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27 September 2022
Ohio Woman Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A resident of Conneaut Ohio, pleaded guilty in federal court to charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Cindy K. Chung announced today.
Jennifer Glasscock, age 38, pleaded guilty to two counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Nov. 30, 2020, a Trooper with the Pennsylvania State Police conducted a traffic stop of a vehicle driven by Glasscock in Lawrence County, Pennsylvania. Upon approaching the vehicle, the Trooper observed Glasscock with an open purse in her lap. The open purse contained a loaded handgun, pills, rubber bands, her driver’s license, and approximately $4,000.00 in United States currency. On the floor of the vehicle, the Trooper observed, in plain view, suspected methamphetamine. The Trooper also observed a green backpack on the backseat.
Thereafter, law enforcement applied for and obtained a search warrant for the vehicle. The green backpack contained two lockboxes, which held suspected controlled substances and two digital scales. The Greensburg Regional Laboratory confirmed net weight and identity of the controlled substances as follows: 195 grams of methamphetamine, 26 grams of a mixture containing heroin, fentanyl, and cocaine, perforated paper containing LSD, and 15 grams of oxycodone. Methamphetamine, fentanyl, cocaine, and oxycodone are Schedule II controlled substances. Heroin and LSD are Schedule I controlled substances.
Judge Hornak scheduled sentencing for Feb. 7, 2023, at 9:30 a.m.. The law provides for a total sentence of life in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded the defendant into the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Glasscock.
Northwood Man Pleads Guilty to Fraudulently Attempting to Obtain over $3.5 Million in CARES Act FundsRead the Press Release
CONCORD – Joshua Leavitt, 40, of Northwood, New Hampshire, pleaded guilty in federal court to bank fraud and wire fraud, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, between March 2020 and November 2021, Leavitt and his co-defendant fraudulently applied for over two dozen loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Congress had authorized the PPP and EIDL relief programs to help the millions of Americans and many small businesses adversely affected by the early stages of the COVID pandemic. PPP loans were issued by private lenders but fully guaranteed by the government, and EIDL funds were issued by the Small Business Administration.
For example, Leavitt and his co-defendant applied for and obtained a $175,000 PPP loan from TD Bank for one of their companies, Puro Group. The application claimed that Puro Group’s monthly payroll was $70,000 and that the company had six employees.
In connection with this application, Leavitt and his co-defendant submitted false supporting documents. One of those documents was a false IRS Form 941, or quarterly tax return, for the first quarter 2020. The document, which the defendants purportedly filed with the IRS, claimed that Puro Group had five employees that quarter who were paid a total of $209,999.99. The document also claimed that the defendants paid actual federal income tax of $27,600 that quarter. However, that document was never filed with the IRS. The real tax filings showed that Puro Group paid $48,255.53 to its employees during the entire calendar year of 2020, or approximately $4,000 per month.
As another example of the fraud, Leavitt and his co-defendant applied for, and obtained a $29,000 EIDL and $7,000 Economic Injury Disaster Grant for another of their companies, Monticello Transnational. They falsely claimed that Monticello Transnational’s gross revenues for the year preceding January 31, 2020, was $75,000 and that the company had seven employees. However, bank records showed no payments to employees and that the company had only a few thousand dollars’ worth of deposits. In addition, there were no tax filings for the company for 2019 or the first quarter of 2020.
In total, Leavitt and his co-defendant attempted to fraudulently obtain more than $3.5 million in PPP and EIDL funds. Leavitt will be required to pay restitution of $869,475.50.
Leavitt is scheduled to be sentenced on January 11, 2023.
Leavitt’s co-defendant has pleaded not guilty. The charges in the indictment are only allegations. He is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Treasury Inspector General for Tax Administration and Secret Service, with assistance from the U.S. Postal Inspection Service. It is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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New Haven Man Charged with Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging TEEJAY JOHNSON, 37, of New Haven, with unlawful firearm possession and fentanyl distribution offenses.
The indictment was returned on September 6, 2022. Johnson, who has been detained since his federal arrest on April 21, 2022, appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges.
As alleged in court documents and statements made in count, on March 9, 2022, members of the New Haven Police Department Shooting Task Force and other law enforcement officers executed a state search warrant at Johnson’s residence. Johnson was found coming out of the bathroom and suspected narcotics had been flushed down the toilet. Investigators collected samples of suspected narcotics from the bathroom, and found in other areas of the residence fentanyl and other suspected narcotics, suspected marijuana, more than $8,600 in cash, and a loaded .40 caliber handgun with an extended magazine and 16 rounds of ammunition.
Johnson’s criminal history includes state felony convictions for firearm and assault related offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Johnson with unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 10 years, and possession with intent to distribute fentanyl, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that charges are not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia King.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Muscatine Man Sentenced to 25 Years in Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, IA – Jacob Paul Bermel, age 39 of Muscatine, was sentenced on Monday, September 26, 2022, to 300 months in prison following his plea to charges of Production and Possession of Child Pornography. Bermel was ordered to pay $3,000 in restitution to each of his four victims, totaling $12,000.
The investigation into Bermel began when law enforcement received a report of a hidden camera located in a bathroom of his house. The investigation revealed that Bermel made recordings that contained child pornography. Further, Bermel had been downloading and uploading child pornography from the internet and on social media applications for numerous years. Two cybertips were received by the National Center for Missing and Exploited Children, indicating that a social media account associated with Bermal uploaded images of teenage girls.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Mission Man Indicted for LarcenyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Larceny.
Dustin Gallegos, Jr., age 25, was indicted in May of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 27, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 7, 2022, in Todd County, South Dakota, Gallegos stole personal property with a value of more than $1,000.
The charge is merely an accusation and Gallegos is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Gallegos was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Midland Man Sentenced to over 16 Years in Prison for Illegal Fentanyl and Firearm PossessionRead the Press Release
ALPINE – A Midland man was sentenced today to a total of 200 months in prison for possessing fentanyl and illegally possessing a firearm.
According to court documents, Edgar Parra, 36, sold a total of 112.3 grams of fentanyl to undercover DEA operatives on three separate occasions between August and October 2021. On November 11, 2021, the Midland Police Department executed a search warrant on Parra’s hotel room where they found a loaded handgun along with 3.7 grams of methamphetamine.
On March 23, 2022, Parra pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl and one count of possessing a firearm during and in furtherance of a drug trafficking crime. Parra has remained in federal custody since he was arrested on federal indictment charges on January 21, 2022.
“Prosecuting crimes involving deadly fentanyl is a priority for our office,” said U.S. Attorney Ashley C. Hoff. “We are thankful for the collaborative efforts of our law enforcement partners that have taken another fentanyl dealer off the streets such that he is no longer peddling this poison.”
“Illicit fentanyl is killing Americans across our nation, including in West Texas communities,” said Drug Enforcement Administration (DEA) Special Agent in Charge Greg Millard, El Paso Division. “This case shows that DEA and its law enforcement partners will ensure that criminals who deal in this deadly substance are held responsible for the harm they cause.”
DEA, with assistance from the Midland Police Department, investigated the case.
For more information on the dangers of fentanyl and DEA’s One Pill Can Kill campaign, please visit https://www.dea.gov/onepill.
Assistant U.S. Attorney Matthew Ellis prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Miami Resident Charged with Running $4.6 Million Ponzi Scheme, Spending Investor Money on Wedding and VacationsRead the Press Release
MIAMI -- South Florida federal prosecutors have charged Judith Dianne Paris-Pinder, 49, with defrauding people out of millions by lying about the nature of proposed investments (soon-to-be paid, lawyer-negotiated insurance company settlements) and the expected rate of return (50%).
Paris-Pinder was the President of Pinder Associates, Inc, a North Miami company. Prosecutors allege that from November 2019 to October 2021, Paris-Pinder used the following fraudulent sales pitch to lure investors into the scheme: She worked with lawyers representing litigation plaintiffs who had settled their claims but were still waiting for actual settlement payments from the insurance companies. Paris-Pinder would use investor funds to advance or lend to plaintiffs a portion of their settlements (less than the full settlement amount). In exchange for the advances or loans, once the litigation plaintiffs received the actual settlement payment from the insurance companies, they would turn that entire amount over to Paris-Pinder. Then, Paris-Pinder would distribute to investors their initial contributions plus any returns – which could be as high as 50%.
According to the charges, however, the entire investment scenario was a scam. Paris-Pinder did not work with lawyers representing litigation clients and there were no settlement agreements. It is alleged Paris-Pinder kept the Ponzi scheme going by using money from new investors to pay existing investors and that, in total, she deceived victims out of over $4.6 million. Paris-Pinder spent about $1 million on herself, paying for her wedding, vacations and other entertainment, say federal prosecutors.
Paris-Pinder made her initial appearance yesterday in federal magistrate court in Miami. If convicted, she faces up to 20 years in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Robert M. DeWitt, Acting Special Agent in Charge, FBI, Miami Field Office, and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation announced the charges.
FBI Miami and Florida Office of Financial Regulation are investigating this case. Assistant U.S. Attorney Eric E. Morales is prosecuting it.
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 22-cr-20452.
Mexican National Found Guilty of Importing and Possessing MarijuanaRead the Press Release
PECOS – A federal jury convicted a Mexican national last week of importing and possessing marijuana.
According to court documents and evidence presented at trial, U.S. Border Patrol (USBP) agents encountered Jose Manuel Ayala-Alas, 26, and six other co-defendants hiding in the brush in the High Lonesome Mountains on June 22, 2022. USBP agents were able to apprehend the group with assistance from the Texas Department of Public Safety (DPS) Aircraft Operations Division. Backtracking the group’s footprints, troopers flying the DPS helicopter assisted agents in the discovery of 10 burlap sacks containing approximately 603 pounds of marijuana hidden in the brush.
Ayala was found guilty of one count of importation of marijuana and one count of possession with intent to distribute marijuana. A sentencing date has not been set. Ayala faces up to 40 years in prison on each count.
