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29 September 2022
Folsom Man Sentenced to a Year in Prison for Making False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Zarko Danilov, 67, of Folsom, was sentenced today to 12 months and one day in prison for two counts of making and subscribing a false tax return, U.S. Attorney Phillip A. Talbert announced. Danilov was also ordered to pay a $10,000 fine and $283,359 in restitution.
According to court documents, Danilov owned and operated a dental laboratory business called Danilov’s Dental Lab. Danilov hid the true amount of gross receipts received from his business from his tax return preparers. For the tax years 2015 and 2016, Danilov failed to provide his return preparer the bank statements for one additional business bank account and one personal bank account. For the tax year 2017, Danilov failed to provide his return preparer the bank statements for that same business bank account and a different personal bank account. During a civil audit by the IRS, Danilov lied to a tax examiner about only having one bank account for business and personal matters. On May 19, 2022, Danilov pleaded guilty to two counts of making and subscribing a false tax return.
In total, Danilov’s income for tax years 2015, 2016, and 2017 was underreported by at least $1,271,694. The total amount lost by the IRS as a result of defendant’s criminal conduct for those tax years was approximately $283,359, which is the amount of restitution ordered.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
Five "New Aryan Empire" Associates Sentenced to PrisonRead the Press Release
LITTLE ROCK—Five defendants were sentenced yesterday for their involvement in crimes carried out on behalf of a white supremacist gang. Each defendant previously pleaded guilty to various crimes associated with the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang and functioned as a drug trafficking organization.
Russell Robinson, 35, of Dover, Arkansas, was sentenced to 204 months imprisonment for kidnapping in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and maiming in aid of racketeering. The remaining four defendants were sentenced for conspiracy to distribute and possess with intent to distribute methamphetamine: Jeffrey Howell, 38, of Russellville, was sentenced to 188 months imprisonment, Richard Hampton, 42, of Pottsville, and Tiffany Parker, 42, of Russellville, were both sentenced to 96 months imprisonment, and April Teeter, 40, of Russellville, was sentenced to 90 months imprisonment. In addition to prison time, United States District Judge Brian S. Miller also sentenced each defendant to five years of supervised release following their terms of imprisonment.
The investigation began in 2016, when local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area.
In June 2017, NAE members and associates kidnapped two individuals that they suspected of cooperating with law enforcement, which violated the rules of NAE. One victim was held against their will and subsequently beaten and stabbed multiple times. While the victim was held to the ground, another NAE member heated a knife with a torch and burned the victim’s cheek, leading to permanent disfigurement. Another victim was kidnapped at the same time and restrained and repeatedly beaten.
The overall indictment in this case charged more than 50 people from the Pope County area with violations of the Racketeer Influenced and Corrupt Organizations Act, Violent Crimes in Aid of Racketeering, and numerous gun and drug violations. The case is named “To The Dirt,” a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die. The charges allege acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 53 defendants have pleaded guilty, 1 defendant was found guilty at trial, and 35 of those defendants have already been sentenced to prison terms: Courtney Talley 94 months; Corey A. Ford 45 months, Henri T. Keener, II 84 months, Jared Dale, 84 months; Britanny Conner, 120 months; Keith Savage, 120 months; Joseph Pridmore, 150 months; Daniel Adame, 262 months; Justin Howell, 155 months; James George, 70 months; Amos Adame, 121 months; and Skippy Don Sanders, 262 months; Andrew Syverson 151 months; Amanda Rapp 262 months; Jayme Short 90 months; Cory S. Donnelly 188 months; Wesley Pierson 120 months; Ralph Ross 36 months; Jeffrey L. Knox 180 months; Robert Chandler 65 months; Timothy Ferguson 180 months; Paula S. Enos 180 months; Heath Kizer 96 months; Christopher S. Helms 102 months; David D. Singleton 131 months; Kathrine R. Ross 60 months BOP; Courtney Talley 94 months; Corey A. Ford 45 months; Henri T. Keener, II 84 months; April Howell 198 months; Kevin M. Long 369 months; James Scott Oliver 327 months; and Wesley S. Gullett 420 months. The remaining defendant, Troy L. Loadholt, remains a fugitive.
The investigation was conducted by ATF, DEA, the United States Postal Inspection Service, the Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department, with assistance from the FBI.
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United States Attorney for the Eastern District of Arkansas, is available online at
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Federal Way, Washington man indicted for gun and drug crimesRead the Press Release
Seattle – A 31-year-old Federal Way, Washington resident was arrested this morning in Fife, Washington, following his indictment for possessing a controlled substance with intent to distribute, and possessing a firearm in furtherance of drug trafficking, announced U.S. Attorney Nick Brown. Donald “DJ” Watters came to the attention of Federal Way Police after they were called to the scene of a fatal shooting at an apartment complex on November 19, 2021. Watters appeared today and entered pleas of “Not Guilty.” He remains detained pending trial scheduled for December 5, 2022.
According to police reports at the time of the shooting, the shooting victim and others had gone to the apartment Watters shared with his girlfriend to purchase drugs. The shooting occurred in the parking lot of the apartment complex. After the shooting, investigators located drugs and guns in Watters’ apartment. The indictment charges Watters with possessing distribution amounts of methamphetamine and possession of a black Sig Sauer 9mm handgun, in furtherance of a drug trafficking crime.
Due to the drug quantities involved Watters faces a mandatory minimum five years in prison and up to 40 years in prison for possession of methamphetamine with intent to distribute. Possessing a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five years in prison to run consecutive to any other sentence imposed.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Way Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorneys William Dreher.
Federal Jury Convicts Man of Assaulting his Stepson with a MacheteRead the Press Release
A federal jury convicted a Bristow man of a May 21, 2022, machete attack on his adult stepson, which ultimately led to the loss of the victim’s right eye, announced U.S. Attorney Clint Johnson.
Millard Ray Laskey, 52, was found guilty Wednesday of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
“Millard Laskey’s antagonistic behavior and harassment of the victim eventually led to a vicious attack ending with the loss of the victim’s eye,” said U.S. Attorney Clint Johnson. “I would like to thank the jury for fulfilling their civic duty this week in federal court and for holding Mr. Laskey accountable for his violent acts.”
Laskey’s relationship with his stepson had deteriorated through the years. The victim moved out to distance himself from Laskey, but he eventually moved into a family member’s apartment in Bristow—the same town where Laskey lived. Tensions between the two flared when Laskey made visits to the apartment.
Leading up to the assault, the defendant committed a series of antagonistic actions against his stepson. The victim had been sleeping on a couch with a pull-out mattress in the apartment. First, Laskey removed the couch from the apartment and placed it in his pickup truck so the victim would have nowhere to sleep. The victim responded by pulling the mattress from the couch and returning it to the apartment to sleep on it.
Then, in the early morning of May 21, 2022, Laskey woke the victim by pouring a hot sauce mixture in the victim’s eyes then threw water on him before driving away. In response, the victim punctured the defendant’s tire when Laskey returned to the neighborhood later that day.
When Laskey discovered the flat tire, he stormed into the apartment with a 12-inch machete. Laskey then seized a wireless Bluetooth speaker from the living room, located the victim in the bathroom, opened the bathroom door, and hurled the speaker at the victim’s face, striking him. The victim grabbed improvised metal knuckles in one hand in an attempt to defend himself when Laskey struck the victim multiple times with the machete. One blow struck the victim’s arm, cutting to the bone. A second blow struck the victim’s right eye and the bridge of his nose.
Soon after, first responders arrived. The victim was transported by ambulance to a hospital for care, where it was determined that he had suffered a globe rupture of the right eye. Despite efforts by a surgeon to save the eye, it was ultimately amputated.
In closing statements, the defense argued the Bluetooth speaker had not been hurled at the defendant and that the Laskey was only trying to defend himself with the machete in the bathroom because the victim confronted him with the improvised metal knuckles.
Federal prosecutors called the ongoing dispute and attack tragic and unnecessary. They reminded the Court that a family member recognized that Laskey was erratic the day of the incident and asked him to leave, knowing the argument had dramatically escalated. Prosecutors stated that the defendant, a kickboxer trainer who outweighed the victim by 90 pounds, was the aggressor—that he was armed with the machete when he cornered the victim in the bathroom, hurled the Bluetooth at him, and violently chopped the victim in the arm and face. Ultimately, they stated, Laskey took an eye for a tire.
The FBI, Bristow Police Department, and Muscogee Nation Lighthorse Tribal Police Department conducted the investigation. Assistant U.S. Attorneys George Jiang and Ryan H. Heatherman are prosecuting the case.
FCI Dublin Correctional Officer Faces Sexual Abuse Charges Against Two Additional Incarcerated VictimsRead the Press Release
OAKLAND–A grand jury handed down a superseding indictment today charging former FCI Dublin correctional officer John Russell Bellhouse with sexual abuse charges against two additional female inmates.
“The additional charges unsealed today demonstrate the priority the Department of Justice has placed on prosecuting cases of sexual misconduct by Bureau of Prison employees,” said Deputy Attorney General Lisa O. Monaco. “We have no tolerance for correction officers who betray the trust placed in them to safely and humanely care for those in their custody.”
“Individuals incarcerated in federal prison should never experience sexual abuse, and particularly not at the hands of correctional officers charged with maintaining safety and order within the institution’s walls,” said United States Attorney Stephanie M. Hinds. “The security of inmates is a vital priority within our prison system. This office will continue to pursue allegations of correctional officers abusing inmates and will seek accountability for those who engage in such conduct.”
“The safety, security, and integrity of federal prisons are of the utmost importance, and the Department of Justice Office of the Inspector General will continue to aggressively pursue allegations of abuse at FCI Dublin and across the BOP,” said Inspector General Michael E. Horowitz.
“The defendant had a fundamental responsibility to care for the welfare of inmates in his custody and maintain the good order of FCI Dublin,” said FBI San Francisco Special Agent in Charge Robert K. Tripp. “The additional charges allege the defendant did neither, but instead abused his powers and took advantage of the women for whose care he was responsible. Investigation of violations of the public trust, regardless of the status of the victims, will remain among the highest priorities of the FBI.”
The grand jury originally charged Bellhouse, 39, formerly of Pleasanton, California, on February 17, 2022, in an indictment that alleged Bellhouse committed sexual abuse against a female prison ward identified only as “Victim 1.” Bellhouse was employed as a correctional officer at the Federal Correctional Institute Dublin (FCI Dublin), an all-female correctional institution in Alameda County that houses federal prisoners and is operated by the Federal Bureau of Prisons (BOP). Victim 1 was an inmate at FCI Dublin and under the custodial authority of Bellhouse. The sexual abuse is alleged to have occurred between February and October 2020.
Today the grand jury handed down additional charges against Bellhouse in a superseding indictment. The superseding indictment expanded the charges against Bellhouse to a total of three sexual assault charges involving Victim 1. Two charges allege Bellhouse sexually abused Victim 1 and a third alleges Bellhouse engaged in abusive sexual contact with Victim 1. All three incidents occurred before October 2020, with two occurring as early as February 2020 and the third as early as December 2019. All three incidents are alleged to have occurred within FCI Dublin Prison Safety facilities.
The superseding indictment further added three additional charges that Bellhouse sexually abused two other female victims identified as “Victim 2” and “Victim 3.” Both Victims 2 and 3 are described as inmates serving their prison sentences at FCI Dublin at the time of the sexual abuse and were also under the custodial supervision of Bellhouse. The superseding indictment charges two counts of abusive sexual contact by Bellhouse against Victim 2. One of these contacts is alleged to have occurred between October and December 2020 and the other on October 22, 2020. The superseding indictment also charges one count of sexual abusive contact by Bellhouse against Victim 3 between May and December 2020. All of the charged acts involving Victim 2 and Victim 3 are alleged to have occurred in the FCI Dublin Camp Safety Office.
Bellhouse is next scheduled for a court appearance on October 13, 2022, in U.S. District Court in Oakland before United States District Judge Yvonne Gonzalez Rogers. A jury trial is currently set for June 5, 2023, in United States District Court in Oakland.
Bellhouse is charged in the superseding indictment with two counts of sexual abuse of a ward in violation of 18 U.S.C. § 2243(b). For each charge, Bellhouse faces a maximum statutory sentence of 15 years imprisonment, a minimum five year term of supervision following release from prison, and a $250,000 fine. He is also charged with four counts of sexually abusive contact in violation of 18 U.S.C. § 2244(a)(4). If convicted of the charge, Bellhouse faces a maximum statutory sentence of 2 years imprisonment, a minimum five term of supervised release, and a $250,000 fine. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the superseding indictment are allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson are prosecuting the case with the assistance of Leeya Kekona. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
FCI Dublin Correctional Officer Faces Abuse Charges Against Two Additional Incarcerated VictimsRead the Press Release
A federal grand jury in Oakland, California, returned a superseding indictment today charging a former California correctional officer with sexual abuse charges against two female inmates.
