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Thursday 1 September 2022
Philips Subsidiary to Pay over $24 Million for Alleged False Claims Caused by Respironics for Respiratory-Related Medical EquipmentRead the Press Release
Philips RS North America LLC, formerly known as Respironics Inc., a manufacturer of durable medical equipment (DME) based in Pittsburgh, Pennsylvania, has agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to DME suppliers. The affected programs were Medicare, Medicaid and TRICARE, which is the health care program for active military and their families.
The settlement resolves allegations that Respironics caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the DME suppliers. Respironics allegedly gave the DME suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians.
“Paying illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “To ensure that the goods and services received by federal health care program patients are determined by their health care needs, rather than the financial interests of third parties, we will pursue any individual or entity that violates the prohibition on paying kickbacks, including DME manufacturers.”
“The people of South Carolina need to know that medical facts — not finances — drive their health care decisions,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Those who improperly use money and other things of value to induce business in violation of the Anti-Kickback Statute will be held accountable.”
“Paying kickbacks to medical equipment providers is misaligned with patient care and corrupts our nation’s health care programs including TRICARE,” said Special Agent in Charge Christopher Dillard for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Working closely with our law enforcement partners, DCIS will continue to investigate those who risk harming the welfare of our active-duty service members and seek to profit at the expense of the American taxpayer.”
“By paying kickbacks to obtain patient referrals, DME manufacturers are prioritizing financial incentives over patient needs, which undermines the integrity of federal health care programs," said Special Agent in Charge Tamala E. Miles for the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). "HHS-OIG will continue to work tirelessly with our law enforcement partners to prevent such waste of valuable taxpayer dollars."
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement provides that Respironics will pay $22.62 million to the United States, and in addition, will pay $2.13 million to the various states as a result of the impact of Respironics’ conduct on their Medicaid programs, pursuant to the terms of separate settlement agreements that Respironics has, or will enter into, with those states.
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.
The settlement resolves a lawsuit originally brought by Jeremy Orling, a Respironics’ employee, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Orling will receive approximately $4.3 million of the federal settlement amount.
This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina with assistance from the HHS-OIG and HHS Office of Investigations; DCIS; the Defense Health Agency Office of General Counsel; and the National Association of Medicaid Fraud Control Units.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. 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).
The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela District of South Carolina.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Perry Man Sentenced to 10 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
TALLAHASSEE, FLORIDA – Stephen Lance Gamble, 46, of Perry, Florida, was sentenced to 10 years in federal prison, on August 31, 2022, after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine or 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Methamphetamine distribution is a scourge on large and small communities of our district,” stated U.S. Attorney Coody. “With our dedicated law enforcement partners, we are committed to identifying and aggressively prosecuting those who threaten our citizens’ health and safety by distributing such addictive, controlled substances. This sentence is further proof of that resolve.”
Court documents reflect that Gamble drove an individual into North Florida in a vehicle containing approximately 700 grams of methamphetamine. Gamble was also obtaining methamphetamine from two other individuals and selling the narcotics in Taylor County. Ultimately, while arresting Gamble on a federal warrant at his residence, law enforcement observed drug paraphernalia which led to them obtaining a search warrant for his residence. During the execution of that search warrant, law enforcement discovered approximately 80 grams of methamphetamine under Gamble’s pillow.
“The Taylor County Sheriff’s Office appreciates the coordinated efforts of the Drug Enforcement Administration and Federal prosecutors, along with our local partner agencies in fighting the meth epidemic that is destroying our community,” said Taylor County Sheriff Wayne Padgett. “Our office will continue to fight this ongoing battle, with the help of concerned citizens of our community. Remember, if you see something, say something.”
“The Perry Police Department is proud to partner with the Taylor County Sheriff’s Office, the Drug Enforcement Administration, the U.S. Attorney’s Office, and other Federal and State partners in a concerted effort to remove this and other dangerous criminals that continuously spread the poison of dangerous drugs to the youth and other Citizens of North Florida,” said Perry Police Chief Jamie Cruse.
Gamble’s imprisonment will be followed by five years of supervised release.
“Methamphetamine continues to be one of the most destructive drugs in our communities, posing a serious danger to the safety and health of our residents,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The DEA Miami Field Division remains committed to working with our law-enforcement partners to hold those who bring this poison into our communities accountable for their actions.”
This sentence was the result of an investigation conducted by the Taylor County Sheriff’s Office, the Perry Police Department, and the Drug Enforcement Administration. Criminal Chief Gary Milligan, of the U.S. Attorney’s Office for the Northern District of Florida, prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Perpetrator of Catfishing Scheme Charged with Extortion, Cyberstalking, and Interstate ThreatsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a three-count Indictment charging defendant SAKOYA BLACKWOOD with interstate communications with the intent to extort, cyberstalking, and extortion. The defendant was arrested yesterday and presented before U.S. Magistrate Judge Jennifer Willis in federal court in Manhattan. The case has been assigned to U.S. District Judge Jesse M. Furman.
U.S. Attorney Damian Williams said: “No one should have to fear public humiliation and financial loss from the release of personal, private information. As alleged, Sakoya Blackwood created that very fear and sought to capitalize on it for her own personal gain. I commend the victim for reporting this alleged criminal activity and encourage anyone else who believes they may have been a victim of this scheme to contact the FBI.”
FBI Assistant Director Michael J. Driscoll said: "Most people hope for a personal human connection in life, and scam artists twist that desire into illicit schemes to steal more than hearts. We believe Blackwood used tactics we allege in this indictment to blackmail and extort money from other victims. We are asking those people to contact us so we can help them but also to ensure no one else ever falls victim to Blackwood's alleged deception."
As alleged in the Indictment unsealed yesterday in Manhattan federal court and statements made in court:[1]
The defendant used multiple online identities to target wealthy and high-profile men in a catfishing and extortion scheme. In particular, as alleged in Count One, BLACKWOOD made threats against the Chief Executive Officer of a publicly traded company, identified in the Indictment as “Victim-1,” and threatened to release sexually explicit photographs and communications involving Victim-1 with the intent to extort. BLACKWOOD engaged in a campaign of harassment against Victim-1, sending numerous intimidating and threatening text messages. BLACKWOOD also used threats of economic and reputational harm from the release of the sexually explicit communications and photographs in an attempt to obtain payments from Victim-1. As indicated in the Indictment, BLACKWOOD targeted multiple other victims as part of this catfishing and extortion scheme.
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BLACKWOOD, 34, of the Bronx, New York, is charged with one count of making interstate communications with intent to extort, which carries a maximum sentence of two years in prison; one count of cyberstalking, which carries a maximum sentence of five years in prison; and one count of extortion, which carries a maximum sentence of 20 years.
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.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Mollie Bracewell and Justin Rodriguez are in charge of the prosecution.
If you believe you are a victim of this offense, please contact the FBI at 1-800-CALL FBI, and reference this case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Pennsylvania Man Found Guilty of Attempting to Entice a Minor Using the InternetRead the Press Release
United States Attorney Alison J. Ramsdell announced that Cody Wayne Hopkins, age 31, of Montgomery, Pennsylvania, was found guilty of Attempted Enticement of a Minor Using the Internet following a federal jury trial in Rapid City, South Dakota. The verdict was returned on August 25, 2022.
The charge carries a mandatory minimum sentence of ten years up to life in federal prison and/or a $250,000 fine, a mandatory minimum of five years up to lifetime supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Hopkins was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2020 Sturgis Motorcycle Rally targeting internet predators. Following multiple text messages with a person Hopkins believed to be a 13-year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Hopkins went to the pre-determined location to meet the minor, he instead was met by law enforcement agents and placed under arrest.
The undercover operation was a joint effort between the South Dakota Division of Criminal Investigation, Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins and Kelsey Blair tried the case.
A presentence investigation was ordered. A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Oregon Man Sentenced to 20 Years for Distribution of Child PornographyRead the Press Release
BOISE – Gregory Boris, 27, of Ontario, Oregon, was sentenced to 240 months in federal prison for distribution of child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, on November 22, 2019, Homeland Security Investigations (“HSI”), along with state and local law enforcement, conducted an undercover internet-based child exploitation operation in Ada County. During the operation, Boris began communicating with an undercover detective posing as a 13-year-old girl. During the communications, Boris engaged in sexually explicit conversation with the purported 13-year-old and requested sexually explicit images. Boris also distributed images and videos of child pornography to the purported 13-year-old. HSI and local law enforcement later executed a search warrant at Boris’ Ontario residence and seized the cellphone he used to communicate with the undercover detective, as well as his laptop. A forensic examination revealed child pornography on the laptop.
Chief United States District Judge David C. Nye also ordered Boris to serve 20 years of supervised release following his prison sentence, to forfeit the electronic devices that were used to commit the offense, and to pay $27,000 in restitution to the victims in the images he possessed. As a result of the conviction, Boris will be required to register as a sex offender.
“There is no higher calling for law enforcement than to protect children, and this case shows how we work effectively across state lines and with our state and local partners to remove child predators from our communities,” U.S. Attorney Hurwit said. “We will continue to devote the resources necessary to make our Project Safe Childhood program one of the best in the country.”
“The conduct that Mr. Boris chose to engage in has no place in our society, and I’m thankful for the successful partnerships our agents have developed with law enforcement agencies in Idaho and Oregon to pursue child predators wherever they may lurk,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This sentence is a valuable piece in protecting our communities, and a reminder that our combined vigilance is necessary to further defend children from exploitation.”
U.S. Attorney Hurwit, of the District of Idaho commended the cooperative efforts of HSI, Idaho State Police, Rupert Police Department, Malheur County Sheriff’s Office, and Malheur County District Attorney’s Office which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Ocala Convicted Felon Indicted for Illegally Possessing A FirearmRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Ricky Darnell Franklin, Jr. (30, Ocala) on an indictment charging him with possessing a firearm as a convicted felon. If convicted, he faces a maximum penalty of 10 years in federal prison. Franklin had been indicted on May 24, 2022.