Ayala’s co-defendants, Leonel Ayala-Alas, 23; Jeronimo Alas-Ayala, 29; Julio Ayala-Torres, 28; Arturo Gonzalez-Terrazas, 40; Pedro Rio-Molina, 20; and Jose Mirey Trueba-Molina, 19, all from Mexico, pleaded guilty to one count of possession with intent to distribute marijuana. All are scheduled to be sentenced in November 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Drug Enforcement Administration (DEA) Special Agent in Charge Greg Millard, El Paso Division made the announcement.
The DEA, with valuable assistance from USBP and DPS, is investigating the case.
Assistant U.S. Attorneys Matthew Ellis and Amy Greenbaum are prosecuting the case.
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Massachusetts Man Arrested with Ten Kilograms of Fentanyl Packaged for DistributionRead the Press Release
CONCORD –Johan M. Rodriguez, 37, of Lawrence, Massachusetts was charged in a criminal complaint today, with one count of conspiracy to possess with the intent to distribute and to distribute controlled substances, specifically, fentanyl, United States Attorney Jane E. Young announces.
Rodriguez was arrested in Dover, New Hampshire on September 26, 2022, and is scheduled to make an initial court appearance in the District of New Hampshire today at 3:00 pm.
The criminal complaint filed in court alleges that on September 26, 2022, Rodriguez hired an Uber to drive him from Lawrence, Massachusetts to a residence in Dover to deliver approximately ten kilograms of fentanyl for a Lawrence-based drug supplier. Law enforcement surveilled Rodriguez as he removed a toolbox and tool bag from the Uber’s trunk and carried them to the door of the residence where law enforcement encountered him. A search of the toolbox resulted in the seizure of approximately ten kilograms of suspected fentanyl which was separated into individual bundles ready for distribution.
The charges in the criminal complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation’s New Hampshire Major Offender Task Force and was assisted by the Strafford County Sheriff’s Office’s - Problem Solving Oriented Policing Unit, the Rockingham County Sheriff’s Office’s - Drug Task Force, and the Dover Police Department.
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Massachusetts Company Enters Settlement Agreement to Resolve Claims of Medicaid Over-BillingRead the Press Release
NEWARK, N.J. – A Boston, Massachusetts, company entered into a settlement agreement with the United States to resolve allegations that it caused improper claims for payment to be made to the U.S. Department of Health & Human Services, Centers for Medicare and Medicaid Services (CMS), U.S. Attorney Philip R. Sellinger announced today.
The investigation of Public Consulting Group LLC (PCG) was initiated through the filing of a complaint under the whistleblower provision of the False Claims Act. That complaint, which was unsealed on Sept. 26, 2022, alleged that PCG was hired by the state of New Jersey in 2005 to administer New Jersey’s “Special Education Medicaid Initiative,” or SEMI program. Under the SEMI program, the state of New Jersey and local school districts could obtain federal funding for providing eligible medical services to Medicaid-eligible students. The complaint alleged that PCG caused local school districts to submit claims to CMS for evaluation services that PCG knew or should have known were not covered by Medicaid.
The settlement agreement resolves common law claims by the United States against PCG for payment by mistake, arising from evaluation service claims submitted by or for New Jersey school districts under the SEMI program from April 23, 2006, through the date of settlement. PCG will pay $2.5 million to the United States. Once PCG makes the payment, the case will be dismissed. The relator, or whistleblower, who originally filed suit on behalf of the United States, will receive 21 percent of the settlement amount recovered by the United States.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG) Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Scott J. Lampert, and auditors working with HHS-OIG Office of Audit Services, under the direction of Regional Inspector General for Audit Services Brenda M. Tierney, with the investigation leading to the settlement.
The civil settlement agreement, by its terms, is neither an admission of liability by PCG nor a concession by the United States that its claims are not well founded.
The government is represented by Deputy Chief David E. Dauenheimer and Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
The qui tam case is captioned United States ex rel. Shane Shackford v. Public Consulting Group, Inc., et al., Civil Action No. 12-2437.
Maryland United States Attorney’s Office Resolves Disability Discrimination Lawsuit Against Maryland Developer Involving Multifamily Housing ComplexesRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division announced today that Maryland-based developer Stavrou Associates, Inc. and related entities have agreed to pay $185,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build 11 multi-family housing complexes in Maryland with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.
The government’s lawsuit, filed today, raises similar allegations against a second Maryland-based developer, Humphrey Stavrou Associates, Inc., and related entities, which were involved in building six other multi-family housing complexes in Maryland. The lawsuit involving those properties is unaffected by today’s settlement.
“The requirement that housing complexes be built with accessible features for people with disabilities is not new,” said U.S. Attorney for the District of Maryland Erek L. Barron. “Developers must include accessible features and we will hold accountable those who do not.”
“The Justice Department is committed to ensuring that multi-family housing properties are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When the retrofits required by our settlement are completed, people with disabilities will have equal access to more than 1,000 residential units in Maryland.”
The combined 17 properties at issue in the litigation were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program and the HOME Investment Partnerships Program, and some of the properties are specifically marketed as housing for seniors.
The settlement, which must still be approved by the U.S. District Court for the District of Maryland, requires the defendants to pay all costs related to the retrofits, $175,000 into a settlement fund to compensate individuals harmed by the inaccessible housing, and civil penalties of $10,000 to the government.
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways and install new walkways to help residents reach units, amenities, mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, widen doorways, and modify bathrooms and kitchens so they are accessible for individuals who use wheelchairs. The settlement also requires the defendants to receive training about the FHA and the ADA, to ensure that their future multi-family housing construction complies with these laws and to provide periodic reports to the Justice Department. The 11 complexes are: 1. Villages at Belle Hill, Elkton, Maryland
2. Burgess Mill Station I, Ellicott City, Maryland
3. Burgess Mill Station II, Ellicott City, Maryland
4. River Point Apartments, Essex, Maryland
5. Hammarlee House Apartments, Glen Burnie, Maryland
6. Overland Gardens, Landover, Maryland
7. Rainier Manor Phase II Apartments, Mount Rainier, Maryland
8. Chapel Springs Senior Apartments, Perry Hall, Maryland
9. Hampshire Village, Silver Spring, Maryland
10. Windsor Crossing Family Apartments, Suitland, Maryland
11. Windsor Crossing Senior Apartments, Suitland, MarylandThe six complexes built by Humphrey Stavrou Associates, Inc. that are the subject of the continuing lawsuit are:
1. Pin Oak Village, Bowie, Maryland
2. Woodland Creek Apartments (formerly “Henson Creek Manor I and II
Apartments”), Fort Washington, Maryland
3. Woodside Village Apartments, Fort Washington, Maryland
4. Acclaim at Lake Largo (formerly “Largo Center Apartments”), Largo, Maryland
5. Randolph Village Senior Apartments, Silver Spring, Maryland
6. Vistas at Lake Largo, Upper Marlboro, MarylandIndividuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an e-mail to the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 4 for Stavrou Associates Inc.
The United States Attorney’s Office together with the Justice Department’s Civil Rights Division enforce the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorneys Beth Pepper and Jennifer McAllister of the Justice Department’s Civil Rights Division, who are handling these cases.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-Maryland and https://www.justice.gov/usao-Maryland/civil-rights.
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Long Island Man Convicted of Attempted Sex Trafficking, Attempted Kidnapping, Unlawful Possession of a Firearm and Obstruction of JusticeRead the Press Release
Earlier today, in federal court in Central Islip, Andrew Frey pleaded guilty before United States Magistrate Judge Arlene R. Lindsay to being a felon in possession of a firearm and obstruction of justice. Today’s guilty plea follows the defendant’s conviction by a federal jury of the attempted sex trafficking and attempted kidnapping of two victims. The verdict in that case was returned on September 20, 2022 after two weeks of trial before United States District Judge Joan M. Azrack. When sentenced, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea and verdict.
“Frey targeted and used violence against vulnerable members of our society seeking to exploit them for his own sexual gratification,” stated United States Attorney Peace. “Fortunately, the young women whom the defendant sought to victimize were able to escape. Today’s guilty plea, and the jury’s verdict, make clear there was no escape from justice for this dangerous defendant.”
Mr. Peace also expressed his appreciation to the Suffolk County Sheriff’s Office, the Suffolk County District Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
“The victims in this case jumped from a moving vehicle rather than risk the fate Frey had waiting for them. Based on the weapons investigators discovered, Frey's intent was dangerous, if not deadly. These women should be commended for their bravery, which we hope will serve as motivation for any other women being victimized by sexual predators to call us,” stated FBI Assistant Director-in-Charge Driscoll.
“The defendant has proven to be a dangerous individual with a propensity for preying upon and attacking vulnerable women who refuse to bend to the will of a sexual predator,” stated SCPD Commissioner Harrison. “I commend the victims for taking action and coming forward to work with law enforcement to bring a violent and dangerous man to justice.”
As proven at trial, the defendant attempted to traffic and kidnap two women in Suffolk County. In October 2018, the defendant lured a sex worker who was addicted to heroin into his car in Mastic, New York. When the victim refused to accompany him to a secluded location on the beach, the defendant became enraged and threatened her life. He tried to trap her inside his car by speeding, locking the doors and grabbing her neck. The victim managed to escape by jumping from his moving vehicle, suffering injuries to her back when she struck the pavement. The defendant later tracked down his victim sleeping inside of a friend’s parked car at a Long Island Railroad station. Armed with a knife, the defendant tried to remove the victim from the car, but her friend sped away. The defendant chased after them in his car, but the victim once again managed to escape.
In July 2019, the defendant attempted to take a second sex worker to a secluded wooded area in Coram, New York. When she refused, the defendant became enraged, screamed that he “owned” her and tried to prevent her from leaving by grabbing her as he was driving. The defendant’s second victim also escaped by jumping out of his moving car, suffering injuries to her knee.At the time of the defendant’s arrest in November 2019, law enforcement officers searched the defendant’s car and found multiple sets of handcuffs, as well as knives, rope and other items that he could use for restraint. The defendant had installed a device in his car which allowed him to conceal his license plate with the push of a button. Additionally, law enforcement officers recovered a Glock 23 handgun and ammunition located in a safe inside of the defendant’s home. Because the defendant was a convicted felon and was not legally permitted to possess a firearm, he pressured his son to obtain a pistol permit to conceal that he was the true owner of the firearm.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Oren Gleich, Ivory L. Bishop, Jr., Justina Geraci and Christopher Caffarone are in charge of the prosecution with the assistance of paralegal Dejah Turla.