John Russell Bellhouse, 39, formerly of Pleasanton, California, was originally charged by criminal complaint on Nov. 30, 2021, one count of sexual abuse of a prison ward.
“The additional charges unsealed today demonstrate the priority the Department of Justice has placed on prosecuting cases of sexual misconduct by Bureau of Prison employees,” said Deputy Attorney General Lisa O. Monaco. “We have no tolerance for correction officers who betray the trust placed in them to safely and humanely care for those in their custody.”
“The safety, security and integrity of federal prisons are of the utmost importance, and the Department of Justice Office of the Inspector General will continue to aggressively pursue allegations of abuse at FCI Dublin and across the BOP,” said Inspector General Michael E. Horowitz.
According to the superseding indictment, two charges allege Bellhouse, former correctional officer at an all-female correctional institution in Alameda County that houses federal prisoners and is operated by the Federal Bureau of Prisons, sexually abused Victim 1 and a third charge alleges Bellhouse engaged in abusive sexual contact with Victim 1. All three incidents occurred before October 2020, with two occurring as early as February 2020 and the third as early as December 2019. All three incidents are alleged to have occurred within FCI Dublin Prison Safety facilities.
The superseding indictment further added three additional charges that Bellhouse sexually abused two other female victims identified as “Victim 2” and “Victim 3.” Both Victims 2 and 3 are described as inmates who were serving their prison sentences at FCI Dublin at the time of the sexual abuse and were also under the custodial supervision of Bellhouse. The superseding indictment charges two counts of abusive sexual contact by Bellhouse against Victim 2. One of these contacts is alleged to have occurred between October and December 2020 and the other on Oct. 22, 2020. The superseding indictment also charges one count of sexual abusive contact by Bellhouse against Victim 3 between May and December 2020. All of the charged acts involving Victim 2 and Victim 3 are alleged to have occurred in the FCI Dublin Camp Safety Office.
“Individuals incarcerated in federal prisons should never experience sexual abuse, and particularly not at the hands of correctional officers charged with maintaining safety and order within the institution’s walls,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “The security of inmates is a vital priority within our prison system. This office will continue to pursue allegations of correctional officers abusing inmates and will seek accountability for those who engage in such conduct.”
“The defendant had a fundamental responsibility to care for the welfare of inmates in his custody and maintain the good order of FCI Dublin,” said FBI Special Agent in Charge Robert K. Tripp of the San Francisco Field Office. “The additional charges allege the defendant did neither, but instead abused his powers and took advantage of the women for whose care he was responsible. Investigation of violations of the public trust, regardless of the status of the victims, will remain among the highest priorities of the FBI.”
Bellhouse is charged in the superseding indictment with two counts sexual abuse of a ward and four counts of sexually abusive contact. The defendant is scheduled for his initial court appearance on Oct. 13, 2022, and his jury trial is set for June 5, 2023, before U.S. Magistrate Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California. If convicted for sexual abuse, he faces a maximum statutory sentence of 15 years in prison for each count. If convicted for sexual abusive contact, he faces a maximum statutory sentence of two years in prison, a minimum five term of supervised release, and a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An investigation was conducted by the Justice Department’s Office of the Inspector General and the FBI. Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson Attorney for the Northern District of California are 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.
El Dorado County Dog Agility Trainer Charged with Sexually Exploiting a Child OverseasRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Terry Francis Le Clair, 64, of Shingle Springs, charging him with sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Le Clair sexually exploited a minor in his care when in a foreign country in the summer of 2017. Le Clair used the camera on his tablet computer to create photos of the minor victim depicting sexually explicit conduct, which he then brought back to California. While executing a search warrant at Le Clair’s residence, investigators also found video recordings showing various teenagers changing into and out of their swimsuits and showering in Le Clair’s bathroom. Le Clair made these video recordings using hidden cameras he set up in the bathroom.
Anyone who has information related to this case can contact the FBI at 916-746-7000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Hi-Tech Crimes Task Force, which is part of the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted, Le Clair faces a minimum of 15 years in prison up to a maximum statutory penalty of 30 years in prison, a $250,000 fine, a minimum of five years and up to a lifetime of supervised release, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
El Departamento de Justicia anuncia acciones para resolver alegaciones de discriminación en el ámbito crediticio contra Evolve Bank and TrustRead the Press Release
El Departamento de Justicia anunció hoy que ha asegurado un acuerdo para resolver alegaciones de que Evolve Bank & Trust, con sede en Memphis, participó en discriminación en al ámbito crediticio sobre la base de la raza, el sexo y el origen nacional al establecer precios para sus precios de hipotecas residenciales, desde al menos el 2014 hasta el 2019.
Evolve Bank mantiene oficinas de préstamos hipotecarios y provee servicios de préstamos hipotecarios en 15 estados alrededor de todo el país. Conforme al acuerdo del Departamento, el cual queda sujeto a la aprobación del Tribunal de Distrito, Evolve Bank establecerá un fondo de conciliación de $1.3 millones para compensar a los prestatarios. Evolve Bank también pagará una multa civil de $50,000.
“Este acuerdo brindará un merecido alivio a miles de prestatarios que sufrieron discriminación debido a las prácticas de precios de Evolve Bank” dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Ese caso marca el más reciente paso del Departamento de Justicia para proteger a los estadounidenses ante prácticas crediticias ilegales, y muestra que responsabilizaremos a los prestamistas por los efectos de sus prácticas discriminatorias”.
“Este acuerdo brinda cierta medida de justicia a aquellos perjudicados por las acciones discriminatorias de Evolve Bank”, dijo el Fiscal Federal Kevin G. Ritz del Distrito Oeste de Tennessee. “También espero que envíe un mensaje firme a los bancos y a otros prestamistas de que el Departamento de Justicia no soportará las barreras ilegales a los préstamos hipotecarios residenciales. Ya es hora de que paren estas prácticas”.
El Departamento inició su investigación después de que la Junta de Gobierno del Sistema de la Reserva Federal refiriera el asunto. En conformidad con las leyes federales, la Junta desde hace tiempo ha referido al Departamento de Justicia los asuntos que implican posibles violaciones de violaciones crediticias.
Según la demanda, el Departamento de Justicia alega que Evolve Bank violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito, las cuales prohíben que las instituciones financieras discriminen sobre la base de la raza, el sexo o el origen nacional en sus servicios de préstamos hipotecarios. Específicamente, la demanda alega que, desde al menos el 2014 hasta el 2019, las prácticas de establecimiento de precios de préstamos de Evolve Bank resultaron en que los prestatarios negros, hispanos y femeninos pagaran más por los componentes de “precios discrecionales” de los préstamos hipotecarios que prestatarios blancos o masculinos, por motivos no relacionados con su calificación crediticia. “Precios discrecionales” significa las partes del precio de un préstamo que dependen de los oficiales de préstamo y gerentes de Evolve, incluidos cuotas, cargos o descuentos de la tasa, que no se relacionan con las calificaciones crediticias del prestatario o las características del préstamo.
Desde haber sido notificado de la investigación de este asunto por el Departamento, Evolve ha tomado medidas para revisar sus políticas y prácticas que resultaron en que los prestatarios negros, hispanos y femeninos pagaran más por préstamos hipotecarios que los prestatarios blancos o masculinos. Durante el término de cuatro años de la orden de consentimiento propuesta, Evolve mantendrá políticas que reducirán la discreción de los oficiales de préstamos, empleará a un oficial de crédito justo que trabajará en consulta estrecha con los directivos del banco y brindará capacitación a su personal sobre prácticas de crédito justo.
Desde hace tiempo, la División de Derechos Civiles del Departamento se ha dedicado a un trabajo que busca hacer que el crédito hipotecario y la propiedad de viviendas sea accesible para todos los estadounidenses bajo los mismos términos, independientemente de la raza, el sexo o el origen nacional. En enero de 2021, el Presidente Biden reafirmó el papel crítico del gobierno federal en abordar legados de segregación y discriminación en la vivienda, declarando que la política de su administración es eliminar “los prejuicios raciales y otras formas de discriminación en todas las etapas de la compra y el alquiler de viviendas”.
La Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia hace cumplir las leyes de vivienda justa. Se puede obtener información adicional sobre el cumplimiento del crédito justo en la página web del Departamento de Justicia. Los individuos pueden reportar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea.
Drug Supplier and Distributor for Two Boston-Area Cocaine Trafficking Rings Sentenced to Five Years in PrisonRead the Press Release
BOSTON – The main supplier and drug distributor of two Boston-area drug trafficking organizations (DTO) was sentenced yesterday for his role in a cocaine trafficking conspiracy.
Kenji Drayton, 42, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and four years of supervised release. On April 12, 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
Drayton was charged with 23 others in June 2020 as part of Operation Snowfall.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO – for which Drayton was a principal drug supplier – that was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. The DTO’s destructive activity led to the blight of the Fidelis Way complex and reduced the quality of life of the many law-abiding people who live there.
The second part of the investigation targeted large-scale drug suppliers and their associates. It is alleged that the DTO continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Intercepted communications in spring 2020 revealed Drayton complained about drug supply shortages resulting from the pandemic. On one call, Drayton discussed a co-conspirator’s travels to California to obtain significant quantities of cocaine for the DTO.
Drayton served as one of the main drug suppliers and distributors within each of the identified DTOs. Drayton purchased, sold, and distributed wholesale quantities of cocaine as part of each DTO and is estimated to have distributed a total of over 3.5 kilograms of cocaine.
Drayton is the second defendant to be sentenced in the Fidelis-Way related drug conspiracy, and the 11th defendant to be sentenced in the other charged drug conspiracy case. The remaining defendants are either pending sentencing or have pleaded not guilty and are pending trial. One defendant, Derek Hart, remains at large.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Conspirators Are Sentenced to Prison for Trafficking Fentanyl and MethamphetamineRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jose Francisco Vasquez-Rico, 22, and Andrew Estiben Reyna-Rodriguez, 23, both of Charlotte, were sentenced to 168 months and 51 months in prison, respectively, for trafficking fentanyl and methamphetamine. U.S. District Judge Kenneth D. Bell also ordered the defendants to serve five years of supervised release upon completion of their prison terms.
According to filed court documents and court proceedings, between September 2020 and January 2021, Vasquez-Rico and Reyna-Rodriguez conspired with each other and other individuals to traffic narcotics, including fentanyl and methamphetamine, in Mecklenburg, Gaston, and Cleveland Counties. Court documents and information presented at the sentencing hearing showed that Vasquez-Rico was the head of the local drug ring. Over the course of the investigation, undercover agents posing as customers purchased fentanyl and methamphetamine on multiple occasions from Vasquez-Rico and Reyna-Rodriguez.
According to court documents and information presented at the sentencing hearing, on one occasion, Vasquez-Rico arranged to sell a kilogram of fentanyl to an undercover agent and agreed to meet the undercover agent in Asheville. While Vasquez-Rico and Reyna-Rodriguez were driving to Asheville to deliver the fentanyl, a North Carolina State Highway Patrol trooper conducted a traffic stop of their vehicle. The defendants initially stopped their car, but then sped off soon when the trooper exited his police vehicle. After speeding away, the pair briefly pulled over to the side of a country road and attempted to hide in the woods a bag and a loaded firearm, which law enforcement subsequently recovered.
According to court documents and information presented at the sentencing hearing, on January 8, 2021, Vasquez-Rico lured a courier who worked for another drug trafficker to a parking lot in Charlotte. The courier and his three small children arrived in a vehicle at the agreed-upon location. Vasquez-Rico and another individual proceeded to kidnap the courier and his children, demanding a vehicle and a kilogram press (which is a machine used to form narcotics into kilogram-sized “bricks”) in exchange for their release. Vasquez-Rico released the hostages after he took possession of the vehicle and the kilogram press.
Vasquez-Rico and Reyna-Rodriguez both pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and methamphetamine, and distribution and possession with intent to distribute methamphetamine. Both defendants are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, the Charlotte-Mecklenburg Police Department, the Gastonia Police Department, the Gaston County Police Department, the Lincolnton Police Department, and the North Carolina State Highway Patrol for their coordination and investigation of the case.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Doctors to Pay Penalties for Allegedly Violating the Controlled Substances ActRead the Press Release
RICHMOND, Va. – Two physicians have agreed to pay $100,000 in civil penalties for allegedly issuing prescriptions in violation of the Controlled Substances Act.
