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12 October 2022
Michigan Man Arrested on Complaint Alleging He Deliberately Set 25 Commercial Trucks Ablaze in Eight Different States over 2 YearsRead the Press Release
RIVERSIDE, California – A Michigan man appeared in court today after being arrested on a federal criminal complaint alleging he deliberately set 25 fires on trailers belonging to a major commercial trucking company in eight different states over a span of more than two years.
Viorel Pricop, 64, of Allen Park, Michigan, was arrested Tuesday morning and made his initial appearance today in United States District Court in Detroit, where a detention hearing is scheduled for tomorrow.
Pricop is charged with one count of arson of property in interstate commerce, a crime that carries a mandatory minimum sentence of five years in federal prison and a statutory maximum of 20 years in federal prison.
According to an affidavit filed with the complaint, 25 semi-truck trailers owned by Swift Transportation, a Phoenix-based commercial trucking company, were set ablaze from June 2020 to September 2022. In each of the incidents, the Swift-owned truck was parked or stopped at a fuel station or rest area when a fire occurred in or on the trailer portion of the vehicle, mainly on or near the trailer tires.
These incidents occurred at locations spanning from Barstow, California to McCalla, Alabama, with most incidents occurring along Interstate 10 and Interstate 40. Law enforcement has learned of six fires in California, three fires in Arizona, nine fires in New Mexico, three fires in Texas, and one fire each in Oklahoma, Louisiana, Arkansas and Alabama.
Swift hired fire investigation consultants to assist with fire scene examinations. A pattern also began to develop when multiple reports noted substantially similar methods of lighting the trailers on fire, including where on the vehicles the fires began, and the fact the fires occurred late at night.
An investigation of cell phone towers near the fires revealed that a specific GPS navigation device installed in a commercial truck was present at the fires. Law enforcement determined that this device was installed on a vehicle owned and operated by Pricop, the affidavit states. Law enforcement then identified the cellphone subscribed to Pricop and, through historical cellular data analysis and ping warrants, learned that the phone was present in the general area of 24 of the 25 fires, the affidavit alleges.
On September 16, search warrants were executed on Pricop’s vehicle and residence, yielding additional evidence on his alleged involvement in this series of arsons. Numerous logbooks, bills of lading, shipping receipts, and other record keeping documents were obtained in both paper and digital form from Pricop’s vehicles and residence. Many of these documents were found to contain location information, such as cargo pickup and delivery dates, which coincided with locations where fires in this series occurred, according to the affidavit.
Further record checks for Pricop revealed that he was convicted in 2018 in the Eastern District of Michigan for transportation of stolen goods. Swift cooperated in the investigation and prosecution of that case. Pricop was sentenced to two years’ imprisonment and was given credit for time served. His term of supervised release ended in June 2019, about one year before the arsons in this case began, the affidavit states.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this matter.
Assistant United States Attorney John A. Balla of the Riverside Branch Office is prosecuting this case.
Mexican National Sentenced for Illegally Using a Social Security Number Belonging to Another PersonRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOSE GARCIA-NUNEZ, age 33, a citizen of Mexico, was sentenced on October 11, 2022 for illegally using a social security number belonging to another individual, in violation of Title 42, United States Code, Section 408(a)(7)(B). JOSE GARCIA-NUNEZ was sentenced by the Honorable Susie Morgan, U.S. District Judge, Eastern District of Louisiana, to serve one year of probation.
According to documents filed in federal court, JOSE GARCIA-NUNEZ used the social security number of another individual to secure employment and orientation training with a local company.
U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Mexican Citizen Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced Roberto Garcia-Gutierrez, 32, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Garcia-Gutierrez to imprisonment for 135 months. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Garcia-Gutierrez will be deported by U.S. immigration authorities when he completes his sentence to imprisonment.
In May 2021, Garcia-Gutierrez became involved in a drug conspiracy distributing methamphetamine in Omaha. A confidential source (CS) working for the Drug Enforcement Administration arranged the purchase of methamphetamine from co-defendant Roberto Balbuena-Ignacio. On May 20, 2021, the CS met with co-defendant Cash C. Cosgriff, and successfully purchased approximately a pound of methamphetamine. The CS also conducted controlled purchases of methamphetamine on at least three other occasions from other members of the drug conspiracy.
On August 2, 2021, Garcia-Gutierrez was arrested after leaving a residence located in the 19th blook of South 10th Street, in Omaha. DEA and OPD investigators recovered approximately 56.6 pounds of methamphetamine and 2 kilograms of cocaine from that residence.
This case was investigated primarily by the Drug Enforcement Administration and Omaha Police Department.
Martinsburg woman guilty of a firearms straw purchaseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rachel Lee Flynn, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Flynn, 38, pleaded guilty today to one count of “False Statements During Purchase of a Firearm.” Flynn admitted to falsifying paperwork to purchase a firearm, stating the 9mm pistol was for her when, in fact, was meant for someone else. The crime took place in March 2022 in Morgan County.
Flynn faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marlborough Man Sentenced to 60 Years in Prison for Sexually Exploiting 13 ChildrenRead the Press Release
BOSTON – A Marlborough man was sentenced today in federal court in Boston in connection with filming his sexual abuse of two children and surreptitiously producing or attempting to produce child pornography involving 11 others over a span of years.
Philip Raymond, 65, was sentenced by U.S. District Court Judge Richard G. Stearns to 60 years in prison and five years of supervised release. On March 30, 2022, Raymond pleaded guilty to 13 counts of sexual exploitation of children, and attempt. Raymond was arrested and charged in October 2020 and has remained in federal custody since.
“Over the course of eight years, Mr. Raymond exploited 13 young, defenseless children known to him. He grossly took advantage of the trust placed in him by his victims and their families to inflict indescribable trauma and suffering. Mr. Raymond’s reprehensible conduct is a parent’s worst nightmare. He is a predatory danger to society who will now spend 60 years behind bars where he can no longer harm children,” said United States Attorney Rachael S. Rollins. “Although nothing can erase the indescribable trauma and pain inflicted upon the victims and their families, we hope this sentence will bring accountability to the defendant and acknowledge both the bravery of children who are able to come forward and my office’s dedication to fighting for victims whose trauma often stays with them for years. We will prosecute those who seek to sexualize and exploit our children to the fullest extent of the law.”
“Today’s sentence is a victory for the many victims whose lives and dignity were destroyed by Raymond through his sickening behavior over many years,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England. “HSI New England is grateful for the crucial support of the U.S. Attorney for Massachusetts, the District Attorney for Middlesex, the Massachusetts State Police and the Marlborough Police Department in this case. Without their tireless efforts it’s likely Raymond would have continued damaging the lives of countless children for years to come.”
Between 2004 and 2012, Raymond produced or attempted to produce child pornography involving 13 different children who were friends of his own child and entrusted in his care. A search of Raymond’s home in 2019 resulted in the seizure of various digital devices containing evidence that Raymond had filmed his sexual abuse of two of those children. The digital evidence also showed that Raymond had set up a recording device in his own child’s room and in his home’s bathroom to attempt to record imagery of children in the nude. In total, Raymond recorded 13 different children. According to court records, Raymond is also facing charges in Middlesex Superior Court for child rape as well as possession of other child pornography discovered during the search of his residence.
U.S. Attorney Rollins; HSI SAC Millhollin; Middlesex District Attorney Marian Ryan; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Marlborough Police Chief David Giorgi made the announcement today. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Man who rammed his truck into FBI signage entrance pleads guiltyRead the Press Release
HOUSTON – A 43-year-old Waller County man has admitted to willfully injuring or committing depredation against property of the United States by ramming his truck and trailer into the signage entrance of the FBI, announced U.S. Attorney Jennifer B. Lowery.
On May 11, Jesus Jaimes Merlan approached the Houston FBI visitor security facility in a truck. Upon his arrival, he sat in his vehicle, smoked a cigarette and stared forward. At that time, he requested to speak to an agent.
Security advised him that he would have to return in the morning. Merlan responded by yelling he could not wait. He then backed his truck up and rammed it forward into the FBI signage.
Authorities took him into custody immediately and conducted an interview. At that time, he appeared to be in mental distress. He said he rammed the signage because he felt as if he was not getting any help. Merlan also made several incoherent remarks about individuals chasing or stalking him, wishing to do him harm and/or take his belongings.
As part of his plea, Merlan admitted he purposefully caused damage in order to speak to someone at the FBI.
The labor costs estimated to repair the gate and signage is over $35,000.
U.S. District Judge Lee Rosenthal will impose sentencing Feb. 9, 2023. At that time, Merlan faces up to 10 years in federal prison and a possible $250,000 fine.
He was permitted to remain on bond pending that hearing.
The Federal Protection Service conducted the investigation with the assistance of the FBI, Houston Police Department and General Services Administration. Assistant U.S. Attorney Joe Porto is prosecuting the case.
Man Indicted on Federal Illegal Fishing ChargeRead the Press Release
Bowling Green, KY – A federal grand jury returned an indictment today charging Charles Hopkins with conspiracy to sell shovelnose sturgeon and their roe that were taken in violation of Kentucky law.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Assistant Director Edward Grace of the United States Fish and Wildlife Service made the announcement.
According to the indictment, Charles Hopkins, 51, of Smithland, Kentucky was charged with one count of conspiracy to violate the Lacey Act. The indictment alleges that in spring 2016, 2017, and 2018, Charles Hopkins, working with others, transported and sold shovelnose sturgeon and their roe in interstate commerce, knowing that the fish were taken in violation of and in an unlawful manner under the laws and regulations of Kentucky.
The defendant will make an initial court appearance on a later date before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky. If convicted, Hopkins faces up to 5 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
This case is being investigated by the United States Fish and Wildlife Service and the Kentucky Department of Fish and Wildlife Resources.
This case is being prosecuted by Assistant United States Attorney Madison Sewell.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Malden Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
BOSTON – A Malden man pleaded guilty today in federal court in Boston in connection with illegally possessing a firearm.
Herby Paul, 27, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 11, 2023. Paul was indicted by a federal grand jury on April 26, 2022.
On Nov. 24, 2021, Paul was pulled over by law enforcement while driving on interstate 95 in Canton. Paul provided law enforcement with a false name and was asked to exit the vehicle. He then fled on foot, jumped over a guardrail, ran down an embankment and attempted to scale a fence. Paul was quickly apprehended on scene and a subsequent search of his vehicle resulted in the recovery of a 9mm handgun loaded with 13 rounds of 9mm ammunition.
At the time of the offense, Paul was on probation for a 2020 state conviction of possessing a firearm without a license and resisting arrest, for which he was sentenced to 18 months in prison.
At the time of this offense, the charge of being a felon in possession of a firearm and ammunition provided for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
Louisiana Felon Sentenced for East Texas Firearms ViolationRead the Press Release
TYLER, Texas – A Baton Rouge, Louisiana, man has been sentenced for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Marland Gibson, 53, was found guilty at trial on April 27, 2022, of being a felon in possession of a firearm and was sentenced to 48 months in federal prison on Oct. 12, 2022, by U.S. District Judge J. Campbell Barker.
According to information presented in court, on March 20, 2021, Gibson was stopped for speeding on Interstate-20 in Gregg County. During the traffic stop, it was determined Gibson had an outstanding warrant for failing to appear in Marion County, Indiana on a charge of unlawful possession of a firearm by a serious violent felon. Gibson was arrested on the warrant and a search of the vehicle revealed not only a handgun hidden in a compartment behind the vehicle’s dashboard, but a suitcase in the rear of the vehicle containing another firearm and multiple rounds of assorted ammunition.