The Defendant:
ANDREW FREY
Age: 57
Coram, New YorkE.D.N.Y. Docket No. 19-CR-537 (S-2) (JMA)
Leader of Sex Trafficking Ring Sentenced to 60 Years in Federal Prison, Ordered to Pay over $14 Million in RestitutionRead the Press Release
MIAMI – A South Florida federal district judge has sentenced William D. Foster, 50, to 60 years in prison for running a sex trafficking organization for more than 20 years that exploited dozens of vulnerable women and girls. The judge also entered a $3.4 million forfeiture money judgment against Foster and ordered him to pay over $14 million in restitution to his victims.
At any given time, up to 15 women and girls lived with, and worked for, Foster. Through manipulation, lies, and threats, Foster forced his victims to work at South Florida exotic dance clubs and engage in commercial sex. Foster told the victims that he would invest their earnings so that they could retire in their 20s, which was not true. Foster coerced victims into working eight-hour shifts, six days a week, every week of the year and kept all their money.
He used psychological coercion and violence to keep victims in line. If a victim wanted to buy things like food, clothes, or personal hygiene products, she first had to get permission from Foster. He required many of the victims to go on liquid diets, get unsafe weight loss surgeries, and take anti-anxiety and anti-psychotic medications without proper diagnoses. Foster often had sex with victims, some of whom were minors.
If a victim attempted to leave, Foster would threaten financial ruin and other harm. If a victim left, she left with nothing.
Foster expanded his operation beyond South Florida. He transported victims to other states including New York, New Jersey, Michigan, and Nevada, for the purpose of engaging in prostitution.
Law enforcement officers recovered one of Foster’s victims out of a Detroit hotel room after she called the National Human Trafficking Hotline.
Foster tried to grow his business by starting a website (Foster’s Care) that promised to help human trafficking victims. His plan, however, was not to save anyone, but to lure them into his commercial sex business.
Foster pled guilty in March to conspiracy to commit sex trafficking; sex trafficking of a minor; sex trafficking of a minor by force, fraud, and coercion; five counts of sex trafficking by force, fraud, and coercion; two counts of sex trafficking by fraud and coercion; conspiracy to transport individuals for purposes of prostitution; two counts of transporting individuals for prostitution and a money laundering conspiracy.
Two of Foster’s co-conspirators -- Ashleigh Holloway, 37, and Hanah Chan, 32 – pled guilty in the Southern District of Florida to bank fraud charges in connection with the operation. They are scheduled to be sentenced on October 11.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami; and Anthony Salisbury, Homeland Security Investigations (HSI), Miami Field Office announced the sentence imposed yesterday by U.S. District Judge Raag Singhal.
FBI Miami and HSI Miami investigated this case. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Brooke Elise Latta. Assistant U.S. Attorney Emily Stone is handling the asset forfeiture aspects of the case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org.
To learn more about the U.S. Department of Justic’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20804.
Lackawanna County Man Charged with Covid-Relief Fraud, Credit Card Fraud, and Identity Theft OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 23, 2022, Robert Brownstein, age 51, of Scranton, Pennsylvania, was charged in a criminal information with wire fraud conspiracy and aggravated identity theft.
According to United States Attorney Gerard M. Karam, the information alleges that Brownstein and his coconspirators used stolen identities to create forged identification documents and credit and debit cards. It is alleged that the conspirators used those forged items and stolen identities to open bank accounts, apply for lines of credit, and obtain retail merchandise. The conspirators also used the stolen identities to apply for multiple COVID-19 pandemic relief loans issued under the Small Business Administration’s Paycheck Protection Program (PPP), including by submitted false federal tax documentation.
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Pottsville Bureau of Police. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The maximum penalty under federal law for the wire fraud conspiracy offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft offense carries a mandatory two-year sentence of imprisonment that is to run consecutive to any other term of imprisonment imposed. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Justice Department Resolves Disability Discrimination Lawsuit Against Maryland Developer Involving Multifamily Housing ComplexesRead the Press Release
The Justice Department announced today that Maryland-based developer Stavrou Associates Inc. and related entities have agreed to pay $185,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build 11 multifamily housing complexes in Maryland with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.
The government’s lawsuit, filed today, raises similar allegations against a second Maryland-based developer, Humphrey Stavrou Associates Inc., and related entities, which were involved in building six other multifamily housing complexes in Maryland. The lawsuit involving those properties is unaffected by today’s settlement.
“The Justice Department is committed to ensuring that multifamily housing properties are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When the retrofits required by our settlement are completed, people with disabilities will have equal access to more than 1,000 residential units in Maryland.”
“The requirement that housing complexes be built with accessible features for people with disabilities is not new,” said U.S Attorney Erek L. Barron for the District of Maryland. “Developers must include accessible features and we will hold accountable those who do not.”
The combined 17 properties at issue in the litigation were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program and the HOME Investment Partnerships Program, and some of the properties are specifically marketed as housing for seniors.
The settlement, which must still be approved by the U.S. District Court for the District of Maryland, requires the defendants to pay all costs related to the retrofits, $175,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and civil penalties of $10,000 to the government.
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways and install new walkways to help residents reach units, amenities, mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, widen doorways and modify bathrooms and kitchens so they are accessible for individuals who use wheelchairs. The settlement also requires the defendants to receive training about the FHA and the ADA, to ensure that their future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department. The 11 complexes are:
- Villages at Belle Hill, Elkton, Maryland
- Burgess Mill Station I, Ellicott City, Maryland
- Burgess Mill Station II, Ellicott City, Maryland
- River Point Apartments, Essex, Maryland
- Hammarlee House Apartments, Glen Burnie, Maryland
- Overland Gardens, Landover, Maryland
- Rainier Manor Phase II Apartments, Mount Rainier, Maryland
- Chapel Springs Senior Apartments, Perry Hall, Maryland
- Hampshire Village, Silver Spring, Maryland
- Windsor Crossing Family Apartments, Suitland, Maryland
- Windsor Crossing Senior Apartments, Suitland, Maryland
The six complexes built by Humphrey Stavrou Associates Inc. that are the subject of the continuing lawsuit are:
- Pin Oak Village, Bowie, Maryland
- Woodland Creek Apartments (formerly “Henson Creek Manor I and II Apartments”), Fort Washington, Maryland
- Woodside Village Apartments, Fort Washington, Maryland
- Acclaim at Lake Largo (formerly “Largo Center Apartments”), Largo, Maryland
- Randolph Village Senior Apartments, Silver Spring, Maryland
- Vistas at Lake Largo, Upper Marlboro, Maryland
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an email to the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 4 for Stavrou Associates Inc.
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-833-591-0291, or submitting a report online at www.civilrights.justice.gov. Individuals also may report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777, or by filing a complaint online.
Justice Department Files Disability Discrimination Lawsuit Against St. Louis, Missouri, Apartment ComplexRead the Press Release
The Justice Department announced the filing of a lawsuit against Missouri-based LJLD LLC and Westminster Properties LLC, the owners, developers and builders of a multifamily housing complex in St. Louis, Missouri. The lawsuit alleges that these defendants failed to design and construct housing units and related facilities at the Bridgewater Residences Apartments to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA).
The lawsuit arose from a complaint by Metropolitan St. Louis Equal Housing and Opportunity Council (EHOC) filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it determined that LJLD LLC and Westminster Properties LLC violated the FHA and issued a charge of discrimination. After EHOC chose to have the matter decided in federal court, HUD referred to the matter to the Justice Department.
“For more than three decades, federal law has required multifamily housing complexes to be designed and built with accessible features,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to protecting the rights of people with disabilities to ensure that they have equal access to housing, including accessible parking, common areas and related facilities.”
“This lawsuit seeks changes in an apartment complex in which the visually impaired risk injury simply getting the mail,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “Wheelchair users may not be able to get into or use bathrooms, adjust their own thermostats, safely get to their patios or access the complex’s office, dog park and other amenities.”
“Builders and developers of multifamily housing complexes must adhere to the requirements of the Fair Housing Act to ensure that persons with disabilities have equal opportunity to live in these properties,” said Demetria McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and remains committed to working with the Justice Department to vigorously enforce our nation’s fair housing laws.”
The lawsuit, which was filed in the U.S. District Court for the Eastern District of Missouri, alleges that the Bridgewater Residences Apartments have significant accessibility barriers including excessively sloped pedestrian routes from apartment units to the public street and to site amenities (such as the dog park, mail center, dumpster, management/leasing office); barriers to accessible parking; inaccessible bathrooms; inaccessible door hardware; and insufficient maneuvering space at entrances to common use areas that make those entrances inaccessible to many people with disabilities.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and the ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility, as well as civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. Bridgewater V LLC, the current owner of the apartment complex, also is named in the lawsuit as a necessary party to provide access to the property for the required retrofits.
Individuals who may have been affected by the lack of accessibility at these properties should call the Civil Rights Division’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 4 for housing accessibility for persons with disabilities or the design and construction of accessible housing cases, then press 7 for United States v. LJLD (Bridgewater) to leave a message, or send an email to [email protected].
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps or steep slopes to all ground-floor units. Enacted in 1990, the ADA requires, among other things, that places of public accommodation – such as rental offices – at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jefferson County man indicted on firearms charges involving “ghost guns”Read the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Michael Reckert, of Harpers Ferry, West Virginia, was indicted this month on firearms charges, United States Attorney William Ihlenfeld announced.
Reckert, 28, was indicted on one count of “Engaging in the Business Without a License,” two counts of “Possession of Firearm by Prohibited Person,” one count of “Transfer of Firearm in Violation of National Firearm Act,” and one count of “Possession of Unregistered Firearm.” Reckert, a person prohibited from having firearms because of a prior conviction, is accused of having and selling privately manufactured firearms, also known as “ghost guns,” without a license from March until September 2022 in Berkeley and Jefferson Counties, and elsewhere.