According to the indictment, Franklin has four prior state felony convictions, including two convictions for attempted second degree murder with a firearm (2010), shooting at or into an occupied vehicle (2010), and possession of a firearm by a delinquent (2010). On September 30, 2021, Franklin possessed a handgun. As a convicted felon, Franklin is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the City of Ocala Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Newton Man Sentenced to Ten Years in Federal Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. - A Newton man was sentenced to 120 months in federal prison for 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, William Eric Chapman, 41, was found in possession of a firearm by officers of the Meridian Police Department on January 30, 2020, during an investigation into an alleged assault. Chapman had a .556 caliber rifle and a sawed-off shotgun in his motel room. Chapman has several prior felony convictions. As a convicted felon, it is contrary to federal law for Chapman to possess any firearm.
Chapman pled guilty on May 31, 2022 to possession of a firearm by a convicted felon.
The Meridian Police Department and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New York State Environmental Facilities Corporation to Pay $500,000 for Falsely Certifying that Members of Former Governors’ Staff Worked on Federal Clean Water Act GrantRead the Press Release
ALBANY, NEW YORK – The New York State Environmental Facilities Corporation (“EFC”) has agreed to pay $500,000 to resolve allegations that it falsely certified that several individuals were working at EFC in support of a federal water-quality improvement grant when, in fact, they were working directly for now-former Governors of New York in positions unrelated to that grant, announced United States Attorney Carla B. Freedman. As part of the
settlement agreement , EFC admitted that former senior EFC officials caused the state to include in federal funding requests part of these individuals’ salaries and benefits without disclosing that they were hired by, and worked for, the Executive Chamber.United States Attorney Freedman stated: “The Environmental Facilities Corporation falsely certified that employees were supporting a clean water grant when they were actually working directly for former Governors in unrelated positions. I am pleased that current EFC leadership was willing to admit what happened, resolve EFC’s liability, and implement new compliance measures that should ensure ethical and legal behavior in the future. We will continue to use all of our resources to make sure that federal grant administrators follow the rules and that clean water grant money is used to improve water quality for all New Yorkers.”
EFC is a public benefit corporation that provides funding and technical assistance to municipalities, businesses, and state agencies for environmental and public health projects in New York State. During fiscal years 2009 through 2019 (the “Relevant Period”), New York State, through its Department of Environmental Conservation (“DEC”), submitted applications to the United States Environmental Protection Agency (“EPA”) for Clean Water State Revolving Fund (“CWSRF”) grants. During this same period, EPA awarded CWSRF grant funds to the state. EFC and DEC jointly administered New York’s CWSRF program.
The Executive Chamber is the Office of the Governor of the State of New York and includes staff who assist the Governor in managing state government. As part of the settlement agreement, EFC admitted that “during the Relevant Period, senior Executive Chamber staff asked (now-former) senior EFC officials for EFC to pay the salaries and benefits of several individuals who the then-Governors hired to work in the Executive Chamber in positions unrelated to the CWSRF program (the ‘Subject Employees’). During the Relevant Period, more than one former senior EFC official agreed to this arrangement.” EFC further admitted that “the individuals hired to work in the Executive Chamber pursuant to this arrangement were not hired specifically to work at EFC or to support the CWSRF program.” EFC acknowledged that “one individual whose salary and benefits EFC paid was hired by the Executive Chamber to work on the former Governor’s advance team while another was hired to help run the former Governor’s Washington, D.C. office.”
On eight occasions during the Relevant Period, EFC submitted certifications to EPA that identified one or more Subject Employee by name, title, and costs that EFC incurred to pay them, and falsely represented that such costs bore a “beneficial or causal relationship” to the CWSRF grant. EFC admitted in the settlement agreement that “it never informed EPA that those individuals worked for the Executive Chamber in positions unrelated to the CWSRF program.”
EFC represented in the settlement agreement that, upon learning of the United States’ investigation, it promptly took steps to ensure that all individuals listed as EFC staff in the CWSRF documentation submitted to EPA worked at EFC in positions related to those grants. It further represented that it has implemented safeguards in its internal controls to ensure the conduct covered by the settlement agreement will not recur in the future.
Special Agent in Charge Nic Evans of EPA’s Office of Inspector General (“OIG”) stated: “EFC knowingly submitted false information to EPA, resulting in the state accessing federal funds for unintended purposes. This settlement is an example of EPA OIG’s commitment to ensuring that all EPA grant administrators, including state actors, are held accountable when dealing with taxpayer funds so that the public can have confidence in the integrity of vital programs like the Clean Water State Revolving Fund.”
Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (“FBI”) stated: “EFC falsely certified for a decade that individuals worked in support of the Clean Water State Revolving Fund federal grant, when their actual positions in the Executive Chamber were wholly unrelated. The FBI takes our responsibility to investigate and pursue those who commit fraud very seriously and we will continue to work with our federal, state, and local law enforcement partners to ensure the protection of these federally funded programs.”
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, EPA OIG, and the FBI. The United States was represented by Assistant United States Attorney Adam J. Katz.
New Haven Man Sentenced to Prison for Distributing Fentanyl and CrackRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RAYQUAN GORY, also known as “Wavy,” 26, of New Haven, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 15 months of imprisonment, followed by three years of supervised release, for his role in New Haven drug trafficking ring.
According to court documents and statements made in court, in the fall of 2021, the New Haven Safe Streets/Gang Task Force and New Haven Police Department began investigating a drug trafficking ring that was distributing fentanyl, heroin crack and cocaine in and around the West Hills neighborhood, including the McConaughy Terrace housing complex, in New Haven. The investigation, which included court-authorized wiretaps, fixed video surveillance and controlled purchases of narcotics, revealed that a member of the conspiracy was receiving heroin and fentanyl from an out-of-state supplier, and kilogram quantities of cocaine through the U.S. Mail from a source in Puerto Rico. Gory sold fentanyl and crack cocaine to customers in the McConaughy Terrace complex.
During the investigation, law enforcement seized approximately 19 kilograms of cocaine, more than 7,000 bags of fentanyl, five firearms, and more than $780,000 in cash.
On February 15, 2022, a grand jury in New Haven returned an indictment charging Gory and seven co-defendants. Gory was arrested on February 17. On June 8, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl, heroin, cocaine base (“crack”) and cocaine.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the New Haven Police Department, Milford Police Department, East Haven Police Department, West Haven Police Department, Connecticut State Police and the Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Movie Producer Pleads Guilty to Conspiring to Operate A Prostitution BusinessRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DILLON JORDAN, a/k/a “Daniel Jordan,” a/k/a “Daniel Maurice Hatton,” a/k/a “Daniel Bohler,” pled guilty to conspiracy to violate the Mann Act for his operation of an interstate prostitution business. JORDAN pled guilty before U.S. District Judge John P. Cronan. Sentencing is scheduled for December 12, 2022.
As alleged in the Indictment, public court filings, and statements made in court:
From in or about 2010 through at least in or about May 2017, JORDAN operated a prostitution business throughout the United States and abroad. JORDAN maintained a roster of women who resided around the United States and who, in exchange for payment, performed sexual acts for JORDAN’s clients at locations throughout the United States, including the Southern District of New York, and abroad. JORDAN communicated with the clients of his prostitution business by email to coordinate the prostitution services, which included sending to clients photos of women who were available for hire for prostitution services, discussing the price of prostitution services, and overseeing travel logistics for women to travel to engage in prostitution. At times, JORDAN himself arranged the interstate travel for the women to engage in prostitution, and at other times, clients, at JORDAN’s direction, arranged the interstate travel for the women whom JORDAN directed to those clients. To facilitate his prostitution business, JORDAN also coordinated with a United Kingdom-based madam by sharing and referring customers and prostitutes.
JORDAN primarily managed the finances of the prostitution business through two front companies – a purported party and event planning company and a movie production company – incorporated in California. JORDAN opened multiple bank accounts for these companies, which he used to accept cash, wire, and check payments for prostitution services from clients and to pay for the expenses of the prostitution business, including paying the women for their prostitution services by cash and check. By using the two front companies to receive deposits from the prostitution business, JORDAN ensured that transactions involving those proceeds from the prostitution business would disguise the nature, source, and origin of those proceeds.
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JORDAN, 50, of Arrowhead Lake, California, pled guilty to one count of conspiracy to violate the Mann Act, which carries a maximum sentence of five years in prison. As part of his guilty plea, JORDAN has agreed to forfeit $1,429,717 to the United States.
The sentencing of JORDAN is scheduled for December 12, 2022, before Judge Cronan.
We urge anyone who feels she may be a victim of, or have information related to, the conduct in this case to please contact the FBI at [email protected] or (973) 792-3000.
Mr. Williams praised the investigative work of the FBI. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Cecilia E. Vogel is in charge of the prosecution.
Mexican National Sentenced to Nearly 20 Years for Trafficking Dozens of Kilograms of Methamphetamine and Possessing A Shotgun and Three HandgunsRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Evaristo Marin-Dominguez (34, Michoacan, Mexico) to 19 years and 7 months in federal prison for conspiring to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Marin-Dominguez had pleaded guilty on April 26, 2022.
According to court documents, Marin-Dominguez sold a kilogram of methamphetamine to a law enforcement source in November 2020, after a broker in Mexico provided the source with Marin-Dominguez’s phone number. During a later meeting to pick up money from the source, Marin-Dominguez admitted to having just delivered 8 kilograms of methamphetamine and having another 16 kilograms available.
Marin-Dominguez was arrested in Highlands County, in the Southern District of Florida, the following year. During an execution of a search warrant at Marin-Dominguez’s residence, authorities seized almost four kilograms of methamphetamine, almost a quarter kilogram of heroin, a shotgun, a rifle, three pistols, and various drug paraphernalia.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation conducted by the Drug Enforcement Administration, with assistance from the Highlands County Sheriff’s Office, the Hardee County Sheriff’s Office, the Pasco Sheriff’s Office, the Largo Police Department, the Plant City Police Department, the Winter Haven Police Department, and the University of South Florida Police Department. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. It was prosecuted by Assistant United States Attorney Dan Baeza.
Member of “Merry Point Boys” Gang SentencedRead the Press Release
RICHMOND, Va. – A Lancaster man was sentenced yesterday to nearly 10 years in federal prison for possessing a firearm as a convicted felon.
According to court documents, Shadonta Lateef Beane, 26, was indicted on federal charges of possessing a Romarm/Cugir Mini Draco pistol, having a 30-round magazine and 22 rounds of ammunition, and possessing a stolen Taurus .40 caliber handgun with 10 rounds of ammunition after having been convicted of a felony. Beane pled guilty on February 23 to possessing the Draco firearm as a convicted felon. Evidence and testimony at Beane’s sentencing hearing showed that he was previously charged with and convicted of possessing a firearm at the Raceway Gas Station in Tappahannock, Virginia on October 31, 2020. Testimony at sentencing also identified that Beane is a member of the Merry Point Boys, a street gang operating in the Northern Neck area that has been recognized by the Virginia Department of Corrections as a gang.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
The Lancaster County Sheriff’s Office and FBI Fredericksburg Field Office provided significant assistance in this case.
Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-54.
Medicaid Recipients Agree to Pay $130,000 to Resolve False Claims Act Allegations of Health Care Benefit FraudRead the Press Release
Jackson, Miss. - Darren J. LaMarca, United States Attorney for the Southern District of Mississippi, announced today that Manpreet Kamboj and Gurdev Kamboj (aka David Singh) have agreed to pay $130,000 to resolve allegations that they knowingly falsified income to unlawfully create eligibility for Mississippi Medicaid health care benefits for their dependents.
The Medicaid Program is a state and federally funded health benefit program intended to assist low-income individuals and families. The Mississippi Division of Medicaid (MDOM) is the single state agency responsible for administering health care benefits for eligible, low-income individuals in Mississippi.
Despite Medicaid’s low-income requirement, the United States contends that Manpreet Kamboj and Gurdev Kamboj collectively owned and/or were associated with 48 convenience store/gas stations located in Mississippi and Louisiana. The Kambojs also own a five-bedroom 7,850 square foot home located in Madison, Mississippi, most recently valued at 1.3 million dollars.
According to the United States, the Kambojs falsely represented on various Mississippi Medicaid health care benefit applications and renewals that one of them was unemployed and that the household derived income from one convenience store/gas station. As such, the United States alleges that from August 29, 2011, to February 28, 2022, the Kambojs caused the MDOM to pay over $70,000 in health care coverage benefits to which they were not entitled.
“The Medicaid Program is intended to provide access to quality health coverage for vulnerable Mississippians,” said U.S. Attorney Darren LaMarca. “Our office will continue to pursue those individuals who unlawfully deplete valuable resources allocated for Medicaid eligible individuals and families.”
The False Claims Act claims settled are allegations only, and there has been no determination of liability. This case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General.
Massachusetts Man Pleads Guilty to Unlawful Drug and Firearm PossessionRead the Press Release
PLATTSBURGH, NEW YORK – Gerald Washington, age 29, of Springfield, Massachusetts, pled guilty today to possession of a controlled substance with intent to distribute and unlawful possession of a firearm by a prohibited person.
The announcement was made by United States Attorney Carla B. Freedman; New York State Police Superintendent Kevin P. Bruen; and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.
As part of his plea, Washington admitted that on July 1, 2020, he travelled from Springfield, Massachusetts, to Westville, New York, near the northern border, with a co-defendant, and acquired approximately 13 kilograms of marijuana that was intended for distribution in Massachusetts. Washington also admitted to possessing a handgun while being a convicted felon.
Washington faces a sentence of 70 months in prison, a fine of up to $250,000, and a term of post-imprisonment supervision of 2 years when he is sentenced on December 28, 2022, by United States District Judge Mae A. D’Agostino. This is a sentence jointly recommended by the Government and the defendant; if Judge D’Agostino rejects the recommendation, Washington can withdraw his guilty plea and proceed to trial.
This case was investigated by the United States Border Patrol and the New York State Police, Violent Gangs and Narcotics Enforcement Team (VGNET). This case is being prosecuted by Assistant U.S. Attorney Jeffrey Stitt.
Mason City Man Back to Federal Prison for More Than a Year for Violating his Supervised Release ConditionsRead the Press Release
A man who had previously served a federal term of 235 months’ imprisonment was sentenced to another term of 15 months’ imprisonment for violating conditions of his supervised release.
On August 29, 2022, Mingo Flores, 38, from Mason City, Iowa, received the prison term after violating terms of his supervised release. Specifically, Flores was determined by the district court to have two new law violations, including an assault and possession of methamphetamine-second offense. When Flores was arrested on the federal supervision violation stemming from the assault allegations, he was found with methamphetamine, which he attempted to destroy by attempting to flush the methamphetamine down a toilet at the Cerro Gordo County Jail.
In 2001, Flores was sentenced to federal prison for a term of 235 months and a five-year term of supervised release for distribution of LSD. Flores had been on supervised release for approximately two years prior to his violations of the terms of his release. On August 29, 2022, Flores was sentenced in Sioux City, Iowa, by United States District Court Chief Judge Leonard T. Strand to 15 months’ imprisonment. He must also serve a three-year term of supervised release after service of this prison term. There is no parole in the federal system. Flores remains in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Mason City Police Department, the Cerro Gordo County Sheriff’s Office, and United States Probation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 01-3052/22-3027. Follow us on Twitter @USAO_NDIA.
Manderson Man Sentenced to Federal Prison for Involuntary ManslaughterRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Manderson, South Dakota, man convicted of two counts of Involuntary Manslaughter was sentenced on August 23, 2022, by Judge Karen E. Schreier, U.S. District Court.
Moses Runs Against, age 39, was sentenced to seven years in federal prison on both counts of Involuntary Manslaughter, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund on each count. The prison sentences are to be served consecutively and the time of supervised release is to be served concurrently.
Runs Against was indicted by a federal grand jury in February of 2022. He pleaded guilty on May 13, 2022. The conviction stems from Runs Against, while intoxicated, crashing head-on into another vehicle on January 22, 2022, just north of Manderson. The collision resulted in the death of two females and serious injuries to two other females.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Runs Against was immediately remanded to the custody of the U.S. Marshals Service.
Man Sentenced to Prison for Interstate Stolen Property CrimeRead the Press Release
CHARLESTON, W.Va. – Millard Patrick, 53, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for aiding and abetting the interstate transportation of stolen property.
According to court documents and statements made in court, Patrick admitted to participating in a scheme with Mindy Turner, 51, to obtain vehicles totaling approximately $172,950 in value from car dealerships in Kentucky and West Virginia.
On June 28, 2021, Turner passed a bad check at a Louisville, Kentucky, dealership so she and Patrick could obtain a 2020 Ford Explorer with an approximate value of $53,500. Patrick told the sales person that he was a veteran United States Marshal.
The following day, Patrick and Turner transported the 2020 Ford Explorer to West Virginia and attempted to trade it at a Charleston dealership for a more expensive Ford F-250. Patrick told a dealership employee that he worked for the United States Marshals Service. Patrick further told the employee that an armed deputy U.S. Marshal would deliver a check in two days to pay for the trade in, and asked that employee to hold a personal check as collateral. Law enforcement officers were summoned to the dealership and Patrick and Turner were arrested.
On July 14, 2021, while out on bond, Turner and Patrick passed a bad check at a Hurricane dealership to obtain a Jeep Cherokee with an approximate value of $60,056.22. The following day, the pair passed a bad check at a Ripley dealership to obtain a new Ford Explorer with an approximate value of $59,393.48. That same day, Patrick and Turner attempted to obtain a Ford F-150 with an approximate value of $64,108.24 from a Hurricane dealership. They were turned away when the check did not clear.
Turner previously pleaded guilty to aiding and abetting the interstate transportation of stolen property on April 14, 2022, and was sentenced to one year in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the assistance provided by the Charleston Police Department, the Hurricane Police Department, the Jackson County Sheriff’s Office, and the Louisville, Kentucky, Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Negar M. Kordestani prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-18.
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Man Pleads Guilty to Possessing over 6 Kilograms of Methamphetamine and over $450,000 for the Purpose of Drug TraffickingRead the Press Release
A man who possessed over 6,000 grams of methamphetamine and $460,726 in Cedar Rapids, Iowa, pled guilty today.
Terrell McBride, age 31, from Cedar Rapids, Iowa, was convicted of distribution of methamphetamine.
In a plea agreement, McBride admitted to distributing over 1,500 grams of methamphetamine throughout the Cedar Rapids area. The Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms & Explosives searched McBride’s home and recovered over 6,900 grams of methamphetamine and $460,726 in United States Currency. McBride admitted that he used or intended to use all of the United States Currency seized for the purpose of drug trafficking.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. McBride remains in custody of the United States Marshal pending sentencing. McBride faces a mandatory minimum of 10 years’ imprisonment and the following maximum penalties: (1) not more than life imprisonment, without the possibility of parole; (2) a fine of not more than $10 million; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 5 years and up to life.
This case was investigated by the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR-00005-CJW.
Follow us on Twitter @USAO_NDIA.
Los Angeles Resident Sentenced to Prison for Attempting to Obstruct an Official Proceeding Dealing with a Scheme to Issue Commercial Driver’s Licenses to Unqualified DriversRead the Press Release
SACRAMENTO, Calif. — Jaswinder Singh, 60, of Los Angeles, was sentenced today to serve a nine-month prison sentence and to pay a $7,500 fine for attempting to obstruct an official proceeding, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Singh contacted a trial witness in a pending federal criminal case and instructed the witness to lie to law enforcement as a trial date approached. The witness knew that Singh and others had participated in a conspiracy to bribe a DMV official to fraudulently obtain California commercial driver’s licenses (CDLs) for numerous drivers who did not want to take (or could not pass) the necessary tests. Nevertheless, Singh instructed the witness to falsely tell law enforcement the witness knew nothing, not to mention anything about Singh or Singh’s participation in the conspiracy, and not to name any names. Singh also told the witness not to talk on the phone and that it was very important for them to make sure their stories were similar to one another. On another occasion, Singh himself provided false statements about his knowledge and his role to law enforcement while the conspiracy was under investigation.
This case was the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs, Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Rosanne L. Rust and Christopher Hales prosecuted the case.
Logan Man Convicted of Securities FraudRead the Press Release
SALT LAKE CITY- On August 30, 2022, after a three-day trial, a federal jury in the District of Utah found Thomas Fairbanks, 69, of Logan, guilty of securities fraud as a result of his fraudulent activities as the CEO and founder of SupplyLine Partners, located in Logan.
At trial, federal prosecutors presented evidence that Fairbanks fraudulently represented to investors that Supplyline Partners’ purpose was to work as a cooperative in funding the financial needs of local businesses, and then leveraging those businesses’ assets to generate cash flow, which would benefit the local community. SupplyLine was not registered as a business with the State of Utah and neither SupplyLine nor Fairbanks were ever licensed to sell securities. In order to induce victims into investing in his scheme, Fairbanks promised investors that they would receive a six percent annual return on their investments; that investors would receive an accounting on their investments; that investors could liquidate their investment at any time; that invested funds would go towards funding SupplyLine’s lending capital; and that SupplyLine’s investments were collateralized by assets of other businesses. However, none of these representations were true.
