7, 2023, by U.S. District Judge John A. Mendez. Wise faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Quad Cities Group Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
DAVENPORT, IA – Five people, all from the Quad Cities area, have now been sentenced to federal prison for their role as members of a large-scale methamphetamine trafficking organization in Davenport. Those sentenced as part of this drug conspiracy include:
• Theodore Thomas Browne, age 50, was sentenced to 20 years of imprisonment and five years of supervised release; • Karley Ann Smith, age 29, was sentenced to 20 years of imprisonment and five years of supervised release; • Donnie Wayne Robinson, age 36, was sentenced to 25 years of imprisonment and five years of supervised release; • Joshua Steven Ennis, age 40, was sentenced to 20 years of imprisonment and five years of supervised release; and
• Joshua John Paarmann, age 32, was sentenced to 420 months of imprisonment and five years of supervised release.In fall 2020, law enforcement identified eight individuals as members of a large-scale methamphetamine trafficking organization in Davenport. Paarmann and Robinson served as the conspiracy’s methamphetamine sources of supply. Robinson was arrested in November 2020 in possession of a firearm and approximately 40 grams of methamphetamine. Ennis was arrested in December 2020 in possession of a firearm and approximately 13 grams of cocaine. Smith was arrested in December 2020 in possession of more than 100 grams of methamphetamine. Paarmann was arrested in December 2020 in possession of more than 1,400 grams of methamphetamine, $5,800 of drug proceeds, a firearm, and numerous rounds of ammunition.
Paarmann, Lira, and Ennis were released from jail in early 2021. Ennis committed a burglary in which he stole two firearms. Law enforcement re-arrested Ennis in March 2021 in possession of three firearms, including the two stolen during the burglary. Browne recruited Paarmann and Lira to sell methamphetamine for him upon their release in February 2021. In March 2021, Paarmann and Nelson also made a trip to Colorado to transport methamphetamine back to Iowa for Browne. They were arrested upon their return to Scott County in possession of more than 400 grams of methamphetamine.
In total, the conspiracy was responsible for trafficking more than 2.5 kilograms of methamphetamine to the Quad Cities between July 2020 and March 2021.
Browne pleaded guilty on March 9, 2022; Smith pleaded guilty on March 22, 2022; Nelson pleaded guilty on March 31, 2022; Robinson pleaded guilty on April 12, 2022; Ennis pleaded guilty on May 9, 2022; and Paarmann was found guilty on May 25, 2022, following a jury trial.
In June 2022, co-defendant Chelsey Lira was sentenced to 180 months in prison. In August 2022, co-defendant Taylor Graeber was sentenced to 120 months in prison and Robert Nelson was sentenced to 168 months in prison.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department, Drug Enforcement Agency, Quad Cities Metropolitan Enforcement Group, Iowa State Patrol, and Scott County Sheriff’s Office investigated the case.
Production of Sexually Explicit Photos of Minor Females Leads to Lengthy Prison Sentence for Lafayette ManRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Jody Osmer, 38, of Lafayette, Louisiana, was sentenced today by United States District Judge David C. Joseph. Osmer received a sentence of 235 months (19 years, 7 months) in prison, followed by a lifetime of supervised release, for production of child pornography.
This investigation began when law enforcement officers with the National Center for Missing and Exploited Children (“NCMEC”) received a cyber tip regarding distribution of child pornography associated with Osmer. On April 13, 2021, law enforcement agents executed a search warrant at his residence in Lafayette and found him to be in possession of child pornography involving prepubescent minors. Osmer later admitted to agents that he had used social media to communicate with minor females in an effort to meet them in person and engage in sexual relations.
Through their investigation, agents learned that between October 2014 and January 2017, two minor females had communicated with Osmer via cell phone applications and had sent sexually explicit images of themselves via cell phone with Osmer at his request. In addition, Osmer admitted that he met one of the minor victims and engaged in sex with her. Osmer pleaded guilty to coercing a minor to engage in sexually explicit conduct and agreed that he did so with the purpose of producing a visual depiction of that conduct.
The case was investigated by the U.S. Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
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Philadelphia Contractor Sentenced to Prison for Bribing OSHA InspectorRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tony Ren, 59, of Philadelphia, PA, was sentenced to three months in prison, one year of supervised release, and was ordered to pay a $50,000 fine by United States District Court Judge Mark A. Kearney after being convicted of two counts of bribery.
In December 2021, the defendant was convicted at trial of attempting to bribe an Occupational Safety and Health Administration (OSHA) Compliance Safety and Health Officer in order to induce the official not to report safety violations at a Philadelphia construction site run by Ren, and to eliminate previous safety violations and corresponding fines. As detailed in the Indictment, in October 2017, the OSHA official conducted an inspection of a worksite on Arch Street in response to an imminent hazard report. During the inspection, the official observed numerous violations of OSHA standards including debris in passageways, electrical issues, holes in the floor, and gas tanks with broken pressure gauges. As the evidence presented at trial showed, on two separate dates in November 2017, Ren offered $1,500 cash bribes to the OSHA official in exchange for the official falsifying the inspection results, deleting previous violations from OSHA’s computer system, and agreeing not to report the violations so that the defendant could avoid the substantial penalties that would follow.
“OSHA inspections and standards exist for a reason: to prevent injuries and protect workers,” said U.S. Attorney Romero. “This defendant attempted to subvert this system of protections by bribing an official to look the other way on multiple workplace safety violations. This case should serve as a warning to all employers and contractors that our Office will investigate and prosecute fully this type of corruption.”
“Tony Ren paid bribes to an Occupational Safety and Health Administration (OSHA) Compliance Safety and Health Officer in order to induce the officer not to report safety violations at a Philadelphia, PA construction site operated by Ren, as well as to eliminate previous safety violations and their corresponding fines. We will continue to work with our law enforcement partners and OSHA to investigate those who attempt to undermine the workplace safety laws that exist to protect American workers,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Pharmacy Manager Sentenced to Probation for Obtaining Opiates by FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brian Thomas Badgley, 37, of Waterbury, Vermont was sentenced today by United States District Judge Christina Reiss to three years of probation after his conviction for obtaining controlled substances by fraud in violation of 21 U.S.C. § 843(a)(3).
According to court records and proceedings, while employed as a pharmacy manager of the CVS located in Berlin, Vermont, Badgley tampered with a bottle of Hydromorphone oral solution by removing a quantity for his own use, and then diluting the remaining contents of the bottle with liquid Benadryl and distilled water. Badgley then reattached the tamper seal on the bottle with clear tape and returned the diluted Hydromorphone oral solution to the inventory of the pharmacy, from which it could have been administered to pharmacy patients. Badgley also obtained Hydromorphone tablets and Hydromorphone solution through misrepresentations and fraud, specifically by entering false entries into the pharmacy ordering system, entering false pill counts into the inventory system, and diluting the oral solution.
According to court records and the public records of various state boards of pharmacy, Badgley stole hydromorphone tablets in 2015 as an employee of a pharmacy in Texas, and stole hydromorphone tablets in 2016 from a Vermont hospital at which he had been previously employed. These prior instances resulted in the State of Vermont’s Board of Pharmacy placing strict conditions on his license to practice pharmacy. Badgley’s license was fully reinstated in 2020, and then suspended on September 24, 2021 when the Board became aware of the new allegations of tampering and obtaining controlled substances by fraud.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the U.S. Food & Drug Administration’s Office of Criminal Investigations, the Drug Enforcement Administration, the Vermont Secretary of State’s Office of Professional Regulation, and the Berlin Police Department.
Badgley was represented by Robert Sussman, Esq. Assistant U.S. Attorney Jonathan A. Ophardt represented the United States.
Operation United Front Results in Guilty Plea to Illegal Gun Possession by Macon Man Previously Convicted of Voluntary ManslaughterRead the Press Release
MACON, Ga. – A Macon resident who was previously convicted and sentenced to ten years imprisonment for voluntary manslaughter in Bibb County pleaded guilty to a federal gun charge resulting from Operation United Front, an ongoing ATF-led investigation into illegal gun possession and drug distribution in Middle Georgia utilizing the National Integrated Ballistic Information Network (NIBIN).
Jeffery Maurice Willis, 44, of Macon, pleaded guilty to possession of a firearm by a convicted felon before U.S. District Judge Marc Treadwell on Oct. 27. Willis faces a maximum sentence of ten years imprisonment to be followed by three years of supervised release and a $250,000 fine.
“We will use every resource available to protect our communities from the threat of illegal gun possession,” said U.S. Attorney Peter D. Leary. “Working with law enforcement, our office will hold violent felons caught possessing or selling guns accountable at the federal level.”
“There is no initiative more critical to ATF than increasing the safety of our communities,” said ATF Special Agent in Charge Beau Kolodka. “Cases which result in the arrest and prosecution of violent criminals are fundamental to continuing this initiative while simultaneously showing criminals that ATF and its law enforcement partners will not falter in this mission.”
“Jeffery Willis is an example of misdeeds happening in the past affecting someone’s future. Mr. Willis’ prosecution should serve as a reminder that a firearm violence conviction as a young person has serious consequences when that person decides to take up arms later in life,” said Bibb County Sheriff David Davis.
According to court documents, ATF agents observed and recorded Willis sell a .44 revolver and five rounds of ammunition in Macon on May 6, 2021. Willis had been previously convicted of voluntary manslaughter in case number 97CR47052 in the Superior Court of Bibb County, Georgia, on Oct. 20, 1997. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bibb County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Will Keyes is prosecuting the case.
New Haven Man Sentenced to Prison for Crack Cocaine Distribution and Ammunition Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRIAN WARD, 30, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for narcotics distribution and ammunition possession offenses.
According to court documents and statements made in court, on July 21, 2021, law enforcement arrested Ward’s associate, Zaquawn Arrington, on a federal criminal complaint at Arrington’s New Haven residence. Ward used a bedroom at Arrington’s residence and was present at the time of Arrington’s arrest. A search of the residence revealed crack cocaine, a digital scale, and $2,075 in cash. During the search, investigators observed Ward throw a bag from the house. The bag contained crack cocaine packaged for distribution. Later that day, investigators conducted a court-authorized search of the residence and located in Ward’s bedroom a pistol box containing four ammunition magazines, and a box of 39 9mm rounds.
Ward was subsequently seen on surveillance video firing a gun at a group of individuals immediately after one of the individuals shot and killed his associate on August 8, 2021, in Hamden.
Ward’s criminal history includes state felony drug and assault offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Ward has been detained since August 18, 2021. On December 14, 2021, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of ammunition by a felon.
Arrington was convicted of possession with intent to distribute cocaine base.