The government alleged that, between March and July 2016, Dr. Steven Deschner, 67, and Dr. Bonnie Deschner, 67, who formerly practiced in Hanover County, issued five prescriptions for morphine, a Schedule II narcotic, to an undercover Drug Enforcement Administration (DEA) Task Force Officer over the course of four visits to the Deschners’ DeBoss Clinic. The government alleged that the Deschners issued the prescriptions outside the usual course of professional practice in Virginia, and not for a legitimate medical purpose.
The Controlled Substances Act regulates individuals and companies that manufacture, distribute, and dispense controlled substances. The law aims to protect public health and safety from the dangers posed by highly addictive or dangerous controlled substances, including the diversion or improper use of such substances, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA’s Washington Division- Richmond District Office.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this agreement are allegations only; there has been no admission of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER.
Defendant pleads guilty during trial to conspiring to launder more than $4 million in online romance scam proceeds from United States to GhanaRead the Press Release
COLUMBUS, Ohio – On his third day of trial this week in federal court in Columbus, a Westerville man pleaded guilty to laundering the proceeds of online romance scams for at least two years.
Edward Amankwah, 45, admitted to conspiring to launder nearly $4.3 million through bank accounts in his control.
Amankwah and others were indicted by a federal grand jury in July 2021. Six other defendants charged with money laundering in the case have pleaded guilty and are awaiting sentencing. They are Robert K. Asante, Kwame O. Yeboah, Eric Ahiekpor, Mohamed Toure, Uriah Lamdul and Alexis Wellington. The total amount generated by romance fraud that these individuals laundered was more than $11.8 million.
The romance scams involved individuals who created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were in the names of Amankwah and the other defendants, their family members and their companies.
Funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, Amankwah and the other defendants conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, and the United States, and more. Part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
Amankwah was not charged with defrauding the victims himself, but instead was charged with laundering the proceeds of the romance fraud.
Trial began on Sept. 26. On the first two days of trial, five victims testified about being defrauded.
As part of the romance fraud scheme, the victims were directed to send money to business bank accounts in the control of Amankwah. For example, one victim was defrauded by a purported member of the military who said he wanted to retire early and needed money to do so. The victim sent two wire transfers totaling $131,400 to Amankwah’s accounts.
Another victim fell in love with a person who claimed he owned a mine in Canada and needed help covering operating expenses. The victim sent $70,000 to one of Amankwah’s accounts.
Yet another victim began an online relationship with a man who claimed to be in the military in Afghanistan and sent four wires totaling more than half a million dollars to bank accounts in the control of Amankwah.
On the morning of the third day of trial, Amankwah pleaded guilty.
The public can report online romance scams and other internet crimes at ic3.gov.
Conspiring to commit money laundering is a federal crime punishable by up to 20 years in prison. As part of his plea, Amankwah has agreed to pay approximately $4.29 million in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI), announced the plea entered Sept. 28 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
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Crown Point Man Sentenced to 24 Months in PrisonRead the Press Release
HAMMOND-Robert McMahon, 32, of Crown Point, Indiana was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to possession of child pornography, announced United States Attorney Clifford D. Johnson.
McMahon was sentenced to 24 months in prison followed by 3 years of supervised release.
According to documents filed in the case, between March 2019, and August 2021, McMahon possessed images of minors engaging in sexually explicit conduct including images of at least one minor under the age of 12.
This case was investigated by the Federal Bureau of Investigation with assistance from the Indiana State Police and the Winnebago County Sheriff’s office in Wisconsin. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
The case was 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
Company Pays $158,760 to Resolve Claims Related to Controlled Substance Thefts from Pharmacies During InventoryRead the Press Release
ALBANY, NEW YORK – RGIS LLC (RGIS) and its affiliated company, Retail Services WIS Corporation (WIS), agreed to pay $158,760 to resolve allegations that they caused violations of the Controlled Substances Act. RGIS and WIS employees were implicated in the theft of controlled substances from pharmacies in upstate New York and throughout the United States. As part of the settlement, RGIS and WIS are changing their policies to require more thorough vetting of employees assigned to inventory pharmacies nationwide.
The announcement was made by Carla B. Freedman, the United States Attorney for the Northern District of New York and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
“This settlement strengthens policies that previously provided opportunities for employees to steal while they inventoried controlled substances,” said United States Attorney Freedman. “We are committed to working with our DEA partners to eliminate sources of drug diversion in our communities.”
“Diversion prevention programs and the Controlled Substance Act are in place to safeguard the public from the perils of drug use and misuse,” said DEA Special Agent in Charge Frank Tarentino. “This is an example of the many investigative capabilities at DEA’s disposal to combat drug overdoses and poisonings, and I applaud our law enforcement partners, especially the U.S. Attorney’s Office Northern District of New York for their partnership and diligent efforts.”
RGIS and WIS provide inventory services to client-retail stores throughout the United States, including retail pharmacies. According to RGIS and WIS policies, only handpicked, high-caliber, well-respected employees are assigned to pharmacy inventory teams and they are required to undergo a drug test and criminal background check. RGIS and WIS maintain a “zero tolerance policy” for theft.
Despite these policies, RGIS and WIS employees were implicated in stealing controlled substances from several pharmacies. For example, in July 2017, an RGIS employee stole Vicodin pills while inventorying a retail pharmacy in Schenectady, New York. RGIS terminated the employee but later rehired him. In 2020, that same employee was implicated in stealing narcotics from three pharmacies in Fort Edward, Saratoga, and Glens Falls, New York. RGIS employees were also implicated in stealing narcotics from pharmacies in Kentucky, North Carolina, and Louisiana. In addition, WIS employees were implicated in stealing narcotics from pharmacies in Dallas, Duncanville, and Little Elm, Texas.
RGIS and WIS agreed to implement additional procedures to ensure the proper vetting of employees assigned to inventory pharmacies, and to make the results of the vetting available to their pharmacy-clients. The pharmacy-clients, as DEA registrants, are ultimately responsible for supervising all personnel on the premises and preventing the diversion of controlled substances.
DEA’s Albany Diversion Group led this investigation with assistance from the Tactical Diversion Squads in Albany, New York; Dallas, Texas; and Charleston, West Virginia. The New York State Police, Glens Falls Police Department, and the Little Elm (Texas) Police Department also provided assistance.
Assistant U.S. Attorney Christopher R. Moran represented the United States in this matter
Charlotte Man Is Sentenced to More Than Four Years in Prison for Bank Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Dino Crnalic, 36, of Charlotte, was sentenced today to 51 months in prison for a bank and wire fraud scheme that defrauded the U.S. Small Business Administration (SBA) and others of more than $800,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Crnalic to pay more than $910,000 as restitution and to serve two years under court supervision after he is released from prison.
According to information contained in filed documents and court proceedings, from July 2017 through November 2019, Crnalic executed multiple fraudulent schemes and obtained more than $800,000 in SBA-backed loans and attempted to obtain an additional loan from federally-insured financial institutions. Crnalic also fraudulently obtained other forms of financing through other entities. Crnalic claimed that the loans would be used to fund various businesses in Charlotte, including a restaurant, Suki Akor, and Surge Fitness Centers, LLC (Surge). Court records show that, to secure the SBA-backed loans and other financing, Crnalic submitted fraudulent loan documents and made various false statements regarding the purpose of the loans and financing and the involvement of other individuals. In reality, Crnalic lied about the involvement of other individuals in the businesses and, rather than using the loans to finance his business ventures, Crnalic used a significant portion of the proceeds to pay for personal expenses, including trips to various casinos.
On April 13, 2021, Crnalic pleaded guilty to two counts of financial institution fraud, concealment money laundering, making a false statement to a bank in connection with a loan, and wire fraud.
In making today’s announcement, U.S. Attorney King credited the Charlotte Division of the FBI and the SBA’s Office of the Inspector General for the investigation of this case.
Assistant U.S. Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Boise Man Sentenced to over 14.5 Years in Prison for Federal Gun and Drug ChargesRead the Press Release
BOISE – A Boise man was sentenced to 175 months in federal prison for possession with intent to distribute methamphetamine and the unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced.
According to court records, on November 12, 2021, law enforcement attempted to conduct a traffic stop on a vehicle driven by Anthony James Wylie, 32, of Boise, for a traffic infraction. Wylie failed to pull over and led law enforcement on a high-speed chase. During the pursuit, Wylie threw a case from his vehicle containing hundreds of fentanyl pills and over $1,500. Wylie abandoned his vehicle and fled on foot. Inside the vehicle, investigators located a .32 caliber handgun. Wylie was eventually located and arrested hiding in a nearby residence. Investigators also recovered over two pounds of methamphetamine that Wylie possessed during the chase.
Wylie has lengthy criminal history that includes convictions for grand theft, possession of a controlled substance, and the unlawful possession of a firearm. Wylie was on federal supervision at the time of the instant offense.
Chief U.S. District Judge David C. Nye also ordered Wylie to serve five years of supervised release following his prison sentence. Wylie pleaded guilty to the charges on July 1, 2022.
U.S. Attorney Hurwit thanked the Drug Enforcement Administration, the Ada County Sheriff’s Office, and the Nampa Police Department for their work on the case.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is 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.
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Bloomington Felon Sentenced to 92 Months in Prison for Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Bloomington, Illinois man, Lamel Johnson, 39, of the 600 block of East Walnut Street, has been sentenced to 92 months in prison, to be followed by a three-year term of supervised release, for unlawful possession of a firearm by a convicted felon, namely a Smith & Wesson 9mm.
At the September 28, 2022, sentencing hearing before U.S. District Judge Joe B. McDade, the United States presented evidence that Johnson acted as armed security when Johnson’s associate illegally sold a handgun to another person. Moments after the illegal transaction, law enforcement officers conducted a traffic stop of Johnson. After officers ordered Johnson out of the vehicle, they located a handgun in his waistband that was loaded with a large capacity magazine. Johnson had previously been convicted of numerous felony offenses, including armed robbery and drug trafficking crimes.
Johnson was indicted in January, 2021 and entered a guilty plea in June, 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of a firearm by a felon at the time of Johnson’s offense were up to 10 years’ imprisonment, up to three years of supervised release, and a possible fine of up to $250,000.
The Normal Police Department and the Federal Bureau of Investigations, Springfield Field Office, investigated the case with the assistance of the McLean County State’s Attorney’s Office, McLean County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Illinois State Police Division of Forensic Services. Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
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.
Berkeley Brothers Plead Guilty to Selling Fentanyl in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO –Juan Carlos Hernandez-Ordonez pleaded guilty today in United States District Court to a federal charge of distributing 40 grams or more of fentanyl in San Francisco’s Tenderloin District, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris. David Ordonez, the brother of Hernandez-Ordonez, pleaded guilty in the same case on September 15, 2022, to conspiring with Hernandez-Ordonez to distribute fentanyl and to charges involving distribution of fentanyl and methamphetamine.
In the plea agreement he entered today, Hernandez-Ordonez, 18, admitted to traveling time and again with his older brother David Ordonez, 20, from an apartment they shared in Berkeley to the Tenderloin District of San Francisco to sell narcotics. The Tenderloin contains an open-air illegal drug market which includes the 7th Street and Market Street area. Hernandez-Ordonez described in his plea agreement that on March 9, 2022, he and his brother David Ordonez travelled from their Berkeley apartment to the Tenderloin to sell fentanyl. At approximately 5:30 p.m., a buyer approached him on the southwest corner of 7th Street and Market Street and asked for “yellow.” Hernandez-Ordonez knew yellow as slang for fentanyl, and he sold the buyer just over two grams of fentanyl in exchange for $40 in cash. Unbeknownst to Hernandez-Ordonez, the buyer was an undercover law enforcement agent.
Hernandez-Ordonez further admitted in his plea agreement that on March 29, 2022, he exchanged text messages with the same undercover law enforcement agent and negotiated the sale of 2.5 ounces of fentanyl for $1000. That day, Hernandez-Ordonez again travelled with his brother David Ordonez from their Berkeley apartment to the Tenderloin. Hernandez-Ordonez described in his plea agreement that at about 8:30 p.m. he met with the undercover agent in the Tenderloin’s Stevenson Alley, near 7th Street and Market Street. The undercover agent again asked for yellow. Hernandez-Ordonez walked away to meet his brother and returned with fentanyl. In Stevenson Alley, Hernandez-Ordonez weighed out the drugs on a digital scale and admitted he then sold the undercover agent approximately 59 grams of fentanyl in exchange for $1000 in cash.