Fairbanks offered and sold investment opportunities in SupplyLine to at least two Utah residents and collected money from them, some of which he used to fund his own business enterprises and to make loans to a realty company where he worked as a real estate agent. In total, victims lost more than $600,000.
Assistant United States Attorneys Ruth Hackford-Peer and Kevin Sundwall tried the case against the defendant. Investigators from the Utah Division of Securities conducted the investigation with assistance from the FBI.
Kansas Man Sentenced in Fentanyl ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Overland Park, Kansas, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 29, 2022, by U.S. District Judge Karen E. Schreier.
Sylvester Mitchell, III, age 31, was sentenced to 13 years in federal prison, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Mitchell was indicted for conspiracy to distribute a controlled substance by a federal grand jury in September of 2021. He pleaded guilty on June 7, 2022.
Beginning on an unknown date and continuing until on or about December 2021, Mitchell reached an agreement to distribute fentanyl, a Schedule II controlled substance, in the District of South Dakota.
During his involvement, Mitchell obtained pills containing fentanyl from a co-conspirator and distributed them to drug customers in South Dakota. On July 27, 2021, law enforcement executed a search warrant at an apartment where Mitchell was staying. When the officers searched the apartment, they found approximately 73 grams of blue M-30 pills that were later tested and found to contain fentanyl. Mitchell posted bail after that arrest and was released. As Mitchell was leaving Sioux Falls, a South Dakota Highway Patrol Trooper followed him. Mitchell pulled off the interstate and abandoned a safe at a business near the exit of the interstate. The trooper eventually found the safe and discovered approximately 454 grams of pills containing fentanyl inside of it. Through Mitchell’s involvement in the conspiracy, he personally distributed over 400 grams of a mixture and substance containing fentanyl.
This case was investigated by the Sioux Falls Police Department, South Dakota Highway Patrol, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Paige Petersen prosecuted the case.
Mitchell was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department Secures Settlement Agreement with the Indiana State Nursing Board Addressing Discrimination Against People with Opioid Use DisorderRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Indiana State Board of Nursing (Nursing Board) to resolve claims it violated Title II of the Americans with Disabilities Act (ADA). The settlement agreement ensures that nurses who take medication to treat opioid use disorder (OUD) can remain on their medication when participating in the Indiana State Nursing Assistance Program. The program assists in rehabilitating and monitoring nurses with substance use disorders, and is often required for these nurses to maintain an active license or have one reinstated. The department previously notified the Nursing Board of its findings, and described the remedial measures necessary for the Nursing Board to address the ADA violation identified. This case was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana.
“Indiana may not deny individuals life-saving medications, including medications that treat opioid use disorder, based on stereotypes and misinformation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Requiring nurses to stop taking prescribed medication as a condition of maintaining a nursing license violates the ADA, and not only creates barriers to recovery, but inappropriately limits employment opportunities based on disability.”
“The opioid epidemic has greatly impacted professionals and families of all walks of life, and Indiana nurses have the right to seek medically approved treatment for opioid use disorder under federal law,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Following the Justice Department’s findings and the parties’ settlement agreement, Indiana must now enact policies to ensure that Hoosier nurses will not be forced to choose between their recovery and their livelihoods.”
Under the terms of the agreement, the Nursing Board will allow nurses to participate in the states’ rehabilitation program while taking medication, including medication to treat OUD, when the medication is prescribed by a licensed practitioner as part of a medically necessary treatment plan and incorporated into a recovery monitoring agreement. In addition, the Nursing Board has agreed to revise its written polices to ensure that nurses taking prescribed medications for OUD are not subjected to discriminatory conditions or terms. The Nursing Board has also agreed to pay a total of $70,000 in damages to the complainant, and to report periodically on its compliance to the United States.
Methadone and buprenorphine (including brand names Subutex and Suboxone) are approved by the Food and Drug Administration to treat OUD. According to the U.S. National Institute on Drug Abuse (NIDA), methadone and buprenorphine help diminish the effects of physical dependency on opioids. When taken as prescribed, these medications are safe and effective.
The Civil Rights Division, together with U.S. Attorneys’ offices, has been working to remove discriminatory barriers to recovery for individuals who have completed, or are participating in, treatment for OUD. Through outreach, technical assistance and enforcement under the ADA, the Civil Rights Division seeks to ensure that those in treatment or recovery can successfully participate in their communities and the workforce. For example:
- On April 5, 2022, the department issued guidance on protections for people with OUD under the ADA.
- On March 24, 2022, the department entered into a settlement agreement with the Massachusetts Trial Court to resolve allegations that its drug court violated the ADA by discriminating against individuals with OUD.
- On March 17, 2022, the department entered into a settlement agreement with Ready to Work, a Colorado-based employment, residential and social services program for individuals experiencing homelessness, resolving allegations that the program denied admission to an individual because she takes medication for OUD.
- On Feb. 24, 2022, the department filed a lawsuit against the Unified Judicial System of Pennsylvania, alleging that it prohibits or otherwise limits participants in its court supervision programs from using medication to treat OUD.
For more information on the ADA, please call the department’s toll-free ADA information line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. Complaints about disability-based discrimination may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov/.
Justice Department Secures Settlement Agreement with the Indiana State Nursing Board Addressing Discrimination Against People with Opioid Use DisorderRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and the Justice Department announced today that it has entered into a settlement agreement with the Indiana State Board of Nursing (Nursing Board) to resolve claims it violated Title II of the Americans with Disabilities Act (ADA). The settlement agreement ensures that nurses who take medication to treat opioid use disorder (OUD) can remain on their medication when participating in the Indiana State Nursing Assistance Program. The program assists in rehabilitating and monitoring nurses with substance use disorders, and is often required for these nurses to maintain an active license or have one reinstated. The department previously notified the Nursing Board of its findings, and described the remedial measures necessary for the Nursing Board to address the ADA violation identified. This case was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana.
“The opioid epidemic has greatly impacted professionals and families of all walks of life, and Indiana nurses have the right to seek medically approved treatment for opioid use disorder under federal law,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Following the Justice Department’s findings and the parties’ settlement agreement, Indiana must now enact policies to ensure that Hoosier nurses will not be forced to choose between their recovery and their livelihoods.”
“Indiana may not deny individuals life-saving medications, including medications that treat opioid use disorder, based on stereotypes and misinformation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Requiring nurses to stop taking prescribed medication as a condition of maintaining a nursing license violates the ADA, and not only creates barriers to recovery, but inappropriately limits employment opportunities based on disability.”
Under the terms of the agreement, the Nursing Board will allow nurses to participate in the states’ rehabilitation program while taking medication, including medication to treat OUD, when the medication is prescribed by a licensed practitioner as part of a medically necessary treatment plan and incorporated into a recovery monitoring agreement. In addition, the Nursing Board has agreed to revise its written polices to ensure that nurses taking prescribed medications for OUD are not subjected to discriminatory conditions or terms. The Nursing Board has also agreed to pay a total of $70,000 in damages to the complainant, and to report periodically on its compliance to the United States.
Methadone and buprenorphine (including brand names Subutex and Suboxone) are approved by the Food and Drug Administration to treat OUD. According to the U.S. National Institute on Drug Abuse (NIDA), methadone and buprenorphine help diminish the effects of physical dependency on opioids. When taken as prescribed, these medications are safe and effective.
The Civil Rights Division, together with U.S. Attorneys’ offices, has been working to remove discriminatory barriers to recovery for individuals who have completed, or are participating in, treatment for OUD. Through outreach, technical assistance and enforcement under the ADA, the Civil Rights Division seeks to ensure that those in treatment or recovery can successfully participate in their communities and the workforce. For example:
- On April 5, 2022, the department issued guidance on protections for people with OUD under the ADA.
- On March 24, 2022, the department entered into a Settlement Agreement with the Massachusetts Trial Court to resolve allegations that its drug court violated the ADA by discriminating against individuals with OUD.
- On March 17, 2022, the department entered into a Settlement Agreement with Ready to Work, a Colorado-based employment, residential and social services program for individuals experiencing homelessness, resolving allegations that the program denied admission to an individual because she takes medication for OUD.
- On February 24, 2022, the department filed a lawsuit against the Unified Judicial System of Pennsylvania, alleging that it prohibits or otherwise limits participants in its court supervision programs from using medication to treat OUD.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Complaints about disability-based discrimination may be reported to the United States Attorney’s Office for the Southern District of Indiana by submitting a Civil Rights Complaint form, which can be found here, or sending an email to [email protected].
Jackson Man Pleads Guilty and is Sentenced to over 4 Years in Prison for Attempted Hobbs Act RobberyRead the Press Release
Jackson, Miss. – A Jackson man pled guilty and was sentenced today to attempted robbery in violation of the Hobbs Act, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Waddah Farah, 42, pled guilty in U.S. District Court in Jackson. Farah was also sentenced today after waiving any delay in sentencing. He was ordered to serve 51 months in federal prison and pay a $1500 fine.
According to court documents, Farah was arrested and indicted for the attempted robbery of a Dollar General store in Jackson on October 1, 2018.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
Inmate Sentenced to Additional Prison Time for Escaping from A Residential Reentry CenterRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Winsdell Nowelin Lamb (35) to 18 months in federal prison for escape. The court also ordered Lamb to serve two years of supervised release following his prison term. Lamb’s sentence is to run concurrently to the sentence that he was serving when he escaped. Lamb had pleaded guilty on April 19, 2022.
According to court documents, in 2013, Lamb was sentenced to an eight-year prison term for being a felon in possession of a firearm. Lamb was completing that term at a Residential Reentry Center in the Middle District of Florida. In November 2020, Lamb escaped from the center and a criminal complaint and arrest warrant was issued immediately. Lamb was a fugitive until January 2022 when he was arrested by the Chicago Police Department on unrelated charges. Despite Lamb giving law enforcement a false name, his true identity was determined, and the U.S. Marshals Service returned Lamb to Orlando.
This case was investigated by the United States Marshals Service. It was prosecuted by Assistant United States Attorney John Gardella.