This investigation was conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the New Haven Police Department and the West Haven Police Department. The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.
The case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr., through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Monkey smuggler pleads guiltyRead the Press Release
BROWNSVILLE, Texas - A 20-year-old Katy resident has pleaded guilty to illegally smuggling a spider monkey into the United States and fleeing from federal law enforcement, announced U.S. Attorney Jennifer B. Lowery.
Savannah Nicole Valdez pleaded guilty to smuggling wildlife into the United States without first declaring and invoicing it and fleeing an immigration checkpoint.
On March 21, Valdez attempted to enter the United States through the Gateway International Bridge in Brownsville. Law enforcement observed a wooden box with holes inside the vehicle which Valdez said contained beer she had purchased in Mexico.
However, when authorities opened the box, they discovered a live spider monkey and referred Valdez to secondary inspection. Valdez refused to comply with their instructions and instead sped off, running a traffic light and nearly colliding with officers and other vehicles.
Later that day, agents found multiple online postings advertising the sale of the spider monkey in the Katy and Houston areas with Valdez’s phone number listed in the advertisements.
On March 28, Valdez contacted law enforcement and turned herself in. She admitted to knowingly importing the monkey despite not declaring it and intentionally fleeing from law enforcement.
The monkey was ultimately recovered and placed with an animal shelter in the Central Florida area.
U.S. District Judge Rolando Olvera will impose sentencing Jan. 25. At that time, Valdez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
Homeland Security Investigations, Customs and Border Protection and the Fish and Wildlife Service conducted the investigation with the assistance of the Kingsville Police Department.
Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case.
Modernizing Medicine Agrees to Pay $45 Million to Resolve Allegations of Accepting and Paying Illegal Kickbacks and Causing False ClaimsRead the Press Release
Modernizing Medicine Inc. (ModMed), an electronic health record (EHR) technology vendor located in Boca Raton, Florida, has agreed to pay $45 million to resolve allegations that it violated the False Claims Act (FCA) by accepting and providing unlawful remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for federal incentive payments.
The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. In a complaint filed in conjunction with today’s settlement, the United States alleged that ModMed violated the FCA and the Anti-Kickback Statute through three marketing programs: First, ModMed solicited and received kickbacks from Miraca Life Sciences Inc. (Miraca) in exchange for recommending and arranging for ModMed’s users to utilize Miraca’s pathology lab services. Second, ModMed conspired with Miraca to improperly donate ModMed’s EHR to health care providers in an effort to increase lab orders to Miraca and simultaneously add customers to ModMed’s user base. Third, ModMed paid kickbacks to its current health care provider customers and to other influential sources in the healthcare industry to recommend ModMed’s EHR and refer potential customers to ModMed.
“Electronic health records serve a critical role in informing physician decision making, and it is therefore essential that health care providers select such technology free from the influence of improper financial inducements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Vendors of electronic health records will be held to the same standards of compliance that we expect of everyone who provides health care services.”
“Today’s settlement marks the fourth resolution that our office has achieved as we seek to root out fraud in the electronic health record technology field,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “It is imperative that medical providers be able to trust the health record systems with which they document important and sensitive patient information, and for too long electronic health record vendors have prioritized only sales. The government alleges that for years, ModMed, through a variety of schemes, engaged in illegal kickbacks that distorted both the EMR and pathology lab markets, in addition to providing its users with a deficient product. This resolution reflects the seriousness of the government’s allegations and the determination of the Department of Justice to restore integrity to the electronic health record field.”
As a result of this conduct, the government alleges that ModMed improperly generated sales for itself and for Miraca, while causing health care providers to submit false claims for reimbursement to the federal government for pathology services, and for incentive payments from the Department of Health and Human Services (HHS) for the adoption and “meaningful use” of ModMed’s EHR technology.
In January 2019, Miraca (now known as Inform Diagnostics) agreed to pay $63.5 million to resolve allegations that it violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for EHR systems and free or discounted technology consulting services. 2019 Press Release.
Additionally, under HHS’ EHR Incentive Programs, HHS offered incentive payments to health care providers that adopted certified EHR technology and met certain requirements relating to their “meaningful use” of that technology. Eligibility for incentive payments required health care providers to use certified EHR technology that, among other things, utilized certain standard vocabularies for drugs (RxNorm) and clinical terminology (SNOMED CT) in order to conduct certain transactions. The government’s complaint in intervention alleges that ModMed knew that its EHR did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under that program.
The settlement with ModMed resolves, in part, allegations in a lawsuit filed in the District of Vermont by Amanda Long, a former Vice President of Product Management at ModMed. The lawsuit was filed under the qui tam, or whistleblower, provisions of the FCA, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The qui tam case is captioned United States ex rel. Long v. Modernizing Med., Inc., No. 2:17-cv-179 (D. Vt.). The Act allows the government to intervene and take over the action, as it did in this case. As part of today’s resolution, Ms. Long will receive approximately $9 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Vermont. The FBI and the Department of Health and Human Services, Office of Counsel to the Inspector General provided investigative assistance.
The investigation and pursuit of this matter illustrate the government’s emphasis on combating health care fraud, including in the healthcare technology arena. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Assistant U.S. Attorney Lauren A. Lively for the District of Vermont and Trial Attorneys Kelley Hauser and Sarah Hill of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this matter.
The claims in the relator’s and the government’s complaints are allegations only and there has been no determination of liability
Modernizing Medicine Agrees to Pay $45 Million to Resolve Allegations of Accepting and Paying Illegal Kickbacks and Caused False ClaimsRead the Press Release
Modernizing Medicine, Inc. (“ModMed”), an electronic health record (“EHR”) technology vendor located in Boca Raton, Florida, has agreed to pay $45 million to resolve allegations that it violated the False Claims Act (FCA), 31 U.S.C. §§ 3729-3733, by accepting and providing unlawful remuneration in exchange for referrals and causing its users to report inaccurate information in connection with claims for federal incentive payments.
The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. In a complaint filed in conjunction with today’s settlement, the United States alleged that ModMed violated the FCA and the Anti-Kickback Statute through three marketing programs: First, ModMed solicited and received kickbacks from Miraca Life Sciences, Inc. in exchange for recommending and arranging for ModMed’s users to utilize Miraca’s pathology lab services. Second, ModMed conspired with Miraca to improperly donate ModMed’s EHR to health care providers in an effort to increase lab orders to Miraca and simultaneously add customers to ModMed’s user base. Third, ModMed paid kickbacks to its current healthcare provider customers and to other influential sources in the healthcare industry to recommend ModMed’s EHR and refer potential customers to ModMed.
As a result of this conduct, the government alleges that ModMed improperly generated sales for itself and for Miraca, while causing healthcare providers to submit false claims for reimbursement to the federal government for pathology services, and for incentive payments from the Department of Health and Human Services (HHS) for the adoption and “meaningful use” of ModMed’s EHR technology.
In January 2019, Miraca (now known as Inform Diagnostics) agreed to pay $63.5 million to resolve allegations that it violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for EHR systems and free or discounted technology consulting services. 2019 Press Release.
Additionally, under HHS’ EHR Incentive Programs, HHS offered incentive payments to healthcare providers that adopted certified EHR technology and met certain requirements relating to their “meaningful use” of that technology. Eligibility for incentive payments required healthcare providers to use certified EHR technology that, among other things, utilized certain standard vocabularies for drugs (RxNorm) and clinical terminology (SNOMED CT) in order to conduct certain transactions. The government’s complaint in intervention alleges that ModMed knew that its EHR did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under that program.
“Electronic health records serve a critical role in informing physician decision making, and it is therefore essential that healthcare providers select such technology free from the influence of improper financial inducements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Vendors of electronic health records will be held to the same standards of compliance that we expect of everyone who impacts the delivery of health care services.”
“Today’s settlement marks the fourth resolution that our office has achieved as we seek to root out fraud in the electronic health record technology field,” said United States Attorney for the District of Vermont, Nikolas P. Kerest. “It is imperative that medical providers be able to trust the health record systems with which they document important and sensitive patient information, and for too long electronic health record vendors have prioritized only sales. The government alleges that for years, ModMed, through a variety of schemes, engaged in illegal kickbacks that distorted both the EMR and pathology lab markets, in addition to providing its users with a deficient product. This resolution reflects the seriousness of the government’s allegations and the determination of the Department of Justice to restore integrity to the electronic health record field.”
The settlement with ModMed resolves, in part, allegations in a lawsuit filed in the District of Vermont by Amanda Long, a former Vice President of Product Management at ModMed. The lawsuit was filed under the qui tam, or whistleblower, provisions of the FCA, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The qui tam case is captioned United States ex rel. Long v. Modernizing Med., Inc., No. 2:17-cv-179 (D. Vt.). The Act allows the government to intervene and take over the action, as it did in this case. As part of today’s resolution, Ms. Long will receive approximately $9 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of Vermont. Investigative support and assistance were provided by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Counsel to the Inspector General.
The investigation and pursuit of this matter illustrate the government’s emphasis on combating healthcare fraud, including in the healthcare technology arena. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Lauren Almquist Lively and former Assistant U.S. Attorney Owen C.J. Foster of the United States Attorney’s Office for the District of Vermont and Trial Attorneys Kelley Hauser and Sarah Hill of the Civil Division’s Commercial Litigation Branch, Fraud Section.
ModMed Complaint ModMed Settlement Agreement
The claims in the Relator’s and the government’s complaints are allegations only and there has been no determination of liability.Michigan Man Sentenced to 60 Months in PrisonRead the Press Release
HAMMOND- Johnny Lamar Sawyer, 31 years old, of Southfield, Michigan, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to possessing with intent to distribute 500 grams or more of cocaine, announced United States Attorney Clifford D. Johnson.
Sawyer was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in the case, on or about August 17, 2020, Sawyer flew into Chicago’s Midway Airport with one suitcase. Later that day, law enforcement conducted a traffic stop in Porter County, Indiana, on a vehicle in which Sawyer was a passenger. A search of that vehicle resulted in the seizure of approximately 10 pounds of cocaine recovered from the suitcase.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Indiana State Police. This case was prosecuted by Assistant United States Attorney David J. Nozick.
Mexico, Mo., Man Involved in Police Chase that Ended in Multi-Vehicle Crash, Pleads Guilty to Illegal Firearms, Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Mexico, Mo., man who was in a vehicle that led officers on a high speed chase before crashing into several other vehicles pleaded guilty in federal court today to illegally possessing firearms and methamphetamine to distribute.
Myron Samare Mahaney, 23, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of possessing methamphetamine with the intent to distribute and one count of being a felon in possession of firearms.