Further investigation revealed Gibson is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. Gibson was indicted by a federal grand jury on June 17, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
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Loudonville Man Pleads Guilty in Capital Region Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Jesus Baez, age 32, of Loudonville, New York, pled guilty today to a cocaine distribution conspiracy, announced United States Attorney Carla B. Freedman and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
Baez admitted that between June 2021 and December 2021, in Albany and Rensselaer Counties, he and three co-conspirators obtained cocaine shipped from Puerto Rico and distributed it in the Capital Region. The cocaine was shipped via U.S. mail in one-kilogram bricks, and transported to a stash house maintained by Baez on Fifth Avenue in Troy, New York, where the cocaine was processed for distribution.
Sentencing is scheduled for February 8, 2023 in front of Senior United States District Judge Gary L. Sharpe. Baez faces a minimum of 5 years in prison, a maximum of 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. Baez also agreed to forfeit $5,000 seized from his residence as proceeds of the drug conspiracy.
Baez’s plea resolves the charges against him in an indictment unsealed in September. The following three individuals were also charged for their role in the conspiracy:
- Jan Lopez-Colon, 28, of Troy,
- Ilvin Batista-Figueroa, 31, of Albany, and
- Sam Calderon, 20, of Troy.
Calderon previously pled guilty before Judge Sharpe. The charges against codefendants Lopez-Colon and Batista-Figueroa remain pending. The charges in the indictment are merely accusations. These defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department, as well as the U.S. Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Lawrence Man Pleads Guilty to Distributing Fentanyl Pills Produced Using Multiple Pill Press MachinesRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to distributing counterfeit prescription pills containing fentanyl, made using multiple pill press machines.
Miguel Angel Fajardo, 32, pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 14, 2023. Fajardo was arrested and charged by criminal complaint on March 25, 2022 and subsequently charged by an Information on July 1, 2022.
During a search of Fajardo’s apartment on March 25, 2022, approximately 7.3 kilograms worth of fentanyl pills, an industrial pill press and “M” and “30” pill stamps consistent with markings on pharmaceutical-grade Oxycodone pills were seized. Pill stamps are commonly used to make counterfeit pills appear to be legitimate pharmaceutical-grade pills. Also inside Fajardo’s apartment, approximately 1.4 kilograms of fentanyl powder, two individual finger presses, 50 rounds of .40 caliber ammunition concealed in a microwave, four kilograms of cutting agent and two air purifying respirators – which are commonly used when working with fentanyl powder were also found. Additionally, two one-kilogram pill press machines and another large pill press in the landing outside the apartment were found.
“The opioid crisis remains a clear and present danger to our community, claiming over two thousand lives in Massachusetts in 2021 alone,” said United States Attorney Rachael S. Rollins. “Mr. Fajardo possessed a staggering quantity of fentanyl – almost nine kilograms – and a clandestine laboratory outfitted with all the tools and materials necessary to press fentanyl into counterfeit pills. By seizing nearly 48,000 such pills along with the tools we believe Mr. Fajardo used to make them, our law enforcement partners likely saved countless lives.”
“The state of Massachusetts continues to face a fentanyl crisis unlike ever before,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. “Those responsible for distributing this lethal drug within fake prescriptions pills and contributing to the loss of life for those battling addiction need to be held responsible for their actions. In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison in our communities.”
The charge of possession with intent to distribute 400 grams or more of a mixture or substance containing fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, DEA SAC Boyle and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorneys Craig E. Estes and Evan D. Panich of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
Justice Department and Federal Trade Commission Meet with Fellow G7 Enforcement Partners on Competition in Digital MarketsRead the Press Release
The Justice Department’s Antitrust Division Assistant Attorney General Jonathan Kanter and the Federal Trade Commission (FTC) Chair Lina M. Khan participated in a G7 Joint Competition Policy Makers & Enforcers Summit (Summit) today as part of the 2022 G7 Digital and Technology Track. The Summit, hosted by the German Bundeskartellamt and Ministry for Economic Affairs and Climate Action, explored how G7 governments are approaching competition policy and enforcement in digital markets.
The Summit offered a unique opportunity for competition officials to discuss common areas of interest and consider areas for increased cooperation and coordination to support competitive digital markets. The participating delegates were from G7 competition authorities and economic ministries in Canada, France, Germany, Italy, Japan, the U.K., and the United States, plus the European Commission.
“Meeting with our like-minded G7 colleagues presents an excellent opportunity to take stock of our common experiences in confronting anticompetitive conduct in digital markets,” said Assistant Attorney General Jonathan Kanter. “Germany has ably guided the G7 in this area, following the path set by France and the U.K.”
“Today’s summit was a valuable opportunity to exchange insights with our colleagues from around the world,” said FTC Chair Lina M. Khan. “This international cooperation is especially crucial as enforcers navigate the global challenges posed by dominant digital platforms and work to promote fair competition and the many benefits it delivers.”
In preparation for the Summit, the participating agencies contributed to the “Compendium of Approaches to Improving Competition in Digital Markets,” with highlights from G7 competition authority’s work on digital markets, and the Policy Makers Inventory of legislative approaches to competition in digital markets within the G7 was also presented.
Justice Department Finds Alabama’s Foster Care System Violates the Americans with Disabilities Act by Discriminating Against Students with DisabilitiesRead the Press Release
The Department of Justice today notified the state of Alabama of its findings that the state illegally discriminates against children in foster care with emotional and behavioral disabilities. The department concluded that Alabama has relegated hundreds of students with disabilities to segregated and inferior educational programs in violation of Title II of the Americans with Disabilities Act (ADA). The department’s findings follow an investigation into allegations that the state denies children in foster care equal opportunity to basic educational services on the basis of disability.
“Students with disabilities in Alabama’s foster care system are among the most vulnerable in the state’s care, and they deserve better than placement in segregated and inferior schools,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will defend every child’s right to equal educational opportunities in schools where they can be supported and challenged.”
Alabama is charged with providing educational services for children in its foster care system, including when the state places those children in psychiatric residential treatment facilities (PRTFs). Children in foster care who are placed in Alabama’s PRTFs are often automatically enrolled in segregated on-site schools without an appropriate educational assessment and regardless of their academic abilities. These unnecessary placements, which can extend for long periods of time, sever children’s ties to their home schools, teachers, social activities and peers. The department concluded that, in most cases, these children could be appropriately served in general education settings where they would receive the many documented academic and social benefits of inclusion.
The department’s investigation found a lack of appropriate oversight and monitoring by the state of education services provided to students in PRTFs. Among other concerns, the state does not require that PRTFs consider whether the students could be served in age-appropriate community educational settings. Instead, the state permits the facilities to automatically enroll these students in the school located on the PRTF campuses. In these highly-segregated placements, they often lack access to grade-appropriate curricula, adequate instruction, facilities such as libraries, science labs and gyms and activities such as sports and extracurriculars.
The Department of Justice’s Civil Rights Division Educational Opportunities Section with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama conducted this investigation. The full findings letter can be found below.
Enforcement of Title II of the ADA, and the integration mandate of Olmstead v. L.C., is a priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Files Complaint to Stop California Firm from Making and Selling Adulterated and Misbranded Food ProductsRead the Press Release
The United States filed a complaint to stop a food manufacturer in Antioch, California, from making and selling adulterated and misbranded noodle products, the Justice Department announced today.
In a civil complaint for permanent injunction filed on Oct. 12, the United States alleges that Cuong T. Do, through his business, Cali Rice Valley Inc., violated the Federal Food, Drug and Cosmetic Act (FDCA) by failing to follow preventive controls requirements and causing uncooked and ready-to-eat wheat and rice noodles to become adulterated or misbranded.
“Food manufacturers must ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with FDA and take action against food manufacturers that operate under insanitary conditions.”
“The FDA plays a vital role in safeguarding the U.S. food supply and helping to ensure that our food is not contaminated before it reaches consumers,” said Associate Commissioner for Regulatory Affairs Judy McMeekin, Pharm.D. “We take our responsibility seriously and will continue to protect consumers by taking action against those who threaten the safety and quality of the products we regulate.”
The complaint, which was filed in the U.S. District Court for the Northern District of California, alleges that FDA investigators visited Do’s Cali Rice Valley facility in 2021 and 2022 and found insanitary conditions, such as insects on ingredients, ingredient bags with holes, rainwater leaking into ingredient storage rooms, utensils and equipment that were not sanitized, and poor employee practices. The complaint alleges that such conditions can create an ideal environment for the growth of harmful bacteria. The complaint also alleges that FDA’s inspections identified violations of preventive controls requirements intended to provide assurance that significant food safety hazards will be controlled and the food manufactured by the facility will not be adulterated or misbranded.
The complaint further alleges that tests from environmental samples taken at Do’s facility detected the bacteria Listeria innocua (L. innocua) in and around food preparation areas. According to the complaint, the presence of L. innocua indicates environmental conditions that also could support the growth of the pathogen Listeria monocytogenes (L. mono). Food contaminated with L. mono can cause symptoms such as diarrhea and vomiting in healthy adults. For vulnerable consumers — including pregnant women, the elderly and the immune-compromised — L. mono can cause more serious effects, such as stillbirths, miscarriages and death.
The complaint also alleges that the firm’s products are misbranded because they fail to declare the presence of the allergens wheat and egg, among other violations.
According to the complaint, Do sells his noodles throughout the Bay Area. The government’s lawsuit seeks an injunction that would require Do and Cali Rice Valley to make sanitation improvements and comply with federal food safety requirements before making or distributing any more noodle products.
Trial Attorney David Crockett of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Senior Counsel Claudia Zuckerman of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Justice Department Announces New Reporting Procedures for Environmental ViolationsRead the Press Release
Memphis, TN – Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced today that the United States Attorney’s Office has implemented new public reporting procedures for environmental violations and issues relating to environmental justice. Environmental justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
The Office is implementing this public reporting procedure under the Department of Justice’s
Comprehensive Environmental Justice Enforcement Strategy, available at
/media/1221596/dl?inline. This Strategy seeks to provide “timely and effective remedies for systemic environmental violations and contaminations and for injury to natural resources in underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities.”“Working with the EPA and our other federal partners to ensure safe living and working conditions for our entire community is a priority in the Western District of Tennessee. Notifying the U.S.
Attorney’s Office about environmental justice concerns helps us protect the community from harmful violations of federal health and safety law,” said United States Attorney Ritz. “We hope that concerned individuals, organizations, andcommunity groups in this district will work with us to address and fix environmental injuries to public health or the environment, or injuries to natural resources. Together, we will work to reduce public health and environmental harms caused by violations of our federal laws and regulations—especially to underserved communities that often suffer from a disproportionate share of adverse health effects.”The United States Attorney’s Office has included an environmental justice program update on its website at https://www.justice.gov/usao-wdtn/environmental-justice. This
update includes recommendations for how to contact various federal agencies regarding a variety of environmental concerns, as well as phone numbers and links to submit online complaints to a diverse group of federal agencies.
In addition to the federal agencies identified on the Office’s website, United States Attorney Ritz encourages residents to contact the United States Attorney’s Office at 901- 544-4231 or by email
[email protected] when also contacting local, state, or federal agency hotlines or websites to report environmental, health and safety concerns. Consistent with the Department’s comprehensive strategy, the United States Attorney also designated an Environmental Justice
Coordinator for the district to coordinate its environmental justice efforts. When contacting the
Office, please ask to speak with the Environmental Justice Coordinator.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.Jail assault results in sentences for Hermanos de Pistoleros Latinos gang membersRead the Press Release
LAREDO, Texas – Four men have been ordered to federal prison following their convictions of assault with a dangerous weapon, announced U.S. Attorney Jennifer B. Lowery.