Earlier in this case’s proceedings, David Ordonez admitted to the narcotics trafficking charges against him. On September 15, he pleaded guilty to a conspiracy with Hernandez-Ordonez spanning from February 9 through April 19, 2022, to distribute and to possess with the intent to distribute at least 40 grams of fentanyl. David Ordonez also pleaded guilty to two counts of possessing with intent to distribute and distributing at least 40 grams of fentanyl, one count occurring on February 22, 2022, and the other on April 19, 2022. He further pleaded guilty to possessing and distributing at least 50 grams of a substance containing methamphetamine on March 10, 2022.
United States District Judge William H. Orrick scheduled a sentencing hearing for Hernandez-Ordonez on January 12, 2023, at 1:30 p.m. David Ordonez is scheduled for a sentencing hearing before the same judge on December 15, 2022, at 1:30 p.m. Both defendants remain in custody pending their sentencing hearings.
Each count to which Hernandez-Ordonez and David Ordonez pleaded guilty contains both maximum and mandatory minimum penalties. Both Hernandez-Ordonez and David Ordonez pleaded guilty to separate counts of distributing 40 or more grams of fentanyl in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B)(vi). David Ordonez also pleaded guilty to one count of engaging in a conspiracy to distribute at least 40 grams of fentanyl in violation of 21 U.S.C. § 846 and 21 U.S.C. § 841(a)(1), (b)(1)(B)(vi) and to one count of distributing at least 50 grams of a substance containing methamphetamine in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B)(viii). The statutory penalty for each one of these counts is a mandatory minimum of five years imprisonment (absent qualifying for statutory relief from the mandatory minimum) and a maximum of 40 years imprisonment, a maximum fine of $5,000,000, and a minimum of 4 years of supervision following release from prison, with a maximum of life. However, any sentence following a conviction will be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Lauren M. Harding is prosecuting the case with the assistance of Jasmine Sanders and Amala James. The prosecution is the result of an investigation by DEA and the San Francisco Police Department Narcotics Division.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl creates huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.
Beaumont Men Indicted on Federal Violations in Animal Cruelty CaseRead the Press Release
BEAUMONT, Texas – Two Beaumont men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Decorius Mire, 23, and Donaldvan Williams, 28, were named in an indictment returned by a federal grand jury on Sep. 7, 2022, charging them with animal crushing, and aiding and abetting. Mire made his initial appearance today before U.S. Magistrate Judge Zack Hawthorn. Williams did the same last week.
Animal crushing is defined under federal criminal law as, “actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians, is purposely crushed, burned, drowned, suffocated, impaled, or otherwise subjected to serious bodily injury.”
If convicted, Mire and Williams face up to seven years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Barbour County man sentenced to 50 years for child pornographyRead the Press Release
ELKINS, WEST VIRGINIA – A Philippi, West Virginia man was sentenced to 50 years in prison today for using young children to produce sexually explicit videos, United States Attorney William Ihlenfeld announced.
Jon Travis Yost, 28, victimized multiple children in the process of producing pornographic films and did so while still on probation for a sex crime from state court.
“Mr. Yost won’t be able to harm any children in the jail cell where he will be living for the next 50 years,” said U.S. Attorney Ihlenfeld. “Sadly, his victims will continue to suffer from the damage he has done, and some may never fully recover.”
Yost was sentenced today as a result of his conviction of “Production of Child Pornography – Previous Conviction.” His prior conviction was for Third Degree Sexual Assault in the Circuit Court of Barbour County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Attempted coercion of minor for sex in undercover investigation sends Billings man to prison for eight yearsRead the Press Release
BILLINGS — A Billings man who was convicted in an undercover investigation after he showed up at a residence believing he was going to meet a minor girl for sex was sentenced today to eight years in prison, to be followed by a lifetime of supervised release, U.S. Attorney Jesse Laslovich said.
Jason Robert Kroepelin, 33, pleaded guilty in April to attempted coercion and enticement.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that on Oct. 27, 2021, Kroepelin walked up to a residence in Billings where he believed he was going to meet a 13-year-old girl for sex. Kroepelin was previously talking online to a person he believed was the girl’s dad but who actually was an undercover FBI agent. Kroepelin had posted an ad titled “young naughty girl to use” on a website and the agent responded to it. Kroepelin described to the undercover agent graphic sexual activity he was planning to engage in with the girl and talked about recording the encounter. Law enforcement arrested Kroepelin when he arrived at an agreed upon location, where he thought he was meeting the girl for sex. After Kroepelin’s arrest, law enforcement searched his phone and found numerous photographs and two videos depicting child pornography.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI, Homeland Security Investigations, Billings Police Department, Yellowstone County Sheriff’s Office and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Trini E. Ross for the Western District of New York Launch United Against Hate Program in Buffalo, New YorkRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division joined U.S. Attorney Trini E. Ross for the Western District of New York to announce a new initiative to combat unlawful acts of hate in the Western District of New York. The United Against Hate initiative seeks to directly connect federal, state and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Attorney General Merrick B. Garland recently announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices over the next year.
“The Justice Department is committed to marshaling all resources at its disposal to hold people who engage in unlawful acts of hate accountable,” said Assistant Attorney General Clarke. “Through United Against Hate, we are bringing together community groups, local leaders and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate. Our communities, schools, workplaces, houses of worship and homes are all safer when we stand unified in the fight against hate.”
“The horrific events of May 14 took the lives of 10 members of our community because of their race, just because they were Black,” said U.S. Attorney Ross. “This type of race-based hate is unacceptable and will not be tolerated in this community or in our society. This community has shown that hate will not be accepted, through our actions in the days, weeks and months that followed, when our entire community stood together to send the message that hate will not win. The United Against Hate initiative will bring federal, state and local law enforcement together with those communities that are most vulnerable to becoming victims of hate crimes or hate incidents, while at the same time holding those who commit these acts accountable for their behavior. Together, we will continue to send the message that every person deserves to feel safe in their own community and that hate will not be tolerated.”
Community Relations Service Director Paul Monteiro, FBI Acting Special Agent in Charge Darren Cox and Buffalo Police Department Deputy Commissioner Al Wright also joined the event. After they spoke to an audience of community leaders, civil rights advocates and community members, subject matter experts from their offices engaged in a presentation and direct discussions with community leaders and advocates about taking steps to identify, report and prevent hate crimes and incidents. Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, the presenters emphasized the importance of reporting unlawful acts of hate. They also highlighted differences between hate crimes versus hate incidents, and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
As part of its United Against Hate programming, the U.S. Attorney’s Office will engage with communities across the Western District of New York to deepen connections with those communities, further hate crimes prevention efforts and encourage more people to report hate crimes and hate incidents.
The nationwide launch of United Against Hate follows a successful pilot of the program last spring by three U.S. Attorneys’ Offices — New Jersey, Massachusetts and the Eastern District of Washington. Attorney General Merrick B. Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of his memorandum on improving the department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
Assistant Attorney General for Civil Rights Clarke and U.S. Attorney Ross Launch United Against Hate Program in BuffaloRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division joined U.S. Attorney Trini E. Ross for the Western District of New York to announce a new initiative to combat unlawful acts of hate in the Western District of New York. The United Against Hate initiative seeks to directly connect federal, state, and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Attorney General Merrick B. Garland recently announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices over the next year.
“The Justice Department is committed to marshaling all resources at its disposal to hold people who engage in unlawful acts of hate accountable,” said Assistant Attorney General Clarke. “Through United Against Hate, we are bringing together community groups, local leaders and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate. Our communities, schools, workplaces, houses of worship and homes are all safer when we stand unified in the fight against hate.”
“The horrific events of May 14 took the lives of 10 members of our community because of their race, just because they were Black,” said U.S. Attorney Ross. “This type of race-based hate is unacceptable and will not be tolerated in this community or in our society. This community has shown that hate will not be accepted, through our actions in the days, weeks and months that followed, when our entire community stood together to send the message that hate will not win. The United Against Hate initiative will bring federal, state and local law enforcement together with those communities that are most vulnerable to becoming victims of hate crimes or hate incidents, while at the same time holding those who commit these acts accountable for their behavior. Together, we will continue to send the message that every person deserves to feel safe in their own community and that hate will not be tolerated.”
Community Relations Service Director Paul Monteiro, FBI Acting Special Agent in Charge Darren Cox and Buffalo Police Department Deputy Commissioner Al Wright also joined the event. After they spoke to an audience of community leaders, civil rights advocates, and community members, subject matter experts from their offices engaged in a presentation and direct discussions with community leaders and advocates about taking steps to identify, report, and prevent hate crimes and incidents. Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, the presenters emphasized the importance of reporting unlawful acts of hate. They also highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
As part of its United Against Hate programming, the U.S. Attorney’s Office will engage with communities across the Western District of New York to deepen connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.
The nationwide launch of United Against Hate follows a successful pilot of the program last spring by three U.S. Attorneys’ Offices — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Merrick B. Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of his memorandum on improving the department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
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Andrew P. Manibusan and James Bernard Ada Mafnas Sentenced to Federal Prison for Trafficking MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Andrew P. Manibusan, age 38, from Antioch, California, and James Bernard Ada Mafnas, age 51, from Barrigada, Guam, were sentenced in the United States District Court of Guam to federal imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)(viii). Manibusan was sentenced to 168 months, while Mafnas received 121 months. The Court also ordered each defendant to serve five years of supervised release following imprisonment and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From April to June 2021, Manibusan agreed with co-conspirators to distribute over 50 grams of methamphetamine to Guam from Antioch, California. Manibusan received over $51,000 from co-conspirators J.A. and James Ada Mafnas before he mailed 3,617 grams of methamphetamine to Guam. The package was later intercepted by law enforcement. The Court found that Manibusan acted as an organizer or leader in the drug conspiracy and that the conspiracy involved eight pounds of methamphetamine. Law enforcement also recovered $143,000.00 from the co-conspirators’ residence.
“This case involved a substantial quantity of drugs, in addition to money,” stated United States Attorney Anderson. “Law enforcement uncovered an organization that was deeply involved in drug trafficking. This is reflected in the number of conspirators and the geographical span of their unlawful activity. Our office looks forward to future enforcement operations as we continue to combat drug crime.”
“HSI will do everything in our power to investigate and bring to justice those who distribute meth,” said John. F. Tobon, Special Agent in Charge HSI Honolulu. “These sentences hold Manibusan and Mafnas accountable for their crimes but serve as a warning that HSI and its federal partners will work to keep the scourge of meth out of our communities.”
"These sentences are another demonstration that we do not tolerate using the U.S. Mail to traffic-controlled substances or launder drug money. Postal Inspectors will continue to pursue anyone who tries to take advantage of the post office and harm our communities," said Kevin Rho, Acting Inspector in Charge, USPIS, San Francisco Division. "As always, I would like to thank Guam Customs and Quarantine Agency, Guam Police Department, members of our Guam Interagency Anti-Narcotics Task Force (GIANT), and our federal law enforcement partners for their teamwork."
This joint investigation was conducted by the Homeland Security Investigations, United States Postal Inspection Service, and assistance from the Guam Police Department and Guam Customs and Quarantine Agency. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Additional Defendant Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that LARRY PICOU (“PICOU”), age 56, of Gibson, La.; has agreed to plead guilty on September 28, 2022 to count one (1) in his indictment, charging him with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In exchange, the government has agreed to dismiss two counts of Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. In pleading guilty to count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, as well as a mandatory special assessment fee of $100.00.
According to court documents, PICOU falsely claimed that he was a passenger in a car that was struck by a tractor-trailer on May 11, 2017. In fact, the defendant conspired with Damian Labeaud (“Labeaud”), Mario Solomon (“Solomon”), and others to intentionally collide with a tractor-trailer in the area of Chef Menteur Highway and Downman Road in New Orleans. After the intentional collision, PICOU and his co-conspirators made a false police report, lied in depositions, and filed fraudulent lawsuits claiming that the tractor-trailer was at fault. Through this scheme, PICOU and his co-conspirators caused the insurance company for the tractor-trailer to pay over $140,000.00 in settlement funds. The Honorable Jane Triche Milazzo set sentencing in this matter for January 18, 2023.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon S. Long.
28 September 2022
Willamette Country Music Concerts President Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
EUGENE, Ore.—The former president and minority owner of Willamette Country Music Concerts, LLC, who planned, managed, and promoted the annual Willamette Country Music Festival in Linn County, Oregon, pleaded guilty today after she falsified bank statements and financial summaries to influence the sale of her stake in the company.
Anne Hankins, 53, a resident of Springfield, Oregon, pleaded guilty to one count each of wire fraud and money laundering.
“With today’s guilty plea, Ms. Hankins has proven herself to be a serial fraudster,” said Craig Gabriel, Criminal Chief for the U.S. Attorney’s Office. “Falsifying bank statements and laundering money to fraudulently inflate the value of a company are serious federal crimes.”