A Missouri State Highway Patrol trooper attempted to stop a Nissan Rouge, in which Mahaney was a passenger, that was traveling 95 miles per hour on U.S. Highway 54 on March 14, 2022. The Nissan accelerated rapidly when the trooper turned on his lights and siren then drove onto U.S. Highway 50 in Jefferson City, traveling 107 miles per hour. The Nissan exited onto Dix Road and crashed into multiple vehicles that were stopped in traffic on southbound Dix Road.
Mahaney fled on foot from the vehicle but was taken into custody by Jefferson City police officers. Mahaney was carrying a crossbody bag that contained approximately 219 grams of methamphetamine, drug paraphernalia, a loaded Smith and Wesson 9mm semi-automatic handgun and a loaded Springfield .45-caliber semi-automatic handgun. He had $2,086 in cash in his front pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mahaney has a prior felony conviction for unlawful use of a weapon.
Under federal statutes, Mahaney is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Missouri State Highway Patrol and the Jefferson City, Mo., Police Department.
Mexican women plead guilty to smuggling balls of heroin in potato chip bagsRead the Press Release
LAREDO, Texas – Two women residing in Monterrey, Mexico, have admitted to their roles in importing nearly 1000 grams of heroin, announced U.S. Attorney Jennifer B. Lowery.
Maria Luisa Hernandez-Alanis, 41, and Tania Melissa Coutino-Hernandez, 40, admitted that on Sept. 4, they arrived at the Juarez-Lincoln Bridge Port of Entry in Laredo in a vehicle. They applied for entry into the United States by presenting B1/B2 tourist visas.
At secondary inspection, law enforcement discovered two yellow bags of potato chips inside of Coutino-Hernandez’s purse. The bags appeared to be sealed and unopened. However, the contents felt like a heavy ball. Further inspection revealed the bags contained heroin bundles weighing 983.9 grams.
The investigation revealed the pair were both aware of the drugs and were going to be paid $300 each to cross into the country with them. The co-conspirators planned on returning to Mexico with a large amount of cash.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Hernandez-Alanis and Coutino-Hernandez face up to 40 years in prison and a possible $5 million maximum fine.
Both Hernandez-Alanis and Coutino-Hernandez have been in and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Mexican citizen admits to smuggling a minor and fleeing law enforcementRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old Mexican man has pleaded guilty to attempting to smuggle undocumented aliens, announced U.S. Attorney Jennifer B. Lowery.
Luis Alberto Garcia-Quirino admitted to one count of transporting illegal aliens within the United States.
On June 28, law enforcement observed a black Honda Accord traveling North near La Gloria. At that time, the vehicle appeared to be riding low and moving at a slow rate of speed.
Authorities followed the vehicle and pulled up next to it. They saw multiple silhouettes shifting around in the rear passenger area. They further noticed Garcia-Quirino repeatedly turning around to speak to someone in the rear of the vehicle.
A registration check on the Texas license plate revealed the year of the vehicle did not match its description in the system. Law enforcement attempted to conduct a traffic stop. However, the car failed to yield and continued northbound. The vehicle then crossed intersections of two county roads and pulled over at the gate of La Rucia Ranch.
Authorities discovered nine individuals in the car including an unaccompanied minor. They were all found to be illegally present in the country.
As part of his plea, Garcia-Quirino admitted he illegally entered the United States by crossing the river near Camargo, Tamaulipas, Mexico. After he and others were taken to a stash house, Garcia-Quirino then drove the others further into the United States.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing Feb. 14, 2023. At that time, Garcia-Quirino faces up to five years in federal prison and a possible $250,000 maximum fine.
Garcia-Quirino has been and will remain in custody pending that hearing.
Border Patrol conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour is prosecuting the case.
Meridian Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man pled guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Patrick Terrell Lewis, Jr., 30, was found in possession of a firearm, a 9 mm pistol, in his vehicle by officers of the Lauderdale County Sheriff’s Office on January 7, 2021. Lewis has two prior felony convictions and was on probation at the time of this incident.
Lewis plead guilty to a violation of Title 18, United States Code, Section 922(g)(1) which criminalizes the possession of firearms by convicted felons. He is scheduled to be sentenced on February 15, 2023 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Los Angeles Man Sentenced to 20 Years in Prison for Heroin and Methamphetamine TraffickingRead the Press Release
HONOLULU – Jamil Jones, 39, was sentenced in federal court today by U.S. District Court Judge Derrick K. Watson to 20 years in prison for distributing and conspiring to distribute heroin and methamphetamine. Jones was charged in an indictment in August 2021 with three counts—drug trafficking conspiracy, distribution of fifty grams or more of methamphetamine, and distribution of 100 grams or more of heroin. Jones was convicted of the charges after a five-day jury trial in April 2022.
According to court documents and information presented in court, for at least a year, Jones conspired with Felix Thaxton, a resident of Honolulu, to send methamphetamine and heroin from California to Hawaii. On June 11, 2021, the Drug Enforcement Administration (DEA) executed a federal search warrant at a Waikiki apartment rented by Thaxton. The DEA seized methamphetamine, heroin, guns, and over $45,000 in U.S. currency. Thaxton was arrested and identified Jones as his drug supplier. Later that day, the DEA recovered a parcel containing approximately seven kilograms of heroin and two pounds of methamphetamine that Jones had sent to a Wahiawa residence connected with Thaxton.
On June 24, 2021, the DEA executed another search warrant at a residence in Los Angeles associated with Jones. The DEA found a vacuum sealer, vacuum seal bags and insulation board—items matching the contents of the June 11 drug parcel. The DEA also found two guns and ammunition. Shortly after the search warrant was executed, Jones was spotted in the area. He fled and led the DEA in a high-speed car chase on city streets and highways until the DEA ended their pursuit due to public safety concerns. However, Jones was found the following day hiding out at a motel in Desert Hot Springs, over 100 miles inland of Los Angeles, where he was arrested.
“Although methamphetamine continues to be at the forefront of illicit drug trafficking in Hawaii, as this case illustrates, there is also a demand for substantial quantities of other drugs like heroin,” said Clare E. Connors, United States Attorney for the District of Hawaii. “This substantial sentence is justified for trafficking in multiple illegal drugs in these quantities.”
“The DEA recognizes that methamphetamine and heroin continue to ravage many communities and families in Hawaii. As such, the DEA will continue to relentlessly partner with the U.S. Attorney’s Office and our state, local, and federal partners to bring methamphetamine and heroin traffickers like Jamil Jones to justice,” said Deputy Special Agent in Charge Anthony A. Chrysanthis.
DEA conducted the investigation resulting in the indictment, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Riverside County Sheriff’s Department. Assistant U.S. Attorneys Michael Albanese and Mohammad Khatib prosecuted the case.
Local man pleads guilty to hiding drugs in arcade gameRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Corpus Christi man has admitted to possession with intent to distribute more than 100 grams of heroin, announced U.S. Attorney Jennifer B. Lowery.
On April 1, authorities executed a search warrant at the residence of Jose Adame Jr. There, there found approximately 389.2 grams of black tar heroin, crack cocaine, a digital scale and $4,000 in a kitchen cabinet. They also found several bags of marijuana in a Ms. Pac-Man arcade gaming cabinet.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing Feb. 14, 2023. At that time, Adame faces up to 40 years in federal prison and a possible $5 million maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney Patrick Overman is prosecuting the case.
Local felon indicted for possession of firearm after shooting in north LaredoRead the Press Release
LAREDO, Texas – A 32-year-old man residing in Laredo has been charged with possession of a firearm as a convicted felon, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the one-count indictment against Cesar Javier Estrada. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.
According to the charges, on Oct. 6, law enforcement responded to a call reporting shots fired on the 800 block of Nafta Boulevard. Shortly after, they allegedly received a second call describing a person with a gunshot wound arriving at Doctor’s Hospital.
Authorities arrived at the hospital and determined the patient with the gunshot wound to be Estrada’s nephew, according to the charges. He and Estrada allegedly arrived together in the same vehicle. The charges further allege that Estrada’s car contained two pistols, spent shell casings and had numerous bullet holes in the exterior.
At the scene, law enforcement allegedly discovered two ounces of marijuana, shell casings and bullet fragments that matched the firearms found inside Estrada’s vehicle.
The charges allege Estrada has two prior felony robbery convictions in Webb County and one federal felony conviction for unlawful transportation of an alien in the Southern District of Texas. As such, he is prohibited from possession firearms or ammunition, according to the charges.
If convicted, Estrada faces a up to 15 years in prison and possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Little Rock Fentanyl Dealer Sentenced to 18 1/2 Years in PrisonRead the Press Release
LITTLE ROCK—The final defendant in a 17-person indictment charging a central Arkansas narcotics distribution ring has been sentenced to more than 18 years in prison, concluding the case of a large-scale drug conspiracy that involved multiple kilograms of fentanyl. On Tuesday, Darrell Walls, a/k/a/ “Shawn”, 35, of Little Rock, was sentenced to 223 months in the Bureau of Prisons, to be followed by five years of supervised release. United States District Judge Brian S. Miller sentenced Walls and all other defendants in this case.
Walls was originally indicted along with 16 others on October 2, 2019. On August 25, 2021, Walls pleaded guilty to conspiracy to possess with intent to distribute and distribute between 1.2 and 4 kilograms of fentanyl, a synthetic opioid that is 50-100 times stronger than morphine and potentially deadly in even tiny amounts when ingested illicitly and without a doctor’s supervision.
When he pleaded guilty, Walls admitted that he was part of a conspiracy along with other large-scale narcotics dealers like co-defendants Desmond Kelley, Javion Robinson, and Jaylon Livingston to distribute fentanyl in the greater Little Rock area. The group was responsible for distributing multiple kilograms of fentanyl, in gram-to-ounce amounts, to dozens of identified customers. Walls also completed eight different controlled sales of fentanyl to individuals working with law enforcement.
Every defendant in the case pleaded guilty, with sentences ranging from probation to more than 18 years in prison. In addition to Walls’ 223-month sentence, other sentences of key members of the conspiracy include Kelley receiving 211 months (151 months in this case, consecutive to 60 months in a separate case), Livingston 151 months, Robinson 120 months, Dewon Williams 130 months, Ricky Hinton 110 months, and Robert Johnson 90 months. There is no parole in the federal system.
Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing. The case was investigated by the Drug Enforcement Administration with assistance from the North Little Rock Police Department and Sherwood Police Department. Assistant United States Attorney Chris Givens prosecuted the case.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Knoxville Man Sentenced to 5 Years for Multi-State Burglary Spree of Sports Cards BusinessesRead the Press Release
LEXINGTON, Ky. – Jason L. Cates, 38, was sentenced in federal court on Monday to five years in prison by Chief U.S. District Judge Danny C. Reeves for conspiring to transport stolen sports cards and other sports merchandise across state lines.