Gilbert Arevalo, 26, Laredo, pleaded guilty Feb. 28, while Antonio Cristian-Martinez, 22, McAllen, Orlando Flores-Duke, 27, an undocumented alien residing in Nuevo Laredo, Mexico, and Jamie Pecina, 25, Laredo, pleaded guilty March 28.
Today, U.S. District Judge Diana Saldana imposed a 120-month term of imprisonment for Arevalo for the assault. He had already received 87 months for an unrelated case. The sentence imposed today was ordered to be served consecutively to 60 out of the 87 months in the unrelated case for a total 180-month-term of imprisonment.
Cristian-Martinez, Flores-Duke and Pecina were previously sentenced to total prison terms of 97, 161 and 141 months.
At the hearing today, the court heard from the victim’s family who described the lasting and damaging impact the group had on not just the victim, but the entire family. At the hearing, the family said their lives have been changed forever as a result of the assault. Judge Saldana noted the violent nature of the offense and the general lack of care or regard for the life of the victim. In handing down the sentence, Judge Saldana noted the egregiousness of the offense and lack of humanity. Judge Saldana said she will never forget the harm the caused to the victim and family.
The four men were in custody awaiting their sentences for various charges at the Rio Grande Processing Center in Laredo.
On Nov. 10, 2021, Arevalo, Pecina and Flores-Duke had a verbal altercation with a fellow inmate. Shortly after, Cristian-Martinez joined argument and they attacked the victim with punches and kicks to the head and body.
The group left the victim severely injured and unconscious on the ground. As a result of the attack, the victim is now in a vegetative state and requires around-the-clock medical care.
All four will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Former Assistant U.S. Attorney (AUSA) Anthony G. Brown and AUSA Matthew Isaac prosecuted the case.
Investiture Ceremony for United States Attorney William S. ThompsonRead the Press Release
Investiture Ceremony for United States Attorney William S. Thompson
CHARLESTON, W.Va. – The investiture ceremony for William S. Thompson, United States Attorney for the Southern District of West Virginia, will be held on Thursday, October 13, 2022, at 2 p.m. Thompson will be joined by United States Senator Joseph Manchin III, members of the federal judiciary, distinguished guests, and family to celebrate his appointment. He will also express his visions and goals for the Southern District of West Virginia and stress the importance of serving as the chief federal law enforcement officer for the District.
This is the formal, public swearing-in ceremony for Thompson, who was nominated by President Joseph R. Biden Jr. on August 10, 2021. The United States Senate confirmed Thompson by voice vote on October 5, 2021.
WHAT: Investiture Ceremony for William S. Thompson as United States Attorney, Southern District of West Virginia
WHEN: Thursday, October 13, 2022, at 2 p.m.
WHERE: Seventh Floor Ceremonial Courtroom, Robert C. Byrd United States Courthouse, 300 Virginia Street, East, Charleston
NOTE: All media must present government-issued photo I.D. (Such as a driver’s license) and valid media credentials. Media may begin arriving at 1 p.m. and must have cameras set by 1:30 p.m. Media should RSVP to [email protected].
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.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Akale Jamel Green, 54, of Huntington, pleaded guilty today to distribution of heroin.
According to court documents and statements made in court, on June 15, 2020, Green sold approximately 1.42 grams of heroin to a confidential informant while parked at a Hurricane shopping plaza. The Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory confirmed the controlled substance contained heroin and fentanyl.
Green further admitted to aiding and abetting the sale of approximately 1 gram of heroin and fentanyl to a confidential informant at a Hurricane residence on June 9, 2020, and to selling approximately 1.33 grams of heroin and fentanyl to a confidential informant in Huntington on June 23, 2020. On July 22, 2020, law enforcement officers executed a search warrant at a Doulton Avenue residence in Huntington and found a quantity of a heroin and fentanyl mixture and digital scales. Green admitted to possessing the heroin and fentanyl mixture and that he intended to distribute it.
Green is scheduled to be sentenced on January 17, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the DEA and the West Virginia State Police Ona Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting 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. 3:22-cr-100.
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Houstonian admits guilt in HPD officer shootingRead the Press Release
HOUSTON ‐ A 23-year-old Pasadena man has admitted to firearm and drug trafficking offenses related to his role in the shooting of a Houston Police Department (HPD) officer, announced U.S. Attorney Jennifer Lowery.
Jimmy Caston Bryan pleaded guilty to possessing with intent to distribute meth and to carrying and discharging a firearm during and in relation to a drug trafficking crime.
As part of his plea, Bryan admitted that on May 4 he fired multiple shots at an HPD officer near 14300 Gulf Freeway.
Bryan previously trafficked narcotics in the Houston area, had possessed meth and was believed to be in the possession of multiple firearms. On May 4, authorities conducted a traffic stop, at which time two HPD officers approached Bryan’s truck and requested identifying information.
Bryan did not comply which led law enforcement to ask him to step out of the vehicle. As one officer opened Bryan’s door, Bryan quickly reached into his waistband and pulled out a semi-automatic handgun.
As part of his plea, Bryan also admitted he shot and struck the other HPD officer twice - once in the chest and once in the right hip.
Both officers returned gunfire and struck Bryan.
A search of Bryan’s vehicle revealed over 48 grams of meth, heroin, cocaine, MDMA, a digital scale and two additional handguns.
Bryan faces up to 40 years for drug trafficking. He also faces up to life in prison for the firearm charge which must be served consecutively to the other prison term imposed.
Sentencing is set for Feb. 9, 2023, before Chief U.S. District Judge Lee H. Rosenthal. Bryan will remain in custody pending that hearing.
The Drug Enforcement Administration, HPD, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Hocking County woman admits to sexually exploiting children as young as 3 years old with her boyfriendRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, woman pleaded guilty in U.S. District Court today to sexually exploiting minors and possessing child pornography.
Carrie Daniels, 41, was charged federally in April 2022, along with her significant other, Robert Gemienhardt, 37. Gemienhardt pleaded guilty to related offenses on Sept. 30 and awaits sentencing.
The two defendants groomed minor victims whom they had access too, sexually abused the victims, and created child pornography of the abuse.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities conducted at Daniels’s residence. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Daniels had produced child pornography of an approximately 3-year-old child and distributed the images she had produced to Gemienhardt. Those images were ultimately recovered on Gemienhardt’s phone. In addition, further evidence revealed that at times, Gemienhardt and Daniels acted together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Daniels and her boyfriend, who was a registered sex offender in the state of Ohio, exchanged thousands of illicit text messages detailing their sexual fantasies about four separate minor victims to whom they had access. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing some of the minors.
Sexually exploiting a minor is a crime punishable by 15 to 30 years in prison. Possessing child pornography carries a potential penalty of up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Sun Prairie Teacher Charged with Producing Child Pornography
Matthew E. Quaglieri, 34, Sun Prairie, Wisconsin, is charged with 3 counts of producing child pornography. The indictment alleges that he intentionally used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct on September 22, 23, and 29, 2022. At the time of the alleged offenses, Quaglieri was a teacher with the Sun Prairie Area School District.
If convicted, Quaglieri faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Sun Prairie Police Department and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Tennessee Man Charged with Distributing Child Pornography
Trevor Blackburn, 22, Bell Buckle, Tennessee, is charged with distributing child pornography. The indictment alleges that on September 8, 2022, Blackburn posted a video of a minor engaged in sexually explicit conduct on a school district network. Blackburn is currently being held in state custody at the Chippewa County Jail. A date has not been set for his initial appearance in federal court.
If convicted, Blackburn faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Chippewa County Sheriff’s Office; Federal Bureau of Investigation in Wisconsin, Tennessee, and Minnesota; Wisconsin Department of Justice Division of Criminal Investigation; Eau Claire County Sheriff’s Office; Douglas County Sheriff’s Office; and Gilman, Superior, and Cornell Police Departments. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution; the U.S. Attorney’s Office for the Eastern District of Tennessee has provided assistance.
Madison Man Charged with Drug Crimes Involving Heroin, Fentanyl & Cocaine
Roland J. Scott III, 20, Madison, Wisconsin, is charged with distributing heroin, distributing a mixture of heroin and fentanyl, 2 counts of distributing fentanyl, and possessing 40 grams or more of fentanyl with intent to distribute. The indictment alleges that these offenses occurred between September 15 and October 7, 2021. The indictment further charges that from October 5 to 7, 2021, Scott used and maintained a place for the purpose of distributing heroin and fentanyl. The indictment also charges that on June 30, 2022, Scott possessed 400 grams or more of fentanyl with intent to distribute, possessed cocaine with intent to distribute, and possessed a loaded firearm in furtherance of a drug trafficking crime.
If convicted, Scott faces a maximum penalty of 20 years in federal prison on each distribution charge, the charge of possessing cocaine with intent to distribute, and the charge of maintaining a drug house. He faces a mandatory minimum of 5 years and a maximum of 40 years on the charge of possessing 40 grams or more of fentanyl with intent to distribute, and a mandatory minimum of 10 years and a maximum of life on the charge of possessing 400 grams or more of fentanyl with intent to distribute. The charge of possessing a loaded firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years and a maximum of life in prison. Federal law requires that any penalty imposed for the gun charge be served consecutive to any other sentence imposed.
The charges against Scott are the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kathryn Ginsberg and Steven Anderson are handling the prosecution.
Madison Man Charged with Illegally Possessing Firearm & Ammunition
Donquil D. McLemore, 19, Madison, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a .380 caliber handgun and ammunition on June 30, 2022.
If convicted, McLemore faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kathryn Ginsberg and Steven Anderson are handling the prosecution.
The charges against Scott and McLemore are 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.
Wausau Man Charged with Possessing Methamphetamine for Distribution
Anthony Anderson, 40, Wausau, Wisconsin, is charged with possessing 50 grams or more of pure methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on August 1, 2022.
If convicted, Anderson faces a mandatory minimum of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation and the Central Wisconsin Narcotics Task Force. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Buffalo County Woman Charged with Misappropriating U.S. Postal Funds
Megan A. Torrez, 45, Alma, Wisconsin, is charged with 2 counts of misappropriating postal funds. The indictment alleges that on November 30 and December 27, 2021, while an employee of the U.S. Postal Service, Torrez converted to her own use more than $1,000 in U.S. Postal money orders.
If convicted, Torrez faces a maximum penalty of 10 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Barron County Postal Employee Charged with Theft of Mail
Joshua P. Copas, 37, Cumberland, Wisconsin, is charged with theft of mail. The indictment alleges that while an employee of the U.S. Postal Service, he stole items of mail which had come into his possession for the purpose of being conveyed by the Postal Service. Specifically, the indictment alleges that between April 7 and May 30, 2022, Copas stole Menards’ rebate checks from the mail.
If convicted, Copas faces a maximum penalty of 5 years in federal prison. The charge against him is the result of an investigation by the U.S. Postal Service, Office of Inspector General and the Rice Lake and Cumberland Police Departments. Assistant U.S. Attorneys Anita Boor and Steven Anderson are handling the prosecution.
Former Louisville, Kentucky, Police Officer Pleads Guilty for Using Excessive ForceRead the Press Release
Katie R. Crews, 29, of Jeffersonville, Indiana, pleaded guilty in federal court to violating an individual’s rights by using excessive force while acting as a police officer.
During the plea hearing, Crews admitted that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball, while the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. Crews’s guilty plea carries a maximum term of imprisonment of one year, and a maximum fine of $100,000. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“Police officers who abuse their authority and act outside the bounds of the law will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute any officer who violates the public trust by using excessive force without cause.”