Reckert faces up to five years of incarceration and a fine of up to $10,000 for the business charge, faces up to 15 years of incarceration and a fine of up to $250,000 for each possession charge, and he faces up to 10 years and a fine of up to $250,000 for the transfer charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Berkeley County Sheriff’s Office, the Loudoun County (Virginia) Sheriff’s Office, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jackson Man Sentenced to 37 Months in Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to three years and one month in prison for being a felon in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Alreco Hill, 33, was found in possession of a firearm by an officer of the Jackson Police Department on May 8, 2020, during a traffic stop. Hill had a pistol in the right front pocket of his pants. Hill has multiple prior felony convictions. As a convicted felon it is contrary to federal law for Hill to possess any firearm.
The Jackson Police Department and the FBI investigated the case.
Assistant U.S. Attorney Jessica S. Terrill prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Iowa City Man Sentenced to 20 Years in Federal Prison for Conspiracy and Distribution of Meth Resulting in DeathRead the Press Release
DAVENPORT, IA – Eric Johnathan Hojka, age 50 of Iowa City, was sentenced on Monday, September 26, 2022, to 240 months in prison following his plea to charges of Conspiracy to Distribute 50 Grams or More of Methamphetamine and Distribution of a Mixture or Substance Containing a Detectable Amount of Methamphetamine Resulting in Death.
According to court documents, first responders went to Hojka’s Iowa City apartment in reference to an unconscious man. Paramedics were unable to revive the man and he was pronounced dead. An investigation revealed the man had ingested methamphetamine he received from Hojka and had died from methamphetamine intoxication. Hojka had been obtaining methamphetamine for several months and was distributing it.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa City Police Department and the Iowa State Medical Examiner’s Office investigated the case.
Illinois Man Sentenced to 9 Years for Drug Trafficking & Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Myron Macon, 50, Hazel Crest, Illinois was sentenced today by U.S. District Judge William M. Conley to 9 years in federal prison for distributing crack cocaine, possessing crack cocaine and fentanyl with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The prison term will be followed by 5 years of supervised release. Macon pleaded guilty to these charges on June 1, 2022.
On five occasions in January and February 2021, Dane County Narcotics Task Force (DCNTF) officers purchased crack cocaine from Macon in Madison, Wisconsin. The quantities ranged from 31 to 51 grams per buy.
On March 2, 2021, DCNTF officers executed search warrants at two drug houses operated by Macon and co-defendant, Chaz Morris, in Madison. They leased the residences using aliases. At the residence leased by Macon, officers found 42 grams of fentanyl, 48 grams of crack cocaine, 206 grams of marijuana, a Taurus 9mm handgun in a safe with loaded magazines, over $33,000 in cash, four digital scales, and numerous cell phones. Macon was arrested at the residence.
Macon’s DNA was found on the Taurus firearm. Macon was prohibited from legally possessing a firearm and ammunition due to multiple prior felony convictions.
At sentencing, Judge Conley highlighted Macon’s lengthy prior history of drug trafficking and firearm possession. He noted that Macon continues to take advantage of other addicts through trafficking hard drugs. Judge Conley said Macon continuing to deal drugs and possess guns was a recipe for disaster.
Co-defendant Chaz Morris pleaded guilty to possessing over 40 grams of fentanyl with the intent to distribute and possessing a firearm as a felon and was sentenced to 78 months in federal prison by Judge Conley on August 17, 2022.
The charges against Macon and Morris were the result of an investigation conducted by the Dane County Narcotics Task Force, Madison Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hartford Man Sentenced for Drug Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHANNON DAVIS, 29, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to approximately 34 months of imprisonment, time already served, and three years of supervised release, for drug distribution and firearm possession offenses.
According to court documents and statements made in court, in 2019, an investigation revealed that Davis was selling drugs from his Franklin Avenue residence. Davis was arrested on November 25, 2019, after a court-authorized search of his residence revealed approximately 100 dose bags of fentanyl, approximately 28 grams of crack cocaine, items used to process and package narcotics for distribution, and two loaded handguns.
Davis’ criminal history includes state felony convictions for firearm possession and assault offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Davis has been detained since his arrest. On March 23, 2022, he pleaded guilty to one count of possession with intent to distribute fentanyl and one count of unlawful possession of a firearm by a felon.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Hartford Police Department’s Vice, Intelligence and Narcotics Unit. The case was prosecuted by Assistant U.S. Attorneys Margaret M. Donovan and Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Harlan Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Stormy Shaye Cole Trucke, age 29 of Harlan, was sentenced on September 7, 2022, to 42 months in prison following his plea to a charge of Prohibited Person in Possession of a Firearm.
In June 2021, officers responded to a domestic disturbance call at Trucke’s residence and observed drug paraphernalia. Officers obtained a search warrant and located a loaded firearm, assorted ammunition, marijuana, and drug paraphernalia. Trucke is prohibited from possessing firearms due to a prior felony conviction and as a drug user.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Harlan Police Department, Shelby County Sheriff’s Department, Iowa Division of Narcotics Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Former USF Accounting Manager Sentenced to Ten Years in Prison for Mail Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Ralph Puglisi (60, Palm Harbor) to 10 years in federal prison for mail fraud. As part of his sentence, the court also ordered Puglisi to pay full restitution in the amount of $12,860,744.07 to the University of South Florida and entered an order of forfeiture in the amount of $12,800,000, the proceeds of his mail fraud scheme. Puglisi had pleaded guilty on August 26, 2021.
According to court documents, Puglisi was employed as an accounting manager for the University of South Florida’s University Medical Services Association (UMSA). In this position, he was involved in overseeing the administration of UMSA’s credit cards. Beginning in or around June 2014, and continuing through November 2019, Puglisi defrauded UMSA by using several of that entity’s credit cards to make $12,860,744.07 in unauthorized charges for his own benefit, including rent payments, extensive home renovations, travel, chartered yachts, and contributions to women affiliated with an interactive adult website. Puglisi exploited his position as accounting manager to make false journal entries in records that created the illusion that his charges were related to UMSA’s business operations.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Jay G. Trezevant and Julie Simonsen.
Former U.S. Congressman and Philadelphia Political Operative Sentenced to 30 Months in Prison for Election FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that former U.S. Congressman Michael “Ozzie” Myers, 79, of Philadelphia, PA, was sentenced to 30 months in prison, three years of supervised release, and ordered to pay $100,000 in fines, with $10,000 of that due immediately, by United States District Court Judge Paul S. Diamond after pleading guilty to conspiracy to deprive voters of civil rights, bribery, obstruction of justice, falsification of voting records, conspiring to illegally vote in a federal election, and for orchestrating schemes to fraudulently stuff the ballot boxes for specific Democratic candidates in the 2014, 2015, 2016, 2017, and 2018 Pennsylvania elections. The defendant was immediately remanded into custody following today’s hearing.
In June 2022, the defendant admitted in court to bribing the Judge of Elections for the 39th Ward, 36th Division in South Philadelphia in a fraudulent scheme over several years. Myers admitted to bribing the election official to illegally add votes for certain candidates of their mutual political party in primary elections. Some of these candidates were individuals running for judicial office whose campaigns had hired Myers, and others were candidates for various federal, state, and local elective offices that Myers favored for a variety of reasons. Myers would solicit payments from his clients in the form of cash or checks as “consulting fees,” and then use portions of these funds to pay election officials to tamper with election results.
Myers also admitted to conspiring to commit election fraud with another former Judge of Elections for the 39th Ward, 2nd Division in South Philadelphia. Myers’ accomplice was the de facto Judge of Elections and effectively ran the polling places in her division by installing close associates to serve as members of the Board of Elections. Myers admitted that he gave his accomplice directions to add votes to candidates supported by him, including candidates for judicial office whose campaigns actually hired Myers, and other candidates for various federal, state, and local elective offices preferred by Myers for a variety of reasons.
“Voting is the cornerstone of our democracy. If even one vote has been illegally cast or if the integrity of just one election official is compromised, it diminishes faith in process,” said U.S. Attorney Romero. “This defendant used his position, knowledge of the process, and connections to fix elections for his preferred candidates, which demonstrates a truly flagrant disregard for the laws which govern our elections. He will now spend 30 months in prison as penalty for his crimes.”
“Protecting the legitimacy of elections is critical to ensuring the public’s trust in the process,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Through his actions, Ozzie Myers pointedly disdained both the will of Philadelphia voters and the rule of law. He’s now a federal felon twice over, heading back behind bars, with time to consider the great consequence of free and fair elections.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett, Chief of the Criminal Division, and Eric L. Gibson with assistance from Richard C. Pilger, the former Director of Elections Crimes Branch (retired), Criminal Division, Public Integrity Section, U.S. Department of Justice.
Former Tri-State Airport Official Sentenced to Prison for Theft of Federal FundsRead the Press Release
HUNTINGTON, W.Va. – Melissa Sue Hall, 46, of South Point, Ohio, was sentenced today to five months in prison, to be followed by three years of supervised release with the first five months on home detention with electronic monitoring, for theft of federal funds. Hall was also ordered to pay $49,478.64 in restitution.
According to court documents and statements made in court, from September 2017 until January 8, 2021, Hall was the finance director of Huntington Tri-State Airport and responsible for the accounting, depositing and withdrawing of funds from multiple revenue sources including ATMs and vending machines. Hall admitted that between May 2020 and January 8, 2021, she stopped depositing the full amounts she collected from these machines into the airport’s bank accounts. Hall further admitted that she took money from those bank accounts intended for deposit in the ATMs. During this time period, Tri-State Airport received at least $10,000 per year in federal funding, which was deposited in its bank accounts. Hall admitted to diverting nearly $49,500.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), Huntington Tri-State Airport Police and the Wayne County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-54.
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Former Naval Police Officer Charged for Making Threats in Interstate CommerceRead the Press Release
BOSTON – A former naval police officer at the Portsmouth Naval Shipyard in New Hampshire was charged yesterday in connection with allegedly threatening his ex-wife and her mother in Iowa.