Illegal Possession of Firearm Sends Rayne Man to Federal PrisonRead the Press Release
LAFAYETTE, La. - Lamar Malbrough, 31, of Rayne, Louisiana, has been sentenced by United States District Judge Robert R. Summerhays to 120 months (10 years) in prison, followed by 3 years of supervised release, announced United States Attorney Brandon B. Brown.
According to evidence presented to the court, on August 11, 2021, Acadia Parish Sheriff’s Office deputies arrested Malbrough as the result of an active state arrest warrant after conducting a traffic stop of the vehicle he was driving. Malbrough was found to have various amounts and types of drugs, including fentanyl, methamphetamine, and marijuana, as well as a firearm, in his possession at the time of his arrest. He has prior felony convictions for attempted possession of a firearm by a felon (2020); simple burglary (2009); and possession with intent to distribute cocaine (2008) and knew that as a convicted felon, he was prohibited from possessing a firearm or ammunition. On April 20, 2022, Malbrough pleaded guilty to being a convicted felon in possession of a firearm.
The case was investigated by the Department of Homeland Security and the Acadia Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney John W. Nickel. It 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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Honduran National Sentenced for Illegally Entering the US After a Prior RemovalRead the Press Release
PORTLAND, Maine: A Honduran national living in Auburn was sentenced in U.S. District Court in Portland today for entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
U.S. District Court Judge Nancy Torresen sentenced Santos Roman Pena Matute, 28, to thirteen months and a day in prison. Pena Matute pleaded guilty April 21, 2022.
According to court records, in January 2022, Pena Matute was arrested on domestic violence charges and detained at the Androscoggin Jail. After an investigation confirmed Pena Matute was illegally present in the U.S. and further revealed that he had previously been removed from the U.S. on four occasions, the Department of Homeland Security, Immigration and Customs Enforcement lodged an immigration detainer with the jail, and Pena Matute was charged with illegally entering the county after a prior removal. Pena Matute had been previously convicted in federal court in Texas for illegal re-entry into the United States and in California for attempted illegal entry.
U.S. Department of Homeland Security, Immigration and Customs Enforcement investigated the case.
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High Speed Chase Results in Firearm Charge for Stockton ManRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Rothel Leandre Satchell, 32, of Stockton, charging him with being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 15, 2022, an Audi sedan made an illegal U-turn, sped off, and led law enforcement officers on a high-speed chase through a residential neighborhood. The vehicle ultimately was unable to navigate a turn and crashed into a row of parked cars. The driver, later identified as Satchell, climbed out of the passenger side door and fled on foot. Once apprehended, officers located a privately manufactured firearm (commonly known as a “ghost gun”) on Satchell’s person and a high-capacity magazine containing 27 rounds in the vehicle. Satchell is prohibited from possessing firearms or ammunition because he was previously convicted of two felonies, including a 2021 conviction for being a felon in possession of ammunition.
This case is the product of an investigation by the Stockton Police Department, the San Joaquin County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Satchell faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Harrison County Woman Sentenced for Trafficking FentanylRead the Press Release
MARSHALL, Texas – A Harleton, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Kerri Marie Thorn, 31, pleaded guilty on May 10, 2022, to possession with intent to distribute fentanyl and was sentenced to 54 months in federal prison today by U.S. District Judge Rodney Gilstrap.
According to information presented in court, Thorn was arrested in August 2021 following a report that she was in possession of more than 2.5 kilograms of stolen fentanyl that she had hidden near a residence in Harleton. Law enforcement officers recovered what was analyzed as 2,607.6 grams of fentanyl and interviewed Thorn, who admitted that she and her co-defendant intended to transport the fentanyl out of the state for sale, at which time they would split the profits. Thorn was indicted by a federal grand jury on Feb. 17, 2022.
This case was investigated by the Federal Bureau of Investigation, Marshall Police Department, and Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Hamden Man Pleads Guilty to Fraud OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that LAMONT BETHEA, 31, of Hamden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to fraud offenses.
According to court documents and statements made in court, Bethea took part in two separate criminal schemes. In the first scheme, Bethea was employed as a Patient Care Associate at Yale New Haven Health Systems (YNHHS). In June 2020, Bethea and Lorita Fair, who worked in the YNHHS payroll department, began to embezzle YNHHS payroll funds. Fair made fraudulent entries in the YNHHS payroll system that resulted in Bethea, Fair and another individual receiving direct-deposited payroll payments that they were not entitled to. Bethea and the other individual then kicked back to Fair a portion of the fraudulent payroll payments they received. As a result of this scheme, which lasted until December 2020, YNHHS sustained a loss of more than $116,260. Approximately $106,000 of this amount was paid into Bethea’s bank account.
In the second fraud scheme, beginning in July 2020, Bethea received personal checks that had been stolen from an individual who lived in New Haven. The victim’s signature was forged on the checks, which were made payable to Bethea, and Bethea deposited them into his personal bank account. Using the routing and account numbers on the checks, Bethea also arranged electronic transfers from the victim’s bank account and used these transfers to pay personal expenses for himself, his family members, and friends. The expenses included credit card bills, rent, car insurance payments, student loans, cell phone bills, and other payments. Through this scheme, Bethea and others stole more than $317,000, of which Bethea and his family members and friends received a total of more than $131,000.
On October 21, 2021, Bethea was arrested on a criminal complaint charging him with offenses arising from the YNHHS fraud scheme.
Bethea pleaded guilty to one count wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of bank fraud, which carries a maximum term of imprisonment of 30 years. Judge Dooley scheduled sentencing for November 23.
Bethea is released on a $50,000 bond pending sentencing.
On April 27, 2022, Fair, of Rock Hill, South Carolina, pleaded guilty to one count of theft in connection with health care for her role in the YNHHS fraud. She awaits sentencing and is also released on a $50,000 bond.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, with the assistance of YNHHS and Bank of America. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Hartford Woman Pleads Guilty to Wire Fraud and Money Laundering SchemeRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that on September 1, 2022, a Hartford woman pled guilty to executing a multi-million-dollar wire fraud and money laundering scheme. Vicki Berka, (age: 61) pled guilty to one count of wire fraud in violation of 18 U.S.C. § 1343, and one count of money laundering in violation of 18 U.S.C. § 1957, for embezzling approximately $2.7 million from her former employer, Bader Rutter & Associates (“Bader”).
According to the plea agreement, Berka admitted to engaging in a scheme to defraud Bader from July 2014 through approximately September 26, 2017. Berka used her position as Chief Financial Officer (“CFO”) and her bank account login credentials to make unauthorized ACH transfers from Bader’s health funding account to a bank account she controlled. Berka then falsified Bader’s general ledger by inflating the company’s reported healthcare expenditures to hide the amount of money she was embezzling. Berka used over $250,000 in stolen proceeds to buy a beach condo in North Carolina.
Berka faces a maximum possible sentence of twenty years in prison for the wire fraud count, and ten years in prison for the money laundering count. Berka also faces fines of up to $250,000 per count and has agreed to pay restitution in the amount of $2.7 million to Bader and its insurance company. Sentencing is scheduled for December 1, 2022, before Judge JP Stadtmueller.
The Federal Bureau of Investigation investigated the case and it is being prosecuted by Assistant United States Attorney Peter Smyczek.
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Four Defendants Face Federal Charges in an Alleged Business Email Compromise Scheme Involving over $4 Million in Fraudulent Bank TransactionsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging four defendants with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Charged in the indictment are:
Raissa Kaossele, age 22, of Baltimore, Maryland;
Damilola Ojo, age 29, of Pikesville, Maryland;
Victor Ojo, age 28, of Edgewood, Maryland;
Jamelia Thompson, age 29, of Pikesville, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (“TIGTA”).
According to the allegations in the eight-count indictment, from April 2016 to May 2019, the defendants allegedly executed a business email compromise scheme (“BEC scheme”). The defendants compromised email accounts of individual and business victims, which they used to send fraudulent payment instructions to financial institutions or business associates to misappropriate funds. The indictment alleges that the defendants used the stolen identifying information of individual victims to obtain Employer Identification Numbers and state business certificates in the name of shell businesses.
As alleged in the indictment, the defendants also obtained legitimate checks written on the accounts of payor business victims and made payable to payee business victims. The defendants allegedly altered the name of the payee on some checks and deposited the stolen checks into bank accounts they opened and controlled. Further, the indictment alleges the defendants and other conspirators then withdrew the unlawfully deposited funds from the accounts. As alleged in court documents, the defendants and other co-conspirators conducted over $4 million in fraudulent bank transactions.
If convicted, the defendants face a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, a maximum of 30 years in prison for bank fraud, and a mandatory minimum sentence of two years in federal prison consecutive to any other sentenced imposed for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work on the investigation and thanked the Baltimore City Police Department, Baltimore County Police Department, Harford County Sheriff’s Office, and U.S. Customs and Border Protection at Dulles International Airport for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Mary Setzer and Paul A. Riley, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Fort Wayne Man Sentenced to 121 Months in PrisonRead the Press Release
FORT WAYNE – Starsky Guin, 45 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady on his plea of guilty to distribution of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson.
Guin was sentenced to 121 months in prison followed by 5 years of supervised release.
According to documents in the case, Guin distributed more than 5 grams but less than 50 grams of methamphetamine on December 1, 2020, and he possessed more than 50 grams of methamphetamine with the intent to distribute on January 13, 2021.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former CFO of Claddagh Irish Pubs Parent Company Charged with Defrauding States Out of More Than $1 Million in Sales Tax RevenueRead the Press Release
CLEVELAND - First Assistant U.S. Attorney Michelle M. Baeppler announced that the former Chief Financial Officer (CFO) of CDG Acquisition, LLC (CDG), a company registered in the State of Ohio, which owned “The Claddagh Irish Pubs” chain of restaurants, was charged with defrauding multiple states of sales tax revenue where the restaurant chain operated.
Ciaran Dillon, 56, of Solon, Ohio, was named in the indictment and officially charged with two counts of wire fraud.
According to the indictment, from January 2010 through May 2018, the defendant, acting in his official capacity as CFO of CDG, directed a company accountant to pay certain states less sales tax than the true amount owed. The indictment states that based on the defendant’s instruction, the accountant would edit the company's sales and sales tax figures, file false tax returns and pay states the amount instructed by the defendant.