“I appreciate the outstanding investigatory work conducted by the FBI’s Louisville Public Corruption Civil Rights Task Force,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “We will continue to work diligently with our federal, state and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force without cause by officials sworn to protect them.”
“Police officers take an oath to protect and serve our communities,” said Special Agent in Charge Jodi Cohen for the FBI Louisville Field Office. “This case serves as an example that the FBI is committed to identifying and investigating those law enforcement officers who choose to abandon their oath and violate the public’s civil rights.”
With her guilty plea and pursuant to the terms of the plea agreement, the defendant will also forfeit her right to seek future employment in law enforcement. A sentencing date has been set for Jan. 30, 2023.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Cohen made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force. Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division prosecuted the case.
Former Louisville, Kentucky Police Officer Pleads Guilty for Using Excessive ForceRead the Press Release
WASHINGTON – Katie R. Crews, 29, of Jeffersonville, Indiana, pleaded guilty in federal court to violating an individual’s rights by using excessive force while acting as a police officer.
During the plea hearing, Crews admitted that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball, while the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. Crews’s guilty plea carries a maximum term of imprisonment of one year, and a maximum fine of $100,000. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“Police officers who abuse their authority and act outside the bounds of the law will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute any officer who violates the public trust by using excessive force without cause.”
“I appreciate the outstanding investigatory work conducted by the FBI’s Louisville Public Corruption Civil Rights Task Force,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “We will continue to work diligently with our federal, state, and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force without cause by officials sworn to protect them.”
“Police officers take an oath to protect and serve our communities,” said Special Agent in Charge Jodi Cohen for the FBI Louisville Field Office. “This case serves as an example that the FBI is committed to identifying and investigating those law enforcement officers who choose to abandon their oath and violate the public’s civil rights.”
With her guilty plea and pursuant to the terms of the plea agreement, the defendant will also forfeit her right to seek future employment in law enforcement. A sentencing date has been set for January 30, 2023.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Cohen made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force. Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division prosecuted the case.
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Former Florida Tech CEO Pleads Guilty to Tax EvasionRead the Press Release
A district court judge accepted the guilty plea yesterday of the former CEO of a Jacksonville company who admitted to evading income taxes owed to the IRS based on a fraud he ran on his employer.
According to court documents and statements made in court, in 2015 and 2016, Jason Cory was a manager at a New York-based information technology services. From 2017 through 2019, Cory was the CEO of a different information technology services company based in Jacksonville. From 2015 through 2018, Cory used his positions as manager and CEO at the two companies to cause his employers to direct a total of more than $1.5 million to Gambit Matrix LLC, a shell company he controlled. With respect to the second employer, Cory did so under the false pretense the payments were for consulting services. In reality, Gambit Matrix did not provide consulting services and there was no justification for these payments.
Cory did not report the income he earned through transfers to Gambit Matrix on his tax return for 2015. He also did not file tax returns for the years 2016 through 2018 as required by law. To conceal the fraud scheme from the second employer and evade taxes on his income for these years, Cory invented fictitious owners of Gambit Matrix, made false representations to his employer, and falsified emails and IRS Forms W-9 (Request for Taxpayer Identification Number). Cory used the money directed to Gambit Matrix to pay for personal expenses such as credit card bills, rent and club memberships. Cory admitted that between 2015 and 2018, he evaded more than $600,000 in taxes.
Cory is scheduled to be sentenced on Jan. 30, 2023, and faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney David B. Mesrobian for the Middle District of Florida and Trial Attorney Richard J. Hagerman of the Tax Division are prosecuting the case.
Former Florida Tech CEO Pleads Guilty to Tax EvasionRead the Press Release
Jacksonville, FL - A district court judge accepted the guilty plea yesterday of the former CEO of a Jacksonville company who admitted to evading income taxes owed to the IRS based on a fraud he ran on his employer.
According to court documents and statements made in court, in 2015 and 2016, Jason Cory was a manager at a New York-based information technology services. From 2017 through 2019, Cory was the CEO of a different information technology services company based in Jacksonville. From 2015 through 2018, Cory used his positions as manager and CEO at the two companies to cause his employers to direct a total of more than $1.5 million to Gambit Matrix LLC, a shell company he controlled. With respect to the second employer, Cory did so under the false pretense the payments were for consulting services. In reality, Gambit Matrix did not provide consulting services and there was no justification for these payments.
Cory did not report the income he earned through transfers to Gambit Matrix on his tax return for 2015. He also did not file tax returns for the years 2016 through 2018 as required by law. To conceal the fraud scheme from the second employer and evade taxes on his income for these years, Cory invented fictitious owners of Gambit Matrix, made false representations to his employer, and falsified emails and IRS Forms W-9 (Request for Taxpayer Identification Number). Cory used the money directed to Gambit Matrix to pay for personal expenses such as credit card bills, rent and club memberships. Cory admitted that between 2015 and 2018, he evaded more than $600,000 in taxes.
Cory is scheduled to be sentenced on Jan. 30, 2023, and faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney David B. Mesrobian for the Middle District of Florida and Trial Attorney Richard J. Hagerman of the Tax Division are prosecuting the case.
Florissant Woman Sentenced to 2 Years in Prison, Ordered to Repay $787,000 in Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Wednesday sentenced a Florissant woman who committed coronavirus pandemic fraud to two years in prison and ordered her to repay $787,000.
Dionneshae Forland, 51, will be on supervised release for five years after she gets out of prison.
Forland pleaded guilty in July to bank fraud, theft of government property and four counts of wire fraud and admitted a scheme to fraudulently obtain money from the Paycheck Protection Program and the Missouri Small Business Grant Program.
Forland took advantage of relief programs intended for small businesses and employees at risk of losing their jobs and used the money for personal expenses, Assistant U.S. Attorney Jonathan Clow said in court.
From January 2021 through May 2021, Forland lied on PPP loan applications about payroll and the number of employees and submitted fraudulent documents to obtain four loans totaling $592,225. She spent the money on personal expenses.
Forland also fraudulently obtained a $150,000 loan for a company linked to her son, Dwayne Times, and two loans totaling $36,600 on behalf of two people referred to her by Times.
Forland unsuccessfully submitted four fraudulent grant applications to the Missouri Small Business Grant Program in July 2020. She did succeed in fraudulently obtaining a grant of $49,988. After Times took out $8,000 in cash, the money was “clawed back” due to officials’ fraud suspicions.
Nearly $600,000 has been seized from various accounts linked to Forland or Times.
Times, 31, pleaded guilty June 9 to one count each of wire fraud and theft of government property. Judge White sentenced him Tuesday to five years of probation and ordered Times to repay $194,850.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Five indicted by a federal grand jury for crimes including illegal firearms possessionRead the Press Release
SAVANNAH, GA: Five defendants are among those facing federal charges including illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences related to illegal gun possession.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“As we continue the fight against violent crime in our neighborhoods, removing guns from the hands of convicted felons helps keep our citizens safe,” said David H. Estes, U.S. Attorney for the Southern District of Georgia. “We appreciate the outstanding work of our law enforcement partners in protecting our communities.”
In the past four years, more than 775 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. In addition, recent federal legislation increased the maximum penalty for illegal possession of a firearm by a convicted felon to 15 years, up from 10, for those found in possession after the June 25, 2022 signing of the law.
Defendants named in federal indictments from the October 2022 term of the U.S. District Court grand jury include:
- Robert Triche, 40, of Savannah, charged with Possession with Intent to Distribute Heroin and Methamphetamine; Possession of a Firearm by a Convicted Felon; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Conspiracy to Possess with Intent to Distribute, and to Distribute, Fentanyl; and Possession with Intent to Distribute Fentanyl;
- Maurice Brown, 21, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Ricky Maurice Johnson, 35, of Swainsboro, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Steve Shontell Heath, 46, of Hephzibah, Ga., charged with Possession of a Firearm by a Convicted Felon; and,
- William Beau Devore, 21, of Martinez, Ga., charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- James Hoffman, 37, of Savannah, was sentenced to 92 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Hoffman after a foot chase in August 2020 while investigating a report of a man firing a pistol. The officers found a loaded pistol on the ground after tackling Hoffman, who has multiple prior felony convictions for violent crimes.
- Robert Alexander DuBose, 40, of Augusta, was sentenced to 84 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies investigating a vehicle break-in in November 2020 arrested DuBose after finding a pistol in his pants.
- Elijawan Leysath Rhodes, 29, of Augusta, was sentenced to 33 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s Office investigators responding to gunfire at a Wrightsboro Road motel Dec. 31, 2021, arrested Rhodes after a brief chase when they found a pistol in Rhodes’ vehicle.
- Michael Jordan Sharp, 31, of Augusta, was sentenced to 36 months in prison followed by three years of supervised release and fined $1,200 after pleading guilty to Possession of a Firearm by a Convicted Felon. Sharp was on parole from a felony conviction on state charges for sale of methamphetamine when Richmond County Sheriff’s deputies and officers from the Georgia Department of Community Supervision found a pistol while searching his residence.
- Kevin Shawn McGahee, 48, of Stapleton, Ga, was sentenced to 56 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of Firearms by a Convicted Felon. McGahee’s April 2021 arrest followed a search of his residence where agents from the U.S. Drug Enforcement Administration and deputies from the Warren County and McDuffie County sheriff’s offices found methamphetamine, drug paraphernalia, and nearly two dozen firearms. Among those firearms was a Glock 9mm semi-automatic pistol equipped with a so-called “Glock switch,” an aftermarket accessory that converts firearms into automatic weapons. McGahee also faces state charges in the case.
- Neqwaun O’Neal Roberson, 23, of Augusta, was sentenced to 46 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Roberson in September 2021 on outstanding warrants for state charges, including aggravated assault and armed robbery, and found a loaded pistol in his pocket. Roberson is a member of Loyalty Over Everything (LOE) criminal street gang in Augusta.
- Jonathan R. White, 25, of Savannah, was sentenced to 46 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers investigating a vehicle crash arrested White after seeing him remove a pistol from the vehicle and learning that White had a prior felony conviction.
- Ziquane Sandford, 24, of Hephzibah, was sentenced to five years of probation and fined $1,500 after pleading guilty to Engaging in the Business of Dealing in Firearms Without a License. Sandford admitted he sold firearms on four occasions without the required license.
- Charles Dean Jones, 26, of Grovetown, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. A Georgia State Patrol trooper charged Jones in November 2021 after an attempted traffic stop, pursuit and crash of the motorcycle Jones was riding in Columbia County. Jones had a loaded pistol in a backpack he was wearing.
- Cody Truitt Devore, 23, of Sylvania, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Columbia County Sheriff’s deputies arrested Devore after finding drugs and two guns in his vehicle during a traffic stop in January 2022. At the time, Devore was on federal supervised release for a 2019 federal conviction for firearms possession.
- Christopher Fitzgerald Jones, 35, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Jones in October 2021 on a felony warrant resulting from a series of domestic altercations. Jones, who was carrying a pistol at the time of his arrest, has a substantial criminal history that includes violence and illegal gun possession.
- James Deon Green, 51, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Green in December 2020 after a traffic stop and foot pursuit when they found a pistol in Green’s waistband.
- Diallow Akpan Johnson, a/k/a “Kevin Williams,” 50, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers were called to Johnson’s apartment in January 2021 to investigate a report of domestic violence and found a pistol and drugs in the residence.
- Quentin Jashawn Putney, 46, of Wrightsville, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Putney, who was a back-seat passenger in a vehicle stopped for traffic violations, in July 2020 when they found him in possession of a pistol. Putney has prior criminal convictions that include domestic violence.