According to his plea agreement, from August 19, 2021, to October 14, 2021, Cates burglarized multiple sports cards businesses in Kentucky, Tennessee, Michigan, and Georgia, taking thousands of dollars of sports cards and other merchandise and transporting it across state lines back to his home in Knoxville, Tennessee. He then sold the cards to buyers he found online and kept the proceeds for his own financial benefit.
In addition to his prison sentence, Cates was also ordered to pay $289,266 in restitution and $50,000 as part of a forfeiture money judgment.
Under federal law, Cates must serve 85 percent of his prison sentence. Upon his release, his three-year term of supervision by the U.S. Probation Office will commence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI), Louisville Field Office; Paul Noel, Chief of the Knoxville Police Department; Frank McCann, Chief of the Cartersville, Georgia Police Department; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, the Knoxville Police Department, the Cartersville Police Department and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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KC Man Sentenced to 18 Years for Sex Trafficking Four VictimsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a sex trafficking conspiracy that involved four victims, including two teenagers.
Cory Lavell Smith, also known as “Fatz,” 28, was sentenced by U.S. District Judge Howard F. Sachs to 18 years in federal prison without parole. The court also sentenced Smith to 20 years of supervised release following incarceration.
On March 15, 2022, Smith pleaded guilty to one count of conspiracy to engage in sex trafficking and one count of sex trafficking.
Smith admitted that he participated in a sex-trafficking conspiracy from Aug. 1, 2018, to Jan. 9, 2019, that caused four victims to engage in prostitution. One of the victims was 14 years old, and another victim was 16 years old.
On Jan. 7, 2019, Homeland Security Investigations agents in Kansas City, Mo., received a tip regarding a 14-year-old female (identified in court documents as V1) whose whereabouts were unknown. She had previously been apprehended in Blue Springs, Mo., after a traffic accident involving a stolen vehicle. She was taken to Children’s Mercy Hospital, where she reported that she had been forced to have sex for money. The hospital gave her personal belongings, including her cell phone, to federal agents. Agents used the phone to identify a residence in Jackson, Mississippi, where they encountered a second, 16-year-old, victim (identified in court documents as V2). The second victim assisted agents in locating the first victim at a residence in Kansas City, Mo.
Agents set up surveillance at the Kansas City apartment building and soon saw V1 leave the residence and get into a vehicle with Smith, who was driving. When law enforcement officers identified themselves, Smith fled in the vehicle at a high rate of speed. Agents pursued the vehicle, which was ultimately brought to stop. Smith was arrested and V1 was taken into protective custody.
V1 identified Smith as her pimp. She told investigators that Smith groomed her into the commercial sex trade by befriending her, partying with her, buying her things, and educating her about the commercial sex trade. Smith provided her with drugs and deprived her of food to gain her compliance. V1 said she was paid $150 for a sex act, but Smith took all but $10 or $20 of that. Smith advertised V1 for commercial sex on various websites. She normally saw two or three men per day, and Smith drove her to local motels to conduct commercial sex acts. Smith kept V1 at the apartment in Kansas City and would lock the door to prevent her from leaving. She provided investigators with the names of two additional victims who had been trafficked by Smith.
V2 told investigators that Smith was nice at first but became more aggressive and threatening as time went on. V2 described an event where Smith almost “choked her out” over a $1,000 commercial sex fee. V2 said Smith continually threatened her, recounting specifically that he would try to whip them (Vl and V2) with extension cords or belts. V2 said she and Vl wanted to leave, but he threatened they could not get out of the business unless they died. V2 also told investigators that Smith would not provide food to the girls unless they completed commercial sex acts, and forced the girls to use drugs, which kept them compliant and awake all night.
Co-defendant Kenyashae Monae Roach, 29, of Kansas City, Mo., pleaded guilty on March 11, 2022, to transportation for illegal sexual activity and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Homeland Security Investigations and the Lenexa, Kan., Police Department.
Juárez Cartel leader sentenced to prison for drug traffickingRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Luis Carlos Vásquez-Barragán, 51, of Nicolás Bravo, Chihuahua, Mexico, was sentenced to prison for possession with intent to distribute at least 50 kilograms but less than 100 kilograms of marijuana.
Vásquez-Barragán was arrested in Mexico in 2010 and extradited to the United States in 2020. He pleaded guilty on May 13, 2022. In his plea agreement, Vásquez-Barragán admitted that between March 2005 and September 2008 he imported at least 50 kilograms of marijuana into the United States on several occasions, totaling over 1,000 kilograms. Six of those shipments were seized by law enforcement in the District of New Mexico, totaling over 965 kilograms, as well as $302,507 in U.S. currency.
On Oct. 17, the court sentenced Vásquez-Barragán to 17 years and one month in prison. On Oct. 27, an addendum to the plea agreement was filed acknowledging that Vásquez-Barragán already had served nine years, five months and seven days of incarceration in Mexico on a related case while awaiting extradition to the United States. Pursuant to the addendum to the plea agreement, the Court imposed a sentence of seven years and seven months in prison, beginning from the date of his extradition to the United States.
The Drug Enforcement Administration investigated this case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Green Reaper investigation with assistance from the U.S. Marshals Service (USMS) and the Mexican Federal Police. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Justice Department’s Office of International Affairs worked with USMS and law enforcement partners in Mexico to secure the arrest and extradition of Vásquez-Barragán to the United States. Assistant United States Attorneys Elaine Ramirez, Steve Kotz and Sean Sullivan and U.S. Attorney Uballez prosecuted the case.
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Justice Department Seeks Forfeiture of Property Used in Attacks on Planned Parenthood and Federal BuildingRead the Press Release
KNOXVILLE, Tenn. — On Sept. 26, 2022, the Justice Department filed a civil complaint seeking the forfeiture of a sedan, a pickup truck, and one firearm alleged to have been utilized in a series of attacks by Mark Thomas Reno, formerly of Jefferson City, Tennessee.
According to court documents, it is alleged that on Jan. 22, 2021, Reno utilized a sedan and a shotgun to fire an incendiary round into the entrance to the Planned Parenthood – Knoxville, Tennessee, Health Center (the Center); on Dec 31, 2021, Reno utilized a pickup truck to set fire to the Center, resulting in the Center burning down; on June 18, 2022, Reno utilized the same pickup truck and a .22 caliber rifle with an illegal suppressor to shoot the windows at the John J. Duncan Federal Office Building in downtown Knoxville; and again on July 3, 2022, Reno utilized the same sedan and the same .22 caliber rifle to shoot the windows at the John J. Duncan Federal Office Building in Knoxville. The complaint seeks the forfeiture of both vehicles and the firearm used during the shootings on June 18, 2022, and July 3, 2022.
The FBI arrested Reno on July 18, 2022. He was released from custody for health reasons on Aug. 14, 2022, and passed away on Aug. 15, 2022.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee announced the complaint.
The FBI, ATF and U.S. Marshals Service investigated the criminal case, with substantial assistance from the Knoxville Fire Department. Assistant U.S. Attorney Casey T. Arrowood for the Eastern District of Tennessee and Trial Attorney Kyle Boynton of the Criminal Section of the Justice Department’s Civil Rights Division prosecuted the criminal case.
Assistant U.S. Attorney Arrowood is representing the United States in the civil forfeiture action.
The claims made in the civil complaint are allegations only, and there has been no determination of liability.
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Justice Department Awards Nearly $105 Million to Protect Children from Exploitation, Trauma and AbuseRead the Press Release
The Department of Justice’s Office of Justice Programs (OJP) today announced grant awards totaling almost $105 million to protect children from exploitation, trauma and abuse, and to fund improvements in the judicial system’s handling of child abuse and neglect cases.
“The promise of a bright future for our children requires us to work closely with our partners across the country, and across all levels of government, to keep our kids safe,” said OJP Deputy Assistant Attorney General Maureen A. Henneberg. “Many of our most critical investments are in programs that combat child exploitation and abuse and help find missing children, and we are proud to support the dedicated professionals who are performing this vital work.”
These awards will provide law enforcement officials, child advocates and service providers the means to protect children from violence, abuse and sexual exploitation. Funds will help develop, enhance and strengthen investigative and trauma-informed services to assist youth, while supporting robust training and technical assistance to ensure that professionals working with impacted young people have the tools they need to be successful.
“Children should be allowed to live, grow, learn and thrive in environments that are supportive and nurturing, but many are deprived of that opportunity by threats to their health and safety,” said Administrator Liz Ryan of OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). “By delivering these resources to the professionals who devote their careers and lives to protecting children, we are making good on our commitment to the well-being of America’s young people.”
Grants from OJP’s OJJDP are distributing millions of dollars to local, state and Tribal jurisdictions throughout the United States, the U.S. territories and the District of Columbia to support child protection efforts.
Below is a list of programs designed to protect children from exploitation, trauma and abuse, and to fund improvements in the judicial system’s handling of child abuse and neglect cases. Descriptions of individual awards can be found by clicking on the links.
- OJJDP is awarding $6.2 million under the Strategies To Support Children Exposed to Violence Initiative, which provides funding for communities to develop coordinated and comprehensive community-based approaches to help children and their families who are exposed to violence build resilience and prevent future youth violence and delinquency. An additional $715,087 will support training and technical assistance.
- OJJDP is awarding $38.7 million to the National Center for Missing & Exploited Children (NCMEC) to enable the Center’s operations and provide support, technical assistance and training to help law enforcement locate and recover missing and exploited children.
- Another $6 million is being awarded to NCMEC’s National Resource Center and Clearinghouse (NRCC) as part of an interagency agreement between OJJDP and the U.S. Secret Service. The NRCC helps prevent child abduction and sexual exploitation, and provides training and technical assistance to victims, their families and the professionals who serve them.
- OJJDP is awarding $4.4 million to support the National AMBER Alert Training and Technical Assistance Program to help the AMBER Alert network improve law enforcement’s response to abducted children and encourage public participation in their recovery.
- OJJDP will award $31.2 million under the Internet Crimes Against Children Task Force Program to conduct forensic examinations and to investigate and prosecute technology-facilitated child sexual exploitation throughout the United States. An additional $3.6 million under the Internet Crimes Against Children Task Force National Training Program will support training to Internet Crimes Against Children task forces and affiliated federal, state and local law enforcement and prosecutorial agencies in the areas of investigation, forensics, prosecution, community outreach, officer wellness and capacity building. Additionally, $3 million under the Strengthening ICAC Technological Investigative Capacity Program will help increase the technological investigative capacity and associated training of law enforcement, prosecutors and other professionals nationwide to combat child sexual abuse material and online child sexual exploitation, including cases of child sex trafficking.