Luis De Leon, 30, of Middleton, a was charged with three counts of making threatening communications in interstate commerce. De Leon, who is currently in custody at the Middleton House of Corrections on unrelated state charges, will make an initial appearance in U.S. District Court in Boston on Oct. 3, 2022.
According to the charging documents, from June 2021 until June 2022, De Leon was employed by the Portsmouth Naval Shipyard as a Naval Police Officer.
It is alleged that on or about April 30, 2022, De Leon made a threatening phone call to his ex-wife in Iowa from a mobile telephone belonging to another individual. Specifically, during the call, De Leon allegedly made several threatening statements including, “You’re gonna f****** pay! Do you understand!? There will be death! There will be war in the street! You wanna to go war!? I’ll take you to f****** war!”
On or about May 2, 2022, De Leon was arrested by Lawrence Police on unrelated charges including carrying a dangerous weapon (a hatchet knife), resisting arrest, disorderly conduct, threatening to commit a crime and motor vehicle offenses. De Leon has remained in custody since his arrest.
Between May and June 2022, while still in custody in Middleton House of Corrections, De Leon allegedly sent two letters containing threats to his ex-wife’s mother in Iowa. In the letters, it is alleged that De Leon wrote, among other things, “I’ll be heading over there soon […] God help you and your dysfunctional family if you try and stop me. I won’t be alone either just so you know and that’s for your safety NOT MINE!!! […] If you don’t believe me just look where I’m sending this from. I don’t really have much else to lose, and do you know what men with nothing left to lose usually do?”
The charge of making threatening communications in interstate commerce provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation Boston Division made the announcement today. Valuable assistance was provided by the Essex County Sheriff’s Office. Assistant U.S. Attorney Timothy H. Kistner of Rollins’ National Security Unit is prosecuting the case.
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.
Former Lawrence County Attorney Sentenced to 42 Months for Wire Fraud and Federal Program TheftRead the Press Release
FRANKFORT, Ky. – The former County Attorney for Lawrence County, Michael T. Hogan, and his wife and legal secretary, Joy M. Hogan, 41, were sentenced to 42 months and 12 months and one day, respectively, on Tuesday, by U.S. District Judge Gregory Van Tatenhove, for wire fraud. Michael Hogan was also sentenced for federal program theft.
According to the Hogans’ plea agreements, the Hogans conspired with each other to commit wire fraud by issuing checks from a second delinquent tax account for the Lawrence County Attorney’s Office, the statements for which went to their personal residence. Michael Hogan and Joy Hogan would routinely prepare “bonus” checks issued to Joy, and signed by Michael, paid with delinquent tax funds that should have been used on operating expenses for the Lawrence County Attorney’s Office. The Hogans deposited these checks in Joy’s personal account and the couple’s joint accounts and spent the funds on personal expenses. Michael Hogan admitted he personally benefitted from these payments and knew some of these payments were not reasonable in amount, nor beneficial to the public. According to the indictment, between March 8, 2013, and April 30, 2020, Michael Hogan paid Joy Hogan more than $365,000 from the Lawrence County Delinquent Tax Account.
Michael Hogan also admitted to defrauding the Lawrence County Child Support Enforcement Office, part of the Kentucky Cabinet for Health and Family Services. According to his plea agreement, Hogan billed the program for more hours than he actually worked.
“Michael Hogan turned to his own self-interests and used taxpayer money for his and his wife’s personal benefit,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “As an elected County Attorney, he was responsible for upholding the law; instead, he brazenly broke it, at the expense of those who elected him. His conduct will leave lasting damage, both from the theft and from the resulting loss of faith in government officials and law enforcement. His prosecution and sentence are the first steps in the effort to restore that faith.”
“Public corruption erodes the people’s trust in our government officials and fuels divisiveness in our community. We have been crystal clear that corruption, at any level, will not be tolerated in Kentucky, ” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “No one is above the law and the victim of this crime, the people of Kentucky, deserve better. Today’s sentence demonstrates that the FBI, and its law enforcement partners, will hold those who violate the public’s trust accountable for their actions."
As part of his plea agreement, Michael Hogan agreed to resign as the Lawrence County Attorney.
The Hogans pleaded guilty in March 2022.
Under federal law, the Hogans must serve 85 percent of their prison sentence. Upon their release from prison, both Michael and Joy Hogan will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier; FBI Special Agent Cohen; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the FBI and KSP. The United States was represented by Assistant U.S. Attorneys Kate Smith and James Chapman.
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Former Government Contractor Executive Pleads Guilty to Unlawful Campaign ContributionsRead the Press Release
A former government contractor executive pleaded guilty today to conspiring to make unlawful campaign contributions to a candidate for Congress and a political action committee (PAC), making unlawful campaign contributions, and causing the submission of false information to the Federal Election Commission.
According to court documents, Martin Kao, 48, of Honolulu, Hawaii, was the owner of a defense contractor prohibited from making contributions in federal elections. Kao and his co-conspirators created a shell company, which they used to make an illegal contribution – using government contractor funds – to a PAC supporting the election of a candidate for the U.S. Senate. Kao also used family members as conduits to make illegal contributions to the campaign committee of the same candidate, and then reimbursed them for those donations using funds obtained from Kao’s company.
Kao is scheduled to be sentenced on Feb. 9, 2023. He faces up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office; and Special Agent in Charge Christopher Dillard of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office made the announcement.
The FBI Washington Field Office and DCIS Mid-Atlantic Field Office are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Elizabeth Aloi and Joshua Rothstein for the District of Columbia 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.
Former Government Contractor Executive Pleads Guilty to Unlawful Campaign ContributionsRead the Press Release
WASHINGTON – A former government contractor executive pleaded guilty today to conspiring to make unlawful campaign contributions to a candidate for Congress and a political action committee (PAC), making unlawful campaign contributions, and causing the submission of false information to the Federal Election Commission.
According to court documents, Martin Kao, 48, of Honolulu, Hawaii, was the owner of a defense contractor prohibited from making contributions in federal elections. Kao and his co-conspirators created a shell company, which they used to make an illegal contribution – using government contractor funds – to a PAC supporting the election of a candidate for the U.S. Senate. Kao also used family members as conduits to make illegal contributions to the campaign committee of the same candidate, and then reimbursed them for those donations using funds obtained from Kao’s company.
Kao is scheduled to be sentenced on Feb. 9, 2023. He faces up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office made the announcement.
The FBI Washington Field Office and DCIS Mid-Atlantic Field Office are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Elizabeth Aloi and Joshua Rothstein for the District of Columbia 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.
Former CEO of St. Gabriel Health Clinic Convicted of $1.8 Million Medicaid Fraud SchemeRead the Press Release
After a week-long trial, a federal jury convicted the former CEO of St. Gabriel Health Clinic Inc. for conducting a multi-year, multi-million-dollar scheme to defraud the Louisiana Medicaid Program.
According to court documents and evidence presented at trial, Victor Clark Kirk of Baton Rouge, Louisiana, was the CEO of St. Gabriel Health Clinic Inc. (St. Gabriel), a Louisiana non-profit corporation that provided health care services to Medicaid recipients and others. St. Gabriel was a federally qualified health center (FQHC) that contracted with the Iberville Parish School Board to provide medical services within the school district. As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses – provided that such services were medically necessary – among other requirements.
Evidence at trial showed that St. Gabriel practitioners, at Kirk’s direction, provided character development and other educational programs to entire classrooms of students during regular class periods. Kirk then caused the fraudulent billing of these programs to Medicaid as group psychotherapy. To facilitate the fraudulent scheme, Kirk directed that St. Gabriel practitioners falsely diagnose students with mental health disorders. From 2011 through 2015, Kirk caused over $1.8 million in fraudulent claims for purported group psychotherapy services.
Throughout the week, the federal jury heard testimony from former practitioners and employees of St. Gabriel, as well as former employees of East Iberville Elementary & High School and MSA East, two Iberville Parish schools where St. Gabriel operated satellite clinics. The jury also heard testimony from parents whose children received false Axis-I mental health diagnoses in their medical records as part of the fraudulent scheme.
U.S. Attorney Ronald Gathe, Jr. stated, “The Medicaid program was established to provide healthcare to those most in need. This verdict demonstrates that the Department of Justice, along with our federal and state partners, will marshal the necessary resources to protect the vulnerable who rely on that program as well as the taxpayers who fund it.”
"I am proud of my office’s work with our law enforcement partners to help achieve this conviction,” said Louisiana Attorney General Jeff Landry. “The mental health of our State’s most vulnerable, especially in our youth, should not be jeopardized or compromised by fraudsters. I would also like to applaud our Special Agent Joseph Springer for his exceptional work that helped secure this conviction.”
“Any time greed replaces medical necessity as the primary factor in behavioral health services, our most vulnerable citizens are imperiled,” said Acting Special Agent in Charge Jeffrey Richards of the HHS Office of Inspector General's (OIG) Dallas Regional Office. “Our HHS OIG agents will continue to work closely with our law enforcement partners to investigate providers who will stop at nothing to loot the Medicaid program.”
“Today’s guilty verdict sends a clear message that individuals like Mr. Victor Clark Kirk who engage in healthcare fraud will not go undetected and will be held accountable. The FBI is determined to identify, investigate, and bring to justice those who are committing healthcare crimes to enrich themselves at the expense of others,” said FBI Special Agent in Charge Douglas A. Williams, Jr. “We thank our partners at the United States Attorney’s Office for the Middle District of Louisiana, the Department of Justice’s Criminal Division, Fraud Section, the Medicaid Fraud Control Unit, and the U.S. Department of Health and Human Services – Office of Inspector General for their strong partnership and unrelenting pursuit of justice.”
Kirk was convicted of conspiracy to commit health care fraud and five counts of health care fraud. He is scheduled to be sentenced on January 12, 2023 and faces a maximum penalty of 10 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ronald C. Gathe, Jr. for the Middle District of Louisiana; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Douglas A. Williams, Jr. of the FBI; Director Jodi Edmonds LeJeune of the Louisiana Medicaid Fraud Control Unit (MFCU); and Acting Special Agent in Charge Jason Meadows of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) made the announcement.