- Ryan Nickolus Smiley, a/k/a “Nick Smiley,” 40, of Springfield, Ga., awaits sentencing after pleading guilty to Possession of a Firearm and Ammunition by a Convicted Felon. A member of the Aryan Brotherhood white supremacist street gang, Smiley was on supervised release from a prior federal firearms conviction in March 2021 when the U.S. Marshal’s Service served an arrest warrant for a violation of supervised release and found ammunition and photos of Smiley in possession of firearms.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473
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Federal Safety and Health Officer Admits Conspiring with His Brother to Extort ContractorsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted conspiring with his brother to extort multiple general contractors of approximately $14,000 in cash, U.S. Attorney Philip R. Sellinger announced.
Alvaro Idrovo, 46, of Bloomfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to defraud the United States and to commit an offense against the United States, specifically, an act of extortion under color of his office or employment with the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA).
Idrovo was charged by complaint in September 2020 with his brother, Paul Idrovo, with one count of conspiring to commit an offense against the United States based on the extortion of a single contractor. Paul Idrovo previously pleaded guilty to an information charging the same offense and was sentenced to three years of probation and ordered to pay $15,600 in restitution.
According to documents filed in this case and statements made in court:
Alvaro Idrovo was a compliance safety and health officer for OSHA. He misrepresented to contractors at construction sites in New Jersey that they were facing significant OSHA fines, penalties and possibly jail if they did not get the alleged necessary OSHA safety training. Alvaro Idrovo would provide the contractors with the phone number for the required trainer – allegedly named “Jose Diaz” or “Paul Mejia” – which phone number belonged to Paul Idrovo, posing under these names to conceal the brothers’ relationship. Paul Idrovo was an authorized trainer for certain OSHA Outreach Training Programs, but was not an employee of OSHA.
The two men charged the contractors $4,000 to $6,000 each, in cash, for the alleged safety training. At the time that Paul Idrovo collected the cash, he provided the contractors with fraudulent computer-generated safety and health certificates for their individual employees, which falsely stated that the employees had received various types of OSHA certified safety training from “Jose Diaz” and “Paul Mejia,” when no training had been provided. Paul Idrovo shared with Alvaro Idrovo approximately $5,000 of the cash collected as part of the extortion conspiracy.
When OSHA officials learned of the attempt to extort one of the contractors, they referred the matter to federal law enforcement, who arranged for that contractor to make consensual recordings with both Idrovo brothers. During an April 2020 meeting surveilled by law enforcement, the contractor paid Paul Idrovo $6,000 in cash in exchange for ladder and safety awareness training certificates and a safety and health plan, filled in from a template. Alvaro Idrovo attached copies of the training certificates and the plan to his OSHA reports regarding the contractor’s violation despite knowing that the training certificates falsely claimed that training had been provided to the noted individuals on the specified dates in March 2020, that “Jose Diaz” had provided training, and that the alleged training was OSHA certified.
The conspiracy charge against Alvaro Idrovo carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 16, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the Special Prosecutions Division.
Federal Inmate Sentenced to over 24 Years for Murder of Fellow InmateRead the Press Release
DETROIT - A federal inmate was sentenced to more than 24 years in prison yesterday for murdering a fellow inmate at Milan Correctional Facility, in Milan, Michigan, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jonathan Hemingway, Warden, Milan Federal Correctional Institution.
Adam Taylor Wright, 42, formerly of Springfield, Illinois, pled guilty to Second Degree Murder in February of this year. United States District Court Judge Paul D. Borman sentenced Wright to 292 months, which will run concurrently/consecutively to the sentences of imprisonment he is serving in other cases.
According to court records, on January 2, 2019, Wright, along with co-defendants Alex Albert Castro, 42, and Jason Dale Kechego, 41, killed fellow inmate Christian Maire. Specifically, Wright and Kechego repeatedly kicked and stomped Maire in the head, and Wright prevented corrections officers from intervening while Castro repeatedly stabbed Maire. Wright, along with his two co-defendants, then worked together to throw Maire’s body down a flight of stairs. Maire died from multiple stab wounds (28 total) and blunt force trauma to the head.
“Deterring violence inside prisons will always be a priority of this office. Senseless acts of violence that jeopardize the safety of employees and inmates of the Bureau of Prisons will be aggressively prosecuted.” said U.S. Attorney Ison.
This case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frances Lee Carlson and Andrew R. Picek.
Federal Grand Jury Indicts Henderson Man for Fentanyl Overdose DeathsRead the Press Release
Henderson, KY – A federal grand jury in Bowling Green returned a two-count indictment charging a local man with distribution of fentanyl causing two separate deaths in the Henderson area.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Henderson Police Chief Sean L. McKinney, and Henderson County Sheriff David Crafton made the announcement.
According to court documents, between December 27, 2021, and January 31, 2022, Elijah Lovell, 19, of Henderson, distributed fentanyl that resulted in the death of another person, “J.H.” Additionally, on May 5, 2022, Lovell distributed fentanyl that resulted in the death of “C.G.”
If convicted, Lovell faces a minimum sentence of 20 years and a maximum sentence of life in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
The Henderson Police Department and the Henderson County Sheriff’s Office are investigating the case.
Assistant United States Attorney Frank Dahl is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fake Home Loans Land Perpetrators in PrisonRead the Press Release
MIAMI – After previously pleading guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft, Ana Amador and Sunilda Casilla were sentenced in federal court to prison and ordered to pay restitution. Amador was sentenced to 72 months in prison, three years of supervised release, and ordered to pay more than $1.6 million in restitution. Casilla was sentenced to 60 months in prison, three years of supervised release, and also ordered to pay more than $1.6 million in restitution.
According to facts admitted at the change of plea, Amador and Casilla submitted fraudulent loan applications in connection with sham real estate transactions. The two would look for vacant properties with a high market value. They used the personal identifying information of former clients to apply for the mortgages from private mortgage lenders. The lenders would fund the loans for the purported purchase of the properties, and Amador and Casilla would pocket the loan proceeds. There never was a genuine sale or property purchase.
Amador and Casilla were well versed in the mortgage industry and knew the details of the loan process, including the documents to be completed to obtain a loan. Amador worked as the president of a title company for a number of years. Casilla was a former attorney who worked with Amador doing real estate closings. They knew that “hard money lenders” would loan money for the purchase of properties as long as the property had sufficient value to serve as collateral to the loan. These lenders loaned money to high-risk clients unable to obtain a conventional mortgage for various reasons, to include poor credit risk, no verifiable income, or insufficient employment history. Amador and Casilla also knew that if they could convince the mortgage lenders to loan money for the purported purchase of a property, they could obtain the loan proceeds before anyone knew that a property wasn’t being purchased.
Amador and Casilla located high-end vacant residences that they would purportedly “buy” using someone else’s name, credit and identity to secure a hard money lender mortgage. Once the “sale” was complete, the mortgage proceeds would be wired from the hard money lender to a fictitious title company controlled by Amador and Casilla. The owner of the property did not know the real estate transaction occurred. The buyer of the property did not know they had purchased it. Instead, they made it seem as if a sale had been completed, thereby having the mortgage company wire the mortgage proceeds to their title companies, after which they would withdraw the money. Utilizing this scheme, they were responsible for an intended loss of more than $3.3 million and an actual loss to the victims of more than $1.6 million. They each were ordered to pay more than $1.6 in restitution.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Edwin S. Bonano, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General; Brian Swain, Special Agent in Charge, U.S. Secret Service; and the U.S. Department of Treasury, Office of Inspector General, announced the sentences.
Federal Housing Finance Agency, Office of Inspector General; U.S. Secret Service; and the U.S. Department of Treasury, Office of Inspector General, investigated the case. Assistant U.S. Attorney Larry Bardfeld prosecuted the case. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60312.
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Eight Defendants, Including a Brooklyn Medical Doctor, and Three Pharmacists, Charged with Illegally Distributing More Than 1.2 Million Oxycodone PillsRead the Press Release
Earlier today, in federal court in Brooklyn, a 10-count indictment was unsealed charging Dr. Somsri Ratanaprasatporn, her office manager Leticia Smith, Bassam Amin, Omar Elsayed, and Yousef Ennab who are pharmacists, Michael Kent, Anthony Mathis, and Raymond Walker with conspiracy to distribute and possess with intent to distribute oxycodone and related crimes. Smith and Kent are also charged with money laundering in connection with their alleged efforts to hide the proceeds of their illegal oxycodone distribution operation. All eight defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Breon Peace, United States Attorney for the Eastern District of New York; Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Elysia M. Doherty, Assistant Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations, New York Region (HHS-OIG); Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigations, New York (IRS-CI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI); and Joshua Vinciguerra, Director, New York State Department of Health, Bureau of Narcotic Enforcement (BNE), announced the charges.
“Doctors and medical professionals have a professional obligation to do no harm, but, as alleged, the defendants callously supplied more than one million pills to traffickers for distribution, resulting in dangerous opioids flooding the streets of this district,” stated United States Attorney Peace. “Today’s charges demonstrate this Office’s continued commitment to stemming the availability of illegal drugs and holding to account those who contribute to the epic tragedy that is the opioid epidemic.”
“This structured drug trafficking ring’s operations started in a doctor’s office and ended with $24 million worth of diverted oxycodone on the streets. DEA and our law enforcement partners will continue to hold DEA Registrants and other medical professionals to the highest possible standards and also hold them accountable when they knowingly endanger members of the community. Together, we are all proud of this righteous work, and for the difference it makes in our communities. I commend the investigators and the prosecution team for their work on this wide-spread investigation,” stated DEA Special Agent-in-Charge Tarentino.
“As alleged, our health care system that serves vulnerable populations has been undermined by these individuals,” stated HHS-OIG Assistant Special Agent-in-Charge Doherty. “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health care programs for personal gain.”
NYPD Commissioner Sewell stated: “Today’s charges prove again that our fight against the illegal drug trade is unremitting. The NYPD, together with all of our local, state, and federal law-enforcement partners, will pursue these criminals wherever they operate – and when the perpetrators are trusted members of the medical community, their crimes are especially egregious. I thank and commend the U.S. Attorney’s Office for the Eastern District of New York, the DEA’s New York Division, the Office of the Inspector General of the U.S. Department of Health and Human Services, the Internal Revenue Services’ Criminal Investigations, the NYS Department of Health’s Bureau of Narcotic Enforcement, the New York City Department of Investigation, and everyone else involved in this case for their exceptional work.”
“As charged, these defendant medical professionals and their co-conspirators supplied more than 1.2 million oxycodone pills to the streets of New York City, promoting the illicit trade of dangerously addictive opioids. DOI will continue to work tirelessly with our federal and law enforcement partners to ensure that pill mills such as this one are exposed and shut down, and that the individuals who run them are held accountable. I thank the United States Attorney’s Office for the Eastern District of New York and all our investigative partners on this investigation,” stated DOI Commissioner Strauber.“With this multi-million-dollar criminal scheme, it's alleged the defendants made their profits off the vulnerabilities and addictions of their customers throughout New York City. Law enforcement partnerships like those seen here today have been and continue to be an integral part of stopping the flow of highly addictive narcotics into our communities,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“Today’s charges show how diverted prescription drugs still fuel the opioid epidemic in New York. The Bureau of Narcotic Enforcement remains resolute in its commitment to work together with our federal and local law enforcement partners to disrupt and dismantle the criminal organizations that abuse the public’s trust in health care practitioners to move these dangerous and addictive pills from pharmacies to our neighborhoods,” stated BNE Director Vinciguerra.