It is alleged that one common way to underpay sales tax was for the company to report and pay sales tax for four weeks during a five-week period, leading CDG to collect a week’s worth of sales taxes that were omitted from state sales tax filings.
In total, it is alleged that during this time, the defendant defrauded the States of Indiana, Kentucky, Illinois, Michigan, Minnesota, Ohio, Pennsylvania and Wisconsin out of more than $1 million in sales tax revenue collected from CDG customers across fifteen restaurants.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, a sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Cleveland FBI and is being prosecuted by Assistant U.S. Attorney Alejandro A. Abreu.
Former CEO of Souktel, Inc., Agrees to Pay $100,000 to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON – The former Chief Executive Officer of Souktel, Inc., Jacob Korenblum, has agreed to pay the United States $100,000 to resolve allegations that he knowingly caused employees of the company to submit false claims to the United States Agency for International Development (USAID), in Souktel’s performance of grants and contracts to provide customized technology platforms on aid projects in developing countries.
The announcement was made today by U.S. Attorney Matthew M. Graves and Special Agent in Charge Vanessa Freeman for the USAID Office of Inspector General.
“Companies and individuals that do business with the federal government have a responsibility to have controls in place to prevent overbilling and charge only for the work that is actually performed,” said U.S. Attorney Graves. “This case underscores our resolve to work with USAID and other partners to promote accountability and protect taxpayers’ money. It also underscores that companies that discover and disclose their wrongdoing and cooperate in the government’s investigation will be in a far better position than those that fail to disclose their wrongdoing.”
“USAID-funded organizations must ensure that invoices submitted to the government for payment reflect actual work performed on a project,” said USAID OIG Special Agent in Charge Freeman. “USAID OIG, using its global investigative resources, will continue to work with the Department of Justice to hold accountable those who compromise the integrity of important U.S. foreign assistance programs.”
Souktel was a digital consulting firm based in Delaware, with offices in Washington, D.C., Toronto, Canada, and Ramallah, West Bank. Beginning in 2013, the firm was awarded USAID-funded sub-grants and sub-contracts to design and build software programs for mobile phones, used to reach aid workers and beneficiaries in developing countries. In 2019, Souktel self-disclosed to USAID OIG that it had made significant overbillings to USAID prime implementers on several of its projects. The company dissolved in 2021.
The U.S. Attorney’s Office and USAID OIG determined that between February 2014 and January 2017, Souktel submitted at least 55 invoices that contained false or speculative labor hours for its staff. Specifically, despite being under cost-reimbursement awards and required to bill USAID only for labor hours incurred, Souktel, at the direction of its CEO, Jacob Korenblum, submitted fabricated timesheets to five prime awardees to support false or speculative labor hours of its staff while working on USAID-funded projects.
Korenblum cooperated with the investigation and agreed to settle the matter prior to a determination of liability in a civil case. Under the settlement agreement, he agreed to pay $100,000 on top of slightly more than $90,000 that Souktel paid as reimbursement to USAID after its self-disclosure.
The investigation in this matter was conducted by USAID OIG and Assistant U.S. Attorney John C. Truong of the Civil Division of the U.S. Attorney’s Office for the District of Columbia.
Fentanyl, Methamphetamine, and Heroin Importer Sentenced to 46 Months in PrisonRead the Press Release
TUCSON, Ariz. – Yesterday, Jesus Alfonso Duarte, 22, of Pima, Arizona, was sentenced by United States District Judge Rosemary Márquez to 46 months in prison, followed by five years of supervised release. Duarte previously pleaded guilty to Conspiracy to Import Fentanyl, Methamphetamine, and Heroin.
On March 29, 2020, Duarte entered the United States at the DeConcini Port of Entry in Nogales, Arizona with over 25 pounds of methamphetamine, five pounds of heroin, and two pounds of fentanyl hidden in his vehicle. During his interview with federal agents, Duarte admitted to working for a known drug trafficker in Mexico and lending his vehicle to the trafficker prior to reentering the United States.
Homeland Security Investigations conducted the investigation in this case with assistance from the Customs and Border Protection’s Office of Field Operations. Assistant U.S. Attorney Ashley B. Culver, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-20-2318-TUC-RM
RELEASE NUMBER: 2022-152_Duarte# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Federal Jury Finds Palmetto Man Guilty of Armed Robbery, Possessing A Firearm as A Convicted Felon, Contempt, and ExtortionRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury today found Delon Adams (50, Palmetto) guilty of four counts of robbery, four counts of brandishing a firearm during and in relation to a crime of violence, possessing a firearm and ammunition as a convicted felon, extortion, and criminal contempt of court. Each robbery charge carries a maximum penalty of 20 years’ imprisonment. Because Adams has a prior federal conviction for carrying a firearm during and in relation to a drug trafficking crime, each brandishing charge carries a minimum mandatory term of 25 years, and up to life, in federal prison, consecutive to any other term of imprisonment. The felon-in-possession charge carries a maximum penalty of 10 years in prison. The extortion charge carries up to 2 years’ imprisonment. On the criminal contempt charge, Adams may be imprisoned for as long as the Honorable Virginia M. Hernandez Covington, United States District Judge, determines. His sentencing hearing is scheduled for November 17, 2022. Adams had been indicted on October 27, 2020.
According to testimony and evidence presented at trial, between August 26 and September 15, 2020, Adams robbed four wireless phone stores – three in Manatee County and one in Hillsborough County. During each robbery, he pointed a gun at store employees and stole iPhones and cash. Adams subsequently sold the stolen iPhones. Law enforcement officers arrested Adams on October 1, 2020, and found him in possession of a loaded handgun. Adams subsequently mailed a threatening communication to a witness in an attempt to obtain money and violated two court orders by refusing to be fingerprinted.
This case was investigated by the Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) unit of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Hillsborough County Sheriff’s Office, the Manatee County Sheriff’s Office, and the Palmetto Police Department. It is being prosecuted by Assistant United States Attorneys Diego F. Novaes and Christopher F. Murray.
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.
Fayette County Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Brittany Ellen Flint, 33, of Fayetteville, was sentenced today to one year and three months in prison, to be followed by three years of supervised release, for distributing methamphetamine.
According to court documents and statements made in court, Flint admitted that she sold approximately 6.8 grams of methamphetamine to a confidential informant in Oak Hill on January 10, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Central West Virginia Drug Task Force, and the Oak Hill Police Department for conducting the investigation.
Senior United States District Judge John T. Copenhaver Jr. imposed the sentence. Former Assistant United States Attorney Nick Miller and Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-35.
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Duluth Man Sentenced to 10 Years for Attempted Bank Robbery & Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Cody Walker-Nelson, 31, Duluth, Minnesota was sentenced today by U.S. District Judge William Conley to 10 years in prison for attempted bank robbery and possessing firearms as a felon. Walker-Nelson pleaded guilty to these charges on May 24, 2022.
On October 1, 2021, Walker-Nelson engaged in a dangerous crime spree in Superior, Wisconsin and Duluth. In Duluth, he stole two cars and led police on several high-speed chases. In Superior, he burglarized a residence, stealing three handguns and four long guns.
Walker-Nelson then attempted to rob the Superior branch of Associated Bank. He pulled up to the drive-through window, knocked on the window to get the teller’s attention, took up a firing stance, and pointed one of the stolen handguns at her. The teller quickly moved out of sight and Walker-Nelson fled the area driving against traffic across the Bong Bridge to Duluth.
Once back in Duluth, Walker-Nelson tried to steal the car of an off-duty police officer but left when confronted by the officer. He then stole a wallet from two people and fired a gun in their presence. Next, he went to an apartment building where he was surrounded by law enforcement and SWAT teams. Walker-Nelson discharged one of the stolen handguns several times during the standoff, including shooting at and disabling a law enforcement drone.
Ultimately tear gas was used and a SWAT team forcibly breeched the front door, at which time Walker-Nelson fired a round through the bedroom door. Walker-Nelson retreated to a large safe in the bedroom where he attempted to start a fire using a canister of propane. After he was taken into custody, officers found numerous bullet holes in the apartment including one that traveled through the front door and into a neighboring apartment.
Walker-Nelson is a felon, has been to prison before, and has prior convictions for theft of firearms, burglary, felon in possession of a firearm, assault, and violating a domestic abuse injunction.
At sentencing, Walker-Nelson said that he was a drug addict who was not able to maintain sobriety through the pandemic which led him committing these crimes. Judge Conley was not satisfied with this and said it only partially mitigated the offense as Walker-Nelson had previous opportunities for treatment. Judge Conley said that he had to sentence Walker-Nelson based on the severity of his conduct and risk to reoffend in the future, and that the sentence was meant to hold him accountable and protect the community. Judge Conley described the federal case as a drug-induced criminal rampage through Superior and Duluth consisting of multiple violent and invasive offenses which endangered specific individuals and the community as a whole.
Judge Conley sentenced Walker-Nelson to 10 years in prison to be followed by 3 years of supervised release. This term of imprisonment was ordered to run concurrently with pending and related cases in Superior and Duluth.
The charges against Walker-Nelson were the result of an investigation conducted by the Superior and Duluth Police Departments, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
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.
Drug Trafficker Sentenced for Illegal Possession of Methamphetamine and a FirearmRead the Press Release
LAKE CHARLES, La. – Ryan Spencer George, 37, of Lake Charles, Louisiana, was sentenced today in U.S. District Court, announced United States Attorney Brandon B. Brown. George was sentenced by United States District Judge James D. Cain, Jr. to 108 months (9 years) in prison, followed by 3 years of supervised release. George pleaded guilty on May 26, 2022 to possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon.
On March 31, 2020, detectives with the Combined Anti-Drug Task Force were assisting the Lake Charles Police Department and conducted a traffic stop on the vehicle being driven by George. Subsequent to his arrest, law enforcement officers found multiple plastic bags containing at least 25 grams of methamphetamine, a small digital scale and a wallet containing various denominations of U.S. Currency inside the front pocket of his pants. George admitted to officers that the bags contained methamphetamine and that some of the money was gained from selling narcotics. While searching George’s vehicle, officers found a loaded SCCY 9mm pistol on the floorboard between the driver’s seat and the console.
Further investigation by law enforcement revealed that George had multiple prior felony convictions, including distribution of methamphetamine (2015) and possession of a weapon by a convicted felon (2018), prohibiting him from possessing a firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Lake Charles Police Department and was prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen.