“Ms. Hankins blatantly deceived her business associate and stole money that never belonged to her. However, today the curtains have come down and Ms. Hankins is facing the music for her fraud,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.
According to court documents, as former minority owner of Willamette Country Music Concerts (WCMC), Hankins owned 49% of the company. As president of WCMC, Hankins was responsible for preparing monthly financial statements which she provided by email to the company’s majority owner who was based in Beverley Hills, California.
Beginning in September 2016 and continuing until March 2018, Hankins provided altered banks statements and false financial summaries to the majority owner to conceal WCMC’s true financial condition. In November 2017, the majority owner approached Hankins about purchasing her stake in the company and having Hankins continue to serve as the company’s president.
On or about February 7, 2018, Hankins sent an updated financial summary to the majority owner falsely reporting that the company had approximately $1.1 million in its operating account. In reality, there was only $16,000 in the company’s account. Based on these false financial statements, on March 1, 2018, the majority owner purchased Hankins’ stake in the company for $1.5 million.
After receiving the majority owner’s payment, Hankins directed her credit union to issue a cashier’s check from her account to the Clerk of the Court for the District of Oregon to satisfy a restitution order on a previous bank fraud conviction from 2001. Hankins thereby laundered the proceeds from one crime to pay her restitution on another.
On September 12, 2022, Hankins was charged by criminal information with one count each of wire fraud and money laundering.
Wire fraud is punishable by up to 20 years in federal prison and money laundering by up to 10 years in federal prison. Both charges also may result in fines of up to $250,000, or twice the gross gains or losses resulting from the offense, and three years’ supervised release.
Hankins will be sentenced on January 5, 2023, by U.S. District Court Judge Michael J. McShane.
As part of her plea agreement, Hankins has agreed to pay restitution as identified by the government and ordered by the court.
This case was investigated by IRS:CI and the FBI, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Wilkinsburg Felon Pleads Guilty to Possessing Crack Cocaine, Gun and AmmunitionRead the Press Release
PITTSBURGH, PA – A former resident of Wilkinsburg, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
Keenan Young, 28, pleaded guilty to possession with intent to distribute cocaine and possession of a firearm and ammunition by a convicted felon before Chief United States District Judge Mark R. Hornak on Sept. 27, 2022.
In connection with the guilty plea, the court was advised that on April 16, 2021, a federal search warrant was executed on Young’s residence located in Wilkinsburg, PA. Agents with the DEA and members of the Pittsburgh Bureau of Police located a loaded KelTec .380 caliber handgun and multiple baggies of crack cocaine inside of a bedroom. Young admitted to possession of the recovered firearm and crack cocaine. Young is prohibited from possessing any firearms based upon his multiple felony convictions. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Chief Judge Hornak scheduled sentencing for Feb. 2, 2023, at 1:30 pm. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,00,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Young remains detained pending sentencing.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Westlake Man Sentenced to Prison and Ordered to Pay More than $500,000 in Restitution for Evading Income TaxRead the Press Release
CLEVELAND - Yaser Najjar, age 60, of Westlake, Ohio, was sentenced on Tuesday, September 7, 2022, by U.S. District Judge Donald C. Nugent to two years in prison and was ordered to pay a $100,000 fine and at least $503,398 in restitution to the IRS after he pleaded guilty to four counts of attempt to evade and defeat income tax.
According to court documents, from 2009 to 2017, Najjar failed to report the total amount of income earned from his ownership and the operations of a gas station on East 152nd Street in Cleveland. In addition, court records state that, as part of the scheme to evade income tax, Najjar used cash from the business to make personal purchases and maintained a second, secret handwritten ledger documenting the gas station’s daily gross receipts, gasoline and convenience store sales.
Court records show that Najjar used an accountant to prepare his taxes for the calendar years 2009 through 2016 and deliberately concealed and misrepresented a substantial portion of the gas station’s gross receipts from the accountant. Najjar provided the accountant with the markup (profit) per gallon of gasoline and convenience store sales, which figures substantially underreported actual gross receipts as reflected in the handwritten ledger. Additionally, Najjar failed to provide the accountant with certain information related to actual gasoline and convenience store sales and concealed other sources of income, including ATM fees, vacuum machine receipts and air machine receipts.
In total, Najjar defrauded the IRS of more than $1.5 million in income taxes owed as a result of concealed or underreported income earned from the gas station operations.
The investigation preceding the indictment was conducted by the IRS - Criminal Investigations (CI). This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison and Megan Miller.
Westlake Financial to Pay over $225,000 to Resolve Servicemembers Civil Relief Act ClaimsRead the Press Release
The Justice Department today announced that Westlake Financial has agreed to pay over $225,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to provide qualified servicemembers with interest rate benefits for the entire period required under the SCRA and by improperly delaying approval of interest rate benefit requests.
“The Servicemembers Civil Relief Act makes clear that those serving in our nation’s military are entitled to receive interest rate benefits as soon as they are called to service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends the message that we will hold companies accountable when they deny servicemembers the important interest rate benefits they are entitled to under federal civil rights law.”
“Servicemembers make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said U.S. Attorney Martin Estrada for the Central District of California. “The settlement with Westlake Financial reflects the Justice Department’s firm commitment to protecting the rights of servicemembers – and to defending civil rights for everyone.”
The SCRA provides that interest on any debt incurred by a servicemember before entering military service is limited to six percent per year. In order to take advantage of the interest rate cap, a servicemember must provide the creditor with written notice and a copy of their military orders or other documentation of their military service no later than 180 days after leaving service. After receiving notice, a creditor must forgive any interest in excess of 6% retroactively back to the date orders are issued calling the servicemember to active duty.
Westlake Financial is a Los Angeles-based auto finance company that specializes in subprime and near-subprime loans. In 2017, the Justice Department filed a complaint in the U.S. District Court for the Central District of California alleging that Westlake and its subsidiary, Wilshire Commercial Capital, violated the SCRA by unlawfully repossessing at least 70 vehicles owned by SCRA-protected servicemembers. In order to resolve those allegations, Westlake entered into a settlement requiring the company to pay over $700,000 to servicemembers and a $60,788 civil penalty and to be subject to monitoring by the department.
While monitoring Westlake’s compliance with the SCRA, the Justice Department discovered problems with the company’s handling of interest rate benefit requests. The department determined that Westlake was failing to apply interest rate benefits back to the date orders were issued calling the servicemember to active duty. The department also determined that Westlake had improperly delayed the approval of interest rate benefits to some servicemembers.
Under the amended settlement agreement, Westlake has agreed to pay an additional $185,460 to 250 servicemembers who did not receive interest rate benefits back to the date their orders were issued or who had to wait more than 60 days to receive their benefits. Each servicemember who did not receive interest rate benefits back to the date their orders were issued will receive a refund of any excess interest they paid, as well as an additional payment of three times the overpayment or $100, whichever is higher. Servicemembers whose interest rate approvals were delayed more than 60 days will each receive $500. Westlake will also be required to pay an additional $40,000 civil penalty to the United States. The amended agreement also requires Westlake to revise its SCRA policies and procedures and training to ensure that interest rate benefits are timely and appropriately applied to servicemember accounts.
This case was handled by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Central District of California. Since 2011, the Justice Department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Westlake Financial to Pay More Than $225,000 to Resolve Servicemembers Civil Relief Act ClaimsRead the Press Release
LOS ANGELES – The Justice Department today announced that Westlake Financial has agreed to pay more than $225,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to provide qualified servicemembers with interest rate benefits for the entire period required under the SCRA and by improperly delaying approval of interest rate benefit requests.
“Servicemembers make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said United States Attorney Martin Estrada. “The settlement with Westlake Financial reflects the Justice Department’s firm commitment to protecting the rights of servicemembers – and to defending civil rights for everyone.”
“The Servicemembers Civil Relief Act makes clear that those serving in our nation’s military are entitled to receive interest rate benefits as soon as they are called to service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends the message that we will hold companies accountable when they deny servicemembers the important interest rate benefits they are entitled to under federal civil rights law.”
The SCRA provides that interest on any debt incurred by a servicemember before entering military service is limited to 6 percent per year. To take advantage of the interest rate cap, a servicemember must provide the creditor with written notice and a copy of their military orders or other documentation of their military service no later than 180 days after leaving service. After receiving notice, a creditor must forgive any interest in excess of 6 percent retroactively back to the date orders are issued calling the servicemember to active duty.
Westlake Financial is a Los Angeles-based auto finance company that specializes in subprime and near-subprime loans. In 2017, the Justice Department filed a complaint in United States District Court in Los Angeles alleging that Westlake and its subsidiary, Wilshire Commercial Capital, violated the SCRA by unlawfully repossessing at least 70 vehicles owned by SCRA-protected servicemembers. To resolve those allegations, Westlake entered into a settlement requiring the company to pay over $700,000 to servicemembers and a $60,788 civil penalty and to be subject to monitoring by the department.
While monitoring Westlake’s compliance with the SCRA, the Justice Department discovered problems with the company’s handling of interest rate benefit requests. The department determined that Westlake was failing to apply interest rate benefits back to the date orders were issued calling the servicemember to active duty. The department also determined that Westlake had improperly delayed the approval of interest rate benefits to some servicemembers.
Under an amended settlement agreement, Westlake has agreed to pay an additional $185,460 to 250 servicemembers who did not receive interest rate benefits back to the date their orders were issued or who had to wait more than 60 days to receive their benefits. Each servicemember who did not receive interest rate benefits back to the date their orders were issued will receive a refund of any excess interest they paid, as well as an additional payment of three times the overpayment or $100, whichever is higher. Servicemembers whose interest rate approvals were delayed more than 60 days will each receive $500. Westlake will also be required to pay an additional $40,000 civil penalty to the United States. The amended agreement also requires Westlake to revise its SCRA policies and procedures and training to ensure that interest rate benefits are timely and appropriately applied to servicemember accounts.
Assistant United States Attorney Matthew E. Nickell of the Civil Division’s Civil Rights Section, and Trial Attorneys Audrey M. Yap and Alan A. Martinson of the Justice Department’s Civil Rights Division’s Housing and Civil Enforcement Section worked on this case.
Since 2011, the Justice Department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Wayne County Woman Pleads Guilty to Federal Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Jotesa Ruth Porter, 33, of Kenova, pleaded guilty today to making false statements in the acquisition of firearms and disposing of firearms to a person convicted of a felony.
According to court documents and statements made in court, on June 30, 2020, Porter straw purchased four firearms at a Huntington pawn shop: a Rock Island M1-1911 FS, .45-caliber pistol; a Taurus 1911, .45-caliber pistol; an Anderson AM-15, multi-caliber rifle; and a Spikes ST-15, .300-caliber rifle. Porter admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 for the purchase. Porter falsely certified that she was the buyer of the firearms when she knew she was purchasing them for someone else.
Porter admitted that she provided the firearms to Corey Michael Perkins, 33, of Huntington. Perkins had picked out the firearms in advance, directed Porter to purchase them, provided her with the necessary money, and induced her to falsify the ATF form. Perkins knew he could not purchase the firearms himself because of his prior felony conviction for possession with intent to deliver a controlled substance in Cabell County Circuit Court on January 10, 2013. Perkins was sentenced to three years and one month in prison for aiding and abetting the illegal straw purchase of firearms on August 22, 2022.
Porter is scheduled to be sentenced on January 9, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the ATF and the Huntington Police Department.
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-55.
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Umatilla County Drug Dealer Faces Federal ChargesRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging an Eastern Oregon man with distributing large quantities of fentanyl and methamphetamine in and around Umatilla County, Oregon.
Edain Laurel Lozano, 35, of Umatilla County, Oregon has been charged with possessing with intent to distribute fentanyl and methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, between May and September 2022, special agents from the FBI and officers from the Blue Mountain Enforcement Narcotics Team (BENT) set up, conducted, and surveilled multiple controlled purchases of methamphetamine and fentanyl-laced pills from Lozano. Each subsequent controlled purchase involved requesting and purchasing increasing quantities of the narcotics from Lozano. By the final controlled purchase, Lozano had agreed to sell multiple pounds of methamphetamine and several thousand counterfeit pills containing fentanyl.
On September 7, 2022, Lozano was arrested and consented to a search of his vehicle. Investigators located and seized over four pounds of methamphetamine, more than 5,000 counterfeit pills containing fentanyl, drug packaging materials, a digital scale, and a stolen handgun.
On September 23, 2022, Lozano was arraigned on the indictment and pleaded not guilty. Over the government’s objection, he was released on conditions pending a three-day jury trial scheduled to begin on November 8, 2022.
If convicted, Lozano faces a maximum sentence of life in prison with a 15-year mandatory minimum, five years’ supervised release, and a $10 million fine.