Oxycodone is a highly addictive opioid used to treat severe and chronic pain conditions. Every year, millions of Americans abuse oxycodone, and the misuse of prescription painkillers like oxycodone leads to hundreds of thousands of annual emergency room visits. More than 16,000 Americans died from prescription opioid overdoses in 2020. Oxycodone prescriptions have enormous cash value to drug dealers. For example, one oxycodone 30 mg tablet, which was the dosage prescribed in this case, can be sold by dealers on the street for between $20 and $30 in New York City.
As set forth in the indictment and publicly filed documents, between December 2018 and October 2022, the defendants operated a drug distribution ring out of a medical practice on Linden Boulevard in East New York, Brooklyn. Together, they unlawfully distributed more than 11,000 prescriptions for oxycodone, amounting to more than 1.2 million oxycodone pills, which carry a street value of at least $24 million. Ratanaprasatporn, a pediatrician and general practitioner, and Smith, issued the prescriptions; Amin, Ennab and Elsayed filled the prescriptions at pharmacies in Brooklyn and Staten Island, and Kent, Mathis, and Walker oversaw “crews” of sham patients who received medically unnecessary prescriptions. Together, the defendants made millions of dollars from the scheme. During the execution of a search warrant this morning, members of law enforcement recovered several hundred thousand dollars in U.S. currency from Smith’s residence. Law enforcement also recovered two handguns that Kent was observed tossing from a rear door of his residence.
If convicted of the drug charges, the defendants face up to 20 years’ imprisonment. If convicted of the money laundering charges, Smith and Kent face up to 20 years’ imprisonment for each count.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Victor Zapana, and Gilbert Rein. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
New Yorkers who need help finding substance-use-disorder treatment resources should contact 1-877-8-HOPENY. The HopeLine provides high quality, responsive information, and referral services via phone and text message to callers throughout New York State experiencing substance abuse issues. HOPELine services are free and confidential.
The Defendants:
LETICIA SMITH
Age: 54
Brooklyn, New YorkBASSAM AMIN
Age: 69
Brooklyn, New YorkOMAR ELSAYED
Age: 28
Hackensack, New JerseyYOUSEF ENNAB
Age: 25
Brooklyn, New YorkMICHAEL KENT
Age: 49
Brooklyn, New YorkANTHONY MATHIS
Age: 55
New Windsor, New YorkDr. SOMSRI RATANAPRASATPORN
Age: 75
Staten Island, New YorkRAYMOND WALKER
Age: 70
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR464 (DLI)
Ecuadorian National Found Guilty of Possessing over 1,100 Kilograms of Cocaine in the Eastern Pacific OceanRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has convicted Simon Arcentales Castro (38, Ecuador) of possessing with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. Arcentales Castro faces a mandatory minimum sentence of 10 years, and up to, life in federal prison. His sentencing hearing has been scheduled for January 6, 2023. He and two other individuals were indicted on January 27, 2022.
According to testimony presented at trial, a maritime patrol aircraft spotted a 50-foot low-profile in the Eastern Pacific Ocean, about 100 miles from the nearest point of land. The vessel was suspected of drug smuggling because it was purposely built to avoid detection, was operating without navigational lights at night, and was sailing in a location where maritime drug smuggling by similar vessels is common. The U.S. Coast Guard (USCG) Cutter James launched a small boat to investigate and found Arcentales Castro and two other men on board. The USCG determined the vessel to be without nationality, and therefore subject to U.S. jurisdiction. A search of the vessel revealed over 1,100 kilograms of cocaine, worth approximately $30 million, hidden in the vessel’s forward hull.
This case was investigated by the United States Coast Guard and the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. 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.
The case is being prosecuted by Assistant United States Attorney Lauren Stoia.
Durable Medical Equipment Company Owner Sentenced for Health Care FraudRead the Press Release
MIAMI – A U.S. federal district judge has sentenced 56-year-old Ariel Madero Paez to 55 months in prison followed by 3 years of supervised release for submitting more than $2.2 million in fraudulent billings to Medicare.
From November 2021 through May 2022, Madero owned Always Medical Supply (Always), located in Stuart, Fla. Always, a Florida corporation, purported to provide durable medical equipment (DME) to eligible Medicare beneficiaries. In a five-month period in 2022, Always submitted approximately $2.2 million in fraudulent health care claims to Medicare for DME that the corporation never provided and that Medicare beneficiaries never requested. As a result, Medicare paid more than $1.4 million to Always. After Madero’s arrest on May 6, 2022, at Miami International Airport, bank accounts for Always and Madero had a sum of more than $500,000 derived from or traceable to health care fraud.
In addition to sentencing Madero to prison and supervised release terms, U.S. District Judge Donald M. Middlebrooks ordered him to pay restitution to Medicare in the amount of nearly $1.5 million and entered a forfeiture money judgment also in the amount of nearly $1.5 million. This is in addition to the forfeiture of the contents of Madero’s two bank accounts.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Miami Field Office, made the announcement.
HHS-OIG Miami investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14029-Middlebrooks.
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Detroit Equity Fund Owner Charged with Defrauding Investors of over $27 millionRead the Press Release
DETROIT – An equity fund CEO was charged with bilking investors of over $27 million by fraudulently exaggerating his fund’s investment performance and by embezzling from the fund, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation.
Andrew H. Middlebrooks, age 30, of Dallas, Texas, the former majority owner, chief executive officer, chief investment officer, and portfolio manager of EIA All Weather Alpha Fund 1 Partners (EIA) is charged in a Criminal Information with one count of wire fraud. During a significant part of the scheme, Middlebrooks resided in the Detroit metropolitan area. The information charges that from May 2017 through May 2022, Middlebrooks solicited clients for EIA by telling them he was able to exploit “inefficiencies” in global equity markets which would result in large returns for investors. From the beginning of the scheme to defraud, however, EIA’s fund failed to produce the predicted returns and suffered catastrophic losses.
Instead of informing EIA’s existing investors that the fund was failing, Middlebrooks solicited new investors with false statements about the fund’s performance and lulled existing investors by lying to them about the returns their investments generated. Middlebrooks also created and distributed false documents claiming that EIA’s performance was exceptional. In one document, created in the fall of 2019, Middlebrooks falsely claimed that EIA’s track record included a cumulative return of 476.81% with 81.82% of monthly trading showing a profit.
Middlebrooks also lied to investors about how their money would be used. During the scheme, Middlebrooks routinely took money from the fund for living expenses and transferred money from the fund to his wife’s business. By the Spring of 2022, Middlebrook’s scheme to defraud began unraveling, and EIA’s fund collapsed. Losses to at least 100 investors exceeded $27 million.
“Middlebrooks used an apparently legitimate company, sophisticated methods, and a complex web of lies to deceive his victims, but his crime amounts to nothing more than theft and unbridled greed. Middlebrooks’s ability to convince the victim-investors that his false promises were true allowed him to steal their money,” said United States Attorney Dawn N. Ison. “Today’s charge demonstrates our commitment to ensure the integrity of our financial systems.”
“Mr. Middlebrook allegedly lied to and stole money from investors and potential investors by providing false financial statements and inflating the fund's returns,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “This case is an example of the FBI’s commitment to work with our partners to investigate those engaged in financial fraud and to protect the financial well-being of honest, hard-working Americans.”
Middlebrooks faces the following statutory maximum penalties: 20 years in prison, a $250,000 fine, and up to 3 years supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of this case was conducted by the Federal Bureau of Investigation. Both the United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge and thank the Securities and Exchange Commission for its assistance.
DermaTran and three other pharmacies pay over $6.8 million to settle civil claimsRead the Press Release
ATLANTA - DermaTran Health Solutions, LLC; Pharmacy Insurance Administrators, LLC; Legends Pharmacy; TriadRx; and the former owners of Lake Side Pharmacy and related entities, agreed to pay $6,876,564 to resolve allegations that they violated the False Claims Act by waiving copays, charging the government higher prices than permitted, and trading federal healthcare business with other pharmacies.
“Waiving copays and charging the government higher prices leads to overutilization and costs federal programs millions of dollars in unnecessary spending,” said U.S. Attorney Ryan Buchanan. “Our office will continue to enforce the False Claims Act to recover government payments that result from such misconduct.”
“Health care fraud abuse like this case erodes the trust patients have in the health care system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not stand by when there are allegations of companies operating corporate wide schemes to illegally line their pockets.”
“Fraud through compounding pharmacies bilked billions out of TRICARE and undermined the integrity of our healthcare system designed to care for our service members and their families,” stated Cynthia Bruce, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS). “I appreciate the partnership among involved law enforcement agencies and the U.S. Attorney’s Office to bring this matter to justice.”
“The OPM OIG has no tolerance for businesses that knowingly take advantage of FEHBP, violating the rules to make a profit,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “I am extremely proud of the hard work of our investigators, analysts, and other law enforcement partners because overcharging the government is not a victimless crime – it contributes to higher premium prices and harms the financial integrity of the FEHBP.”
“The U.S. Postal Service, Office of Inspector General, will continue to tirelessly investigate those who commit frauds against federal benefit programs and the U.S. Postal Service. This settlement is a clear message that the USPS OIG is dedicated to rooting out corruption and bringing to justice those responsible for these crimes, said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. The USPS OIG would like to thank our law enforcement partners and the Department of Justice for their efforts in this investigation”.
“Health care providers that try to boost their profits by submitting fraudulent claims to Federal health care programs threaten the integrity of those programs and drive up prices for everyone,” said Tamala E. Miles, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “We work tirelessly alongside our law enforcement partners to protect the integrity of Federal health care programs and to ensure the appropriate use of taxpayer dollars.”
The government alleged that in 2012, pharmacy DermaTran Health Solutions, LLC (“DermaTran”), opened in Rome, Georgia, for the purpose of making and selling custom “compound” pain creams. DermaTran’s owners during the relevant time include DIII Consulting, LLC; SRM Holdings, LLC; Gussenhoven Holdings, LLC; Sam Moss; and Robert Gussenhoven. At the same time, another company named Pharmacy Insurance Administrators, LLC (“PIA”), was created to handle the billing for DermaTran. During the relevant time, PIA was a subsidiary of Insurance Administrative Solutions, LLC; which was a subsidiary of Gulfcoast Administrators, LLC; which was majority-owned by Life & Health Holdings, Inc.; which was a subsidiary of State Mutual Insurance Company.
Compound pain creams were very lucrative. Government-backed health insurance programs such as TRICARE (for the military) and the Federal Employees Health Benefits Program (for federal workers) would reimburse hundreds of dollars for these prescriptions. But the government programs imposed certain restrictions to limit spending. For example, patients were required to contribute to the cost of the prescription in the form of copays. The government programs also limited payments to the “usual and customary price”—the price charged to a cash-paying, uninsured patient.
The Government alleged that DermaTran and PIA found ways to avoid these restrictions. DermaTran and PIA created a copay-waiver program where patients would have their copays waived based on a brief, unverified statement of economic need. DermaTran and PIA also misled the government programs about the price being charged to uninsured, cash-paying patients by falsely stating that that price was high when, in fact, it was only $30. As a result, there were days that veterans were charged $600+ for pain creams, while uninsured patients were charged only $30.
Eventually, various auditors uncovered these problems and began to terminate DermaTran from their networks. The Government alleged that DermaTran, looking for a way to continue to earn money, began selling its out-of-network prescriptions to other pharmacies. The other pharmacies could fill the prescriptions because they were still in network. After filling the lucrative prescriptions, the other pharmacies remitted a portion of the proceeds to DermaTran and PIA. The government alleged that this arrangement constituted an illegal kickback. The other pharmacies that participated in this prescriptions-for-money scheme included Legends Pharmacy (in Texas), Lake Side Pharmacy (in Alabama), and TriadRx (in Alabama).