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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Drug Trafficker Receives 15+ Year Sentence for Possession of MethamphetamineRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Michael C. Francis, 37, of Bossier City, Louisiana, has been sentenced in United States District Court. Chief United States District Judge S. Maurice Hicks, Jr. sentenced Francis to 188 months (15 years, 8 months) in prison, followed by 5 years of supervised release, on drug trafficking charges.
Beginning in March 2019, and continuing until on or about December 31, 2019, Francis and eight other defendants were involved in a drug trafficking conspiracy and pleaded guilty to possessing and distributing methamphetamine in the Caddo and Bossier Parish areas. Law enforcement officers began an investigation into their illegal drug trafficking activities and were able to obtain a court ordered wiretap on one of his co-defendants, Demetrius Deangelo Hall’s, cell phone. Through numerous intercepted communications, agents learned that Hall was communicating with Francis and others. Hall and Francis discussed providing each other with various amounts of methamphetamine on numerous occasions.
During the investigation, on October 21, 2019, law enforcement agents intercepted phone calls and text messages between Hall and his co-conspirators indicating that Hall was traveling to Texas to obtain more methamphetamine from co-defendant Steve Mireles. During these intercepted calls, Francis was heard discussing the price of methamphetamine for Francis’ part and that he would have to pay for the courier fee. On February 22, 2021, Francis pled guilty to possessing with intent to distribute at least 50 grams or more of methamphetamine.
This case was investigated by the DEA, ATF, Shreveport Police Department, Caddo Parish Sheriff’s Office, Greenwood Police Department, and Louisiana State Police. The case was prosecuted by Assistant U.S. Attorneys Tennille Gilreath and Allison Duncan. This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Decade-Long Social Security Fraud Scheme Leads to Federal Prison TimeRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Seaford man was sentenced yesterday to 30 days imprisonment followed by 3 years of supervised release for defrauding the Social Security Administration (“SSA”) of nearly $150,000 through a scheme that lasted more than a decade. The sentence was pronounced by Chief U.S. District Judge Colm F. Connolly.
According to court documents, Marques Fountain, 42, collected another man’s SSA retirement benefits after the beneficiary died. The man, for whom Fountain served as a caretaker, passed away in 2009. The SSA, however, continued to deposit the deceased man’s SSA retirement benefits into a bank account controlled by Fountain. For more than a decade, Fountain accessed and used these SSA retirement benefits for his personal expenses. After admitting that he knew stealing the money was wrong, Fountain pleaded guilty in October 2021.
U.S. Attorney Weiss stated, “Social Security Administration benefits provide much needed assistance to the most vulnerable members of our society. Mr. Fountain spent a decade stealing from the federal government. Thanks to the work of the SSA Office of the Inspector General, Fountain will now spend time in federal prison and be required to pay full restitution to the government.”
“Mr. Fountain chose to defraud the Social Security Administration rather than report the beneficiary’s death to use for his personal gain for more than ten years. Today’s sentencing shows that concealing death reports from SSA to obtain deceased benefits is a serious criminal offense,” said Gail S. Ennis, Inspector General for the SSA. “We will continue to pursue those who defraud SSA programs, and I appreciate the U.S. Attorney’s Office for prosecuting this case.”
Assistant U.S. Attorney Christopher R. Howland prosecuted the case, which was investigated by SSA’s Office of the Inspector General.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cr-82-CFC.
Company owner sentenced for failing to turn over employee taxesRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced the owner of a company who withheld taxes from employee paychecks but didn’t turn them over to the IRS to five years of probation and ordered him to pay more than $700,000 in restitution.
Blue 2.0 LLC owner Jonathan Michaelson, 46, of University City, will have to pay $1,000 per month, or 10% of his monthly income, until the money is paid off.
Michaelson withheld a total of $767,367 in income, Social Security and Medicare taxes from employee paychecks from tax years 2014-2017, but didn’t turn that money over to the IRS.
Michaelson was indicted in September 2021. He pleaded guilty in May to one count of willful failure to pay over tax.
Charles Miller, acting Special Agent in Charge of the IRS Criminal Investigation’s St. Louis Field Office, said, “IRS: CI takes employment tax crimes very seriously because of the impact these offenses have on employee benefits. Mr. Michaelson withheld taxes from his employees’ income and instead of paying the taxes to the IRS as he was required to do, he used the money to enrich his personal lifestyle. Today’s sentence serves as a warning for any employers considering defrauding their employees and honest taxpayers in this way.”
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.
Co-Founder and Chief Investment Officer of London-Based Hedge Fund Charged with FX Market Manipulation and FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging NEIL PHILLIPS, the co-founder and chief investment officer of a hedge fund based in the United Kingdom, with conspiracy to commit commodities fraud, conspiracy to commit wire fraud, commodities fraud, and wire fraud in connection with a scheme to artificially manipulate the United States dollar (“USD”) / South African rand (“ZAR”) exchange rate to fraudulently trigger a $20 million payment under a barrier options contract. PHILLIPS was arrested in Spain earlier this week at the request of the United States.
U.S. Attorney Damian Williams said: “As alleged, Neil Phillips – the co-founder and chief investment officer of a prominent U.K. hedge fund – manipulated the FX market in order to unlawfully obtain millions of dollars in payments for his hedge fund under an options contract. Market manipulation is pernicious in all of its forms and today’s charges are a reminder that the Southern District of New York will steadfastly investigate and prosecute such activity whether it occurs in the equity market, the FX market, or elsewhere in the financial system.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Phillips maliciously manipulated global markets in order to defraud financial institutions for illicit profit. The FBI is determined to root out these types of frauds so financial markets remain a level playing field. As shown today, the FBI will find fraudulent actors no matter where in the world they are located and seek to bring them back to the United States to face the consequences of their actions in our federal criminal justice system.”
As alleged in the Indictment unsealed in Manhattan federal court:[1]
Background on Hedge Fund-1 and the FX Markets
At all relevant times, PHILLIPS was the co-founder and co-Chief Investment Officer of a hedge fund based in the United Kingdom (“Hedge Fund-1”), which was a global “macro” fund that focused on macroeconomic trends and emerging markets, foreign currency exchange (“FX”) markets, and currency and commodity products. Hedge Fund-1 was at all relevant times a registered commodity pool operator with the Commodity Futures Trading Commission (the “CFTC”) and PHILLIPS was himself registered with the CFTC as well.
The FX market is a global market in which participants trade currencies in pairs. In a currency pair, each currency is valued relative to the other, and the ratio that expresses the value of one currency against the other is referred to as the “exchange rate” or the “rate.” FX “spot” trades involve one party agreeing to receive a particular currency in exchange for delivering a different currency, at an agreed-upon price and quantity.
The $20 Million One Touch Option
In late October 2017, Hedge Fund-1 purchased a “one touch” digital option for the USD/ZAR currency pair that was set to expire on January 2, 2018. The option had a notional value of $20 million and a barrier rate of 12.50 ZAR to USD (the “$20 Million One Touch Option”). Under the terms of the $20 Million One Touch Option, if the USD/ZAR exchange rate went below the rate of 12.50 at any point prior to January 2, 2018, Hedge Fund-1 would be entitled to a $20 million payment. Hedge Fund-1 subsequently allocated a portion of the $20 million notional value to a client (“Client Fund-1”), thereby entitling Client Fund-1 to receive $4,340,000 in the event that the $20 Million One Touch Option was triggered.
Other financial institutions were party to the transaction: Hedge Fund-1 purchased the $20 Million One Touch Option through a financial services firm (“Intermediary Firm-1”) that facilitates trades on behalf of underlying clients; a subsidiary of a bank headquartered in Manhattan, New York (“Bank-1”) was obligated to pay the $20 million in the event the $20 Million One Touch Option was triggered; and a bank headquartered in Manhattan, New York (“Bank-2”) acted as Hedge Fund-1’s prime broker in connection with the $20 Million One Touch Option.
Hedge Fund-1 and Bank-2 entered into a letter agreement that set forth the terms and conditions of the transaction. This letter agreement provided that Hedge Fund-1 would be “acting in good faith and in a commercially reasonable manner” as the “Calculation Agent” in connection with the $20 Million One Touch Option and that Hedge Fund-1 would determine whether a barrier event occurred in good faith and in a commercially reasonable manner.
PHILLIPS Intentionally Manipulates the USD/ZAR Rate on Boxing Day 2017
With the $20 Million One Touch Option set to expire in a matter of days without having been triggered, on December 26, 2017 (Boxing Day), PHILLIPS engaged in a scheme to intentionally and artificially manipulate the USD/ZAR rate to drive the rate below 12.50 and trigger payment under the $20 Million One Touch Option. PHILLIPS caused and sought to cause the USD/ZAR exchange rate to fall below 12.50 by engaging in FX spot trades in which he caused hundreds of millions of USD to be exchanged for ZAR. PHILLIPS engaged in this USD/ZAR FX spot trading for the express purpose of artificially driving the USD/ZAR rate below 12.50. On December 26, 2017, in the hours that followed the completion of the USD/ZAR FX spot trading directed by PHILLIPS, the USD/ZAR rate once again increased and returned to levels above the 12.50 barrier and did not go below that rate for the remainder of the day.
In particular, during the span of less than an hour between shortly before midnight London time on December 25, 2017 (Christmas day), and approximately 12:45 a.m. London time on December 26, 2017 (Boxing Day), PHILLIPS personally directed a Singapore-based employee (“CC-1”) of a bank (“Bank-3”) to sell, on behalf of Hedge Fund-1, a total of approximately $725 million USD in exchange for approximately 9,070,902,750 ZAR. During the course of that approximately one-hour period, PHILLIPS, through his trading, caused the USD/ZAR rate to fall substantially until the rate went just below 12.50. As soon as PHILLIPS had achieved his objective and the USD/ZAR rate fell below 12.50 due to PHILLIPS’ manipulative spot trading activity, PHILLIPS immediately directed that CC-1 cease trading. PHILLIPS provided trading instructions to CC-1 through Bloomberg chat messages while PHILLIPS was located in South Africa and while CC-1 was located in Singapore. In these Bloomberg chat messages, PHILLIPS explicitly directed CC-1 to continue selling until the USD/ZAR rate fell below 12.50 and PHILLIPS expressly stated that PHILLIPS’ purpose in directing these trades was to drive the USD/ZAR rate below 12.50 stating, among other things, “my aim is to trade thru 50,” “[n]eed it to trade thru 50. 4990 is fine,” and “[g]et it thru.” Once PHILLIPS was informed by CC-1 that the USD/ZAR had traded at below 12.50, PHILLIPS immediately instructed CC-1 to “stop” trading and asked for proof “of the print.”