The FBI, MFCU, and HHS-OIG investigated the case, which was brought as part of the Gulf Coast Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.
Assistant U.S. Attorney Kristen L. Craig for the Middle District of Louisiana and Assistant Chief Justin M. Woodard and Trial Attorney Kelly Z. Walters of the Criminal Division’s Fraud Section prosecuted the case.
Kirk was initially charged as part of a National Health Care Fraud Enforcement Action announced in September 2019, when the U.S. Attorney’s Office announced charges against six (6) individuals for health care fraud in Baton Rouge.
The Gulf Coast Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 16 strike forces operating in 27 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Army Reservist Convicted of Acting Within the United States as an Unregistered Agent of the People’s Republic of ChinaRead the Press Release
A federal jury convicted a Chinese national and former Army Reservist yesterday for acting within the United States as an illegal agent of the People’s Republic of China.
According to court documents and evidence presented at trial, Ji Chaoqun, 31, of Chicago, was found guilty on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army. The jury acquitted Ji on two counts of wire fraud.
Evidence presented at the two-week trial revealed that Ji worked at the direction of a high-level intelligence officer in the Jiangsu Province Ministry of State Security (JSSD), a provincial department of the Ministry of State Security for the People’s Republic of China. Ji, a Chinese citizen residing in Chicago, was tasked with providing the intelligence officer with biographical information on certain individuals for possible recruitment by the JSSD. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom were U.S. defense contractors.
In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest (MAVNI) program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with the intelligence officer.
Ji faces up to 10 years in prison for acting within the United States as an illegal agent of the People’s Republic of China and up to five years for the conspiracy and false statement offenses. A sentencing date has not been scheduled yet. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; and Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division made the announcement.
The FBI investigated the case, with valuable assistance provided by the U.S. Army 902nd Military Intelligence Group.
Assistant U.S. Attorneys Vikas Didwania and Barry Jonas for the Northern District of Illinois and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Florida Man Pleads Guilty to $8.3 Million Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – A Florida man pleaded guilty today to conspiring to commit health care fraud in an $8.3 million scheme where pharmacy owners paid kickbacks and bribes to telemarketers and telemedicine providers to secure orders for medically unnecessary prescriptions that were billed to Medicare.
According to court documents, Michael Murphy, 37, of Fort Lauderdale, invested in Cure Pharmacy in Jacksonville and two other pharmacies that participated in the Medicare program. From in or around November 2019 through in or around March 2021, Murphy and his co-conspirators paid kickbacks and bribes to telemarketing companies in exchange for recruiting Medicare beneficiaries to accept prescriptions for various medications – mainly topical creams – which the beneficiaries usually did not want or need.
Murphy and his co-conspirators also paid kickbacks and bribes to telemedicine companies that employed or contracted with physicians who signed the prescriptions. The physicians had no physician-patient relationship with the beneficiaries and typically signed the prescriptions after a cursory telephone conversation with the beneficiary or with no contact at all. After obtaining Medicare beneficiary information and the signed prescriptions, Murphy and his co-conspirators submitted claims to Medicare for medically unnecessary medications, sometimes through multiple pharmacies they owned and controlled in a practice known as “recycling,” and were reimbursed $8.3 million by Medicare Part D.
Murphy pleaded guilty to one count of conspiracy to commit health care fraud. Murphy will be sentenced at a later date and faces a maximum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Roger B. Handberg for the Middle District of Florida; Special Agent in Charge Sherri Onks of the FBI Jacksonville Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
The FBI Jacksonville Field Office and HHS-OIG investigated the case.
Trial Attorney Gary Winters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Mesrobian for the Middle District of Florida are prosecuting the case.
Florida Man Pleads Guilty to $8.3 Million Pharmacy Fraud SchemeRead the Press Release
A Florida man pleaded guilty today to conspiring to commit health care fraud in an $8.3 million scheme where pharmacy owners paid kickbacks and bribes to telemarketers and telemedicine providers to secure orders for medically unnecessary prescriptions that were billed to Medicare.
According to court documents, Michael Murphy, 37, of Fort Lauderdale, invested in Cure Pharmacy in Jacksonville and two other pharmacies that participated in the Medicare program. From in or around November 2019 through in or around March 2021, Murphy and his co-conspirators paid kickbacks and bribes to telemarketing companies in exchange for recruiting Medicare beneficiaries to accept prescriptions for various medications – mainly topical creams – which the beneficiaries usually did not want or need.
Murphy and his co-conspirators also paid kickbacks and bribes to telemedicine companies that employed or contracted with physicians who signed the prescriptions. The physicians had no physician-patient relationship with the beneficiaries and typically signed the prescriptions after a cursory telephone conversation with the beneficiary or with no contact at all. After obtaining Medicare beneficiary information and the signed prescriptions, Murphy and his co-conspirators submitted claims to Medicare for medically unnecessary medications, sometimes through multiple pharmacies they owned and controlled in a practice known as “recycling,” and were reimbursed $8.3 million by Medicare Part D.
Murphy pleaded guilty to one count of conspiracy to commit health care fraud. Murphy will be sentenced at a later date and faces a maximum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Roger B. Handberg for the Middle District of Florida; Special Agent in Charge Sherri Onks of the FBI Jacksonville Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
The FBI Jacksonville Field Office and HHS-OIG investigated the case.
Trial Attorney Gary Winters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Mesrobian for the Middle District of Florida are prosecuting the case.
Final Co-Defendant in SEPTA Bribery and Fraud Scheme Case Sentenced to Three Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Steven Kish, 66, of Philadelphia, PA, was sentenced to three years in prison, three years of supervised release, and was ordered to pay $259,019 in forfeiture and $353,488 in restitution by United States District Court Judge C. Darnell Jones. Defendant Kish was the most prolific of the numerous SEPTA managers who participated in a scheme to defraud SEPTA of approximately $900,000.
In January 2022, the defendant pleaded guilty to theft from an organization receiving federal funds, money laundering, and wire fraud. From about 2013 through 2019, the defendant and other management-level employees working in SEPTA’s Bridges and Buildings Department (“BBD”), engaged in bribery and theft schemes with two SEPTA vendors. The BBD is responsible for maintaining, repairing, and renovating SEPTA facilities throughout the southeastern Pennsylvania region. To facilitate this work, SEPTA issued “procurement cards” (also known as P-Cards) to management-level employees working in the BBD. The P-Cards, which operate as SEPTA credit cards, are to be used for purchasing items needed for the legitimate work of the BBD.
In about 2013, a codefendant, who was the Senior Director of Maintenance at SEPTA, agreed with two other codefendants, who were SEPTA vendors, to exploit the P-Card system for their mutual benefit. The Senior Director solicited the vendors to provide him with regular cash payments of approximately $1,000 to $2,000 per month. In exchange for those payments, the vendors falsely billed SEPTA through the P-Card system for items that the vendor was not providing to SEPTA. The false charges to SEPTA covered the cash payments, plus a substantial additional amount to generate fraud proceeds for the vendor. As part of the corrupt deals with the vendors, the Senior Director encouraged other BBD managers, including Kish, the Director of Maintenance just below the Senior Director of Maintenance, to use and continue to use the vendors for SEPTA purchases, growing the vendors’ business with SEPTA.
The defendant separately asked both vendors to provide him with personal products and cash with the understanding that the vendors would use the SEPTA P-Cards to fraudulently bill SEPTA for those personal products and cash and generate additional fraud proceeds for the vendors. The total value of those items and the cash was approximately $259,000, resulting in approximately $353,488 in fraudulent billing to SEPTA. In particular, one of the vendors purchased for Kish approximately $215,000 in the form of gold bullion, gold coins, and other precious metals. The purchases included several American Gold Eagle Coins, Gold American Buffalo Coins, South African Gold Krugerrand Coins, Canadian Gold Maple Leaf Coins, Royal Canadian Mint Gold Bars, and PAMP Suisse Gold Bars. Kish also obtained from the other vendor thousands of dollars in cash and personal products, such as a gas grill.
Then in June 2019, Kish attempted to conceal the scheme from authorities by having a different SEPTA manager purchase from eBay one of the gold coins (a Canadian Mint Gold Bar for approximately $4,272) that Kish had previously obtained from a vendor as part of the scheme. Kish then provided the coin to the vendor so that he could make it appear that he had purchased that coin for himself.
All of the other codefendants in this case, including the two vendors and other former SEPTA managers, were sentenced earlier this year.
“Philadelphians deserve public employees who do their jobs honestly, without gaming the system to line their own pockets,” said U.S. Attorney Romero. “The defendant’s participation in this scheme was extensive, and as one of the highest-level managers in his department, he should have known better than to engage in this level of criminal behavior.”
SEPTA Inspector General, Denise S. Wolf, said: “SEPTA employees are hard-working and dedicated to providing our customers with safe and efficient public transportation. These bad actors were the unfortunate exception, and, through these criminal prosecutions, justice was ultimately served. The SEPTA Office of Inspector General appreciates its partnership with the FBI and the United States Attorney’s Office in investigating this matter.”
The case was investigated by the Federal Bureau of Investigation with the assistance of the SEPTA Office of Inspector General, and is being prosecuted by Assistant United States Attorney Louis D. Lappen. SEPTA Office of Inspector General (OIG) launched an investigation after its internal auditors detected fraud, and subsequently the OIG shared its findings with the FBI.
FCI Allenwood Inmate Pleads Guilty to Possessing Homemade Knife in PrisonRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christian Mendez-Castro, age 29, an inmate of Federal Correctional Institution Allenwood (FCI Allenwood), White Deer, Pennsylvania, pleaded guilty on September 21, 2022, before U.S. District Court Chief Judge Matthew W. Brann, to possessing contraband in prison.
According to United States Attorney Gerard M. Karam, Mendez-Castro admitted that he possessed a homemade weapon while he was an inmate at FCI Allenwood. The charge stemmed from an incident on November 16, 2019, when a correctional officer searched Mendez-Castro and found a hard piece of plastic fashioned into a knife with a rubber handle, as well as papers that were soaked in synthetic cannabinoids.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Geoffrey W. MacArthur are prosecuting the case.