- OJJDP is awarding $2.6 million under its Supporting Effective Interventions for Youth With Problematic or Illegal Sexual Behavior Initiative, which provides funding to communities to develop intervention and supervision services for youth with problematic or illegal sexual behavior, and to provide treatment services for their victims and families and caregivers.
- OJJDP is awarding $5 million under the Victims of Child Abuse Act Regional Children’s Advocacy Centers Training and Technical Assistance Program to support four regional centers that enhance and support the development, expansion and continuous quality improvement of multidisciplinary teams, local children’s advocacy centers and state chapter organizations responding to child abuse and neglect cases. Additionally, $750,000 is being awarded under its Victims of Child Abuse Act Tribal Children’s Advocacy Centers Training and Technical Assistance Program to support federally recognized Tribes and Alaska Native communities in improving investigative responses and treatment services for victims of child abuse and their families by developing coordinated and comprehensive community-based approaches.
- OJJDP is awarding $2.7 million under the Victims of Child Abuse Act Training and Technical Assistance for Child Abuse Prosecutors Program, which will fund a national training and technical assistance program for attorneys who are involved in the criminal prosecution of child abuse to enhance the effectiveness of the investigation and prosecution of such crimes.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and strengthen the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Awards More Than $136 Million to Support Youth and Reform the Juvenile Justice SystemRead the Press Release
The Department of Justice’s Office of Justice Programs today announced awards totaling more than $136 million to reform state and local juvenile justice systems, provide youth violence prevention and intervention services, support mentoring programs and reentry services for young people and their families, meet the needs of vulnerable youth and study outcomes for justice-involved youth.
“The path to durable and sustainable community safety solutions, and ultimately to a just and equitable society, includes evidence-informed strategies that support youth and steer them away from arrest and incarceration when possible,” said OJP Principal Deputy Assistant Attorney General Amy L. Solomon. “By investing in reforms to the juvenile justice system, providing mentors for youth and helping young people find a path forward, we are helping the next generation claim a future filled with opportunity and hope.”
The grants announced today, administered by OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) and National Institute of Justice (NIJ), support a range of programs and activities designed to meet the needs of youth who come into contact or are at risk of contact with the justice system. Funding supports mentoring; youth violence prevention strategies; juvenile indigent defense programs; treatment for youth leaving foster care; and services for girls in the justice system, Alaska Native youth and LGBTQI+ and Two-Spirit youth.
Grants under OJJDP’s Title II program also support state-wide measures to protect youth who are in the care of state juvenile justice systems, help keep them safe and prepare them for successful reentry upon release. Three research grants from NIJ will estimate and examine outcomes for youth with co-occurring substance use and mental health disorders and outcomes associated with youth who receive legal representation.
“The road to a more humane and effective juvenile justice system begins with a collective commitment to keeping young people out of the system altogether, by intervening early with youth who are vulnerable to system involvement and then working to guarantee that the system operates fairly and is supportive of their growth and development,” said OJJDP Administrator Liz Ryan. “These investments deliver on a pledge to put youth first and to make contact with the system rare, fair and beneficial for those it is intended to serve.”
A recent analysis of 2020 data from OJJDP and NIJ revealed that youth arrests for violent crime were down 78% from their peak in 1994. It found that people aged 17 and younger accounted for just 7% of all arrests for violent crime. Administrator Ryan has outlined three priorities designed to build on these successes and continue the trend away from youth involvement in the juvenile justice system: treating children as children; serving them in their homes, with their families and in their communities; and opening opportunities for system-involved youth. Each of these priorities is guided by a commitment to racial equity and to hearing directly from youth and families impacted by the justice system about their needs.
Below is a list of awards being made to support youth and reform the juvenile justice system. Descriptions of individual awards can be found by clinking on the links.
- OJJDP is awarding $44.6 million to support the Title II Formula Grant Program, which supports state and local delinquency prevention and intervention efforts and juvenile justice system improvements.
- OJJDP is awarding $2.4 million under its Juvenile Justice System Reform and Reinvestment Initiative to support states' implementation of innovative and/or research-based, data-informed recidivism-reduction policies, practices and programs. An additional $1 million will support training and technical assistance.
- OJJDP is awarding $1.1 million under the Youth Violence Prevention Program, which supports the development and implementation of youth violence prevention strategies for middle and high school age youth and/or youth with multiple risk factors for violence.
- OJJDP is awarding $43 million under its National Mentoring Programs Initiative and an additional $26.3 million under the Multistate Mentoring Programs Initiative, both of which support the implementation and delivery of mentoring services to youth who are at risk for delinquency, victimization and juvenile justice system involvement. An additional $2.7 million will fund the National Mentoring Resource Center to enhance the capacity of mentoring organizations to develop, implement and expand effective mentoring practices across the nation.
- OJJDP is awarding $2.5 million under the Enhancing Juvenile Indigent Defense Initiative, which is designed to ensure that youth involved in the juvenile justice system have access to high-quality legal representation and to resources that address the collateral consequences of justice system involvement.
- OJJDP is awarding $3.9 million under the Reducing Risk for Girls in the Juvenile Justice System Program, which addresses the needs and challenges of girls who come into contact with the juvenile justice system.
- OJJDP is awarding $150,000 under the Juvenile Justice Emergency Planning Demonstration Program for Juvenile Justice Residential Facilities, which supports emergency planning for state, local and tribal juvenile justice residential facilities.
- OJJDP is awarding $1 million to create the National Resource Center for Justice-Involved LGBTQ+ and Two Spirit Youth, which will provide training, technical assistance and other resources to juvenile justice practitioners to assist them in meeting the needs of justice-involved LGBTQI+ and Two-Spirit youth.
- OJJDP is awarding $1 million under the Alaska Native Youth Training and Technical Assistance Project, which will establish a regional network of partnerships to develop strategies that support Alaska Native youth's cultural needs.
- OJJDP is awarding $200,000 under its Arts Programs for Justice-Involved Youth Initiative, which will support high-quality arts programs for justice-involved youth to reduce juvenile delinquency, recidivism and/or other problem and high-risk behaviors.
- OJJDP is awarding $3.6 million under the Supporting Vulnerable At-Risk Youth and Youth Transitioning Out of Foster Care Program, which supports the establishment of pilot demonstration programs to develop, implement and build replicable treatment models for residential-based innovative care, treatment and services. An additional $827,000 will be awarded to provide training and technical assistance.
- OJJDP is awarding $2.2 million under its Family Based Alternative Sentencing Program, which supports states and communities as they develop and implement effective alternative sentencing programs for parents/primary caregivers in the criminal justice system to improve child, parent and family outcomes.
- NIJ is awarding $1.3 million to support Research on Juvenile Justice Topics, to examine prevalence of and outcomes for youth with co-occurring substance use and mental health disorders and to study outcomes associated with youth defense delivery systems.
In addition to the awards listed above, OJJDP separately awarded more than $18 million in grants to support youth returning from confinement facilities, meet the needs of incarcerated parents and their minor children and fund alternative sentencing programs for parents and primary caregivers in the justice system. Those grants were part of nearly $100 million in OJP investments aimed at reducing recidivism and supporting reentry.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and strengthen the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Joliet Man Sentenced to Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, IA – Timothy Allen Smith, age 32, of Joliet, Illinois was sentenced on Wednesday, October 26, 2022, to 144 months in prison following his guilty plea to Conspiracy to Distribute at Least 50 Grams of Actual Methamphetamine and Distribution of 50 grams and more of Methamphetamine.
According to court documents, Smith was identified as a member of a conspiracy trafficking large amounts of “ice” methamphetamine coming from Arizona. Smith distributed methamphetamine to other drug dealers in the Clinton and Davenport, Iowa area. Further investigation revealed that Smith also resided in the same house as one of his methamphetamine suppliers, Mario Moreno, who was also charged as part of this conspiracy investigation. In September 2019, Moreno, age 34, of Savanna, Illinois, received a 168-month sentence. Others sentenced as part of this drug conspiracy include:
• In April 2019, Flemming Lashae Lewis, age 39, of Clinton, was sentenced to 230 months of imprisonment; • In April 2019, Charles Edward Lane III, age 34, of Clinton, was sentenced to 240 months of imprisonment, and
• In August 2019, Antonio Gipson, age 48, of Clinton, was sentenced to 210 months imprisonment.United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Division of Narcotics Enforcement and the United States Drug Enforcement Administration.
Jefferson City Man Charged with Heroin TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was charged in federal court today with illegally possessing heroin to distribute.
Tremaine Davol Bell, 41, was charged in a criminal complaint filed in the U.S. District Court in Jefferson City with one count of possessing heroin to distribute. Bell remains in federal custody pending a detention hearing scheduled for Thursday, Nov. 3.
According to an affidavit filed in support of the federal criminal complaint, investigators received information that Bell was utilizing a storage unit at 311 Ellis Boulevard in Jefferson City to store a large quantity of heroin. Bell was seen leaving the storage facility at approximately 10:32 a.m. on Monday, Oct. 31, driving a Dodge Avenger. A Jefferson City police officer attempted to conduct a traffic stop as Bell drove away from the storage facility, but Bell immediately pulled into a gas station parking lot and fled on foot. The officer chased Bell and was able to take him into custody on Christy Drive.
The officer searched Bell and found $1,210 in cash, in mostly $20 bills, in his pocket. A police dog alerted to the driver’s side door of Bell’s car. Officers searched the vehicle and found a marijuana blunt and a Glock 9mm handgun.
Officers also searched Bell’s storage unit and found approximately 582 grams of heroin, three additional handguns – two of which were reported stolen – and $29,988 in cash.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Cole County, Mo., Sheriff’s Department, and the MUSTANG Drug Task Force.
Jacksonville Armed Meth Trafficker Sentenced in Federal CourtRead the Press Release
RALEIGH, N.C. – Justin Tyshawn Pickett, 30, of Jacksonville was sentenced on November 1, 2022, to 180 months in prison and 60 months supervised release for trafficking crystal methamphetamine and possessing a firearm in furtherance of drug trafficking. On April 12, 2022, Pickett pleaded guilty to the charges.