This case was investigated by the FBI and BENT. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
BENT is a regional drug task force founded in 1986 by the Pendleton Police Department and Oregon State Police. In 2005, BENT was designated as a High Intensity Drug Trafficking (HIDTA) task force by the White House Office of National Drug Control Policy (ONDCP). Current BENT member agencies include the Pendleton Police Department, Oregon State Police, FBI, Morrow County Sheriff’s Office, Oregon National Guard, Boardman Police Department, Milton-Freewater Police Department, Hermiston Police Department, and Umatilla Tribal Police Department.
U.S. Attorney’s Office and Department of Justice Announce Results of Efforts to Reduce Fentanyl Supply and Prosecute Fentanyl TraffickersRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and the Justice Department, announced today the results of an enforcement operation that spanned from May to September and resulted in significant fentanyl seizures across the United States.
As part of the One Pill Can Kill initiative, the DEA and its law enforcement partners seized more than 10.2 million fentanyl pills and approximately 980 pounds of fentanyl powder during the period of May 23 through Sept. 8, 2022. The amount of fentanyl taken off the streets nationwide during this surge is equivalent to more than 36 million lethal doses removed from the illegal drug supply. Additionally, 338 weapons were seized, including rifles, shotguns, pistols, and hand grenades.
Of the 390 cases investigated during this period nationwide, 51 cases are linked to overdose poisonings and 35 cases link directly to one or both of the primary Mexican cartels responsible for the majority of fentanyl in the United States – the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG). In addition, 129 investigations are linked to social media platforms, including Snapchat, Facebook Messenger, Instagram, and TikTok. These results build upon the One Pill Can Kill Phase II results announced by DEA Administrator Anne Milgram in December 2021.
“Drug overdose deaths touch every Hoosier—our families, our friends, our children. These tragedies are overwhelmingly driven by trafficking of fentanyl and other deadly opioids,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Fentanyl is concealed in everything from fake pharmaceuticals to rainbow candy-colored pills, and even within other controlled substances. The cartels and drug traffickers push these poisonous chemicals into our communities with utter disregard for human life. The U.S. Attorney’s Office will work with our partners in the DEA and throughout federal, state, and local law enforcement, to reduce the supply of these deadly drugs and hold fentanyl traffickers accountable.”
“Far too many lives have been lost across Indiana from drug overdoses and poisonings involving fake pills laced with fentanyl,” said Assistant Special Agent in Charge Michael Gannon, DEA Indianapolis. “DEA is committed to working hand-in-hand with our state, local and federal partners to bring drug cartels to justice. We will also continue raising awareness about the dangers of fake pills through the ‘One Pill Can Kill’ campaign.”
“Across the country, fentanyl is devastating families and communities, and we know that violent, criminal drug cartels bear responsibility for this crisis,” said Attorney General Merrick B. Garland. “The Justice Department, including the extraordinary professionals of the DEA, is working to disrupt and dismantle the operations of these cartels, remove deadly fentanyl from our communities, and save Americans’ lives.”
“For the past year, confronting the fentanyl crisis has been the top priority for DEA. The most urgent threat to our communities, our kids, and our families are the Sinaloa Cartel and CJNG who are mass producing and supplying the fentanyl that is poisoning and killing Americans,” said DEA Administrator Anne Milgram. “The Sinaloa Cartel and CJNG are ruthless, criminal organizations that use deception and treachery to drive addiction with complete disregard for human life. To save American lives, the DEA is relentlessly focused on defeating the Sinaloa Cartel and CJNG by degrading their operations to make it impossible for them to do business.”
The U.S. Attorney’s Office for the Southern District of Indiana has led the prosecution of numerous individuals charged with or convicted of fentanyl trafficking, including:
- Nyron Harmon, 31, of Indianapolis, was sentenced to 12 years in federal prison on September 27, 2022, for possession with intent to distribute fentanyl and carrying a firearm during and in relation to a drug trafficking crime.
- Arcinial Montreal Watt, 34, and Jazmynn Alaina Brown, 24, both of Evansville, Indiana, were charged by superseding indictment on September 22, 2022, for conspiring to distribute fentanyl resulting in the death of a three-year-old girl and causing a one-year-old to be hospitalized and administered NARCAN, both due to fentanyl overdoses.
- Julius Johnson, 44, of Indianapolis, was sentenced to 10 years in federal prison on August 16, 2022, for possession with intent to distribute fentanyl, carrying a firearm during and in relation to a drug trafficking crime and possession of a firearm by a convicted felon.
- Keith Jones, a/k/a “Keybo,” 56, of Indianapolis, was indicted by a federal grand jury on July 7, 2022, for allegedly leading a drug trafficking organization that conspired to distribute large amounts of fentanyl and other controlled substances. Twenty other individuals are also charged in relation to the drug trafficking conspiracy.
- Ethan Parker, 29, and Joshua Harvey, 30, both of Evansville, Indiana, were indicted by a federal grand jury on June 24, 2022, for manufacturing fentanyl-laced counterfeit pills using a pill press and conspiring to distribute fentanyl-laced pills.
Fentanyl remains the deadliest drug threat facing this nation. In 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl. According to the Indiana Department of Health, 2,554 Hoosiers died of drug overdoses in 2021 and over 70% of the deaths were caused by fentanyl and other synthetic opioids. Between January 1 and August 1, 2022, over 2,500 Hoosiers have been lost to drug overdoses, the vast majority from fentanyl and similar drugs.
Drug traffickers have expanded their inventory to sell fentanyl in a variety of bright colors, shapes, and sizes. Rainbow fentanyl was first reported to DEA in February 2022, and it has now been seized in 21 states, including in the Southern District of Indiana.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.
As part of DEA’s ongoing efforts to educate the public and encourage parents and caregivers to talk to teens and young adults about the dangers of fake pills and illicit drugs, DEA has also created a new resource, “What Every Parent and Caregiver Needs to Know About Fake Pills.”
In September 2021, DEA launched the One Pill Can Kill enforcement effort and public awareness campaign to combat the fake pill threat and educate the public about the dangers of fentanyl pills being disguised and sold as prescription medications, despite these pills not containing any of the actual medications advertised. The only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. All other pills are unsafe and potentially deadly.
Additional resources for parents and the community can be found on the DEA’s Fentanyl Awareness page.
U.S. Attorney Nick Brown names both Civil and Criminal Division attorneys to focus on Environmental JusticeRead the Press Release
Seattle – U.S. Attorney Nick Brown has named two veteran Assistant United States Attorneys to lead the Western District of Washington Environmental Justice Initiative. Criminal AUSA Seth Wilkinson and Civil AUSA Kayla Stahman will lead the district efforts on environmental prosecutions and civil enforcement.
“Both these attorneys have deep experience not only with investigating and prosecuting environmental crimes, but with the Affirmative Civil Enforcement the Justice Department uses to hold companies accountable for their conduct,” said U.S. Attorney Nick Brown. “As we look at issues surrounding Environmental Justice in disadvantaged communities, it will take all our tools, civil and criminal, to make positive change and protect our fragile Northwest environment.”
For example, AUSA Wilkinson previously prosecuted the CEOs of Total Reclaim, the Northwest’s largest electronics recycler, for secretly exporting mercury-laden electronics to Hong Kong, potentially exposing local workers and residents to toxic material. AUSA Wilkinson is currently prosecuting the owners of a Washington company for removing federally-required emissions control devices from diesel vehicles in violation of the Clean Air Act.
AUSA Stahman has handled a variety of affirmative civil litigation from protecting the elderly from financial scams to holding medical labs accountable for overbilling government programs and accepting kickbacks.
AUSAs Wilkinson and Stahman recently coordinated the civil and criminal prosecution related to steel that did not meet military requirements being sold to the Navy. Coordinating the civil settlement as well as the criminal case required the close coordination that will now be brought to the environmental justice work of the U.S. Attorney’s Office.
The district’s Environmental Justice Coordinators will lead efforts to enforce environmental laws, including the Clean Air Act, Clean Water Act, and hazardous waste laws. An intentional decision to violate these laws may be a federal crime. For example, intentionally discharging pollutants into a river without a permit, or bypassing a required pollution control device, is a criminal act that carries the possibility of incarceration and monetary fines.
The district’s Environmental Justice Coordinators also will lead efforts to remedy environmental violations and contaminations by pursuing actions under the civil rights laws, worker safety and consumer protection statutes, and the False Claims Act. For example, a federal contractor who violates a contractual provision mandating the proper disposal of hazardous waste may be subject to liability under the False Claims Act; a landlord who leases a home without disclosing known information about lead-based paint may violate federal lead disclosure rules.
Other examples of civil or criminal environmental misconduct include:
- Air emissions of toxic pollutants resulting from inadequate or nonexistent pollution control
- Illegal asbestos removals that expose and create health risks for workers and the public
- Illegal discharges into waters or sewer systems that threaten public safety and cause damage to our water infrastructure
- Illegal handling, transportation, and disposal of hazardous wastes and pesticides
- Oil spills or other incidents that compromise the fishing rights or practices of indigenous or disadvantaged communities
- False statements to the EPA or other regulatory agencies that threaten the integrity of environmental protection programs
If you suspect an environmental violation report it to the Environmental Protection Agency.
U.S. Attorney Announces Total Distributions of over $4 Billion to Victims of Madoff Ponzi SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Attorney General Merrick Garland, and Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division, announced today that the Madoff Victim Fund established by the Department of Justice began its eighth distribution to victims of funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. The distribution will include approximately $372 million in additional funds, bringing the total distributed to date to over $4 billion. The funds will be sent to 40,000 victims worldwide, the eighth payment to victims that will bring their total recovery from all sources of compensation to 88.35% of their losses. The Madoff Victim Fund will ultimately return to victims more than $4 billion in assets that have been recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history, announced by this Office in 2013. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
U.S. Attorney Damian Williams said: “This Office continues its historic work seeking justice for the victims of Madoff’s heinous crimes. Today’s additional payments of $372 million by this Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represents the eighth in a series of distributions that will leave victims with compensation for more than 88 percent of their losses—a truly remarkable result. But our work is not fully complete, and this Office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s crimes continues.”
Assistant Attorney General Kenneth A. Polite said: “The Criminal Division is proud to continue providing compensation to victims through the largest remission process the Department has overseen. The billions distributed worldwide is a testament to the Department’s sustained efforts to ensure justice for the victims of Bernard Madoff’s massive fraud.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle. On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions and is overseen by Richard Breeden, the former Chairman of the United States Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Mr. Williams praised the work of the FBI and the Madoff Victim Fund and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the case. The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.
U.S. Attorney Announces New Reporting Procedure for Environmental Justice Issues & Environmental ViolationsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, U.S. Attorney for the Western District of Wisconsin, announced today that the U.S. 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. 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.”
“Advancing environmental justice through civil and criminal enforcement efforts, along with EPA and our other federal partners, will enhance environmental justice for all Americans,” said U.S. Attorney O’Shea. “We hope that concerned individuals, organizations, and community 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.”
Members of the public in the who have concerns about environmental violations and justice in the Western District of Wisconsin can now report them to the U.S. Attorney’s office by email to [email protected]. The Office’s public reporting procedures are in addition to other methods of reporting environmental concerns to the federal government, such as the online portal maintained by the Environmental Protection Agency (EPA), https://echo.epa.gov/report-environmental-violations. Other information regarding environmental reporting information may also be found on the district’s website at USAO-WDWI/Environmental-Justice-and-Enforcement.
Consistent with the Department’s comprehensive strategy, the U.S. Attorney also designated an Environmental Justice Coordinator for the district to coordinate its environmental justice efforts.
Two Brooklyn Men Charged with Armed Robbery at ChurchRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Juwan Anderson and Say-Quan Pollack for their roles in an armed robbery at a church in Brooklyn (the “Church”) on July 24, 2022. The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. A third defendant remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants brought guns into a place of worship, stealing from two members of the clergy, and terrifying the congregation in the process,” stated United States Attorney Peace. “I commend the Special Agents and Detectives for their outstanding efforts in identifying the perpetrators who committed a crime that shocks the conscience for its brazenness. This Office will always work with our law enforcement partners to protect our houses of worship, prosecute those who engage in gun violence and and ensure the safety of all members of our community.”
“Armed robbery is an intolerable crime, but to commit such an act during a religious service is incomprehensible,” stated ATF Special Agent-in-Charge DeVito. “The men and woman of ATF stand side by side with all of our partners to identify, investigate and apprehend those that commit such brazen acts of violence within our communities. These arrests are due to the excellent investigative work by ATF/NYPD’s Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Group. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
“The indictment unsealed today affirms the NYPD’s unwavering commitment to working collaboratively, across several law enforcement agencies, to focus on those few individuals charged with wreaking violence in our city,” stated NYPD Commissioner Sewell. “I commend the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Division of the Bureau of Alcohol, Tobacco, and Firearms, and all of our NYPD officers and detectives who have investigated this important case and removed these defendants from our streets."