Chief Judge Brann ordered the U.S. Probation Office to complete a presentence investigation report for Mendez-Castro. Sentencing has not been scheduled.
The maximum penalty for possessing contraband in prison is five years’ imprisonment, a three-year term of supervised release, and a fine of $250,000.
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Elk County Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
PITTSBURGH, PA – A resident of Kersey, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Melvin Shelander, age 31, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine before United States District Judge Christy Criswell Wiegand. Shelander was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Shelander was a methamphetamine distributor who obtained between 350 grams and 500 grams of methamphetamine as part of a large-scale methamphetamine distribution conspiracy and redistributed it to methamphetamine users.
Judge Wiegand scheduled sentencing for Williams on January 31, 2023, at 10:00 a.m. The law provides for a sentence of not less than five years to a maximum of forty years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain on bond pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Eldridge Man Sentenced to 15 Years in Federal Prison for Child Pornography ChargeRead the Press Release
DAVENPORT, IA – Nicholas Robert Walker-Bennett, age 33 of Eldridge, was sentenced on Monday, September 26, 2022, to 180 months in prison following his plea to a charge of Receipt and Distribution of Child Pornography. Walker-Bennett was ordered to pay $3,000 in restitution to each of his fourteen victims, totaling $42,000.
According to court documents, a cybertip received by the National Center for Missing and Exploited Children traced back to Walker-Bennett. Walker-Bennett admitted to using a social media application for the exchange of child pornography. Further investigation also revealed that Walker-Bennett engaged in similar conduct for over eleven years, taking many steps to conceal his crime by setting up numerous email addresses.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Scott County Sheriff’s Office investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
East Bay Resident Convicted of Abetting Airport Smuggler Sentenced to Ten Years in PrisonRead the Press Release
SAN FRANCISCO - Lemack Bellot was sentenced to ten years in prison for attempting to aid and abet possession with intent to distribute cocaine in connection with a scheme to smuggle drugs through San Francisco International Airport (SFO), announced United States Attorney Stephanie M. Hinds and Drug Enforcement and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris. The sentence was handed down by the Honorable Vince Chhabria, United States District Judge.
Bellot, 43, of Hayward, Calif., was convicted of the crimes on March 4, 2022, after a week-long trial. At trial, the government demonstrated Bellot attempted to facilitate the smuggling of cocaine through SFO in May 2018 and in November 2018. Unbeknownst to Bellot, the shipments were not actually cocaine because he was negotiating with a confidential source (CS) working for the DEA. The DEA was investigating Bellot based on information that Bellot had been paying airport employees to allow drugs to be smuggled past airport security. The CS, posing as an Atlanta-based drug trafficker, met with Bellot at a bar in Hayward, Calif., where the two discussed using Bellot’s connections at Bay Area airports to smuggle drugs. Over the next eight months, Bellot made arrangements on six occasions in an attempt to assist the CS to smuggle drugs through Bay Area airports.
In February 2019, a federal grand jury indicted Bellot for attempting to aid and abet the possession with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B)(ii)(II), and attempting to aid and abet the possession with intent to distribute 5 kilograms or more of cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)(ii)(II). In March of 2022, a federal jury found Bellot guilty of both counts.
Papers submitted by the government after Bellot’s conviction describe additional facts considered by the court in connection with Bellot’s sentencing. According to the government’s sentencing memorandum, Bellot tried on multiple occasions to sell heroin to the CS and to buy cocaine from him. In addition, shortly before his originally scheduled sentencing in July 2022, Bellot attempted to flee the United States. Specifically, Bellot boarded a commercial cargo freighter that was leaving from Miami, Fla. and was bound for Haiti. The U.S. Coast Guard learned of Bellot’s plans after which agents arrested Bellot aboard the vessel.
In addition to the 10-year prison term, Judge Chhabria ordered Bellot to serve a term of five years of supervised release.
Assistant United States Attorneys Molly A. Smolen and Daniel Pastor prosecuted the case. This investigation and prosecution is part of the Organized Crime and Drug Enforcement (OCDETF) Section, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.The prosecution is the result of an investigation by the DEA.
Duquesne Man Pleads Guilty to Distributing Controlled Substances and Possessing a FirearmRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, Pennsylvania, pleaded guilty in federal court to charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Cindy K. Chung announced today.
Brandon McCaskill, age 28, pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on August 17, 2020, officers with the Duquesne Police Department attempted to locate a suspect in an unrelated investigation at Brandon McCaskill’s residence in Duquesne, PA. Upon arriving at the residence, officers observed McCaskill seated on the front porch with a backpack between his legs. ]Officers also detected the strong odor of marijuana. As a result, law enforcement applied for and obtained a search warrant for the porch of the residence.
The backpack between McCaskill’s legs contained a loaded handgun, controlled substances packaged into 11 bricks stamped “Dr. Pepper”, and several plastic bags. A “brick” is typically comprised of 50 glassine bags. From on and underneath a couch on the porch, officers recovered two digital scales, bulk United States currency, and additional packaged controlled substances. The Drug Chemistry Section of the Office of the Medical Examiner, Allegheny County, tested the seized substances. The laboratory confirmed that the bricks marked “Dr. Pepper” contained a mixture of fentanyl and tramadol; that other bricks contained a mixture of heroin, fentanyl, and tramadol; and that some plastic baggies contained cocaine.
Judge Conti scheduled sentencing for Jan. 26, 2023, at 11:00 a.m.. The law provides for a total sentence of life in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded into the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Duquesne Police Department conducted the investigation that led to the prosecution of McCaskill.
Drug Traffickers Involved in Fatal Eastern Avenue Gunfight Plead GuiltyRead the Press Release
ROANOKE, Va. – Two more Roanoke men involved in a fatal shooting at an Eastern Avenue drug house in the City of Roanoke pleaded guilty today in federal court for their roles in the shootings and related drug trafficking activity.
Chad Matthew Custer, 23, and Aaron Lee Woods, 28, pled guilty today to one count each of possession with intent to distribute and distribution of 100 kilograms or more of marijuana as well as one count of discharging a firearm in furtherance of a drug trafficking crime.
Darion Mantez Harvey, 24, previously pleaded guilty to similar charges and was sentenced in May 2022 to 26 years in federal prison. Custer and Woods face a sentence of 10 years to life in prison.
“The rise in violent crime we have seen in the Western District of Virginia must be met by an all-hands-on-deck approach to law enforcement. Local, state, and federal agencies are working together to bring to justice those individuals who act with brazen disregard for human life,” United States Attorney Christopher R. Kavanaugh said today. “In this gun battle, a young man lost his life, and three others will be changed forever. Violence is never a solution, and those who choose to engage in violence will be held accountable.”
“We are fully prepared to handle to the challenges that surround combating violent gun crime and narcotics distribution within our communities,” said ATF Washington Field Division Special Agent in Charge Charlie J. Patterson. “We will continue to utilize intelligence led policing methods as we work alongside our law enforcement partners. This collaboration will continue to aid in dismantling drug trafficking organizations and disrupting the illegal possession of firearms that often plague our neighborhoods.”
“Gun violence is often a companion to drug trafficking, and this is an unfortunate result of that pairing. Nothing can erase the pain that the family and loved ones of this young man feel after his life was taken, but we hope this plea brings some amount of peace and comfort to them,” said Roanoke Police Chief Sam Roman. “This investigation was difficult and lengthy, but we are glad we could work with our partners at the state, local, and federal level to achieve this outcome. Violent crime has no place in Roanoke. The members of the Roanoke Police Department are committed to doing all we can to identify those who are perpetrating violent crime in our community and hold them accountable for their actions.”
According to court documents, in October 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating a drug trafficking organization involving Woods, Custer, and Harvey.
During the course of the investigation, authorities learned that Woods, Harvey, Custer, and other co-conspirators used Woods’ apartment on Eastern Avenue as the primary site for their large-scale distribution of marijuana in the Roanoke Valley from late 2017 through approximately August 2019. Witnesses told police that customers would stream in and out of the apartment at all hours of the day and night buying marijuana from the defendants, who kept their loaded firearms in plain view.
In the early evening hours of July 10, 2018, a car containing five individuals arrived at the Eastern Avenue apartment where a gun battle broke out with Harvey, Woods, and Custer on one side and the newly-arrived individuals on the other. While four of the individuals fled on foot, a fifth individual was in a vehicle driving away from the scene when a bullet struck him in the back of the head and killed him.
Investigators recovered multiple firearms used by Woods, Harvey, and Custer during the shootout, including high-powered, military-style rifles with laser sights as well as multiple handguns and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Roanoke Police Department investigated the case, with assistance from the Drug Enforcement Administration.
Assistant U.S. Attorneys Kari K. Munro, Charlene R. Day, and Matthew M. Miller prosecuted the case for the United States.
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.
Dripping Springs Woman Found Guilty of FraudRead the Press Release
SAN ANTONIO – Today a federal jury convicted a Dripping Springs woman for defrauding the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) of over $300,000.
According to court documents and evidence presented at trial, Josephine Casandra Perez-Gorda, 39, defrauded the VA and SSA by overstating the severity and extent of her spouse’s disability from October 2011 through August 2017. Mr. Perez, now deceased, was an Army veteran who participated in the fraud. The Perezes claimed Mr. Perez was paralyzed from the waist down from an injury he suffered while on active duty. The ruse included applying for and receiving a specially equipped vehicle, a specially adapted home and additional compensation based on his disability rating.
The investigation began after KENS5 ran a news story titled, “Homes for Our Troops Questions Veteran’s Paralysis after Video.” The news story involved a specially adapted house in Dripping Springs that was gifted to the Perezes by the non-profit foundation Homes for Our Troops in December 2013. Although Mrs. Perez claimed her husband was “paralyzed from the belly button down,” Mr. Perez was seen walking around the neighborhood and playing basketball. VA Office of Inspector General (OIG) agents videotaped Mr. Perez walking around without assistance.