According to court documents and other information presented in court, Pickett was responsible for trafficking at least 40 grams crystal methamphetamine, 907 grams of methamphetamine, and 470 milligrams of oxycodone from June 2019 to March 18, 2021. At the time of his arrest on March 18, 2021, Pickett possessed a loaded 9 mm handgun, marijuana, oxycodone, a fentanyl analogue, heroin, crack cocaine, baggies, a digital scale, and $2,470 in cash. At sentencing, Judge Boyle considered Pickett’s five prior state felony convictions (including breaking and entering, felon in possession of a firearm, and drug possession) and noted the fact that Pickett was wearing a probation ankle monitor during his sale of 40 grams of crystal meth as a factor in his sentence.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Jacksonville Police Department, the Onslow and Duplin County Sheriffs’ Offices, and the ATF Wilmington Resident Office investigated the case with assistance from the N.C. Probation Department. Assistant U.S. Attorney Dennis M. Duffy prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-CR-00018-BO.
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Iowa City Man Sentenced to Federal Prison for Human Trafficking ChargesRead the Press Release
DAVENPORT, Iowa – An Iowa City man and Zambia native, Kachimbe Mukanzu, also known as Kash, was sentenced on Wednesday, October 26, 2022, to 264 months in prison for Conspiracy to Engage in Sex Trafficking by Force, Fraud, and Coercion and Felon in Possession of a Firearm. Following his imprisonment, Mukanzu was ordered to serve five years of supervised release.
According to court documents, Kachimbe Mukanzu, age 35, recruited several young women and sexually exploited them by force, fraud and coercion. Mukanzu helped post advertisements through Backpage and various other sites where he would set up profiles for the victims advertising sex acts for money. Mukanzu promised the victims things of value and glamorized the lifestyle to lure them into performing commercial sex acts and in return he profited. Mukanzu provided the victims drugs so that they could work around the clock. On multiple occasions in 2018, Mukanzu drove the victims to different states for the purpose of sex trafficking. On February 4, 2022, Mukanzu pleaded guilty to the charges.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation and the Iowa City Police Department investigated the case.
Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances. Individuals who purchase sex from minors or from those who are otherwise exploited for commercial sex are also subject to prosecution for sex trafficking under federal law, if they knew or were in reckless disregard of the fact that they were under the age of 18, or that force, fraud, or coercion was used.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Iowa City Man Sentenced to Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – An Iowa City man and India native, Sameer Chandulal Patel, age 30, was sentenced on Friday, October 28, 2022, to 210 months in prison for receipt and distribution of child pornography. Following his imprisonment, Patel was ordered to serve five years of supervised release, unless he is deported from the United States.
According to court documents, a Cybertip was received from a social media application indicating that child pornography had been uploaded to their site. Further investigation revealed that Patel, while living in Iowa City, had distributed, received, and possessed over 18,000 images and 14,000 videos containing child pornography from 2016 to 2021. On June 17, 2022, Patel plead guilty to the charge.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation and the University of Iowa Department of Public Safety investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Indiana County Sex Offender Pleads Guilty to Possessing of Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH, PA - A resident of Indiana County, Pennsylvania, pleaded guilty in federal court to a charge of Possession of Material Depicting the Exploitation of Minors, United States Attorney Cindy K. Chung announced today.
Jeffrey Allen Sink, 56, formerly Commodore, PA, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.
The Court was advised that in February of 2018, as a result of an ongoing investigation conducted by Homeland Security Investigations, HSI Pittsburgh was advised that Mr. Sink, who was a convicted sex offender, was obtaining child sexual abuse material from a mobile communication application. On March 1, 2018, investigators spoke with Mr. Sink, who admitted that he utilized the internet to obtain child sexual abuse material. Mr. Sink gave agents permission to look at his electronic devices, including a cellphone, which were on his person or in the truck that he had been driving when he arrived at the residence that day. Investigators located videos and images of child sexual abuse material, which included toddlers and other prepubescent minors engaged in sexual acts with adults.
Judge Fischer scheduled sentencing for Feb. 27, 2023, at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000.00, 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 Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations led investigation of this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Independence Man Attempted to Flee with Officer in the Backseat, Sentenced for Illegal Firearms and Heroin TraffickingRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man who attempted to flee in a stolen vehicle while an officer in the back seat was attempting to get him out of the car was sentenced in federal court today for illegally possessing firearms and heroin to distribute.
Hussein Ali, 30, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On March 17, 2022, Ali pleaded guilty to possessing heroin with the intent to distribute and to being a felon in possession of firearms. Ali admitted that he was in possession of heroin and in possession of an FN Herstal 9mm semi-automatic pistol and a Canik 9mm semi-automatic pistol.
Kansas City, Mo., police officers were investigating a stolen car on Nov. 26, 2021, when they arrived at the parking lot of the Marriott Hotel, 3950 N. Mulberry Drive in Kansas City. Ali appeared to be asleep in the driver’s seat of the silver 2020 Nissan Altima. Officers were unable to wake him up, so an officer opened the driver’s side door and attempted to remove Ali from the vehicle. As the door was opened, Ali woke up and physically resisted the officer. A second officer entered the drive’s side rear passenger door to assist. Ali placed the car into drive and drove out of the parking lot, with the officer still in the rear passenger’s seat.
As Ali fled, he struck a parked police patrol car. Ali struggled with the officer in the back seat, at one point biting the officer’s hand. The officer was able to put the vehicle into park, causing it to come to an abrupt stop near the parking lot’s exit. Ali got out of the car but refused to comply with officers’ commands and continued to pull away from officers. An officer deployed his taser, which struck Ali in the chest but did not have an effect. Ali was taken to the ground and handcuffed.
Officers searched Ali and found the two pistols in a cross-body “fanny pack” style bag wrapped around his torso. The Canik pistol had been reported as stolen. Officers also found a container nearby that contained black tar heroin. Inside the vehicle, officers found approximately 13.3 grams of heroin, approximately 2.9 grams of suspected methamphetamine, and approximately 5.4 grams of suspected crack cocaine in the center console. Officers found firearm magazines and live ammunition in the trunk of the car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ali has three prior felony convictions for tampering with a motor vehicle, as well as prior felony convictions for possession of a controlled substance, resisting a lawful stop, and domestic assault.
This case was prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hudson Physician and Ohio Pharmaceutical Rep Plead Guilty to Roles in Prescription Drug Kickback ConspiracyRead the Press Release
AKRON - Deepak Raheja, 66, of Hudson, Ohio, and Frank Mazzucco, 44, of Dublin, Ohio, pleaded guilty on Monday, Oct. 31, 2022, to their roles in a pharmaceutical kickback conspiracy in which Raheja, a licensed Ohio physician, wrote prescriptions for a drug to patients that did not have the condition in exchange for money and other items of value.
Raheja and Mazzucco both pleaded guilty to one count of conspiracy to solicit, receive, offer and pay health care kickbacks before U.S. District Judge Sara Lioi.
According to court documents, Raheja was a physician who specialized in psychiatry and neurology, practicing in Cleveland, Ohio. Mazzucco was employed by Avanir Pharmaceuticals as a regional business manager tasked with supervising pharmaceutical sales representatives in the region where Raheja practiced.
Avanir Pharmaceuticals manufactured Nuedexta, a drug approved by the FDA solely to treat pseudobulbar (PBA). PBA is a condition characterized by involuntary, sudden and frequent episodes of uncontrollable laughing and crying.
Court documents state that between February 2011 and July 2016, Raheja, Mazzucco and other codefendants conspired together to increase the number of prescriptions Raheja and other coconspirators wrote for Nuedexta in exchange for the payment of monetary kickbacks and other items of value.
According to court documents, Avanir promoted Nuedexta through a speaker’s bureau, in which Avanir representatives engaged doctors to speak about and promote Nuedexta to other medical professionals. Typical speaking engagements involved dinner at a high-end restaurant in which the doctor made a presentation with a slide deck provided by Avanir. An Avanir sales representative was responsible for inviting attendees and attending the presentation.
Court documents state that Raheja joined Avanir’s speaker’s bureau in February 2011 and gave approximately 211 speaking presentations at various restaurants and doctor’s offices between October 2011 and April 2016. Raheja received approximately $1,500 each for these purported presentations.
In total, court documents state that Raheja received approximately $331,550 in payments from Avanir between October 2011 and April 2016. During this time, Raheja wrote approximately 10,088 Nuedexta prescriptions – the highest in the country.
As part of the conspiracy, Mazzucco and other codefendants incentivized physicians, including Raheja, to write Nuedexta prescriptions through various means, such as arranging speaker’s bureau programs, which were mostly social events; honoraria payments; the falsification of sign-in sheets from speaking engagements to maximize payments and providing food and beverages to doctors and their office staff.
Court documents show that Raheja and the other codefendants took steps in return for these things of value, including writing more Nuedexta prescriptions; causing the submission of billings to Medicare and Medicaid for Nuedexta prescriptions for patients that did not have PBA; falsely diagnosing patients with PBA and recording fictitious symptoms in patient records to support a diagnosis of PBA.
As part of the terms of the plea agreement, defendant Raheja has agreed to a sentence of 30 months in prison, surrendering his medical license, at least $1,178,460.40 million in restitution and a fine to be determined.
Raheja is scheduled to be sentenced on Feb. 3, 2023, and Mazzucco is set to be sentenced on Feb. 15, 2023, before U.S. District Judge Sara Lioi.
This case was investigated by the Cleveland FBI, Health and Human Services – Office of Inspector General (HHS OIG) and the Ohio Attorney General’s Healthcare Fraud Section. This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
Harrison County man indicted on drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Arthur Woodrow Pritt, Jr., of Bridgeport, West Virginia, was indicted today on drug charges, United States Attorney William Ihlenfeld announced.
Pritt, 46, was indicted today on two counts of “Distribution of Methamphetamine.” Pritt is accused of selling methamphetamine, also known as “crystal” and “ice,” in December 2017 and January 2019 in Harrison County.
Pritt 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Harrisburg Woman Pleads Guilty to Failing to Collect and Pay Employment TaxesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dary T. Son, age 36, of Harrisburg, Pennsylvania, pleaded guilty before U.S. District Court Judge Sylvia H. Rambo to failing to collect and pay over employment taxes to the Internal Revenue Service.
According to United States Attorney Gerard M. Karam, from June 2015 through August 2019, Son, the owner of a Pennsylvania-based temporary staffing company, DS Agency, failed to collect and pay on behalf of her employees approximately $591,822.99 in taxes owed to the IRS. She also failed to pay to the IRS an equivalent amount that she owed as their employer.
From 2015 to 2019, DS Agency received and cashed checks from Son Associates for providing workers in the total amount of over $7.7 million. Rather than depositing these payments in a bank account, Dary Son cashed these checks at a check cashing business in Harrisburg, from 2015 to mid-2017. Starting in 2018, Dary Son regularly made trips to a check cashing business in Philadelphia, where Dary Son cashed about $3 million in checks in less than a year.