As alleged in the indictment and court filings, Anderson, Pollack and a co-conspirator—masked and clad all in black—entered the Church brandishing firearms, while parishioners attended Church services in person and via a live-stream. The lead pastor (“Individual 1” in the Indictment) dove to the floor, while his wife (“Individual 2” in the Indictment) shielded their infant daughter who was sitting on her lap. Pollack stood guard at the doorway, pointing a firearm in the direction of the parishioners and the pulpit. The co-conspirator, wielding a gun, approached Individual 2 and pulled jewelry off her person. Pollack then approached Individual 1 as he lay on the floor and made sure that all of his jewelry had been removed by Anderson and the co-conspirator.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum sentence of life imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Rebecca M. Schuman is prosecuting the case.
The Defendants:
JUWAN ANDERSON
Age: 23
Brooklyn, New YorkSAY-QUAN POLLACK (also known as “Say-Quan Pollock”)
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-428 (WFK)
Two Bronx Men Arrested for Multiple Kidnappings, Carjackings, and RobberiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DIANTE FERNANDES and MARK FRANCIS, both of the Bronx, were arrested in connection with a series of recent carjackings in the Bronx and Yonkers, New York. FERNANDES and FRANCIS had their initial appearance today before United States Magistrate Judge Judith C. McCarthy and were ordered detained.
According to the allegations in the Complaint, and statements made in court:[1]
Between September 26 and 27, 2022, DIANTE FERNANDES and MARK FRANCIS, the defendants, carjacked, robbed, and kidnapped multiple victims, in the Bronx and Yonkers, New York. Once on September 26 and again on September 27, the defendants lured victims to a location in Yonkers using an ad for a used car posted on Facebook Marketplace. When the victims arrived, hoping to buy the car, FERNANDES and FRANCIS forced the victims, at gunpoint, into the car they were considering buying. FERNANDES and FRANCIS then drove around the New York City area, forcing the victims to withdraw money from bank accounts and threatening to kill them if they did not comply. FERNANDES and FRANCIS stole the victims’ money, wallets, and phones. On at least one occasion, FERNANDES and FRANCIS held a victim captive in the car for several hours. FERNANDES and FRANCIS then left the victims on the street and stole the cars the victims had driven to the meeting place.
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FERNANDES, 19, and FRANCIS, 18, both of the Bronx, New York, are charged with carjacking, Hobbs Act robbery, kidnapping, and conspiracy to commit these offenses, as well as possessing a firearm during the offenses. If convicted of these offenses, the defendants face a maximum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force and also thanked the Yonkers Police Department, Westchester County Police Department, Westchester County Real Time Crime Center, and the New York City Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Kingdar Prussien and Josiah Pertz are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Tucker Man Sentenced to 50 Years for Sexual Assault of ChildRead the Press Release
Jackson, Miss. – A Tucker man was sentenced to 600 months in prison followed by a lifetime of supervised release for the sexual assault of child less than 12 years of age, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Cameron Hickman, 34, of the Tucker Community of the Choctaw Indian Reservation, sexually assault a 12-year-old female child.
In August of 2019, a federal grand jury indicted Hickman on the charge of aggravated sexual abuse of a child less than 12 years of age. Hickman was found guilty at the conclusion of his jury trial in June of 2022.
United States Attorney LaMarca commended the work of the Choctaw Police Department of the Mississippi Band of Choctaw Indians, and the Federal Bureau of Investigation who investigated the case.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian Burns.
Three Remaining Defendants Sentenced for Their Roles in Extensive Health Care Fraud Conspiracy to Defraud Medicaid Home Care ProgramRead the Press Release
PITTSBURGH, Pa. – Three residents of the Pittsburgh area were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and related offenses, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon sentenced Arlinda Moriarty, 53, of Cranberry, to 84 months’ imprisonment; her sister, Daynelle Dickens, of Pittsburgh, 48, to 24 months’ imprisonment; and their uncle, Tony Brown, 65, to 36 months of probation, including 3 months of home confinement. Moriarty, Dickens, and Brown were also ordered to pay restitution to the Pennsylvania Medicaid program totaling $8,700,000, $1,000,000, and $43,113.02, respectively. All three defendants previously pleaded guilty to conspiracy to commit health care fraud and health care fraud. Moriarty pleaded guilty to additional counts of engaging in a scheme to conceal material facts in a health care matter and aggravated identity theft.
A total of 16 defendants were charged in connection with the health care fraud conspiracy and scheme, and 15 have now been convicted. The remaining defendant died during the pendency of the case.
“During this elaborate, years-long scheme, Arlinda Moriarty, her sister, and 13 of their co-conspirators stole millions of dollars from a critical government health care program by billing for in-home services that were never rendered,” said U.S. Attorney Chung. “I commend our law enforcement partners for their extraordinary efforts to investigate this massive health care fraud scheme, as well as the prosecutors who held the perpetrators accountable.”
“Ms. Moriarty sought to profit by defrauding the Medicaid program,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “She undermined the integrity of federal health care programs and patient trust. Now, she faces the consequences of her actions. Today’s sentencing is a strong reminder that anyone who commits fraud will be held accountable. The FBI will continue to work with our law enforcement partners to expose fraud and protect the public from illegal schemes.”
“When someone commits Medicaid fraud they are stealing from hard working Pennsylvanians,” said Attorney General Josh Shapiro. “These defendants made millions of dollars by defrauding Pennsylvanians and will now face the consequences for their actions. I am grateful for the work that my office, the Federal Bureau of Investigation, the Internal Revenue Service, the U.S. Department of Health and Human Services, and the United States Postal Inspection Service have done to bring justice in this case.”
“Defrauding federal and state health care programs wastes valuable taxpayer dollars and takes resources away from vulnerable populations in need of care and assistance,” said Maureen R. Dixon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to hold accountable perpetrators of health care fraud.”
“Postal Inspectors value the partnerships with other federal and state agencies that helped identify and dismantle an intricate false billing scheme,” said Inspector In Charge Lesley Allison for the U.S. Postal Inspection Service. “Arlinda Moriarty and her co-conspirators took advantage of the Medicaid waiver program that was devised to allow qualified individuals to receive assistance in their own homes. Today’s sentencing confirms that anyone who uses the U.S. Mail for criminal activity will be brought to justice and held accountable.”
According to admissions made in connection with the defendants’ guilty pleas, between January 2011 and April 2017, Moriarty, Dickens, and Brown were associated with four related entities controlled by Moriarty—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), Everyday People Staffing, Inc. (EPS), and Coordination Care, Inc. (CCI). Dickens owned CCI, and Brown was an employee of MCI. MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. EPS nominally performed back-office functions for MCI, ADL, and CCI.
Between January 2011 and April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for home health services, with PAS payments accounting for more than $80,000,000 of the total amount. During that time, Moriarty admitted orchestrating a wide-ranging conspiracy to defraud Medicaid for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims.
The defendants admitted that the conspiracy and fraud scheme were carried out in a variety of ways. For example, co-conspirators fabricated timesheets to reflect the provision of in-home PAS care that, in fact, they never provided to the consumers identified on timesheets. Members of the conspiracy also paid kickbacks to consumers in exchange for their participation in the scheme. Indeed, Brown admitted paying kickbacks to his then-son-in-law in connection with the submission of fraudulent Medicaid claims stating that Brown had provided in-home care for the son-in-law, when, in fact, he had not. Brown, the son-in-law, and Brown’s daughter, Tamika Adams, who previously was sentenced to 65 months’ incarceration, would then split the fraud proceeds. As part of the conspiracy, co-conspirators also caused the submission of Medicaid claims in the name of “ghost” employees for PAS care that never occurred.
During the conspiracy, Moriarty and Dickens also admitted causing the periodic bulk submission of fraudulent Medicaid claims for so-called “unused” hours—i.e., excess hours of care that consumers had not needed and therefore should not have been billed. Finally, Moriarty admitted that during the course of audits of MCI, ADL, and CCI, she directed the fabrication of various documents for submission to state authorities in an effort to conceal the Medicaid fraud scheme. Among other things, co-conspirators fabricated PAS timesheets, criminal history checks for attendants, child-abuse clearance forms for attendants, and certain consumer affidavits to ensure that files requested as part of the audits appeared complete. During the conspiracy, Moriarty and Dickens received payments from the Moriarty-related companies totaling approximately $1.6 million and $1 million, respectively.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants, with assistance from the Pennsylvania Bureau of Financial Operations.
Texas Man Sentenced to 14 Years in Prison for Transporting 286 Pounds of Methampthemine and 60 Pounds of FentanylRead the Press Release
DETROIT – A Texas man was sentenced today to 14 years in prison after being caught transporting 286 pounds of methamphetamine, 60 pounds of Fentanyl, and 60 pounds of cocaine hidden in a truck carrying a load of wine, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Orville O. Greene, Drug Enforcement Administration.
Roque Carranza-Alvarado, 28, formerly of Dallas, Texas, was sentenced in federal court in Port Huron by the Hon. Robert H. Cleland, Untied States District Judge.
Carranza-Alvarado had previously pleaded guilty in March 2022 to three counts of possession with intent to distribute controlled substances. Court records show that Carranza-Alvarado was stopped in his truck by the Michigan State Police and arrested on June 13, 2021, near Marma, Michigan, while headed to the Detroit area. Using a drug-sniffing dog, law enforcement agents discovered and seized 286 pounds of methamphetamine, 60 pounds of a fentanyl analogue, 60 pounds of cocaine, and 800 grams of crack cocaine from the cab of Carranza-Alvarado’s truck. The defendant’s truck was loaded with 1,100 cases of wine from California to be delivered in Roseville, Michigan. The State Police also seized $11,000 in cash from the defendant. In total, the drugs from the defendant had a street value of between $3 and $4 million.
“Fentanyl and methamphetamine are poisoning our communities and killing our citizens. We will aggressively pursue and prosecute those who are harming our communities with dangerous drugs,” stated U.S. Attorney Dawn N. Ison.
“This defendant was caught transporting a very significant amount of drugs that could have done untold damage to Michigan communities. DEA and our state, local and federal partners, will employ every resource available to hold individuals and organizations, who peddle poisons-for-profit, accountable,” said Special Agent Greene.
This case was the result of an ongoing investigation by the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney John O’Brien.
Swansea Man Agrees to Plead Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A Swansea man agreed to plead guilty yesterday in federal court in Boston to possession of child pornography.
Todd Miozza, 52, pleaded guilty to one count of possession of child pornography. The Court deferred acceptance of the proposed plea agreement until sentencing, which U.S. Senior District Judge William G. Young scheduled for Jan 19, 2023. Miozza was arrested and charged on June 29, 2022.
As stated during the hearing, Miozza admitted that he had obtained child pornography over the internet using a social media platform. During a search of Miozza’ s residence in June, his iPhone and laptop were seized and found to contain child sexual abuse material – including videos depicting infants.
Miozza was previously convicted of possession of child pornography in the District of Massachusetts in 2002.
The charge of possession of child pornography by a person previously convicted of a child pornography offense carries a mandatory minimum sentence of 10 years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime 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 and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations, New England made the announcement. The Swansea Police Department provided valuable assistance to the investigation. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sells Man Found Guilty of Aggravated Sexual AbuseRead the Press Release
PHOENIX, Ariz. – On September 22, 2022, Emmett Miguel, of Sells, Arizona, an enrolled member of the Gila River Indian Community, was found guilty by a jury of Aggravated Sexual Abuse and Abusive Sexual Contact. In January 2012, Miguel sexually assaulted the 17-year-old victim at a dance in Sacaton, Arizona. Sentencing is scheduled for December 14, 2022, before United States District Court Judge Susan M. Brnovich.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan and Alanna Kennedy, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-21-00301-PHX-SMB
RELEASE NUMBER: 2022-163_Miguel
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Sauk Rapids Man Pleads Guilty to Manufacturing, Selling Ghost GunsRead the Press Release
ST. PAUL, Minn. – A Sauk Rapids man has pleaded guilty to willfully manufacturing firearms without a license, announced U.S. Attorney Andrew M. Luger.
According to court documents, between the fall of 2021 through April 2022, Jay James Olson, 21, willfully engaged in the business of manufacturing firearms for profit, despite the fact that he is not and has never been a federally licensed manufacturer of firearms. In the spring of 2022, Olson offered to sell unserialized firearms, commonly referred to as “ghost guns,” and various firearms-related accessories, including a silencer, an auto sear, and high-capacity magazines, to an individual for $20,000. Unbeknownst to Olson, the individual was working with law enforcement as a confidential source. During their conversations, Olson told the confidential source that the price for each firearm would be going up because of the federal government’s recent initiative targeting ghost guns.