Mrs. Perez furthered the scheme by completing all the VA and SSA paperwork claiming Mr. Perez was paralyzed in both legs.
Mrs. Perez was found guilty of 11 counts of wire fraud; one count of mail fraud; one count of health care fraud; three counts of false statements related to a health care matter; one count of conspiracy to commit health care fraud; and one count of theft of government funds. Sentencing is set for December 20, 2022. She faces up to 20 years in prison on each of the wire fraud and mail fraud charges; up to 10 years in prison on each of the health care fraud charges and the theft of government funds charge; and up to five years in prison on each of the false statements related to a health care matter.
U.S. Attorney Ashley C. Hoff of the Western District of Texas, VA-OIG SAC Jeffrey Breen and SSA-OIG SAC Jason Albers made the announcement.
The VA-OIG and SSA-OIG are investigating the case.
Assistant U.S. Attorney Gregory Surovic and Special Assistant U.S. Attorney Tiffany Miller are prosecuting the case.
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Dover Man Who Impersonated a Federal Officer Sentenced to Six Months in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Dover man was sentenced to six months in federal prison for impersonating a federal officer. The sentence was pronounced by Chief U.S. District Judge Colm F. Connolly.
According to court documents, David Perrera, 50, called a Sheriff’s Office in Tennessee from Delaware pretending to be a member of the U.S. Marshals Service. Perrera used this false identity to obtain personal information about another person, including that person’s address and the make and model of that person’s vehicle. This is the latest in Perrera’s decades-long criminal history, including multiple prior crimes involving deceit, as well as theft and firearms offenses.
“Serving as a law enforcement officer is an honorable profession. Perrera’s deceitful conduct put both the public and law enforcement at risk. Fraudsters cannot be allowed to erode confidence in our public servants,” stated U.S. Attorney Weiss.
U.S. Marshal for the District of Delaware Michael McGowan stated, “These are challenging times for law enforcement. Mr. Perrera’s illegal representation of himself as a Deputy U.S. Marshal damages the trust and faith that the public should have in law enforcement. We appreciate our agency’s partnership with the U.S. Attorney’s Office who brought this case to a successful conclusion.”
Assistant U.S. Attorney Graham Robinson prosecuted the case, which was investigated by the U.S. Marshals Service.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-28.
District Heights Drug Dealer Sentenced to over Seven Years in Federal Prison for Illegal Possession of a .357 Caliber Machinegun and for Cocaine DistributionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Larry Clinton Proctor, age 33, of District Heights, Maryland, today to 87 months in federal prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine and cocaine, and for illegal possession of a machinegun.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office's Criminal Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Proctor’s guilty plea, between May 13, 2021 and June 24, 2021, law enforcement arranged four controlled purchases of a total of approximately 194 grams of crack cocaine from Proctor. On each occasion, Proctor confirmed the amount of the purchase and the meeting time and location. At the direction of law enforcement, the person conducting the buys would meet with Proctor, obtain the narcotics, pay Proctor, then leave the area.
As detailed in his plea agreement, after the controlled buy on June 24, 2021, law enforcement stopped Proctor’s vehicle and Proctor was arrested. The serial numbers of the cash recovered from Proctor’s vehicle matched the serial numbers of the pre-recorded funds used by law enforcement in the drug transaction with Proctor.
A search warrant was also executed at Proctor’s residence on June 24, 2021. Law enforcement recovered 27 firearms from Proctor’s home, including a .357 caliber machinegun with an obliterated serial number and a 3D printed switch, which made the firearm fully automatic. The other guns recovered included: two 12-gauge semi-automatic shotguns; a .357 caliber semi-automatic pistol; three .44 caliber revolvers; a 9mm semi-automatic pistol; five .45 caliber semi-automatic pistols—two with obliterated serial numbers; two 7.62x25 caliber semi-automatic pistols; a .45 caliber/.410 gauge caliber revolver; two .500 caliber revolver; three 7.62x39mm caliber semi-automatic pistols—one with an obliterated serial number; a.22LR caliber semi-automatic pistol; two .50 caliber semi-automatic pistols; a .308 caliber semi-automatic pistol with an obliterated serial number; and two firearms silencers. In addition, law enforcement recovered approximately 1,358 rounds of ammunition; multiple high-capacity magazines; a tactical scope; speed loaders; two body armor vests; other firearms parts and accessories; and a digital scale with cocaine residue.
A gold Mercedes sedan was parked in front of Proctor’s home during the search. A canine unit performed a scan of the Mercedes and provided a positive alert on the vehicle. Law enforcement subsequently obtained and on June 30, 2021, executed, a search warrant on the Mercedes. Approximately 351 grams of cocaine and approximately 75 grams of crack cocaine was found in the car.
Proctor admitted that he possessed the crack cocaine and cocaine with intent to distribute it and that he possessed the machinegun and other firearms to facilitate his drug distribution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the FBI, the Montgomery County Police Department, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Jared Engelking, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Detroit man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tommie D. Rice, of Detroit, Michigan, has admitted to conspiring with another individual to violate federal firearms laws, United States Attorney William Ihlenfeld announced.
Rice, 22, pleaded guilty this week to one count of “False Statement During Purchase of Firearm.” Rice admitted to knowingly making a false and fictitious written statement to purchase a firearm in April 2019 in Harrison County.
Rice is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Department of Justice Announces Results of Enforcement Surge to Reduce the Fentanyl Supply Across the United StatesRead the Press Release
The U.S. Department of Justice Drug Enforcement Administration (DEA) 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 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, 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.
“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.”
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.
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.
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.
Defendant charged in Zuni shooting caseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Nicholas Pinto has been charged with assault resulting in serious bodily injury and discharging a firearm during a crime of violence in Indian Country. Pinto, 23, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, appeared for a detention hearing on Sept. 26, and will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Sept. 17, Pinto and another person arrived at the home of a Zuni resident, identified as John Doe. Pinto allegedly had a conflict with one of the people at the residence. To avoid any fighting in the residence, John Doe forced Pinto to leave.
Later, in the early morning of Sept. 18, Pinto allegedly returned to the residence. John Doe answered a knock at the door to find Pinto with a shotgun. As John Doe attempted to walk away, Pinto allegedly shot him in the leg. Pinto allegedly attempted to shoot John Doe again, but the shotgun failed to fire.
John Doe, who is an enrolled member of the Pueblo of Zuni, received emergency treatment at the scene and was transported to the University of New Mexico Hospital for care.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Pinto faces a minimum of 10 years and up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Kyle Nayback is prosecuting the case.
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Couple from Many, Louisiana Sentenced to Federal Prison for Trafficking MethamphetamineRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Elena E. Rivers, 30, and Tryton Alonzo Thomas, 33, both of Many, Louisiana, have been sentenced for conspiracy to possess with the intent to distribute methamphetamine in the Sabine Parish area. United States District Judge Donald E. Walter sentenced the defendants as follows:
Thomas was sentenced to 262 months (21 years, 10 months) in prison, followed by 5 years of supervised release. Rivers was sentenced to 120 months (10 years) in prison, followed by 5 years of supervised release.
Agents with the Federal Bureau of Investigation (FBI) and the Sabine Parish Tactical Narcotics Team began an investigation into the drug trafficking activities in the Many, Louisiana area. According to evidence presented to the court, Thomas sold methamphetamine to numerous individuals. Specifically, law enforcement agents obtained video evidence in September 2021, when Thomas sold over 100 grams of methamphetamine on four occasions. On September 29, 2021, agents observed Rivers drive Thomas from her house to conduct a drug transaction. When Thomas and Rivers arrived, law enforcement agents attempted to make a traffic stop but Rivers placed the car in gear and fled the scene. As she fled, she narrowly missed hitting two deputies who were on foot. During the chase that ensued, deputies observed Thomas throw a bag containing a white substance from the car. Deputies were able to locate and recover the bag which contained methamphetamine. Rivers and Thomas were apprehended by law enforcement agents. Following the chase, deputies executed a search warrant on Rivers’ residence and discovered methamphetamine, marijuana, 60 ecstasy pills, and numerous prescription drugs.
The case was investigated by the FBI and the Sabine Parish Tactical Narcotics Team and was prosecuted by Assistant U.S. Attorney Robert F. Moody. This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Council Bluffs Man Sentenced for Child Pornography and Enticement OffensesRead the Press Release
COUNCIL BLUFFS, IA – Jason Lauran Kinman, age 40 of Council Bluffs, was sentenced on September 20, 2022, to 25 years in prison following his plea to charges of Distribution and Production of Child Pornography and Coercion and Enticement of a Minor. Kinman must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
In July 2021, a concerned family member made a police report after finding Kinman in a car with a 13-year-old girl in the backseat with him. Officers obtained Kinman’s social media history and found that Kinman was communicating with several minor females in an inappropriate sexual manner, including requesting naked photos or videos from them, and sending sexual photos and videos of himself and other minor females. Law enforcement executed a search warrant at Kinman’s residence in Council Bluffs and seized electronic evidence. A forensic examination identified numerous images of child pornography.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Buena Vista County Sheriff’s Office, Iowa Division of Criminal Investigation, Internet Crimes Against Children, and Council Bluffs Police Department investigated the case.
This case was prosecuted as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Conehatta Man Sentenced to 15 Years in Prison for Sexual Abuse of ChildRead the Press Release
Jackson, Miss. – A Conehatta man was sentenced today to 180 months in federal prison, followed by a lifetime of supervised release, for the sexual abuse of child less than 12 years of age, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Kenneth John, 48, of the Conehatta Community of the Choctaw Indian Reservation sexually abused a 12-year-old female child.
A bill of information filed in May of 2022 charged John with abusive sexual contact of a minor under the age of 12. John subsequently pled guilty to the charge.
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.
Clearfield Woman Sentenced to 57 Months in Prison and 3 Years of Supervised Release for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Clearfield, PA, has been sentenced in federal court to a total of 57 months in prison followed by 3 years of supervised release on her conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Nicole Gaines, age 42, of Clearfield, Pennsylvania.
According to information presented to the court, from July 2019 to June 2020, Gaines conspired to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Gaines. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.