The Government’s False Claims Act claims based on the above allegations are being settled. PIA will contribute $6.5 million to the settlement. DermaTran is no longer operating and was sold in an arm’s-length transaction to a third-party buyer last year for the price of $40,000. That amount will be turned over to the government as part of the settlement. MLDP of Texas, LP (a/k/a “Legends Pharmacy”) will pay $59,293. TRIAD Rx, Inc. will pay $166,547. Lake Side Pharmacy is no longer in business, but former owners of Lake Side Pharmacy will pay $110,724. The former owners include Titan Medical Marketing, LLC; Donald Wayne Bogue; George Takashi Elkins; James Bernard Bogue, Jr.; Robert Joseph Puckett, Jr.; Robert Joseph Puckett, Sr.; Stephen Weston Wilson; and Charles Franklin Taylor, Jr.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former accountant for DermaTran, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Doe v. DermaTran Health Solutions, LLC, et al., Civil Action No. 1:17-CV-1765. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The whistleblower will receive $1,434,775 from the settlements. PIA will also pay her attorney’s fees.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the Defense Criminal Investigative Service, the US Office of Personnel Management – Office of the Inspector General, the U.S. Postal Service – Office of Inspector General, and the Health and Human Services – Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Connecticut Man Pleads Guilty to Alien Smuggling and Possession of Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Jose Angel Portillo-Lopez, age 72, of Norwalk, Connecticut, pled guilty today to conspiracy to commit alien smuggling and possession of child pornography.
The announcement was made by United States Attorney Carla B. Freedman and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.
Portillo-Lopez admitted that in April 2021, he traveled to the border in Burke, New York, where he assisted in the smuggling of four Vietnamese nationals from Canada and into the United States for profit. Further, the investigation revealed, and Portillo-Lopez admitted, that he possessed videos of child pornography on his cellphone.
Sentencing is scheduled for February 8, 2023, before United States District Judge David N. Hurd in Utica, New York, at which time Portillo-Lopez faces a mandatory term of 10 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol, Burke Station, and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Stitt.
Columbia County man sentenced to prison after admitting to possession of child pornographyRead the Press Release
AUGUSTA, GA: A Columbia County, Ga., man has been sentenced to federal prison after admitting he possessed images of children being sexually exploited.
Mark Christopher Greene, 46, of Appling, Ga., was sentenced to 102 months in prison after pleading guilty to Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Greene to pay $18,000 in restitution, to serve 15 years of supervised release and register as a sex offender after completion of his prison term.
There is no parole in the federal system.
“Protecting our most vulnerable citizens is an essential element of public safety,” said U.S. Attorney Estes. “We commend our vigilant law enforcement partners for identifying and shutting down digital predators.”
The investigation of Greene began in December 2019 when the National Center for Missing and Exploited Children received a cyber tip that identified images of child pornography. Armed with a search warrant, agents from the Georgia Bureau of Investigation seized electronic devices from Greene’s Appling residence and discovered dozens of images and videos of child exploitation on those devices.
Greene was on probation for a prior conviction for drug possession at the time of his arrest on the child pornography charge.
“The GBI will continue to work tirelessly to protect innocent child victims of online exploitation,” said Michael Register, Director of the GBI. “We are grateful for the relationships we maintain with our federal partner agencies to bring these offenders to justice.”
The case was investigated by the Georgia Bureau of Investigation and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson and Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Citrus County Convicted Felon Indicted for Possessing Multiple FirearmsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of a superseding indictment charging Timothy James Roberts (29, Hernando) with possession of an unregistered National Firearms Act (NFA) weapon (short-barreled shotgun) and two counts of possession of a firearm by a convicted felon. Roberts faces a maximum penalty of 10 years in federal prison on the unregistered NFA weapon count, and up to 15 years’ imprisonment on each count of possession of a firearm by a convicted felon.
According to the superseding indictment, Roberts was in possession of firearms on two separate occasions. On August 7, 2022, he possessed a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record. Additionally, on August 31, 2022, Roberts was in possession of a pistol and a revolver. Roberts has four prior felony grand theft convictions in state court. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
A superseding indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Charleston Man Sentenced to more than 18 Years in Drug Trafficking CaseRead the Press Release
Oxford, MS – A Charleston man was sentenced Tuesday to more than 18 years in prison for selling methamphetamine.
According to court documents, James Taylor, 35, of Charleston, Mississippi pled guilty in the United States District Court for the Northern District to Mississippi to one count of conspiracy to traffic drugs. Taylor was sentenced by U.S. District Court Judge Sharion Aycock to 219 months for the conspiracy. He was further sentenced to 5 years supervised release following his release from prison. Taylor is currently in custody.
Taylor oversaw the drug trafficking organization of nine other defendants who were charged with conspiracy to distribute drugs and drug distribution. The investigation of this drug trafficking organization and its participants spanned multiple years.
Individuals who have been charged with conspiracy to distribute methamphetamine in this case include: Demandrick Hayes, Alvin Johnson, Linda Hunt, Brenda Hunt, Genise Cox, Aaron Prince, Dexter Ray, and Dana Smith.
“This conviction and lengthy sentence exemplifies DEA’s relentless commitment to keep dangerous drugs and those who traffic them off of our streets,” said DEA Assistant Special Agent in Charge Kevin Gaddy. “DEA, along with our federal, state and local law enforcement partners, will continue to focus on these drug trafficking organizations that spread poison in our communities.”
U.S. Attorney Clay Joyner remarked, “This case is a textbook example of what multiple federal and state agencies can accomplish when working in concert. This sentence was more than justified in this wide ranging, multi-state conspiracy.”
The Drug Enforcement Administration and the Mississippi Bureau of Narcotics investigated the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program in partnership with state and local law enforcement. Agencies assisting with the investigation included the United States Marshal’s Service, the United States Postal Inspector’s Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Tallahatchie County Sheriff’s Department, the Charleston Police Department, and the Leflore County Sheriff’s Department.
Assistant U.S. Attorney Clyde McGee prosecuted the case.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kevin Gerard Denson, 36, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 30, 2022, law enforcement officers were dispatched to Leon Sullivan Way in Charleston in response to a report of shots fired. Officers encountered Denson exiting a vehicle in an alley near Jet Life Apparel. Officers found two firearms in the vehicle, a Dickinson, model XXPA, 12-gauge shotgun and a Smith & Wesson, model M&P 15, 5.56-caliber rifle. Both firearms were loaded with high-capacity drum magazines.
Officers also found a bullet hole at the entrance to Jet Life Apparel, and obtained a search warrant for the store’s video surveillance system. The footage showed Denson carrying the two firearms and Jonathan Kennedy, 41, of St. Albans, running across the store while holding the shotgun following an apparent altercation outside.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Denson knew he was prohibited from possessing a firearm because of his prior felony conviction for delivery of cocaine in Kanawha Circuit Court on June 12, 2013.
Denson is scheduled to be sentenced on February 1, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
The video surveillance footage showed Kennedy and Denson possessed the firearms after a vehicle stopped in front of Jet Life Apparel and its driver fired a pistol in the direction of the store following an apparent verbal argument. Officers recovered a spent 9mm casing from the street near where the pistol was fired from the vehicle.
Kennedy pleaded guilty to being a felon in possession of a firearm on October 4, 2022.
Jamon L. Woodson, 39, was indicted on one count of being a felon in possession of ammunition as the alleged driver of the vehicle. The indictment alleges Woodson possessed 9mm ammunition on June 30, 2022, and that he knew he was prohibited from possessing ammunition because of his felony conviction for conspiracy to distribute more than 500 grams of cocaine and a quantity of marijuana in United States District Court for the Northern District of West Virginia on January 7, 2011. Woodson was arraigned on the indictment on September 29, 2022, and his trial is scheduled for November 15, 2022. An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearings. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-145.
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Central Florida Government Worker Sentenced to 15 Months in Federal Prison for Fraud and Distribution of A Controlled SubstanceRead the Press Release
Orlando, FL – U.S. District Judge Gregory A. Presnell has sentenced Joseph Ellicott (43, Bradenton) to 15 months in federal prison for conspiracy to commit wire fraud, honest services fraud, and distribution of a controlled substance. The court also ordered Ellicott to forfeit $114,747, which are traceable to proceeds of the offense. Ellicott had pleaded guilty on February 9, 2022.
According to court documents, in January 2017, Ellicott was hired by a government agency in Seminole County (Governmental Agency) as a Special Projects Manager. The elected head of the Governmental Agency was a public official and Ellicott’s friend (Public Official). Beginning at least by January 2017, and continuing through 2019, Ellicott, the Public Official, and a contractor with the Governmental Agency (Contractor Conspirator) conspired with each other to commit wire fraud and honest services fraud.
The conspiracy involved the Contractor Conspirator and the Contractor Conspirator’s company entering into a contract with the Governmental Agency to provide goods and services to the Governmental Agency. The Contractor Conspirator and the Contractor Conspirator’s company submitted inflated invoices for payment. The Public Official agreed to use his official position to provide favorable official action on behalf of the Contractor Conspirator and the Contractor Conspirator’s company, including by continuing to employ the Contractor Conspirator and the Contractor Conspirator’s company and by causing the Contractor Conspirator and the Contractor Conspirator’s company to be paid, including for the inflated invoices. In exchange for the Public Official providing such favorable official action, the Contractor Conspirator agreed to pay bribes and kickbacks to the Public Official. Ellicott’s role in the conspiracy was to serve as the intermediary for the payment of a bribe and kickback of $6,000 that was made on September 25, 2017.
Further, for at least two years, Ellicott illegally sold Adderall to others. Over the course of at least two years, one of Ellicott’s customers paid him more than $5,000 for hundreds of Adderall pills.
This case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Amanda S. Daniels and United States Attorney Roger B. Handberg.
Canton Woman Admits Defrauding HUD Section 8 Housing ProgramRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONNA CARNEY, 67, of Canton, pleaded guilty today before U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to one count of theft of government property.
According to court documents and statements made in court, in approximately 1995, Carney began receiving Section 8 tenant-based rental assistance under the housing choice voucher program of the U.S. Department of Housing and Urban Development (“HUD”). From approximately 2004 to 2019, Carney failed to report to HUD that she was married to her landlord and therefore had an interest in the home in which she lived, failed to report certain others living in her home, and falsely claimed that unauthorized residents were live-in aides.
Judge Merriam scheduled sentencing for February 2, 2023, at which time Carney faces a maximum term of imprisonment of 10 years.
Carney is released on $50,000 bond pending sentencing.
This investigation has been conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Broward County Couple Charged in Alleged Ponzi SchemeRead the Press Release
MIAMI – David Joseph Varrone, 56, and wife Sherry Varrone of Weston, Fla., have been charged in federal court with conspiring to commit wire fraud through an elaborate credit “leasing” and investment Ponzi scheme linked to their company, The Credit Engineers Inc.
According to allegations in separately filed Informations, from 2018 through 2021, the Varrones offered individuals with good credit a short-term “Credit Leasing” investment program tied to a purported hedge fund that would yield a guaranteed return on investments plus fully repay the loans within 36 months or less. The Varrones and their co-conspirators helped victims apply for the high interest, short term loans and the victims “leased” the proceeds to The Credit Engineers and David Varrone. However, there was no hedge fund and victims’ funds never were invested. Instead, the proceeds were used to enrich the Varrones and to pay back earlier victims—i.e., a Ponzi scheme. In total, the scheme funneled over $6.4 million of misappropriated victims’ funds into the Varrones’ accounts. Additionally, David Varrone fraudulently applied for and received approximately $650,000 in C.A.R.E.S. Act, Economic Injury Disaster Relief Loans from the U.S. Small Business Administration (SBA). These loans are intended to keep small businesses afloat and retain employees.