On April 26, 2022, at a residence in Waite Park, Olson sold the confidential source 16 ghost guns, nine high-capacity magazines, one firearms silencer, an auto-sear, and other firearms accessories. Immediately after the transaction, law enforcement arrested Olson and executed a search warrant at the residence. During the search, investigators recovered firearm assembly kits, unserialized lower receivers, and multiple miscellaneous firearms parts and accessories. On May 4, 2022, investigators executed a search warrant at Olson’s Sauk Rapids residence, and recovered from the basement manufacturing tools, various firearm assembly kits, and a Glock firearm assembly diagram.
Olson pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of willfully engaging in the business of manufacturing firearms without a license. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hennepin County Sheriff’s Office, the Hennepin County Violent Offender Task Force, and the Stearns County Sheriff’s Office.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Sentencings in the United States Attorney's OfficeRead the Press Release
United Stated District Court Alan B. Johnson sentenced JOSE ALEJANDRO ROJAS-MARTINEZ, 37, on August 24, 2022, for illegal re-entry of previously deported alien into the United States to 10 months’ imprisonment with two years of supervised release and a $100 special assessment, remitted upon deportation.
United States District Court Judge Alan B. Johnson sentenced RAY LAVON ROBINSON, 26, of Casper, Wyoming, on August 30, 2022, to 45 months’ imprisonment with three years of supervised release and a $100 special assessment for being an unlawful user of a controlled substance in possession of a firearm by a person convicted of domestic violence.
United States District Court Judge Nancy D. Freudenthal sentenced JOSHUA TAYLOR, 53, of Gillette, Wyoming, on September 13, 2022, for possession with intent to distribute 500 grams or more of methamphetamine. He received a sentence of 292 months’ imprisonment, five years of supervised release, and was ordered to pay $500 in community restitution and a $100 special assessment.
United States District Court Judge Nancy D. Freudenthal sentenced KARL DENNIS VONGETTROST, 29, of Wheatland, Wyoming, on September 13, 2022, for possession with intent to distribute 50 grams or more of methamphetamine. He received a sentence of 120 months’ imprisonment, five years of supervised release, and was ordered to pay $500 in community restitution and a $100 special assessment.
Chief United States District Court Judge Scott W. Skavdahl sentenced KEVIN OHLBERG, 35, of Cheyenne, Wyoming, on September 13, 2022, for possession with intent to distribute 50 grams or more of methamphetamine. He received a sentence of 60 months’ imprisonment, four years of supervised release, and was ordered to pay $500 in community restitution and a $100 special assessment.
Rhode Island Man Convicted of Defrauding Investors and Tax EvasionRead the Press Release
PROVIDENCE – A West Warwick man who conducted a decade-long Ponzi scheme that left some investors empty-handed and the Government seeking tax payments due to the Internal Revenue Service pleaded guilty this afternoon in federal court in Providence to wire fraud and tax evasion.
According to court documents, between 2008 and 2018, Thomas Huling, 58, orchestrated a scheme that raised approximately $14 million, and caused losses of more than $6 million to his victims. Huling defrauded investors by promoting several investment projects, including high-yielding bond trading platforms; a car emissions reduction technology; and an online advertising and marketing company. He solicited funds for these investments by representing, among other things, that the money would be used for the particular project he was promoting, and that the investments would achieve substantial returns with little or no risk within a short period of time. To enhance his credibility and build trust, Huling incorporated religion, the possibility of charitable good works, and association with well-known individuals into his sales pitches.
In truth, and contrary to his promises, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, membership and golf fees at multiple country clubs, gambling, clothing, restaurants, vacations and travel, as well as improvements to his residence. He created and used multiple shell companies; opened over 50 bank accounts; and he engaged in convoluted financial transactions between various accounts before ultimately using the funds personally. When investors contacted Huling with concern about the status of their investments, Huling lulled them with false excuses and promises, and at other times avoided their calls. To appease certain investors, Huling used money raised from new investors to pay off earlier investors.
According to court documents, at the same time that Huling was defrauding his investors, he was also committing tax evasion. Between 2009 and April 2018, Huling reported no taxable income, paid no income taxes, and for certain years filed false and fraudulent individual and corporate income tax returns. To further hide his income, Huling used nominee bank accounts, and paid for personal expenses using cash and corporate debit cards. He also manipulated the books and records of his companies to record sham loans, titled personal assets in the name of shell companies, and made false statements to IRS special agents as to his income, expenses, and business activities.
Huling’s guilty plea is announced by United States Attorney Zachary A. Cunha and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Huling is scheduled to be sentenced on December 19, 2022, and faces a maximum penalty of twenty years in prison for committing wire fraud, and five years in prison for committing tax evasion. He also faces a period of supervised release, restitution, forfeiture, and other monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Sandra Hebert of the District of Rhode Island are prosecuting the case.
IRS-Criminal Investigation and Federal Bureau of Investigation investigated the matter.
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Retired Law Enforcement Officer Receives 46 Months in Prison for Cruise Ship AssaultRead the Press Release
HONOLULU – United States District Judge Jill A. Otake sentenced John McAvay, 78, of Henderson, Nevada, on September 26, 2022, to 46 months of imprisonment and one year of supervised release for assault resulting in serious bodily injury. Judge Otake found McAvay guilty of the assault after a non-jury trial in May 2022.
Clare E. Connors, United States Attorney, said that according to court documents and information presented in court, on October 23, 2018, McAvay—a retired law enforcement officer—committed an unprovoked assault on an elderly passenger on a cruise ship, resulting in life-threatening and protracted injuries. McAvay then fled the scene of the assault and failed to render aid, call for help, or report the incident. The victim was airlifted from the cruise ship to the Hilo Medical Center in critical condition on October 25, 2018, and then to the Queen’s Medical Center, where he remained hospitalized for approximately one month. The victim was later transported to a hospital in California and then to a rehabilitation facility. As a result of the assault, the victim suffered from serious cognitive and physical impairments—including confusion, memory loss, and immobility—until his death on February 6, 2019. McAvay was arrested on October 28, 2018, after he was identified by another cruise ship passenger.
In finding McAvay guilty, Judge Otake stated that although McAvay “could have simply walked away,” he instead “sucker-punched” the victim in the head out of anger. The victim, Judge Otake found, posed “no threat” to McAvay. Judge Otake added: “There is also no doubt that Defendant McAvay acted cowardly, reprehensibly, and despicably.”
McAvay also was charged with involuntary manslaughter. The court found him not guilty of this count because it could not conclude beyond a reasonable doubt that a pre-existing cancer alone would not have caused his death.
The Federal Bureau of Investigation and the Coast Guard Investigative Service conducted the investigation that resulted in the prosecution. Assistant U.S. Attorneys Sara D. Ayabe and Chris A. Thomas handled the prosecution.
Repeat Felon Sentenced to 78 Months in Federal Prison for Illegal Possession of a Firearm While on Home Detention for Firearms OffensesRead the Press Release
INDIANAPOLIS – Donahvon Troutman, 33, of Indianapolis, was sentenced to 78 months in federal prison after pleading guilty to possession of a firearm by a convicted felon.
According to court documents, in February 2021, Troutman was serving the first of two consecutive home detention sentences for felony handgun convictions in Marion County, Indiana. On February 24, 2021, officers arrived at Troutman’s residence to conduct a community corrections compliance check. Troutman answered the door after officers knocked several times. Officers proceeded to search Troutman’s person and found marijuana in his pocket. Officers searched Troutman’s residence and found a loaded 9mm semiautomatic handgun in a bedroom closet. Troutman denied the firearm was his, but his fingerprint was found on the magazine inserted in the gun. Troutman was arrested and later released to home detention following a Community Corrections violation hearing.
Nine days after his home detention, Troutman removed his monitoring device and absconded from Community Corrections. On May 4, 2021, a federal grand jury returned an indictment against Troutman and a federal warrant was issued his arrest. Troutman also had four pending state arrest warrants issued by Marion County courts.
On September 2, 2021, officers located and attempted to apprehend Troutman. Troutman fled from the officers, struck a police car with his vehicle, and drove on the sidewalk at Eskenazi Hospital in broad daylight, successfully evading arrest. While fleeing, Troutman threw a handgun out of the vehicle, which was later recovered by police.
Troutman has five prior felony state court convictions for carrying a handgun without a license. Troutman is prohibited from possessing a firearm under federal and state law due to these felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Troutman be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson McGrath who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Renton Doctor Pleads Guilty to Conspiring to Accept Kickbacks in Connection with Fraudulent Genetic Testing SchemeRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Christopher B. Bjarke, M.D., age 61, of Renton, Washington, pled guilty to conspiring to accept kickbacks in connection with a fraudulent genetic testing scheme that targeted elderly Medicare beneficiaries throughout Washington and in other states. Senior District Judge Rosanna Malouf Peterson accepted Dr. Bjarke’s guilty plea, and set sentencing for January 10, 2023 at 1:30 p.m. in Spokane, Washington.
The Medicare program provides health insurance coverage for elderly and disabled Americans. Medicare generally provides coverage for diagnostic laboratory testing only if the test is ordered by a physician who is treating the beneficiary for a specific medical problem, and uses the test results to treat the patient for that specific problem. According to the Plea Agreement and information disclosed in court proceedings, Dr. Bjarke engaged in a conspiracy and scheme through which he placed orders for Medicare for genetic testing for Medicare beneficiaries in the Eastern District of Washington and elsewhere that he was not treating and with whom he had no physician-patient relationship. According to the Plea Agreement and other court documents, Dr. Bjarke’s sole contact with these patients was when he was connected with the beneficiaries for a telephone call for a few minutes through telemarketers. After Dr. Bjarke had ordered the tests, the laboratories then billed Medicare for the test, while another company billed Medicare for a purported “telemedicine” visit, sometimes for as much as tens of thousands of dollars.
According to the Plea Agreement, through this scheme and conspiracy, Dr. Bjarke’s orders were responsible for more than $18.6 million paid by Medicare. In return for his participation in the scheme, between December 2020 and September 2021, Dr. Bjarke received $167,996.73 from his co-conspirators, which Dr. Bjarke admitted were kickbacks because they constituted payment in return for ordering medically unnecessary genetic testing and other services for patients that he was not treating and with whom he had no physician-patient relationship.
“Health care fraud and kickback schemes are serious public health and safety problems,” said U.S. Attorney Waldref. “They divert precious public funds away from treating patients, drive up the cost of health care services, and undermine trust in our health care system, often putting quality health care beyond the reach of those who need it the most. Telemarketing schemes that target and exploit the elderly are especially pernicious because they prey on those who are often most in need of a doctor’s independent judgment that is not tainted or biased by the doctor’s own personal financial interest.”
“Dr. Bjarke placed making money above the welfare of patients and preyed upon elderly and vulnerable members of the community,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle Field Office. “This conspiracy not only victimized taxpayers via Medicare, but also impacted the patients, who underwent unnecessary medical screenings, thereby affecting their peace of mind. Medicare ultimately paid over $18 million for medically unnecessary testing, a fact that should outrage every law-abiding taxpayer.”
“I am grateful for, and commend, the stellar investigative work on this case performed by HHS OIG and the FBI,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to make our communities safer and stronger, by aggressively pursuing telemedicine kickback schemes, healthcare fraud, and elder abuse.”
The conspiracy offense carries a maximum sentence of up to five years in federal prison. The case was investigated by HHS OIG and the FBI. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Quincy Real Estate Broker Sentenced for Real Estate Deposit ScamRead the Press Release
BOSTON – A Quincy real estate broker was sentenced in federal court in Boston today for operating a scheme in which he falsely marketed properties that were not for sale, or had already been sold, and then stole the buyers’ real estate deposits.
Michael P. Flavin, 39, was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and three years of supervised release. The Court reserved imposing a restitution order until a later date. On Dec. 17, 2021, Flavin pleaded guilty to two counts of wire fraud and two counts of aggravated identity theft.
Between 2017 and April 2020, Flavin solicited deposits on real estate transactions by marketing numerous real estate properties that were not actually for sale. In each case, Flavin executed purchase and sale agreements and received deposit checks from or on behalf of the potential buyers, even though the actual owners of the properties had not agreed to sell their properties or to sell them to those buyers. Flavin forged the signatures of the sellers on the purported purchase and sale agreements. Over this period of approximately three years, Flavin cashed more than 60 deposit checks totaling approximately $1.8 million.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.