The workers employed by Dary Son and her family member’s companies, worked regularly at several food manufacturing facilities in and around the Middle District of Pennsylvania. Several of them were transported to their work sites by Dary Son, and they were generally paid in cash.
Dary Son never withheld any federal, Social Security, Medicare, or state taxes from her employees’ income. She likewise did not pay her employer portion of these taxes. As a result, she is responsible for $1,183,646.25 in unpaid federal taxes, which she has agreed to pay in restitution as part of her plea agreement.
The case was investigated by the IRS Criminal Investigations Division. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty for this offense under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine of up to $250,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Harrisburg Bar Owner Sentenced to 20 Years in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saqueena Williams, a/k/a "Queenie," age 46, of Harrisburg, Pennsylvania, was sentenced on October 27, 2022, to 20 years' imprisonment by United States District Court Judge Christopher C. Conner for cocaine trafficking and weapons offenses.
According to United States Attorney Gerard M. Karam, in November 2021, a jury convicted Williams of drug trafficking and possessing guns in furtherance of drug trafficking. On February 1, 2018, law enforcement officers seized drugs and guns during a court authorized search of her home and other properties associated with Williams and her coconspirator, Nyree Letterlough, age 51, of Harrisburg.
Williams, the operator of Queenies Café, was convicted after a week-long jury trial of running a drug trafficking conspiracy from 2012 to 2018. The jury found that Williams trafficked in excess of five kilograms of cocaine, and that she possessed guns in furtherance of her drug trafficking operation.
Williams also surrendered her interests in Queenies Café, located in Harrisburg, as well as the liquor license and other properties.
Her coconspirator, Letterlough was also convicted at the above referenced trial and was sentenced on August 29, 2022, to 111 months’ imprisonment. Letterlough surrendered her interests in Grams Grill, located in Harrisburg, and another real estate property.
At Williams’ sentencing, Judge Conner resolved issues pertaining to the applicable federal sentencing statutes and the Federal Sentencing Guidelines after hearing argument from the parties. The sentence of 20 years in prison imposed by Judge Conner was within the sentencing guideline range and the applicable mandatory minimum sentence required by law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Pennsylvania State Police, the Federal Bureau of Investigation, the Harrisburg Police Bureau, and numerous other law enforcement agencies. Assistant U.S. Attorneys Michael Consiglio and Samuel Dalke prosecuted the case.
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Guilty verdict on all counts for illegal alien who murdered whistleblower in an illegal labor conspiracyRead the Press Release
BRUNSWICK, GA.: A U.S. District Court jury returned a unanimous verdict of guilty to all charges lodged against an illegal alien for his role in a conspiracy to kill a whistleblower who exposed a multi-million-dollar scheme to fraudulently employ undocumented workers.
Juan Rangel-Rubio, 45, of Rincon, a citizen of Mexico illegally present in the United States, was found guilty after a five-day trial of Conspiracy to Retaliate Against a Witness; Conspiracy to Kill a Witness; Conspiracy to Conceal, Harbor and Shield Illegal Aliens; and Money Laundering Conspiracy, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges carry a statutory minimum sentence of life in prison, and there is no parole in the federal system.
Two co-defendants – Higinio Perez-Bravo, 52, of Savannah, and Rangel-Rubio’s brother, Pablo Rangel-Rubio, 53, of Rincon, await sentencing after pleading guilty in the conspiracy to kill Eliud Montoya, a United States citizen who blew the whistle on a scheme of hiring and mistreating illegal aliens and who was murdered August 19, 2017, near his home in Garden City, Ga.
“This jury verdict brings resounding resolution to any doubts about the culpability of these defendants in this horrific conspiracy to kill a man who threatened their illegal and lucrative labor-trafficking scheme,” said U.S. Attorney Estes. “We commend our law enforcement partners who solved this brutal murder and paved the way to holding these criminals accountable.”
As reflected in court records and evidence presented to the jury, Pablo Rangel-Rubio worked as a supervisor at Wolf Tree – a contract company that performed tree-cutting services on utility rights-of-way. Working with his brother, Juan Rangel-Rubio – also a Mexican citizen illegally present in the United States – the two schemed to hire illegal aliens to work for the company, and then routed the illegal aliens’ paychecks to their own bank accounts where they skimmed a portion of the pay for themselves. As a result of this scheme, the conspirators netted more than $3.5 million.
Mr. Montoya, a United States citizen who also worked at Wolf Tree, saw his colleagues being mistreated and complained to the company and to the U.S. Equal Employment Opportunity Commission. After Mr. Montoya blew the whistle on the scheme, Pablo Rangel-Rubio arranged for Mr. Montoya’s murder by paying Perez-Bravo for the use of his vehicles and to act as the getaway driver when Juan Rangel-Rubio shot Mr. Montoya to death.
Sentencings for all three defendants will begin in November in U.S. District Court.
“This sentence means that criminals like these defendants will not escape justice and will no longer be able to victimize anyone,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We are thankful for the hard work done by all of the agencies involved in this case and hope that the verdict brings comfort to the victims and their families.”
The investigation was led by Homeland Security Investigations (HSI) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Garden City Police Department, the Effingham County Sheriff’s Office, and the Chatham County Sheriff’s Office, and is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys, including Tania D. Groover.
Guilty Plea Entered in Case Involving Illegal Distribution of Narcotics in Mansfield, LouisianaRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Debra E. Craig, 66, of Converse, Louisiana, entered a guilty plea today before Chief United States District Judge S. Maurice Hicks, Jr. to one count of obtaining controlled substances by fraud.
Craig worked as a Licensed Practical Nurse Medical Assistant at the DeSoto Regional Health System in Mansfield, Louisiana and was assigned to work with Dr. Jeffrey L. Evans.
Dr. Evans convinced Craig to illegally fill prescriptions for hydrocodone-acetaminophen on his behalf by indicating to her that he needed medication to treat pain. Dr. Evans would write prescriptions to Craig in the name of “Debbie Craig” for 100 dosage units of hydrocodone-acetaminophen 10-325 mg and would provide cash to Craig to be used to pay for the prescriptions at Mansfield Drug Company in DeSoto Parish, Louisiana. After filling the prescriptions, Craig would provide all the hydrocodone-acetaminophen to Dr. Evans. Hydrocodone-acetaminophen is a Schedule II controlled substance. One of the fraudulent prescriptions was filled at Mansfield Drug Company on September 18, 2020 and is the basis for the guilty plea entered today. The prescription was for 100 tablets of hydrocodone-acetaminophen 10-325 mg, a Schedule II controlled substance.
Craig faces up to 4 years in prison, 3 years of supervised release, and a fine of up to $250,000. A sentencing date will be set at a later time.
The case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Alexander C. Van Hook, Special Counsel to the United States Attorney, and Assistant U.S. Attorney Michael Shannon.
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Gang Leader Sentenced to More Than 25 Years for Assault and Murder Schemes Committed Inside Monterey County JailRead the Press Release
SAN JOSE –Vincent Gerald Garcia was sentenced to 306 months in federal prison today following his federal jury convictions for multiple conspiracies involving gang violence in the Monterey County Jail, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by United States District Judge Beth L. Freeman.
U.S. District Judge Freeman imposed sentence on each of the three counts Garcia was convicted of, as follows: 306 months in prison for engaging in a racketeering (RICO) conspiracy, 120 months for engaging in a conspiracy to commit murder in aid of racketeering, and 36 months for engaging in a conspiracy to commit assault with a dangerous weapon in aid of racketeering. The shorter sentences were ordered to run concurrently with the longer sentence, for a total custody time of 306 months.
Garcia, 55, of Salinas, is the 14th defendant charged, convicted, and sentenced in this case. Garcia was convicted by a federal jury on June 7, 2022. Garcia’s only co-defendant at the jury trial, Jorge Jasso, is the 15th and final defendant in the case and was also convicted at the trial of all counts. Jasso is awaiting his sentencing hearing.
At trial, the evidence showed that from December 2012 through April 2014, Garcia was an active member of the Nuestra Familia (“NF”) prison gang and, for most of that time, incarcerated in the Monterey County Jail. Garcia held the position of Regiment Commander for the NF in charge of all Monterey County and, as such, controlled the criminal activities of gang inmates at the Monterey County Jail. The Norteño street gang is affiliated with the NF, and Norteño gang members pledge loyalty to the NF. Evidence showed that inside prisons and local jails, all members and affiliates of the NF, including Norteños, worked together to maintain gang structure and to follow gang rules.
According to trial evidence, any member in a Norteño housing unit who committed a serious violation of the rules was subject to “removal.” A removal operation was executed by Norteño gang members and involved an organized attack upon the targeted victim. In the attacks, one or more “hitters” stabbed the victim and were followed immediately by at least two “bombers” who viciously beat the victim without weapons. The beating by the bombers inflicted further injury to the stabbed target and continued the attack’s chaotic distraction at the jail, which allowed time for the hitters to hide their weapons and wash off.
Trial evidence also showed that removals were approved in advance by the gang leader in charge of the facility. The Norteño gang member who was in charge of the particular housing unit then planned the removal. All members in the Norteño housing unit were aware of the removal process and were required to assist if requested.
Additional trial evidence demonstrated that the sale of controlled substances both inside custodial facilities and on the street was a central income producer for the gang. Evidence showed that Norteño members smuggled controlled substances into Monterey County Jail as well as other jails and sold the “hard” drugs to the inmates, while any smuggled marijuana was distributed only to fellow gang members.
The trial focused on ten removals in the Monterey County Jail between December 2012 and April 2014. Most of the removals occurred in “K-Pod,” a cell block in Monterey County Jail that housed active Norteño members and associates exclusively. Three of the removals occurred in the jail’s main yard, during the recreation period for inmates who were housed in the lockdown pods for Norteños.
Evidence at trial identified Garcia as the gang leader responsible for approving all removals. Evidence showed that Garcia was a long time gang member who rose through the ranks to become a carnale of the NF prison gang in the 1990s before becoming the NF Regiment Commander in charge of Salinas and Monterey County from 2012 through 2014. From May 2013 through February 2015, Garcia was incarcerated in the Monterey County Jail. Evidence demonstrated that while he was in charge of the entire jail for the NF, he ordered the assaults and murder attempts. He had ultimate gang authority and could put fellow gang members on “freeze” status, clear them for rule violations or strip them of gang or leadership roles, and elevate members into leadership positions. Evidence showed that Garcia approved all of the ten removals, including ones in which his co-defendants Jasso participated.
In addition to the concurrent prison sentences, U.S. District Judge Freeman imposed a five term of supervised release upon Garcia’s release from prison. Defendant Garcia was in custody at the time of his sentencing hearing and will begin to serve his sentence immediately.