David Varrone was arraigned Tuesday and Sherry was arraigned today. If convicted, David Varrone faces a maximum penalty of 30 years in prison and Sherry Varrone faces a maximum penalty 0f 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Russell C. Weigel III, Commissioner of Florida’s Office of Financial Regulation (OFR), made the announcement.
OFR investigated the case, with assistance from the U.S. Secret Service. Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 22-cr-60197 and 22-cr-60196.
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Brother of Former L.A. City Councilman José Huizar Admits Lying to Investigators about Converting Cash to Checks for Ousted PoliticianRead the Press Release
LOS ANGELES – Salvador Huizar – the brother of former Los Angeles City Councilman José Huizar, who faces federal racketeering charges stemming from a “pay-to-play” scheme – admitted in a plea agreement filed today in United States District Court that he took cash from José Huizar on numerous occasions and immediately wrote checks back to him or arranged to pay his expenses, and then lied about his actions to federal investigators.
Salvador Huizar, 57, of Boyle Heights, agreed to plead guilty to one felony count of making false statements to federal investigators, acknowledging that he repeatedly lied about accepting cash from his brother, including to a federal grand jury and most recently two weeks ago during an interview with FBI agents and federal prosecutors.
“Between at least November 26, 2013, and August 22, 2018, upon José Huizar’s request, [Salvador Huizar] accepted envelopes of cash from José Huizar on at least 20 occasions,” Salvador Huizar admitted in the plea agreement. “In exchange, [Salvador Huizar] contemporaneously wrote checks, or facilitated electronic payments from [his] own bank account, to either José Huizar directly or to pay José Huizar’s expenses in the same amounts as the cash provided by José Huizar.”
Even though Salvador Huizar asked his brother on multiple occasions about the cash, José Huizar said “it was better that [Salvador Huizar] did not know the source of the cash,” according to the plea agreement.
Salvador Huizar admitted he lied to FBI agents on November 17, 2018, when he falsely stated that José Huizar never asked him to write any checks, except on two occasions and for which he was not paid back. However, on at least 20 occasions, José Huizar gave his brother an envelope of cash and asked him to write checks or facilitate electronic payments to José Huizar or for his expenses, the plea agreement states.
Salvador Huizar also admitted he made false statements to the FBI and federal prosecutors on January 30, 2020 – when he said cash from his brother was to pay off a debt or that he received cash later, after the check was written – and two weeks ago when he reiterated these false statements before recanting and saying José Huizar regularly had cash with him and gave Salvador Huizar cash at the time he wrote the checks.
During an appearance before a federal grand jury on March 5, 2020, Salvador Huizar also made false statements when he testified under oath that cash from José Huizar was to pay off a debt and that cash was received only after Salvador Huizar wrote a check to his brother.
As part of his plea agreement, Salvador Huizar has agreed to cooperate with the government’s ongoing investigation and has agreed to testify at the next two trials in this case.
Salvador Huizar is expected to formally enter his guilty plea before a federal judge in the coming weeks. The charge of making a false statement to a federal agency carries a statutory maximum sentence of five years in federal prison.
Assistant United States Attorneys Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Susan S. Har and J. Jamari Buxton of the Public Corruption and Civil Rights Section; and Patrick A. Castañeda of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting the case against Salvador Huizar.
José Huizar and former Los Angeles Deputy Mayor Raymond Chan are scheduled to go to trial on February 21, 2023, on federal charges alleging they conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Huizar allegedly agreed to accept at least $1.5 million in illicit financial benefits and faces dozens of additional federal criminal charges.
Previously in this racketeering case, real estate developer Dae Yong Lee and one of his companies were convicted in June of federal criminal charges for providing $500,000 in cash to José Huizar and his special assistant in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project and obstructing justice by falsifying financial documents.
The next scheduled trial in this case is scheduled to begin October 25. Shen Zhen New World I LLC, an entity owned by real estate developer Wei Huang, is charged with bribing Huizar related to another downtown Los Angeles development project. Huang remains a fugitive.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Brookhaven Man Sentenced to 10 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
Jackson, Miss. – A Brookhaven man was sentenced to 120 months in prison for distributing 50 grams or more of methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Richard Butler, 42, was sentenced in U.S. District Court in Jackson. Butler was further ordered to a five year term of supervised release following his prison term, and forfeiture of multiple firearms.
According to court documents, on September 25, 2019, following an investigation into sources of methamphetamine, agents with ATF and the Mississippi Bureau of Narcotics conducted a controlled purchase of 54 grams of methamphetamine from Butler in Brookhaven. Following this purchase, agents, using a cooperating person, purchased additional methamphetamine from Butler. Butler, a convicted felon, possessed a firearm when he was arrested.
Butler was indicted by a federal grand jury on March 16, 2021. He pled guilty on June 24, 2022, to possession with intent to distribute methamphetamine.
The Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and Mississippi Bureau of Narcotics investigated the case.
This case was prosecuted by Assistant U.S. Attorney Bert Carraway.
Bowling Green Federal Grand Jury Returns Five Indictments for Drug Trafficking and Firearms OffensesRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned five indictments today separately charging individuals with drug trafficking and firearms offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Jerry C. Templet, Jr. of the Department of Homeland Security Investigations, and Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division made the announcement.
According to the indictments:
Ahmed Al-Dulaimi, 23, of Bowling Green, is charged with being a felon in possession of three firearms. His prior felony convictions include theft by unlawful taking ($500 or more), fraudulent use of a credit card ($500 or more but less than $10,000), retaliation against a participant in the legal process, theft by unlawful taking (firearm), and receiving stolen property (firearm). If convicted, he faces a maximum of 10 years in prison;
Michael S. Johnson, 45, of Adolphus, KY, is charged with possessing with the intent to distribute 50 grams or more of methamphetamine. If convicted, he faces a minimum sentence of 10 years and a maximum sentence of life in prison;
James Duke, 43, of Campbellsville, KY, is charged with being a felon in possession of a firearm. His prior felony convictions include third-degree burglary, knowingly and fraudulently using an ID card/electronic code for benefits, and manufacturing methamphetamine. If convicted, he faces a maximum of 10 years in prison;
David Bridgewater, 39, of Campbellsville, KY, is charged with being a felon in possession of a firearm. His prior felony convictions include possession of a firearm by a convicted felon, first-degree wanton endangerment, and first-degree possession of a controlled substance. If convicted, he faces a maximum of 10 years in prison; and
Bladimir Gomez-Aguilar, 38, a citizen of Mexico, is charged with unlawful re-entry into the United States and possessing a firearm by a person unlawfully in the United States. If convicted, he faces a maximum of 15 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF Bowling Green Field Office, the Department of Homeland Security Investigations, the DEA, the Bowling Green/Warren County Drug Task Force, the Kentucky State Police, the Bowling Green Police Department, the Campbellsville Police Department, the Kentucky Department of Fish and Wildlife Resources, and the Allen County Sheriff’s Office are investigating the cases.
These cases are being prosecuted by Assistant U.S. Attorneys Mark J. Yurchisin II and Madison Sewell of the U.S. Attorney’s Bowling Green Branch Office.
These cases are 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Billings man sentenced to five years in prison for sending nude picture of himself to fictitious girl in undercover operationRead the Press Release
BILLINGS — A Billings man who admitted to sending a nude picture of himself to a fictitious girl during an undercover sting operation was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Martin Leo Jimenez, 28, pleaded guilty in May to attempted transfer of obscene material to a minor.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in October 2021, law enforcement was conducting an undercover sting investigation to identify and arrest individuals who were attempting to have sex with children. Jimenez responded to an undercover post and began to correspond with a fictitious mother to arrange for a sexual encounter with the mother’s fictitious 11-year-old daughter. During electronic communications with the undercover officer, Jimenez offered that he had “no age limits,” sent a nude picture of himself and discussed the various sexual acts he wanted to perform on the fictitious girl. The parties made plans to meet, and law enforcement arrested Jimenez when he arrived at the location. Jimenez later acknowledged that he intended to have sex with the mother and daughter.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case, which was investigated by the FBI, Billings Police Department, Yellowstone County Attorney’s Office and Yellowstone County Sheriff’s Office.
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Baltimore Businessman Pleads Guilty to Employment Tax CrimesRead the Press Release
A Baltimore businessman pleaded guilty today to willfully failing to account for and pay over employment taxes to the IRS.
According to court documents and statements made in court, Jonas Purisch operated two employee staffing companies, Titan Staffing Network, Inc. and Titan Services, LLC, which both provided workers for third-party manufacturing businesses in Maryland. Purisch owned the two companies and was responsible for their operations, including withholding and paying over to the IRS employment taxes on behalf of the employees. Between March 2018 and March 2021, Purisch withheld but did not pay over to the IRS more than $2 million in payroll taxes on behalf of the two companies’ employees. As part of his guilty plea, Purisch has agreed to pay more than $3.4 million in restitution to the IRS. This amount includes the employer’s share of the employment taxes Purisch owed to the IRS.
In April 2013, Purisch was convicted in the District of Maryland of filing a false individual income tax return and willful failure to file a tax return. He was sentenced to three months in prison.
Purisch is scheduled to be sentenced on Dec. 12. He faces a maximum of five years in prison for willful failure to account for and pay over employment taxes. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division is prosecuting the case.
Acting Deputy Assistant Attorney General Goldberg thanked the U.S. Attorney’s Office for the District of Maryland for its assistance in this matter.
Anchorage Man Pleads Guilty, Sentenced to Pay $4,000 Fine for Violating Marine Mammal Protection ActRead the Press Release
ANCHORAGE – An Anchorage man pleaded guilty to two counts of illegally trafficking in walrus ivory in U.S. District Court and ordered to pay a $4,000 fine and sentenced to two years probation.
Uzi Levi, 71, of Anchorage purchased six non-handicrafted Pacific walrus tusks and one three-tusked non-handicrafted Pacific walrus head mount from an undercover U.S. Fish and Wildlife Service special agent, all of which is in violation of the Marine Mammal Protection Act.
Under the Marine Mammal Protection Act, it is unlawful for a non-Alaskan native to transport, purchase, sell, export or offer to purchase, sell or export any marine mammal or marine mammal product for any purpose other than public display, scientific research or enhancing the survival of a species or stock or any marine mammal part that has not been made into an authentic native article of handicraft.
In June 2020, a special agent with the U.S. Fish and Wildlife Service observed what appeared to be an Alaskan Native male carrying a two-tusked, non-handicrafted walrus head mount into the car rental business office owned by Levi and then leave without it. A few weeks later, an undercover U.S. Fish and Wildlife Service special agent went to Levi’s car rental business and inquired about renting a vehicle. He explained that he didn’t have a lot of money and asked if there were other ways to rent a vehicle, such as trade or barter. The unidentified person at the business called Levi and handed the phone to the undercover agent. During this call and over the next eight months, Levi and the agent exchanged numerous phone calls and texts about the purchase of non-handicrafted, or raw, walrus ivory, which resulted in Levi purchasing six non-handicrafted Pacific walrus tusks on July 13, 2020, and one non-handicrafted, three tusked walrus head mount on September 29, 2020
Levi pleaded guilty to both counts and was sentenced before Chief United States District Court Judge Sharon L. Gleason. In handing down the sentence regarding Levi’s trafficking in raw ivory, Judge Gleason stated, “the defendant’s actions really impact Alaska Native artists who are trying to market their products.”
U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement. The U.S. Fish and Wildlife Service investigated the case. Assistant U.S. Attorney Steve Skrocki prosecuted the case.
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