PHILLIPS Causes the Fraudulent Triggering of the $20 Million One Touch Option
Minutes after PHILLIPS artificially caused the USD/ZAR exchange rate to fall below 12.50 through his manipulative trading, PHILLIPS instructed another employee of Hedge Fund-1 (“CC-2”) to notify Intermediary Firm-1 that the $20 Million One Touch Option had been triggered. Consistent with PHILLIPS’ directive, CC-2 contacted an employee of Intermediary Firm-1 to confirm that the $20 Million One Touch Option had been triggered and, in so doing, omitted the fact that the triggering event – the USD/ZAR rate falling below 12.50 – had occurred as a result of the manipulation of the USD/ZAR exchange rate by PHILLIPS. Furthermore, Bank-2, which was serving as Hedge Fund-1’s prime broker in connection with the $20 Million One Touch Option and with whom Hedge Fund-1 had executed the relevant letter agreement governing the transaction, required confirmation from both the executing broker and from Hedge Fund-1 that the $20 Million One Touch Option had, in fact, been triggered. In this regard, on or about December 27, 2017, an employee of Hedge Fund-1 notified Bank-2, that “[t]he below option level of 12.50 was hit yesterday” and sought to process payment in connection with the triggering of the $20 Million One Touch Option. This representation by Hedge Fund-1 to Bank-2 that the $20 Million One Touch Option had been triggered likewise omitted the fact that the triggering event – the USD/ZAR exchange rate falling below 12.50 – had occurred as a result of the manipulation of the USD/ZAR exchange rate by PHILLIPS.
As a result of the fraudulent triggering of the $20 Million One Touch Option by PHILLIPS, Hedge Fund-1 ultimately received a wire transfer of $15,660,000 and Client Fund-1 received a wire transfer of $4,340,000.
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PHILLIPS, 52, of the United Kingdom, is charged with one count of conspiracy to commit commodities fraud, which carries a maximum sentence of five years in prison; one count of commodities fraud, in violation of Title 7, United States Code, Sections 9(1) and 13(a)(5), which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carry a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI. He also thanked the Justice Department’s Office of International Affairs, as well as authorities in Spain. Mr. Williams further thanked the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Noah Solowiejczyk is in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Central Valley Corporate Insider and Small Business Owner Indicted for Stealing Nearly $5 Million in Livestock Feed IngredientsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a multiple-count indictment today against Richard Best, 68, of Fresno, and Shawn Sawa, 46, formerly of Clovis, charging them with conspiracy and wire fraud.
According to court documents, from 2015 through 2017, Best and Sawa stole $4.8 million worth of canola used in cow feed from international food processors. They then sold the canola for a windfall.
Best and Sawa carried out the scheme through Best’s now defunct train-to-truck transloading company, Richard Best Transfer Inc. (RBT). A transloading company transfers commodities from one mode of transportation to another mode. The victims sent hundreds of thousands of tons of their canola and other commodities to RBT for delivery to their customers. Sawa was the manager of one of the victim’s branch offices in Fresno and had a close relationship with Best.
Best and Sawa sold the stolen canola through an acquaintance in Texas who used to work in the livestock feed industry. The acquaintance sold the stolen canola to farms and dairies, and distributed the proceeds according to Best’s instructions. This included wire transfers to RBT, Best, and Sawa’s bank accounts. The account that Sawa used was opened in his spouse’s name to try to conceal the scheme.
Throughout the scheme, Best and Sawa caused RBT to send fraudulent inventory reports to the victims representing that RBT had certain amounts of their canola in-stock when, in fact, RBT had significantly lesser amounts. Whenever the victims began to make inquiries about missing canola, Best and Sawa told them it had been destroyed by bad weather when it had actually been stolen.
Best and Sawa used the proceeds from the scheme to cover RBT’s operating expenses, purchase luxury homes and multiple vehicles, take trips, and hire private karate teachers, among other expenses.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Best and Sawa face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy and wire fraud counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Calcasieu Parish Man Sentenced on Child Pornography ChargesRead the Press Release
LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced that Shane Robinson, 28, of Lake Charles, Louisiana, has been sentenced by United States District Judge James D. Cain, Jr. to 180 months (15 years) in prison, followed by a lifetime of supervised release, on child pornography charges. Robinson was indicted by a federal grand jury in Lafayette and charged with production of child pornography and pleaded guilty to the charge on May 26, 2022.
Robinson was identified by the National Center for Missing and Exploited Children (NCMEC) as a person who may be possessing or distributing child pornography. Law enforcement agents obtained a search warrant and seized Robinson’s cell phone. On the cell phone, agents found sexually explicit images of a 4-year old child which Robinson had produced using the cell phone. In fact, Robinson can be seen in one of the sexually explicit images. Law enforcement agents questioned Robinson and he admitted to producing the images using his cell phone.
The case was investigated by the Department of Homeland Security – Bureau of Immigration and Customs Enforcement and was prosecuted by Assistant U.S. Attorney J. Luke Walker.
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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Box Elder Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Box Elder, South Dakota, man convicted of Possession of Child Pornography was sentenced on August 19, 2022, by U.S. District Karen E. Schreier.
John Cody Klingman, age 31, was sentenced to three years in federal prison, followed by five years of supervised release. Klingman was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $5,000 in restitution. Klingman will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Klingman was arrested and federally indicted following several Cybertips from the National Center of Missing and Exploited Children. The Internet Crimes Against Children taskforce executed a search warrant on Klingman’s home and seized multiple devices. Forensic examination of those devices rendered searches for child and teen pornography, as well as computer-generated child pornography and age difficult images.
This case was investigated by the Internet Crimes Against Children taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Klingman was immediately remanded to the custody of the U.S. Marshals Service.
Boone County Man Sentenced to Prison in Connection with Damage to Energy FacilityRead the Press Release
CHARLESTON, W.Va. – Brandon Beverly, 46, of Whitesville, Boone County, was sentenced today to two years in prison, to be followed by three years of supervised release, for attempting to damage the property of an energy facility, identified as a known mine located across Boone and Lincoln counties.
Beverly was found guilty by a federal jury following a two-day trial According to court documents and evidence presented at trial, Beverly helped to steal specialized mine equipment from the known mine in May and June 2019, resulting in more than $5,000 in damage.
United States Attorney Will Thompson made the announcement and commended the investigative work of West Virginia State Police and the Federal Bureau of Investigation (FBI).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Kathleen Robeson and Nowles Heinrich prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-260.
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Billings felon sentenced to prison for illegal possession of firearmsRead the Press Release
MISSOULA – A Billings man who admitted to illegally possessing firearms after having been convicted of a felony was sentenced today to two years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Michael Russell Torres, 30, pleaded guilty in April to two counts of prohibited person in possession of a firearm and ammunition.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that Torres was convicted of a felony drug crime in New York in 2013 and did not regain his right to possess firearms. In March 2021, Missoula Police officers responded to a citizen’s complaint and found Torres outside of a vehicle. Torres told officers he had a firearm on him. When officers placed Torres in handcuffs, a loaded, 9mm caliber pistol that had been under his shoulder fell to the ground. About a year later, law enforcement officers served an arrest warrant on Torres in Billings and found a .40 caliber pistol in his front waistband during a search.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and Billings Police Department.
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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Beloit Man Sentenced to 9 Years for Cocaine Trafficking & Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Eshawn M. Reed, 40, Beloit, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 9 years in federal prison for distributing crack cocaine and possessing a firearm in furtherance of a drug trafficking crime. This 9-year prison term will be followed by 5 years of supervised release.
On April 6, July 19, and August 5, 2021, Janesville Police Department officers purchased crack cocaine from Reed in Janesville using a confidential informant.
On August 10, 2021, law enforcement officers planned to arrest Reed and search his residence in Janesville. On that day, Beloit Police Department officers attempted to conduct a traffic stop on the vehicle Reed was driving. Reed did not pull over and instead fled in his vehicle at a high rate of speed. Officers located Reed’s abandoned car sometime later. Reed was found walking away from the vehicle and taken into custody. His vehicle was searched, and officers found a loaded Ruger 57 handgun, an additional loaded magazine, a bag containing 25 grams of crack cocaine sitting on top of a stack of $4,380 in cash, an additional $15,790 in cash, and 1,063 grams of marijuana. Reed’s DNA was found on the firearm.
Officers also searched Reed’s residence in Janesville pursuant to a search warrant. At the residence, officers found drug trafficking paraphernalia, including a vacuum-sealing machine, unused vacuum bags, a 100-gram weight, measuring cups, strainers, and packaging materials. The next day, officers were alerted to a bag found in a ditch along Reed’s suspected flight path from law enforcement the day prior. Inside the bag, officers found 671 grams of powder cocaine and 62 grams of crack cocaine. Reed’s DNA was found on the bag of powder cocaine. When interviewed by officers, Reed admitted to possessing the guns, drugs, and cash in the vehicle and admitted that the crack cocaine found in the car was prepackaged for sale so he would be ready when someone called.
Reed was prohibited from legally possessing a firearm based on multiple prior felony convictions. During the time of the controlled buys and arrest, he was on state supervision for three felony cases – one involving second degree recklessly endangering safety, use of a dangerous weapon, a second case involving maintaining a drug trafficking place, and a third case involving possessing cocaine with the intent to distribute. His state supervision has since been revoked and he is currently serving a total sentence of 5 years in state prison with an anticipated release date of November 7, 2026. Judge Peterson ordered Reed’s 4-year federal sentence on the cocaine distribution charge to run concurrently with the remainder of Reed’s state prison sentence and ordered Reed’s 5-year federal sentence on the firearm charge to run consecutively to the cocaine distribution charge as well as Reed’s state prison sentences.
At sentencing, Judge Peterson said that Reed’s crimes were very serious, that his extensive drug dealing was degrading to the community, and that his firearm possession was highly aggravating. Judge Peterson noted Reed’s long, unrelenting history of crime which included a prior federal conviction for possessing a firearm as a felon.
The charges against Reed were the result of an investigation conducted by the Janesville, City of Beloit, and Town of Beloit Police Departments, the Wisconsin Department of Justice Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.