Below are the names, charges of conviction, and sentences of the 15 individuals charged in this case:
Name Charge(s) Sentence Johnny Magdaleno 18 U.S.C. § 1962(d) – Racketeering Conspiracy 360 months imprisonment Vincent Gerald Garcia- 18 U.S.C. §1962(d) - Racketeering Conspiracy
- 18 U.S.C. §1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
- 18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
- 18 U.S.C. § 962(d) - Racketeering Conspiracy
- 18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
- 18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
- 18 U.S.C. § 1962(d) - Racketeering Conspiracy
- 18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
- 18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
- 18 U.S.C. § 1962(d) - Racketeering Conspiracy
- 18 U.S.C. § 1959(a)(5) - Conspiracy to Commit Murder in Aid of Racketeering
- 18 U.S.C. § 1959(a)(6) - Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
Assistant U.S. Attorneys Stephen Meyer and Neal C. Hong prosecuted the case at trial with the assistance of Christine Tian, Mimi Lam, Laurie Worthen, Susan Krieder, Lynette Dixon, and Elise Etter. The prosecution is the result of an investigation by the FBI with investigative assistance from the Monterey County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Salinas Police Department, the Soledad Police Department, and the Fresno Police Department.
Four Men Found Guilty of Federal Kidnapping and Homicide Charges in June 2018 SlayingRead the Press Release
WASHINGTON – Four area men were found guilty by a federal jury today of murder and other charges in the kidnapping of a Maryland man whose body was found in June 2018 in an alley in Southeast Washington. The victim had been shot numerous times and his hands were still bound with zip-ties.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Darin Moore, Jr. 29, of Bowie, Md., Gabriel Brown, 33, and John Sweeney, 29, who are all from Washington, D.C., were found guilty following a trial in the U.S. District Court for the District of Columbia of conspiracy to commit kidnapping, kidnapping resulting in death, first-degree murder while armed, and felony murder. James Thomas Taylor, 33, also of Washington, D.C.., was found guilty of kidnapping resulting in death and felony murder. A mistrial was declared on the remaining two counts in the indictment against Taylor. All four defendants are scheduled to be sentenced on Feb. 6, 2023.
According to the government’s evidence, on June 19, 2018, the victim, Andre Simmons, Jr., 28, from Bowie, Maryland, was abducted at gunpoint in Maryland, bound with zip ties, and forced into a vehicle by Moore and Sweeney. During the following few hours, several ransom calls were made from Taylor’s phone to Mr. Simmons’ family, who delivered $7,000 in cash to a drop location as instructed by the kidnappers. The money was subsequently picked up by Brown.
Just over an hour after the ransom payment, at about 6:25 a.m. on June 20, 2018, the defendants shot Mr. Simmons 19 times and left his zip-tied body in an alley off the 600 block of Atlantic Street SE. The four men then met up in Capitol Heights, Maryland, to divide up the proceeds of the ransom demand.
Moore was arrested on June 20, 2018. Brown was arrested on June 27, 2018, Taylor was arrested on Aug. 17, 2018, and Sweeney was arrested on Jan. 14, 2019. All have been in custody since their arrests.
This case is being investigated by the FBI’s Washington Field Office and MPD’s Homicide Division. Valuable assistance was provided by Prince George’s County, Maryland, Police Department, and the U.S. Marshal Service.
The case is being prosecuted by Assistant U.S. Attorneys Steven Wasserman, Laura Crane, and Will Hart, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Paralegal Specialist Genevieve De Guzman also assisted in the prosecution.
Four Defendants Charged in Multi-Million Dollar National Coronavirus Fraud RingRead the Press Release
COLUMBIA, SOUTH CAROLINA — Four defendants have been charged in the District of South Carolina for their alleged roles in a fraud scheme related to the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (PPP) that involved nearly a hundred individuals from across the country, including Texas, North Carolina, and South Carolina.
The indicted defendants are
- Jacob Liticker, a/k/a “Jay Stunna,” 25, from Houston, Texas;
- Kehinde Mubarak Ladepo, 26, an enlisted member of the United States Air Force stationed at Shaw Air Force Base in Sumter;
- Ganiyu Victor Ladepo, a/k/a “Victor,” 29, from Fayetteville, North Carolina; and
- and Maxwell Uzoma Okobi, a/k/a “Maxi,” 24, a resident of North Carolina currently deployed to Camp Arifjan, Kuwait.
The indictment alleges that the defendants were part of a national scheme, led by Liticker, that attempted to fraudulently acquire $2 million in PPP loans, and that did fraudulently acquire nearly $1 million in PPP loans. The PPP loan program was administered by the Small Business Administration (SBA) and provided forgivable loans to small businesses for job retention and certain other expenses. According to the indictment, Liticker created false PPP loan applications for nearly 100 people across the country, typically for amounts around $20,000, and would assist those individuals in submitting this false information to SBA-approved lenders. In doing so, he would often create false tax documentation to support the non-existent businesses. In exchange for his services, Liticker would receive a portion of the PPP loan proceeds. The indictment alleges that Liticker would also assist in getting the loans forgiven.
“PPP loans were finite funds designed to help businesses stay afloat amid unprecedented times and extraordinary challenges. Every dollar wrongly taken from this taxpayer-funded program was a dollar that could not go to a legitimate business in need,” said U.S. Attorney Adair F. Boroughs. “This Office takes pandemic-related crime seriously and stands ready prosecute fraud related to the Coronavirus in all its forms. This case highlights those efforts.”
"The Air Force Office of Special Investigations (AFOSI) is dedicated to protecting the integrity of the government's pandemic-related resources from abuse," said Special Agent in Charge Nicholas J. Groesbeck, OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH. "AFOSI and our joint law enforcement partners will continue the fight against fraud, which impacts legitimate smalls business that these programs are designed to support while ensuring those who violate the law are held accountable."
"These arrests are representative of the Defense Criminal Investigative Service’s (DCIS) steadfast commitment to hold accountable those who perpetrate fraud against the Department of Defense, even when those perpetrators are within the ranks of the Armed Forces," said Special Agent in Charge Chris Dillard, Department of Defense Inspector General, DCIS Mid-Atlantic Field Office. "DCIS and our partner agencies are dedicated to protecting the integrity of government programs as well as defending the Department of Defense's long standing traditions and values of honesty and integrity."
Each defendant faces a maximum penalty of imprisonment of up to 20 years, fines, and restitution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the Air Force Office of Special Investigations, Defense Criminal Investigative Service, the U.S. Secret Service, and SBA’s Office of Inspector General. Assistant U.S. Attorney Derek A. Shoemake, who also serves as the Office’s Coronavirus Fraud Coordinator, and Assistant U.S. Attorney Winston Marosek are prosecuting the case. A copy of the indictment and a copy of the chart illustrating the scope of the alleged scheme are attached.
U.S. Attorney Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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liticker_indictment.pdf liticker_chart.pdfFort Lauderdale Man Sentenced to Prison for String of Bank RobberiesRead the Press Release
MIAMI — Robert Willis Jr., 47, of Fort Lauderdale, Fla., has been sentenced to 145 months in prison and three years of supervised release by United States District Judge Rodney Smith for his participation in a string of bank robberies.
According to court records, between March 23-26, 2022, Willis entered three banks and demanded money while warning tellers he had a gun. On March 26, 2022, he entered TD Bank located at 1371 West Palmetto Boulevard in Boca Raton, Fla. He approached and passed a note to the teller which read, “I have a gun. Do not give me dye money. Do not give me mark money. Do not push any buttons or you will die. Empty your drawers now.”
The victim teller gave Willis more than $6,000 in U.S. currency, including a bait bill pack that contained a GPS tracking device. As he left the bank’s parking lot, a bank manager was able to photograph the getaway vehicle’s license plate. Willis’s Mitsubishi Outlander soon was spotted by Broward County Sheriff’s deputies. Willis fled the marked police cars, crashing into multiple vehicles and eventually flipping his own car onto its side near the corner of US 441 and Commercial Boulevard in Tamarac, Fla. Most of the cash, including the bait bill pack, was recovered near the crash site.
Willis, who’d had multiple prior convictions for armed/strongarm robbery, also had been convicted of attempted murder.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
FBI, Miami Office, investigated this case, with assistance from Broward County Sheriff’s Office, and Boca Raton Police Services Department. Assistant U.S. Attorney Anita White prosecuted the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former West Haven Employee and State Representative Admits Stealing COVID Relief and Other City FundsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Christina D. Scaringi, Special Agent in Charge of the Office of Inspector General, U.S. Department of Housing and Urban Development, announced that MICHAEL DiMASSA, 31, of West Haven, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to conspiracy charges stemming from his involvement in schemes that resulted in the theft of more than $1.2 million dollars in COVID relief funds and other funds from the City of West Haven.
According to court documents and statements made in court, DiMassa was a Connecticut State Representative who was also employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council. In April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic. From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund. DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with others to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided.
In one scheme, DiMassa conspired with John Bernardo, who was employed by the City of West Haven as a Housing Specialist in the office of Community Development Administration. In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC. Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed. From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. DiMassa made several large cash withdrawals from the Compass Investment Group LLC bank account, some of which were made shortly before or after he was recorded as having made a large cash “buy-in” of gaming chips at the Mohegan Sun Casino.
DiMassa also conspired with his now wife, Lauren DiMassa, through the submission of numerous fraudulent invoices to West Haven for services related to a Youth Violence Prevention Program and for Youth Violence COVID-19 Associated Expenses. These invoices listed charges for in-home counseling, cleaning supplies, special needs hourly service, wi-fi assistance for low/moderate income families, counseling services, license fees, a fall youth clinic, meals, support group supplies, equipment rental, and youth clinic support group. West Haven made at least 16 payments totaling approximately $147,776.10 to Lauren DiMassa, who never provided any services to the City of West Haven.
In a third scheme, DiMassa conspired with another individual through the submission of fraudulent invoices from companies, which were controlled by DiMassa’s co-conspirator, to West Haven for goods and services, including thousands of units of Personal Protective Equipment (PPE), HVAC maintenance at multiple municipal locations, COVID supplies for the Board of Education, and cleaning services for various municipal and school buildings, including one school building that had been vacant and abandoned for several years. The co-conspirator’s companies received approximately $431,982 through this scheme.
DiMassa has agreed to pay restitution of $1,216,541.80.
DiMassa pleaded guilty to three counts of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 30 years on each count. A sentencing date is not scheduled.
DiMassa has been released on a $250,000 bond since his arrest on October 20, 2021.
Bernardo and Lauren DiMassa each previously pleaded guilty to one count of conspiracy to commit fraud. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorneys Ray Miller and David Sheldon.
Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to 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.